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What Can Bankruptcy Do For You?

Filing bankruptcy in Minnesota provides two main types of benefit:

Immediate Protection from Creditors. Whether you file for bankruptcy under chapter 7, 11, or 13, you are protected by the Automatic Stay. The Automatic Stay is a powerful concept. Generally creditors must immediately halt all debt collection or repossession activities. Similarly, all lawsuits against you must stop.

Of course, there are limits on the automatic stay. For example, the automatic stay usually does not postpone criminal actions against the debtor, divorce proceedings, or eviction actions. If you have questions about what types of proceedings bankruptcy can stop, you should contact a bankruptcy attorney to schedule a free consultation.

Discharge of Debts. Bankruptcy also allows a debtor to eliminate certain debts. Debts in bankruptcy are considered either dischargeable or non-dischargeable. Most debts in bankruptcy are dischargeable. Dischargeable debts often include credit card debts, medical bills, or judgments against you. Some debts, however, are non-dischargeable. Those debts may include child support, certain tax debts, and fraudulent debts. An experienced bankruptcy attorney can discuss the particulars of your situation and provide further information as to which debts you can eliminate.

To discuss your situation with one of our bankruptcy attorneys, please contact us for a free consultation, click the 'Schedule' button to schedule a meeting, or submit your information for review to see if you qualify. To read about the three main types of bankruptcy, click the 'Next Article' button.

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