As we step into 2025, many people are looking for ways to make a fresh start. For some, that means addressing financial challenges and getting back on their feet after a difficult year. If you’re struggling with overwhelming debt, bankruptcy may provide the relief and reset you need to regain control of your finances. At the Benjamin Kaasa Law Office, PLLC, in Duluth, MN we understand the weight of financial stress and are here to guide you through the bankruptcy process, whether you’re in Minnesota or Wisconsin.
Why Bankruptcy May Be the Right Choice for You
The start of a new year is an opportunity to reevaluate your financial situation. Unexpected events like job loss or mounting medical bills can have a domino effect on your finances. In these situations, many people end up relying on their savings or even retirement accounts to cover essential expenses. Once those are depleted, it’s common to turn to credit cards or loans, only to end up deeper in debt.
As the debt piles up, you may find yourself facing foreclosure, wage garnishments, or vehicle repossession—leaving you feeling trapped. If this sounds familiar, it’s time to consider bankruptcy as a way out. Bankruptcy can offer you a fresh start by discharging certain debts, allowing you to regain your financial footing and start rebuilding your future.
The Types of Bankruptcy: Chapter 7 and Chapter 13
At Duluth Family Lawyer, our experienced bankruptcy attorney can help you navigate the complexities of both Chapter 7 and Chapter 13 bankruptcies. These are the two most common forms of bankruptcy, each offering unique benefits depending on your circumstances.
Chapter 7: A Fresh Start with Liquidation
Chapter 7, also known as “liquidation bankruptcy,” is often the best option for individuals and couples who have low income and significant unsecured debt. It allows you to discharge many types of debt, including credit card balances, medical bills, and unsecured loans. The process is relatively quick, and if you have limited assets, you may not lose anything significant.
However, some debts—like child support, alimony, and certain tax obligations—cannot be discharged in Chapter 7. It’s important to understand that your property may be liquidated to pay back creditors, but many assets are exempt from liquidation based on state or federal exemptions. Our team can help you assess which exemptions apply to your situation to ensure you retain as much property as possible.
Chapter 13: A Path to Reorganization
Chapter 13, also known as “reorganization bankruptcy,” may be more appropriate if you have a steady income and want to keep your property. This type of bankruptcy allows you to create a repayment plan that consolidates your debts into affordable monthly payments over a period of three to five years. Once you’ve completed the plan, your remaining unsecured debts will be discharged.
Chapter 13 can help you avoid foreclosure and protect your assets while providing you with a structured plan to pay off your debts. While the repayment plan can be challenging, it offers a chance to regain control over your financial future.
How Bankruptcy Can Help You Move Forward
Filing for bankruptcy can feel like a daunting decision, but it’s important to remember that it’s not the end—it’s a new beginning. By discharging your debts and creating a manageable repayment plan, bankruptcy allows you to get back on track financially.
It’s common for people to feel ashamed or defeated when considering bankruptcy, but there is no shame in taking the necessary steps to regain financial stability. At the Benjamin Kaasa Law Office, PLLC, we are here to support you through the process, providing guidance every step of the way. Our goal is to help you reduce stress and move forward with confidence.
Take the First Step Toward a Fresh Financial Start
If you’re overwhelmed by debt, don’t wait until it’s too late. Whether you’re considering Chapter 7 or Chapter 13 bankruptcy, the sooner you reach out to our bankruptcy lawyer in Duluth, MN the sooner you can begin your financial recovery.
Contact us today and we can help you understand your options and determine the best path forward. If you’re ready to make a fresh start in 2025, call us at (218) 464-3397, or visit us online to schedule your consultation.
Taking control of your finances starts with making the right decision. Let us help you make 2025 the year you reclaim your financial freedom.