Understanding Why Bankruptcy is Helpful

Understanding Why Bankruptcy is Helpful

lawyer trying to help client understand why bankruptcy is helpful.

Bankruptcy is often seen negatively, but that is not necessarily true. It is a process that is a right in America and can help you get out of debt and gain a fresh start. It will take some adjustments and a bit of sacrifice on your part but getting out from under crippling debt is a fair trade-off. Let’s take a deeper look at why bankruptcy is helpful.

Bankruptcy Protects Critical Assets

When you are in debt, there can be a constant fear that you will lose everything. For most people, this may mean worrying about losing the house that love, or vital transportation (their car), or any number of beloved possessions. Certain types of bankruptcy can actually offer protection for critical assets.

For example, chapter 13 type of bankruptcy is available to people that make over the median income in Minnesota and don’t qualify for a chapter 7 bankruptcy. It’s also available to people with any type of income that have fallen behind on rent, mortgage or car payments or have tax debt to work out. At Kain + Henehan, we develop a chapter 13 plan with you.

As experienced bankruptcy attorneys, we, Bill Kain and Margaret Henehan, have helped many Minnesotans with compassionate advice, legal guidance, and proper bankruptcy filing. We are proud of helping our clients regain their financial footing.

Bankruptcy Helps You Find a Way to Pay Your Debt

Bankruptcy often gives you an organized way to repay your debts. Part of chapter 13 bankruptcy is filing a payment plan based on your assets and income while restructuring some debt.

At Kain + Henehan, the payment plan is not developed by the Judge or your creditors, it’s developed with your particular circumstances in mind. If the payment plan doesn’t work for you, it won’t work for anyone else either! This type of bankruptcy can be a way to keep your property and pay off debts over time. 

Bankruptcy Limits How Long You Stay In Debt

People in debt often feel there is no way out, but bankruptcy can change that. It limits how long you have to make payments to five years at most for chapter 13. That means you will be out of debt in five years if you stick to the payment plan. That can significantly relieve the stress of worrying about your future.

Bankruptcy is Not the End – It is a Beginning

You can recover from bankruptcy, so it won’t hurt your finances for the rest of your life. Over time your credit score will improve. You will be able to start saving instead of putting every penny you earn towards debts and creditors.

Many people who file for bankruptcy have fallen on hard times because of unexpected events such as an accident, job loss or major illness. Medical debt is one of the leading reasons for families seeking relief through bankruptcy. Instead of viewing bankruptcy as a failure, think of it as the smart way to address your financial difficulties in a constructive and efficent way. At Kain + Henehan, we want your bankruptcy to be a positive turning point where you can shed problems with debt and gain a fresh start financially.

Schedule a Consultation With a Minnesota Bankruptcy Lawyer

We hope you have learned a bit about why bankruptcy is helpful. To learn if bankruptcy may be helpful in your situation, please give us a call. Bankruptcy can be a complex process, but we try to make it understandable and accessible. Having us as the right lawyer on your side, we make our process easy to manage and less stressful.

If you or someone you know needs to learn about personal bankruptcy, or filing for bankruptcy, contact Kain + Henehan by calling (612) 438-8006 or filling out the online form to tell us about your situation.

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