ALLEN HAUGRUD

Let me help protect what you have.

I provide personal service with experience you can trust. You are not just another case to shuffle through but a real person or business with real legal issues, and those issues must be are properly addressed.

I represent those filing bankruptcy, and have helped creditors as well.  It is important to know the options available to people filing, as well as creditors.

I have represented people from surrounding counties with filing bankruptcy, as the bankruptcy court is in Fergus Falls for counties of Otter Tail, Becker, Wilkin, Wadena, Grant, Traverse, among others.  It can be helpful to have an attorney where the Court is located.

Ask about:

Chapter 7 bankruptcy: Referred to as debt elimination bankruptcy, Chapter 7 bankruptcy will allow you to eliminate virtually all of your consumer debt.

Chapter 13 bankruptcy: This option consolidates your TOTAL debt, including student loans, into an affordable, court-supervised repayment plan.

Alternatives to consumer bankruptcy: You may not qualify for bankruptcy or you may be looking for a way to avoid filing. I can help you find the debt relief option that can help you avoid foreclosure.

If you would like to talk things over, I would be glad to discuss your situation. In about 15 minutes I can do a screening over the phone that would give us a fairly good idea as to whether a Chapter 7 or Chapter 13 bankruptcy is a good idea for you. I do not charge for those screenings.

Note some attorneys claim to do chapter 13 bankruptcies having done very few. Bankruptcy law is more complex than it was years ago, and your bankruptcy attorney should be familiar with chapter 7 and chapter 13 bankruptcies to properly advise you of what works best in your situation. I have done chapter 13 bankruptcies, and most clients have successfully completed their plans, better than the national average.

No Fancy Law Office, Just Solid Legal Advice

How does Bankruptcy work?

Bankruptcy allows a person who is overwhelmed with debt to get a fresh start. By filing for a Chapter 7 or 13 Bankruptcy, creditors and debt collectors are legally prevented from trying to collect your debts. Creditors and debt collectors cannot call you, bill you, threaten you, sue you, or do anything else in an attempt collect a debt from you. Filing for Chapter 7 or 13 Bankruptcy can also stop foreclosure, repossession and garnishment.

Bankruptcy is a powerful tool that can protect you from abusive and harassing debt collectors and creditors. No one wants to file for bankruptcy, but if you are having debt problems, filing bankruptcy can give you a fresh start in life.

Chapter 13 Bankruptcy Overview

A Chapter 13 Bankruptcy is completely different from a Chapter 7. Instead of having your debts immediately discharged, you commit to a repayment plan that may be between three to five years, depending on your income level. Your debts may be paid in full or you may pay only pennies on the dollar. At the end of your payment plan, the remaining balances on your debts are discharged, except your mortgage, student loans, child support, and some other exceptions. This means that you may be able discharge the remaining balance on your credit cards and other unsecured debts, even if you have only paid a small fraction of the balance owed. Typically, most Chapter 13 cases are partial payment cases. In a Chapter 13, you may be able to keep all of your property and personal possessions, regardless of whether you qualify for any exemptions.

A Chapter 13 Bankruptcy may work for you if:

You are behind on house or car payments, and you do not want to lose your home or car, but you need time to catch up on payments;

You have valuable property, and you would lose that property if you filed a Chapter 7 Bankruptcy;

You have filed a Chapter 7 Bankruptcy within the last 8 years;

You have tax obligations, child support, student loans, or other non-dischargeable debt in a Chapter 7 Bankruptcy; or

You have a cosigner on a personal debt that is not a part of the bankruptcy.

Exempt Property

Bankruptcy law allows you to claim certain types of property up to certain amounts as exempt. An exemption means you will not lose the property if you file a Chapter 7 bankruptcy. In Minnesota, you can choose to use the Federal Exemptions or the State Exemptions. You cannot use both the State and Federal Exemptions. Most people are able to exempt all their property. But some people cannot and must either lose the property in bankruptcy, or arrange to buy it back from the bankruptcy trustee.

Remember to discuss the exemptions with your lawyer to be sure about what is exempt in your case. Also, the law says that your assets are exempt only if you list them in your bankruptcy papers. If you leave out something, you can't keep it even if it is supposed to be exempt. It is a bankruptcy crime to intentionally leave something off your bankruptcy papers.

Are you behind on your Mortgage or are you in Foreclosure proceedings?

Is your mortgage going into foreclosure because you are behind on payments? If so, you can stop the foreclosure and get time to catch up by filing a Chapter 13 plan. Congress intended to give homeowners a chance to catch up on their mortgage by filing a Chapter 13 Bankruptcy. Filing a Chapter 13 Bankruptcy gives homeowners a chance to keep their homes while requiring your lender stop any foreclosure proceedings while you catch up on payments you have missed.

Filing a Chapter 13 Bankruptcy prevents a foreclosure from going forward, even if the foreclosure has already been scheduled for a sheriff's foreclosure sale. After filing the Chapter 13 Bankruptcy, you start to make the regularly scheduled future mortgage payments, in the mount of the usual payment, and the lender is legally required to start accepting the payments again. Then we put together a payment plan to ensure that you get caught up the back payments on your mortgage.

Even if you are not sure whether or not you can successfully complete the payment plan or continue to make payments because of your income, filing a Chapter 13 Bankruptcy can help you stay in our home for the time being. You can almost always extend the time you get to stay in your home by about almost a year by filing Chapter 13 Bankruptcy, regardless of whether or not you make any payments at all on the mortgage after filing a Chapter 13 Bankruptcy. Of course, the goal is to successfully complete the plan payments and keep your home. The law requires that we show the court a reasonable plan you can successfully complete.

One of the advantages of filing bankruptcy under Chapter 13 is that an entirely unsecured second mortgage, or other junior mortgage, can be "stripped" from your homestead or other real estate. This mortgage is then treated by the Chapter 13 plan as an unsecured claim, the same as a credit card or other unsecured debt. It is then paid in part rather than being paid in full as for most mortgages.

"Stripping" unsecured second mortgages cannot be done in Chapter 7 cases. Also, it can only be done when your home's market value is less than the entire balance owed on the first mortgage, rendering the second mortgage entirely unsecured by any value of the home. This means that in deciding whether to seek to strip off a second mortgage, an appraisal of your home will be necessary.

Second mortgage lien stripping is allowed by bankruptcy code sections 506 and 1322(b). It requires committing to a three to five year Chapter 13 repayment plan, where the now-unsecured second mortgage is paid based upon your ability to repay it, the same as most of your other debts.

Call my office to find out whether your second mortgage could be stripped off in a chapter 13 case.

How will a Bankruptcy affect my credit?

A bankruptcy will be removed from your credit bureaus ten years after the day that you file for bankruptcy. Some credit bureaus will remove a bankruptcy from your credit after seven years.

How are fees paid?

You have two payment options when filing Chapter 7 Bankruptcy;

  1. Payment in full
  2. Down payment deposit when you meet and decide to retain our bankruptcy services. The balance can be secured by a THIRD PARTY who signs a THIRD PARTY GUARANTY. A third party guarantor is a person, who has good credit and co-signs your obligation to pay the balance.

Take the first step toward finding out how bankruptcy can help you solve your problems with out of control debt. You can put an attorney with over 25 years' experience in Minnesota bankruptcy law on your side.

 Call to learn more and schedule an appointment.

  ALLEN HAUGRUD
218-998-4299

 I am is a debt relief agency under the federal bankruptcy code. I help people file for relief under the bankruptcy code. You have the right to file for bankruptcy relief on your own or use the service of a bankruptcy preparer. You are required to truthfully disclose your financial information and you should know that your financial information is subject to audit.

Bankruptcy topics include:  Chapter 7; Chapter 13; Credit Counseling; Foreclosure; Right of Redemption; Creditor; Debtor; Security Agreement; Mortgage; Workout Agreement; Debt Settlement and Compromise; Original Note; Mortgage Release; Satisfaction of Debt; Foreclosure by Action; Equity Stripping; Second Mortgage; Interest Rate;  How to File. .

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