Do you want to file for bankruptcy in North Dakota? Pondering the qualification, the risk of losing personal belonging, the process, alternatives, and the pros and cons are the crucial aspects of filing for bankruptcy. Here, we will discuss the information you must have before dissolving your business and filing for bankruptcy.
Bankruptcy is a debt relief option done legally and can help you in many ways. It allows you a fresh start by protecting you from creditors and eliminating debt. It even allows you to save for your retirement. In fact, from June 30th, 2020, to June 30th, 2021, 556 businesses filed for bankruptcy in North Dakota. Following are some points to know about the process for bankruptcy.
- Understanding the elimination of debt
As mentioned above, bankruptcy gives you relief from your debts. But you cannot get rid of some debts. So it is crucial to understand which type of debts will get eliminated after filing for bankruptcy. You can discharge debts like medical debts, credit cards, old utility bills, personal loans, old lease payments, judgment debts, and more. You cannot eliminate other debts, such as child support or alimony, judgments related to DUI accidents, debt owed to the government, restitution or administrative cost, and tax debts.
In chapter 13, tax debts receive special treatment. An owner might not know the total liabilities. Thus, they can retrieve a free credit report and know the estimated debt figures you can write off after filing bankruptcy.
- Will you lose any property
Many owners want to keep their property, such as homes, cash, or cars when filing for bankruptcy. To know whether you can keep these properties or not, you need to understand the exemption in bankruptcy in North Dakota. The exemptions are complex because some states in the US allow individuals to choose between federal or state exemptions.
To know whether your belongings are at risk or not in North Dakota when filing bankruptcy, you can take the help of professional lawyers to give you an idea of the security of your assets.
- Cost of filing bankruptcy in North Dakota
You need to understand the bankruptcy affordability and cost while filing for it. The primary charge consists of lawyer fees (a variable cost that depends on the lawyer) and filing fees (a fixed cost). Most lawyers have payment plans, and some give a $0 down payment option. The lawyer fees can vary on factors like the difficulty of the case and location.
In North Dakota, a chapter 13 bankruptcy lawyer can charge you around $3,000, and a chapter 7 bankruptcy lawyer can charge nearly $1,170- $1,450. You may also consider getting a legal aid option in your state if you cannot afford an attorney’s payment plan for your case.
Bottom Line These were some points to consider before filing for bankruptcy. If you are not from a law background, we will always recommend getting a lawyer on your side to make your case stronger. They will guide you at every step of the proceedings and ensure the best result.