Exemptions protect your assets in bankruptcy. When you file bankruptcy you have to list all of your assets, you then will also list an exemption to protect the asset from the bankruptcy estate, if one is available to you. In Minnesota you can pick between federal and state exemptions, this is not the case for every state though. Your attorney will help you go through your assets and which exemptions to apply. 

A new year brings with it a sense of optimism, a concept of new beginnings that inspires positivity and hope for the year to come.  For many, it also represents the opportunity for a fresh start, a chance to free ourselves from the burdens that we might be carrying with us so that we can move forward into the coming year unencumbered.  Beyond the metaphorical implications of this idea, the New Year can also offer be the perfect time to free ourselves from the burdens imposed by unmanageable debt for any who might find themselves struggling with such a situation.  

While there are a few different types of bankruptcy cases, our firm only files chapter 7s and chapter 13s. A chapter 7 bankruptcy case is 90 days long, with the court ordered discharge being granted at the end of the 90 days. 

When going through the bankruptcy process, it is very common to receive something known as a “reaffirmation agreement” from a lender.  Generally, these agreements will be sent out by lenders with whom you have a secured loan, such as a mortgage, a car loan, or a home equity line of credit.  These agreements are essentially written requests for a debt to be excluded from the bankruptcy discharge.  Should you choose to sign a reaffirmation agreement, it would filed with the court after its completion, and a judge would then determine whether the debt in question should be reaffirmed and excluded from discharge. 

When we break it down, there are opportunities to rise above your current station in life, to do better than your parents, but if you already start out ahead of the curve, your chances of success are far higher.

When you file bankruptcy you have to list all of your assets, including those you may not have yet. For example, even if you have not filed your taxes or haven’t received the refunds yet, you still have to list the tax refund as an asset in your case. When you list your tax refunds, you will list it as a pro rata estimate based on the date of filing. As an example, if your case is filed on December 12, the share of the tax refund belonging to you on the date of filing is about 95%. 

As a society, we have come a long way in attempting to stamp out discrimination. While we are not perfect, there have been tremendous strides forward from where we once were. But, one class in particular remains fodder for criticism, even by their own, the poor. The classification itself seems like an insult. Of course, no one wants to be poor, but somehow there seems to be more shame attached because this classification is often thought of as self-inflicted.

One of the most common forms of bankruptcy that people often pursue is referred to as a “Chapter 13”.  Fundamentally, a Chapter 13 bankruptcy is a three to five year plan wherein you make payments to someone known as the bankruptcy trustee (the federally appointed official responsible for overseeing your bankruptcy).  The idea is that these payments will typically pay down a portion of what you owe, and then at the end of your chapter 13 plan you will receive a bankruptcy discharge which will eliminate any remaining obligation that you have towards the debts being resolved through the bankruptcy.

While there are a few different types of bankruptcy cases, our firm only files chapter 7s and chapter 13s. A chapter 13 bankruptcy case is a restructuring/payment plan, with the discharge being granted at the end. The payments cannot be less than 36 months or more than 60 months. 

In the vast majority of bankruptcy cases, debtors have no problem disclosing all of their assets to a bankruptcy trustee. Occasionally, we hear concerns about the possibility of “losing” an asset to a bankruptcy trustee which sometimes prompts the question: do I have to disclose this asset? Bankruptcy schedules are signed under penalty of perjury affirming that all of your assets are disclosed on the schedules. No, you may not pick and choose which assets to disclose. You must disclose all assets, wherever they exist, in the world. 

If you have a threat of wage garnishment or are currently being garnished, you may be thinking of turning to bankruptcy to stop the garnishment. The bankruptcy automatic stay goes into effect the day your case is filed. The automatic stay is what tell your creditors they cannot collect or enforce debt collection efforts, including garnishments. 

Bankruptcy can offer financial relief in a variety of different ways, and related to this, there are a number of different chapters of bankruptcy that you can file under which will offer different benefits with regard to your financial circumstances.  Regardless of which chapter of bankruptcy that you file, you will always attend something called a “First Meeting of Creditors” which is also commonly referred to as a “341 hearing”.  Upon hearing the term, you might naturally wonder what this meeting entails, as well as who will be in attendance and what format the meeting will occur in.  This blog will explore these topics and serve as a brief guide to navigating the process of preparing for and attending a first meeting of creditors.

The median income for your household size is used in a bankruptcy case to determine which chapter of bankruptcy you qualify for, either a 7 or a 13 and whether you are a three or five year bankruptcy plan. Each state has set amounts for the median income, dependent on household size.

The trustee is another attorney who is assigned to your case by the US Trustee to represent the bankruptcy estate. The trustee is the person who administers your estate and distributes any funds that come in during your case. They also make sure what you said in your bankruptcy case is truthful and correct and verify the information you provided. You will meet with the bankruptcy trustee at the 341 hearing, usually about 4 to 6 weeks after your case is filed.

There have been some recent changes to the Minnesota Bankruptcy exemptions, which have greatly benefited debtors.

When you decide you want to file a bankruptcy case you can either file with an attorney or file pro se, unrepresented.