Providing Answers for Minnesotans With Debt Problems Since 1975
"This Is All We Do and We Do It Well."
Debt problems can be as varied as debtors who fall into a trap of unrelenting bills they cannot keep up with. When credit is easily obtainable and the cost of living puts a tighter and tighter squeeze on family budgets, any challenging situation can send finances into a downward spiral. At the Minnesota bankruptcy law firm of Prescott & Pearson, P.A., we have heard and seen evidence of many causes of debt and types of debt problems including:
- Job loss or pay cuts at work
- A medical crisis such as cancer
- An on-the-job injury
- Any type of injury, such as a brain injury resulting from a car accident or toxic poisoning
- Divorce
- Troublesome credit cards with overlarge credit limits or unexpectedly rising interest rates and minimum payments
- Overaggressive home loan institutions that lead borrowers into mortgages that are doomed to fail over time as payments continually increase and interest adjusts upward
- Overaggressive lenders who lure borrowers to establish home equity lines of credit that shift unmanageable debt to their most important assets: their homes
- A natural disaster such as a tornado or flood
- Military service that takes a breadwinning spouse to Iraq or Afghanistan, leaving the spouse at home with financial burdens similar to those of single parents
- Injury or illness originating in military service — in many cases, mental illness or shattered nerves
- Retirement arriving before a retiree has adequately prepared to continue funding a long-established lifestyle or deal with encroaching health problems on a reduced income
Solutions for many debtors in such situations include:
- Credit counseling (a good idea that very often fails to correct the problem of unmanageable debt)
- Debt settlement (often a good solution for one or two problem debts that are not enough to warrant filing bankruptcy but large enough to ruin a household budget)
- Chapter 7 bankruptcy involving discharge of debts for debtors under certain income guidelines who can demonstrate eligibility by way of a means test
- Chapter 13 bankruptcy: debt reorganization and repayment over three to five years
Twin Cities Debt Problems Attorney · St Paul Debt Solutions · Lawyers Offer Free Consultations
- Minneapolis-St. Paul Area: 651-968-8096
- Minnesota Toll-Free: 888-366-0827
To learn more about how you can obtain debt relief and reestablish credit after filing Chapter 7 and Chapter 13 bankruptcy, call or contact our bankruptcy lawyers today. We offer free initial consultations, quality services at competitive rates and effective representation statewide.
