Bankruptcy in Bismarck, ND

The journey through financial difficulties can seem complex and intimidating. However, there may be a path that can lead to a fresh start and a brighter future in Bismarck.

Bankruptcy can offer a path to regain control of your finances. Expert legal advice can help stop harassing calls from creditors and discharge overwhelming debts.

Begin your journey to financial recovery now. Read on to discover options that may surprise you under state and federal law.

Types of Bankruptcy in Bismarck, North Dakota

Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Bismarck, ND to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.

Most bankruptcy petitions from Bismarck go through the U.S. Bankruptcy Court for the District of North Dakota. This federal judiciary has jurisdiction over local cases.

Chapter 7 Bankruptcy

Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Bismarck  who can help you to decide if a liquidation plan is right for you.

Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.

Furthermore, means testing is crucial in the Chapter 7 bankruptcy process. This test assesses your financial situation against the median income in North Dakota. Typically, anyone who makes less can qualify. However, Bismarck locals may have to file for Chapter 13 instead.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.

Filing for Chapter 11 in Bismarck requires many detailed and complex forms. You must submit schedules for assets, liabilities, income, and expenditures, among other details. Your most recent tax return and a list of creditors will also be essential.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Bismarck, ND after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.

You must answer many detailed questions when you file for Chapter 13 bankruptcy in Bismarck. The court must know about your sources of income, living expenses, debts, and recent financial transactions. These comprehensive disclosures are crucial to receive approval for your repayment plan.

The Bankruptcy Process in Bismarck, North Dakota

There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation and help you get back on track.

In Bismarck to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.

There are several critical bankruptcy exemptions available under North Dakota state law. A few notable examples include the following:

• You can claim up to $100,000 in equity in your home, mobile home, or house trailer in Bismarck.
• The motor vehicle exemption protects up to $2,950 in equity in a car, truck, van, or motorcycle. The amount increases to $32,000 for a modified automobile for disabled individuals.
• Heads of household can take a wildcard exemption for up to $7,500 of any property.
• The personal property exemption gives you up to $5,000 in clothing and provisions for one year for your family.

At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.

Work With an Experienced Bismarck, North Dakota Lawyer

Hiring a local bankruptcy lawyer in Bismarck during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts that can be discharged or can’t be discharged. An experienced North Dakota attorney can also offer you guidance to improve the outcome of your case.

Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Bismarck can guide you through the entire bankruptcy process. We can even help you connect with an attorney across North Dakota state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!