You may consider bankruptcy if finding yourself in great debt. This solution can reduce the financial pressure you are dealing with. However, evaluating all details of your situation, especially with the help of a specialized attorney, can help determine whether you should pursue bankruptcy. Understanding the implications of this process is important before you enter it.
Bankruptcy can help alleviate a large number of debts, but it comes with obligations that may vary according to your case. Different types of bankruptcy exist, and each has its own requirements and steps. Bankruptcy may be an effective solution for your financial needs, but you should carefully review what it entails first.
When Can You File for Bankruptcy in South Dakota?
Federal laws govern the bankruptcy process rather than state laws, but South Dakota laws affect what type of property you may keep. If you are considering bankruptcy, you need to understand your various options and find the appropriate chapter that meets your needs.
Chapter 7 is a common choice because it only requires a few months, and it is a more affordable option. You do not need to pay anything to your creditors. If you have substantial assets, you may lose them under this chapter. Chapter 7 does not offer a payment plan to let you cover late payments like a mortgage.
If you choose Chapter 13 bankruptcy, you need to pay creditors fully or partially, but you can benefit from a three to a five-year repayment plan. It can also help you avoid foreclosure. You should keep in mind that Chapter 13 can be expensive and not everyone can afford the necessary monthly payments.
If you are considering bankruptcy for your small business, you should talk to a specialized attorney to understand what to expect as the process differs from consumers' bankruptcy.
In South Dakota, you usually meet the initial requirements for bankruptcy if you never filed for it before. If you previously filed for bankruptcy, you need to wait for a mandatory period before you are eligible to apply again. Your lawyer can also help you understand what additional requirements you must meet for the bankruptcy chapter you want to apply for.
What to Consider Before Filing for Bankruptcy
Before starting the bankruptcy process, you want to carefully review how it may impact:
- Your future ability to access credits or low-interest rates
- Your credit report
- Your asset possession
- Your credit card debt
- Your pension plan
- Your future ability to rent an apartment or home
- Your career
Filing for bankruptcy takes time and can have expensive costs. Certain debts are exempt from the process such as federal student loans, tax fines, or child support.
You must carefully submit accurate information when filing for bankruptcy otherwise you could face criminal charges. You will not be able to keep your bankruptcy situation private as institutions governing bankruptcy cases must make them public.
Keep in mind that if you file for bankruptcy, the process cannot be undone. Bankruptcy is final.
Benefits of Filing for Bankruptcy
If bankruptcy meets your needs, it can significantly alleviate your financial and personal stress.
Filing under an appropriate bankruptcy chapter can help:
- Get a court-appointed representative
- Grant automatic stay that eliminates harassment from collections agencies or lawsuits from debt collectors
- Address back taxes
- Avoid foreclosure or wage garnishment
- Write off many debts
- Give you a clean slate to build a safer financial future
Why Is Hiring a Bankruptcy Attorney Important?
The bankruptcy process is complex, no matter which chapter you choose. The law does not require you to hire a lawyer, but working with an experienced attorney can help you make informed decisions about your situation. Your attorney may recommend alternative solutions to bankruptcy, including debt consolidation, to help you improve your financial issues. Your lawyer provides thorough and up-to-date knowledge about the bankruptcy process which allows you to file for it with greater peace of mind.
At Ronke Law, we go an extra step and help you rebuild your credit after bankruptcy. Our goal is to help you get back on track as fast as possible. We can help you with the 720CreditScore Program, an effective educational resource. We provide it to our clients at no charge.
The benefits of this program include:
- How to rebuild your score as fast as possible
- How many credit cards you should have
- Help you correct any errors on your credit report that hold your credit score down
Our attorneys want you to have all the tools and guidance necessary to rebuild your credit for long-term stable finances. If you would like to understand the basics of how to rebuild your life after bankruptcy, you can download our free eBook on the topic. The information in this eBook can be a solid basis to discuss your options after going through the bankruptcy process.
If you are considering bankruptcy in Sioux Falls or its surrounding areas, call Ronke Law today at (605) 250-9988 or click here to schedule a free consultation!