The moment you make the decision to file for Chapter 7 Bankruptcy Minnesota, all the assets you own will automatically transfer to the state, unless stated otherwise. This is the key reason why filing for bankruptcy is commonly referred to as liquidation. The trustee is the person or company appointed by the court to oversee the liquidation of your assets.
The duties and responsibilities of a trustee are quite simple. Identify a buyer for the assets that are now the property of the State of Minnesota. The funds obtained from the sale will then be used to settle the debts you owe. If the money arising from the sale is not enough to settle all your credits, the state will automatically write off any debt that you may owe.
Unfortunately, understanding MN Bankruptcy can be challenging and confusing for a layman. It is for this reason that you need to consider hiring a bankruptcy lawyer in Minnesota the instant you realize that you are not in a position to meet your financial obligations. Listed below are the things that you need to do before filing for bankruptcy in Minnesota.
1. Consider all your options
Prior to filing for MN Bankruptcy you need to take time and weight all your options. Whereas the move will safeguard you from the threats and constant harassments from creditors, it will make you ineligible for reduced mortgage interest rates. Moreover, you may also not be able to get a credit card with friendly interest rates. Unless you are ready to handle unfavorable interest rates for the next 8-10 years, file for bankruptcy.
2. Find a reputable bankruptcy attorney
Your next course of action should be to find a reputable MN Bankruptcy Attorney. Whereas this is not necessary, it is crucial that you get one since the counsel offered by the attorney will be invaluable. For instance, before filing for bankruptcy, the attorney will go through all your current income and expenditure and advice you on the areas where you need to cut down on in order to meet your financial obligations. On the other hand, the attorney may also identify a couple of assets that you can sell in order to repay some of your debts.
