While there is no perfect way of deciding whether or not it is in your best interest to declare bankruptcy in North Dakota, if you take the following information into consideration you will have a better idea if you are in need of it. People that need to declare bankruptcy usually: are paying only their minimum payments on their bills, can’t budget themselves out of debt within the next five years, are getting notices of foreclosure, or have had a major financial set back such as losing their job. There are two methods by which an individual may file for bankruptcy: Chapter 7 and Chapter 13. Chapter 7, also known as straight bankruptcy, will wipe away all old debts giving you a fresh start. Chapter 13 bankruptcy, or wage earner bankruptcy, will set up a payment plan with your creditors that can have you out of debt within three to five years.
If you think that Chapter 7 bankruptcy is right for you, then it is important that you know what debts it won’t expunge. These include: alimony, child support, student loans, back taxes, recent large purchases over $550, fines or penalties from the government, debts that were incurred by fraud, or cash advances of $825 within the first 70 days of filing. In order to qualify for Chapter 7 bankruptcy in North Dakota, you must make an annual wage that is less than the median average wage for the entire state. This is known as the means test. If you don’t qualify for Chapter 7, at least you will be able to declare Chapter 13 bankruptcy
Chapter 13 can be filed by an individual or sole proprietor. This will not clear you of your debts, but instead will set up a plan by which you can pay off your debt within 3 to 5 years. While this doesn’t sound that great, keep in mind that if your home is in danger of being foreclosed upon, it may no longer be taken by your creditors once you file Chapter 13. Any other law suits against you regarding debt must be dropped as well. So you can see the obvious benefits of declaring Chapter 13 bankruptcy in North Dakota.
Who won’t have to give up most of your property when declaring Chapter 7 either. You may declare certain property as exempt such as: your homestead, insurance proceeds, personal property, and your vehicle.