The role of an attorney in any bankruptcy case is to make sure that all of your debts are being addressed and managed correctly. Any missteps can create problems that can derail your plans to get out of debt. Who you choose to be your bankruptcy attorney is the most important step in building your bankruptcy case. Here is a deeper look at what Kain + Henehan, bankruptcy attorneys in St. Cloud, MN, do to help with liquidating debt efficiently.
Create a List of Debts With Values
Before you can start Chapter 7 debt resolution, your attorney creates the list of assets to be included in the process. When you file, this list is used to determine what assets will be liquidated and which ones need to be protected.
Another important part of this list is the valuation of each item on the list. These values are used when liquidating assets. The trustee who oversees the process has a responsibility to sell for as much money as possible, so they need to know how much to sell each asset for.
Protecting Exempt Assets
While your lawyer doesn’t handle the selling of assets, they do play an important part in protecting assets that can be exempt. Certain assets, like your primary residence and your primary vehicle, can be protected from the bankruptcy process. That way, you can keep certain things and not have to worry about selling them.
To have these items protected, your lawyer must file claims for them at the beginning of the bankruptcy process. It is very important that your lawyer completes the paperwork correctly and doesn’t miss anything. Otherwise, you may lose the protection for those assets and they will be added to the trust to be sold.
Developing a Debt Repayment Plan
Your lawyer also helps develop the debt repayment plan based on your assets and earnings. The plan identifies what your income is and takes whatever extra there is to put toward debt payment. Then, the plan accounts for which assets should be sold to help pay off the debt within a few years. That way, you can liquidate fewer assets overall in order to pay off the debt.
Set Up a Trust
The next part of the bankruptcy sees the court setting up a trust to manage any assets that need to be liquidated. The trustee uses the valuations on the list to try to sell each item. Your lawyer helps in this process by identifying assets to be sold and how to apply the sales to which debts.
Monitors Auctions and Sales
Your lawyer watches the liquidation process to make sure that everything that is sold sells for the highest price possible. The more you sell each asset for, the less you may have to sell overall to pay debts. Your lawyer makes sure that the trustee is doing their job and earning as much for the trust as possible.
Negotiating the Debt Repayment Amount
In bankruptcy, you may not pay the full amount of your debt. Instead, you may have to pay a portion of it and have the rest forgiven as long as you reach the required amount and stick to the repayment plan. Your lawyer plays an important role in determining what the exact repayment amount is. They can negotiate on your behalf with the court and individual creditors to reduce that amount as much as possible.
Work With a Bankruptcy Attorney for Better Results
To get the best results in your bankruptcy case, work with a bankruptcy attorney. They can help create the resources and plans that you need for a successful bankruptcy, and they help manage the process from start to finish. Liquidating debt efficiently ensures you minimize financial burdens while protecting your essential assets. With the right strategy, you can emerge from bankruptcy debt-free while keeping the most important things you own. Call Kain + Henehan, bankruptcy attorney in St. Cloud, MN, at (612) 438-8006 or fill out the online form so we can work through this process together.
