Fargo Debt Relief: Bankruptcy Solutions for Financial Freedom

One of the most effective ways to combat mounting debt is filing for bankruptcy. Most individual debtors will file for either Chapter 7 bankruptcy or Chapter 13 bankruptcy, based on their income level (Chapter 7 is for those with lower income, and Chapter 13 is for those with adequate disposable income). 

Both bankruptcy options will conclude with a discharging of your debts, though there are significant differences in the process and duration:

• Chapter 7 bankruptcy involves liquidating your nonexempt assets and using the funds to repay your creditors. However, important assets like your home will be exempt from liquidation. Chapter 7 is consequently a quicker process with the goal of paying off your debt and clearing your slate as soon as possible.
• Chapter 13 bankruptcy is centered on a 3-5-year repayment plan you will develop to pay back your creditors over time. With this option, you will not be required to liquidate your property, but you will be expected to direct your disposable income towards debt repayment until the end of your repayment plan.

After you have met the requirements of your bankruptcy case, the court will discharge your unsecured debt, which includes the following:

• personal loans;
• credit card bills;
• medical debt;
• utility bills;
• any other debt that does not involve collateral (does not have any other assets linked to it).

While unsecured debt may not include all your debt, having even some debts discharged will relieve you from a significant amount you will be required to pay back and preserve the funds you currently have. You will gain more financial freedom to direct your energy and attention towards rebuilding your financial health.

Explore Your Student Loan Bankruptcy Options in Fargo

The process for discharging student loan debt is slightly more complicated, as bankruptcy does not automatically discharge student debts. Instead, you and your attorney will need to file an adversary proceeding requesting the bankruptcy court to discharge your student debt. To decide this, the court will examine whether the debt poses an “undue hardship” on your life.

Bankruptcy: Your Legal Shield Against Creditor Actions in Fargo

Under the Fair Debt Collection Practices Act, you have the right to protection against creditor harassment (constant phone calls meant to pester you, falsely threatening letters, etc.). Our attorneys can help you assert your rights as a debtor and help you stay focused on your finances.

Filing for bankruptcy also offers significant debtor protection in a more active form. Once you file for any kind of bankruptcy, the court will implement an “automatic stay” that halts collection actions against you. This means you will receive immediate legal relief from:

• Wage garnishment
• Foreclosure
• Repossession of your property
• Creditor harassment
• Lawsuits from collectors and creditors

It is in your best interests to consult a debt relief lawyer to discuss your legal options. There is light at the end of the tunnel, and our award-winning lawyers at The Dakota Bankruptcy Firm will help you out of your debt and towards financial freedom. We can assess your financial situation and help you determine your best bankruptcy option for debt relief, as well as work with you on clearing specific debts like student loans.

Ready for a Fresh Start? Contact Our Fargo Bankruptcy Attorneys Today to schedule a free initial consultation. Let’s get started on your Fargo debt relief plan ASAP.