Bankruptcy in Great Falls, MT

Bankruptcy offers a legal pathway to reset your financial situation in Great Falls. With the complexities of bankruptcy law, finding the right lawyer becomes not just beneficial but essential.

This article will guide you through the labyrinth of bankruptcy. You can start making informed decisions and find legal help here today!

Types of Bankruptcy in Great Falls, Montana

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 Great Falls, MT 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.

Bankruptcy cases from Great Falls go to the U.S. Bankruptcy Court for the District of Montana. This federal court specializes in handling all bankruptcy matters for residents and businesses.

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 Great Falls  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.

Generally, the stay should remain in effect until your bankruptcy case concludes. However, creditors can petition the court to lift a stay for Great Falls residents.

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.

Applicants from Great Falls must submit a petition to the bankruptcy court. You must also include detailed forms outlining your financial status, including assets, liabilities, income, and expenses. Additionally, you should have a list of all creditors, their claims, and tax returns. This process also includes presenting a reorganization plan for businesses.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Great Falls, MT 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 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 allow you to have some or most of your debts discharged.

The process for Chapter 13 entails submitting a comprehensive packet of forms. Great Falls residents should complete the following:

• Petition
•  Schedules of assets and liabilities, current income and expenditures
• Executory contracts
• Unexpired leases
• Statement of financial affairs.
• Certificate of credit counseling

The Bankruptcy Process in Great Falls, Montana

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 Great Falls 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.

Individuals filing for bankruptcy can claim exemptions to safeguard their assets from creditors. These exemptions include protecting equity in a primary residence in Great Falls. Personal property such as household goods, clothing, and tools of the trade also have provisions.

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 Great Falls, Montana Lawyer

Hiring a local bankruptcy lawyer in Great Falls 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 can be discharged or can’t be discharged. An experienced Montana 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 Great Falls can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Montana state lines.

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