Filing for bankruptcy can be a smart move for many people in Minnesota who have more debt than they can afford to pay back. In 2012, more than 1.2 million people in the United States filed for bankruptcy as a way get a fresh financial start. Before making the decision to file for bankruptcy, a person should carefully evaluate their financial situation.
There are some financial circumstances in which bankruptcy is a good solution to debt problems. For example, if an individual is a retired senior citizen with no income and a lot of debt, filing for bankruptcy is likely to be a good move. Similarly, a person who is unemployed may stand to benefit more from filing for federal protections.
Bankruptcy is often a good move when a person has overwhelming medical or credit card debt. Even when an individual has health insurance, an unexpected accident or illness can result in co-pays, missed work and rehabilitative treatment expenses that add up. In addition, if a person can only afford to make the minimum payment on a large amount of credit card debt, this may also be the right time to file for bankruptcy.
If an individual is drowning in debt but unsure whether they should file for bankruptcy, a lawyer may be able to offer sound advice. A lawyer may also be able to assist an individual with the process of filing for Chapter 7 bankruptcy, which may result in a stay of collection activities and a discharge of unsecured debts. That lawyer may also be able to protect some of the client's property by making use of established exemptions on certain assets.