Welcome To The MN Bankruptcy Blog

Inside you will find over 500 helpful articles discussing the Chapter 7 & 13 Bankruptcy Process and other solutions for difficult financial situations.

 

      How Filing a Chapter 13 Bankruptcy Case in Saint Paul, Minnesota Can Help You Pay for Your Vehicle

      Posted by Wesley Scott on February 7

      In a chapter 13 bankruptcy case, a person makes payments towards their debts in a three to five year repayment plan. Upon successful completion of the payment plan, that person (known as the “debtor”) receives a discharge of most of their remaining debts with a few exceptions. Although Minnesotans who earn more than the median income for their household size in the State of Minnesota must file a chapter 13 bankruptcy case, rather than a chapter 7 case, any individual with regular income can file a chapter 13 case. In addition to providing the benefit of allowing a person to receive a discharge of their debts, typically after only having to pay a small portion of total debt, a chapter 13 also is a good opportunity to help a person afford their vehicle payments. 

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      Who Can See My Bankruptcy Case in Minneapolis, Minnesota

      Posted by Amanda Scharber on February 5

      Bankruptcy is technically public information. Anyone can see your case, but there are steps that need to be taken first. Your bankruptcy case should not be published in your local paper though.  

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      LOOKING FOR A BANKRUPTCY LAWYER IN MINNEAPOLIS? WATCH OUT FOR THIS

      Posted by Wesley Scott on February 3

           Recently, I began writing about a topic that is of interest to me and impacts thousands of Minnesotans suffering with debt. When you run a Google search for “bankruptcy attorney near me in Minneapolis, MN” you assume the results Google pulls up are actually close to you. Unfortunately, that is not always true. 

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      Medical Debt and Bankruptcy in Minneapolis, Minnesota

      Posted by Amanda Scharber on February 1

      Medical debt is something that will impact almost every American during their lifetime. It doesn’t matter if you have no insurance or your insurance doesn’t cover the full cost, medical debt can pile up fast. For this reason medical debt is fairly common in bankruptcy cases.  

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      Home Values and Bankruptcy in Minneapolis, Minnesota

      Posted by Amanda Scharber on January 24

      The housing market is always fluctuating between highs and lows. This makes it difficult for the average property owner to really know what their property is worth. If you are planning to file bankruptcy, you need to know your property’s value.  

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      Can I buy a home or vehicle after filing Chapter 7 Bankruptcy in Minneapolis, MN?

      Posted by Wesley Scott on January 23

      The answer is yes! When I am asked this question, I often respond with another question: Can you get a home loan or vehicle loan now without a co-signor or paying high interest? You see, here is the thing, future lenders don’t care about you paying your current debts. What future lenders really care about is are you going to pay them? This is the game. This is why you see dealerships and other lenders advertise things like, “filed bankruptcy?” “No problems”.

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      Medical Bankruptcy in Minneapolis, Minnesota

      Posted by Amanda Scharber on January 20

       As a bankruptcy attorney, I hear all of the time I need to file a medical bankruptcy. Typically this means someone has an abundance of medical debt they want to file a bankruptcy for. Whenever I hear someone mention medical bankruptcy, I clarify, there is no such thing as a medical bankruptcy.

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      How Chapter 13 Bankruptcy Can Save Your Home from Foreclosure in Saint Paul, Minnesota

      Posted by Wesley Scott on January 19

      A chapter 13 bankruptcy is an awesome tool that allows people to get rid of most types of debt by allowing a person to pay as much as they can afford in a 3 to 5 year payment plan, after which they receive a discharge of their remaining debts. In addition to wiping out debt with the discharge, a chapter 13 bankruptcy is also a great tool that can enable people to get caught up on past-due car and home payments.

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      Ideas for Saving Money in Minneapolis, Minnesota

      Posted by Amanda Scharber on January 18

      All year long there are reasons to spend money that may put you over your monthly budget. Whether this is from medical bills, home repairs, birthdays, holidays, or various other financial obligations, they put a strain on your finances. 

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      Cryptocurrency in Minneapolis, MN  #6

      Posted by Wesley Scott on January 17

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency.

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      Bankruptcy Options When Facing an Eviction in Minneapolis, Minnesota

      Posted by Amanda Scharber on January 16

      You received the dreaded letter, stating “Notice of Intent to Evict”. Instead of panic, you have come to the right place to find an overview of how bankruptcy may be able to help.  

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      Can the Chapter 7 Trustee Take My Vehicle to Pay My Debts in St. Paul, Minnesota?

      Posted by Wesley Scott on January 14

      Filing a chapter 7 bankruptcy case allows people who are struggling to pay their debts find financial relief. Anybody who is under the Minnesota State median income level for their household size can file a chapter 7 case. 

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      Can I Keep My Bonuses and Tax Refunds in My Chapter 13 Bankruptcy Case in Saint Paul, Minnesota?

      Posted by Wesley Scott on January 13

      Chapter 13 bankruptcy can afford a great deal of financial relief for people who are struggling to pay their debts. In a chapter 13 bankruptcy case, the debtor (the name for a person who files for bankruptcy) agrees to pay as much as they can towards their debts in a three to five year repayment plan.

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      Assumption or Rejection of a Lease in Bankruptcy in St. Paul, Minnesota

      Posted by Danielle Lin on January 12

      Under section 365 of the Bankruptcy Code, a debtor has a choice of either assuming or rejecting a lease while in a bankruptcy. If a lease is “assumed,” the debtor will retain the lease and remain responsible for their obligations under the terms of the lease. 

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      Cryptocurrency in Minneapolis, MN  #4

      Posted by Wesley Scott on January 11

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency. This post will continue to merely skim the surface of current cryptocurrency issues, for what it is worth. Today, let’s discuss some other scams in the industry.

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      Receiving Garnished Funds in Bankruptcy in St. Paul, Minnesota

      Posted by Danielle Lin on January 10

      A debtor filing for bankruptcy may be able to receive garnished wages back if they were garnished within the 90 day period before the bankruptcy case was filed, and if the amount was a total of $600 or more.

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      Cryptocurrency and bankruptcy in Minneapolis, MN  #6

      Posted by Wesley Scott on January 9

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency.

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      Automatic Payments and Bankruptcy in Minneapolis, Minnesota

      Posted by Amanda Scharber on January 7

      Automatic payments are very common, whether they are for a vehicle, mortgage, credit cards, or personal loans. When you file a bankruptcy you will either be advised that your automatic payments will stop after filing or you should make sure to stop them prior to filing, this advice depends on the creditor. 

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      Can I File a Chapter 7 Bankruptcy Case with My Income in Saint Paul, Minnesota?

      Posted by Wesley Scott on January 6

      Filing a chapter 7 bankruptcy is a great way to provide needed financial relief for Minnesotans whom find themselves unable to manage their debts. In a chapter 7 bankruptcy case, the debtor (what you call a person whom files bankruptcy) receives a discharge within 3 to 4 months after filing their case, which eliminates the debtor’s legal liability to pay those debts forever. 

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      Removing a Judgment in Bankruptcy in St. Paul, Minnesota

      Posted by Danielle Lin on January 5

      Bankruptcy is a great way for Minnesotans to get rid of debt. Once a debtor files for bankruptcy, the automatic stay goes into effect immediately when the debtor’s case is filed.

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      Cryptocurrency in Minneapolis, MN #7

      Posted by Wesley Scott on January 4

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s wrap up our discussion of cryptocurrency and non-fungible-tokens. 

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      Can I File For Bankruptcy Multiple Times in St. Paul, Minnesota?

      Posted by Danielle Lin on January 3

      If a debtor has filed for a Chapter 7 or a Chapter 13 bankruptcy in the past, as a general rule, the debtor must wait after a particular time period has passed before filing for bankruptcy again. 

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      Is My Home Protected if I File for Bankruptcy in Saint Paul, Minnesota?

      Posted by Wesley Scott on January 2

       Whether a person files a person files a chapter 13 or chapter 7 bankruptcy case they are afforded a great deal of relief from their debts. When a person files a chapter 13 case, they agree to pay as much as they can towards their debts in a 3 to 5 year repayment plan, before getting their discharge.

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      Surrendering a Car in Bankruptcy in St. Paul, Minnesota

      Posted by Danielle Lin on January 1

      A debtor who is financing a vehicle and is planning on filing for bankruptcy, has the option to either retain the vehicle and continue making payments on the vehicle or voluntarily surrender the vehicle and give it back to the car lender. When a debtor voluntarily surrenders a car, the car is returned back to the car dealership and the debtor ceases to make payments on the car. 

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      Ways to Save on Your Food Budget in Minneapolis, Minnesota

      Posted by Amanda Scharber on December 29

      With inflation climbing, everything seems to be increasing. Many of us are seeing the rise in cost hit especially hard with our grocery budgets. If you are filing bankruptcy, in an active bankruptcy or just looking for ways to save money read on. Below is a list of a few ways you can save money on your next grocery trip.

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      HOW TO OVERCOME THE FEAR OF FILING CHAPTER 7 BANKRUPTCY IN MINNEAPOLIS, MN?

      Posted by Wesley Scott on December 27

           We all have fears. Some of us has have anxiety levels that are quite low and others quite high. Over the years, I have seen both sides. I tend to be on the higher anxiety side. But I have had people come in over the years needing to file bankruptcy and they could not care less they are filing Chapter 7 Bankruptcy. I find that amazing. I mean I am envious of someone who has so little anxiety like that. However, in my career, that is not the norm. Most people are terrified of filing Chapter 7 Bankruptcy.

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      Removing Judgment Liens in Bankruptcy in St. Paul, MN

      Posted by Danielle Lin on December 25

      During a Chapter 7 or a Chapter 13 bankruptcy, judgment liens recorded against a debtor’s property may be removed. This is known as lien avoidance. 11 U.S.C. §522(f)(1) provides that, “notwithstanding any waiver of exemptions, but subject to paragraph (3), the debtor may avoid the fixing of a lien on an interest of the debtor in property to the extent that such lien impairs an exemption to which the debtor would have been entitled under, subsection (b) of this section, if such lien is a judicial lien.” In other words, a judgment lien on a piece of property can be avoided if the lien would result in a loss of some or all of the exempt equity if the property were sold.

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      What Happens if I Have Unprotected Property in a Chapter 7 Bankruptcy Case in St. Paul, Minnesota?

      Posted by Wesley Scott on December 23

          A chapter 7 bankruptcy is a great and powerful tool that allows people to get rid of huge amounts of debts that they can no longer financially afford to pay. Unlike, in a chapter 13, in which a person pays as much as they can towards their debts in a 3 to 5 year repayment before receiving a discharge of their remaining debts, a person in a chapter 7 bankruptcy case is not required to make payments towards their debts, and typically receives a discharge within 3 to 4 months after filing their case. Any person is allowed to file for chapter 7 bankruptcy so long as they qualify based on their income (the person must have an income that is below the State median income for their family size).  

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      Can I Protect My Inheritance if I File for Bankruptcy in Saint Paul, Minnesota?

      Posted by Wesley Scott on December 21

      An individual who files a chapter 13 or chapter 7 personal bankruptcy case is afforded a great deal of relief from their debts. In exchange for this huge debt relief, a person who files for bankruptcy (aka the “debtor”), is required to make payments to creditors in a chapter 13 repayment plan and, in some circumstances, is required to surrender property to pay creditors in a chapter 7 case.
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      How Creditors are Paid in a Bankruptcy in St. Paul, Minnesota

      Posted by Danielle Lin on December 19

      A claim in a bankruptcy case is essentially a creditor’s assertion of the dollar amount that is due and owing from the debtor, as of the date the bankruptcy petition was filed. A claim establishes a creditor’s right to receive future payments from a debtor’s bankruptcy estate, assuming that there are assets and money available for distribution. The distribution of money to creditors is subject to the priority rules laid out under the Bankruptcy Code. The Bankruptcy Code’s definition of a claim is very broad. A claim does not have to be a fixed amount that is due at the time the bankruptcy case was filed – it could merely be an estimated amount or unliquidated. A claim must be “allowed,” before the claim holder or creditor can be entitled to receive any distributions from the bankruptcy estate. 

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      Cryptocurrency, bankruptcy, and living in Minneapolis, MN

      Posted by Wesley Scott on December 17

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk about a more current topic: cryptocurrency. This post will merely skim the surface of current cryptocurrency issues, for what it is worth. 

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      Keeping a Credit Card During Bankruptcy in St. Paul, Minnesota

      Posted by Danielle Lin on December 15

      A debtor filing for bankruptcy may choose to keep a credit card. When filing for bankruptcy, all of the debtor’s creditors must be listed in the schedules. A creditor is an entity that has a claim against the debtor that arose at the time of or before the order for relief concerning the debtor. § 1010(10). Once a debtor’s bankruptcy case is filed, a notice gets sent out to all of the debtor’s creditors listed in the schedules. Usually, upon receipt of the bankruptcy notice, a credit card company as a creditor, will close the debtor’s credit card. However, there are certain situations and circumstances in which a debtor may keep a credit card during a bankruptcy.
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      CrytpoCurrency and Bankruptcy in Minneapolis, MN

      Posted by Wesley Scott on December 13

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency. This post will continue to merely skim the surface of current cryptocurrency issues, for what it is worth. Today, let’s introduce the topic of non-fungible tokens, also known as NFTs.

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      BANKRUPTCY FRAUD IN MINNEAPOLIS

      Posted by Col Ovik on December 11

      When filing bankruptcy, debtors may be tempted to transfer assets in an effort to protect the assets from the bankruptcy estate. However, § 548(a)(a)(A) encompasses transfers made by the debtor within two years of filing the bankruptcy, and such transfers would be fraud if transferred "with actual intent to hinder, delay, or defraud any entity to which the debtor was or became, on or after the date that such transfer was made or such obligation incurred, indebted . . . ." 11 U.S.C. § 548(a)(1)(A).  

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      Will I lose my house filing Chapter 7 Bankruptcy in Minneapolis, MN?

      Posted by Wesley Scott on December 9

           We have many people who reach out to LifeBack Law Firm concerned about these type of questions. And they are legitimate fears of course. But what we tell people is there really is two issues to dissect when it comes to this question.

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      Filing Bankruptcy in Minneapolis, MN  and Cryptocurrency #3

      Posted by Wesley Scott on December 7

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency. This post will continue to merely skim the surface of current cryptocurrency issues, for what it is worth. Today, let’s discuss a scam that occurs in the industry: pump and dump.

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      Filing Bankruptcy and Improving Your Monthly Budget in Minneapolis, Minnesota

      Posted by Amanda Scharber on December 5

      If you are in an active bankruptcy or thinking of filing a bankruptcy case, you may be wondering how you can improve your budget and disposable income. 

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      I Received a Judgment in Minneapolis, Minnesota, should I file bankruptcy?

      Posted by Amanda Scharber on December 3

      Receiving notice of a judgment can be scary and very unfamiliar. If you have been notified of a judgment from one of your unsecured creditors, you may be wondering what your next step should be.

      Call LifeBack Law to schedule a free consultation with one of our licensed attorneys. We have offices around Minnesota in St. Paul, St. Cloud, Maple Grove, Eden Prairie, Duluth, Eagan, and Brainerd. Appointments can be done in-person or virtually (phone, Zoom, Skype, or FaceTime) and usually last a half hour to one hour. During the appointment the attorney will get information regarding your situation and then discuss options, including whether a bankruptcy is the right fit for you. 

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      Chapter 13 Bankruptcy: A gov’t sponsored debt consolidation program in Minneapolis, MN

      Posted by Wesley Scott on December 1

       I have pity for humans who try to avoid the “b” word because they want to pay their debt. We all want to pay our debt. The issue is this: who comes first, your family or your creditors? Your family has to come first.

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      How Filing a Bankruptcy Case Can Help Relieve Tax Debt in Saint Paul, Minnesota

      Posted by Wesley Scott on November 29


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      Bankruptcy Transfers and Preference Payments in Minneapolis

      Posted by Col Ovik on November 28

      The property of the bankruptcy estate cannot be removed from the bankruptcy court’s exclusive jurisdiction except by proceedings in the bankruptcy court. The bankruptcy case filing vests exclusive jurisdiction over the debtor’s property in the bankruptcy court so that it may control the administration of the case. 

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      What will my Credit Report Look like After Filing Bankruptcy in Minneapolis, Minnesota

      Posted by Amanda Scharber on November 26

      If you live in Minneapolis, Minnesota and have recently filed bankruptcy or are thinking of filing, you may be wondering how bankruptcy will impact your credit. 

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      Annuity Payments and Filing Bankruptcy in Minneapolis, MN

      Posted by Col Ovik on November 24

      Not all annuity payments in a bankruptcy will be exempt. For the annuity payment to be exempt in a bankruptcy filing it must be the type described by Congress under exemption § 522(d)(10). 

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      Filing Chapter 7 Bankruptcy in Minneapolis, MN Improves Your Credit; Here Is Why

      Posted by Wesley Scott on November 22

      Suppose you live in Minneapolis, MN and you have 30k in credit card debt and 10k in medical debt.
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      Filing Bankruptcy in Minneapolis-Refrain From Concealing Assets

      Posted by Col Ovik on November 21

      Bankruptcy is designed to give an honest debtor a fresh start. The fresh start is accomplished through the discharge, but a discharge is not a right, but a privilege. While the denial of a discharge is an extreme penalty, inappropriate conduct by a debtor can justify the denial of the discharge. 

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      Looking for a Chapter 7 Bankruptcy lawyer in Minneapolis, MN? Watch out for this

      Posted by Wesley Scott on November 20

      Some people think a bankruptcy attorney is a bankruptcy attorney and they could not be more wrong. I have been in this business for 25 years and I can tell you I have seen some things that would make your blood boil.

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      Student Loan Debt and Bankruptcy in Minneapolis

      Posted by Col Ovik on November 19

      The student loan debt crisis in America has been a growing issue for years, but recently those suffering from student loan debt received a big win. President Biden announced a forgiveness of some student loan debt for eligible borrowers. Although, for many Americans the amount of the forgiven debt will be just a drop in the bucket in relation to the overall amount of their student loan debt. But what or who can help a struggling debtor with the remaining student loan debt? Can it be discharged in a bankruptcy? 

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      Bankruptcy Filing Process in Minneapolis, Minnesota

      Posted by Amanda Scharber on November 18

      Filing bankruptcy in Minneapolis, Minnesota with LifeBack Law is a straight forward process. This is because we do not make clients fill out tons of worksheets, we pull your credit report for you, and we have a 90 day credit repair program after you receive your discharge.
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      The Bankruptcy Estate in Minneapolis

      Posted by Col Ovik on November 16

      Property of the bankruptcy estate includes all legal or equitable interests of the debtor in property at the time the case is filed. Section 541(b) of the bankruptcy code provides a list of exclusions from property of the bankruptcy estate, and 11 U.S.C. § 522 provides exemptions that apply to property of the bankruptcy estate. 

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      Public Benefits and bankruptcy in Minneapolis, MN #5

      Posted by Wesley Scott on November 15

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits in the 21st century by turning to food assistance and benefits aimed at needy families and children.

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      Facing an Eviction Proceeding in St. Paul, MN? A Chapter 13 Bankruptcy Will Help.

      Posted by Danielle Lin on November 14

          Monthly living expenses can be high, especially rent. If you cannot keep up with rent payments, eventually your landlord could begin a formal process of removing you from your house or apartment; this is known as an eviction. A Chapter 13 bankruptcy can be helpful in stopping the eviction process. Under section 362(b)(22), a landlord may continue an eviction proceeding against a debtor to obtain possession of residential property, but only if a judgment was obtained against the debtor before the filing date.

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      Public Benefits and bankruptcy in Minneapolis, MN  #6

      Posted by Wesley Scott on November 13

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits in the 21st century. Finally, we finish off our round up of public benefits by discussing workers’ compensation and unemployment benefits.

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      Receiving a Bankruptcy Discharge in St. Paul, MN

      Posted by Danielle Lin on November 12

          A bankruptcy discharge provides the debtor with a fresh start. It is a court order that releases a debtor from personal liability for certain types of debts that were incurred pre-bankruptcy or pre-petition. Once a bankruptcy discharge issued, the debtor is absolved of any obligation to repay their debts. The bankruptcy discharge voids personal liability on judgments and acts as a permanent injunction against any act to collect a discharged debt as a personal liability of the debtor. The bankruptcy discharge applies only to debts.

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      Filing Bankruptcy in Minneapolis, Minnesota? Here is a Budget Friendly Recipe

      Posted by Amanda Scharber on November 11

      Whether you have filed for bankruptcy already or are considering filing, you may be wondering what budget friendly recipes are out there to feed your family. 

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      If I’m Filing a Chapter 7 Bankruptcy, Can I Keep My Tax Refund in St. Paul, MN?

      Posted by Danielle Lin on November 10

          A debtor filing a Chapter 7 bankruptcy may keep their tax refunds in certain situations. Whether they can keep their tax refunds and how much they can keep, largely depends on whether their case was filed using state or federal exemption law to protect all of their property. A debtor typically chooses federal exemptions when they have little to no equity in their homestead property. Under federal exemption law, debtors get up to $15,425 to protect miscellaneous property that is not specifically protected under another exemption law.

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      Budgeting in Minneapolis, Minnesota

      Posted by Amanda Scharber on November 9

      Before filing bankruptcy in Minneapolis, Minnesota, your bankruptcy attorney will review your entire case with you. They will go through assets, debts, income and expenses, and financial transfers.

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      Avoiding the Crime of Concealment When Filing For Bankruptcy in St. Paul, MN

      Posted by Danielle Lin on November 8

          Bankruptcy was designed to be a remedy, to help people who would like assistance and guidance to be in a better financial situation. The bankruptcy system was created to provide honest debtors a fresh start. Therefore, Congress enacted bankruptcy fraud and related statutes to deter and punish those who commit bankruptcy fraud. One of the more commonly charged bankruptcy fraud provisions is 18 U.S.C. §152(1), which makes it a crime for a debtor to “knowingly and fraudulently” conceal estate assets from the court, the trustee, or creditors.

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      Is My Bankruptcy Public Information in Minneapolis, Minnesota?

      Posted by Amanda Scharber on November 7

      Technically, every bankruptcy case is public information after it has been filed. This is because all case filings go to the United States Bankruptcy Court website and can be accessed through Pacer. Although the case is public information and anyone can find a bankruptcy case and the documents filed within the case, there are steps you have to take to access this information. 

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      Receiving a Bankruptcy Discharge in St. Paul, MN

      Posted by Danielle Lin on November 6

          A bankruptcy discharge is the statutory forgiveness of liability for the balance of a debtor’s obligations that are not reaffirmed or otherwise satisfied in a bankruptcy case. For most debtors, the bankruptcy discharge is the primary reason and motivation for filing for bankruptcy. The bankruptcy discharge promotes the fresh-start policy of the United States bankruptcy laws. It frees honest debtors from financial burdens. The receipt of a bankruptcy discharge is a privilege that is subject to limitations that balance the fresh start against other policies served by the Bankruptcy Code.
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      Keeping a Vehicle by “Redeeming” it in a Chapter 7 Bankruptcy in Saint Paul, Minnesota

      Posted by Wesley Scott on November 5

      When a person files a chapter 7 bankruptcy case, they must make a decision as to what they intend to do with their existing secured vehicle loans. Bankruptcy eliminates the debtor’s personal legal responsibility to repay a vehicle loan but does not eliminate the lender’s lien against the vehicle. Therefore, when a debtor files a chapter 7 case, they must choose whether to keep the vehicle and pay for it, or stop making payments, and surrender the vehicle back to the lender

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      How Bankruptcy Can Help You Get Out of Bad Rental Lease in Saint Paul Minnesota

      Posted by Wesley Scott on November 4

          Saint Paul is one of the greatest cities in the world in which to live. I know I may be biased due to the fact that I was born here, and now live here again, but I strongly believe any objective out-of-towner who relocates here would agree! Just because the city Saint Paul itself is a great place to live doesn’t mean that one’s particular apartment here is the best place in which to live. Sometimes, people simply find themselves stuck in a bad lease they wish they could do anything to get out of. There is one solution to this problem. You can file for bankruptcy (never saw that one coming, huh?).

       

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      LifeBack Law: Bankruptcies in St. Paul, Minnesota

      Posted by Danielle Lin on November 3

      LifeBack Law Firm, Minnesota’s largest, nicest, and most helpful bankruptcy law firm, has recently opened a new office location in the heart of the Cathedral Hill neighborhood in St. Paul, Minnesota. Our modern, quaint, and historical St. Paul office is surrounded by trendy restaurants, such as Moscow on the Hill, Handsome Hog, and W.A. Frost. All of these restaurants are conveniently located next to, and just across the street from, our St. Paul office. Come see us at 370 Selby Ave Suite 224, St. Paul, MN 55102, and grab a bite to eat at one of these posh restaurants.

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      Public Benefits and filing Chapter 7 Bankruptcy in Minneapolis, MN #4

      Posted by Wesley Scott on November 2

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits in the 21st century. Thus far, we have been picking and choosing public benefit programs to discuss based on whether they provide a true monetary benefit, but there are so many public benefit programs that offer funds or necessities. Now, we will discuss some public housing benefits.

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      Public Benefits in Minneapolis, MN and Bankruptcy #3

      Posted by Ben Abraham on November 1

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits in the 20th-century public, other than traditional social security. 

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      Minneapolis, Minnesota Bankruptcy Basics

      Posted by Amanda Scharber on October 28

      At LifeBack Law we file both chapter 7 and chapter 13 bankruptcy cases. A chapter 7 is referred to as a liquidation bankruptcy, where as a chapter 13 bankruptcy is a restructuring of your debt.

      The timing of your bankruptcy discharge will depend on which chapter you file. With a chapter 7 bankruptcy you will receive your discharge roughly 90 days after filing. For a chapter 13 your discharge date will be three to five years after your case was filed. 

       

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      Getting Back Money Garnished Before Filing for Bankruptcy in St. Paul, MN

      Posted by Wesley Scott on October 26

          Once a creditor files a lawsuit and gets the court to enter a judgment against a person for they can then take action against that person to collect on the judgment. One of the ways a creditor can collect on their judgment is by garnishing the person’s wages. In Minnesota, a creditor may garnish up to 25% of a person’s net pay (the money they actually take home after deductions, like taxes, are taken out of their paycheck). This can cause a significant hardship to that person’s financial circumstances, especially if a person is already struggling to make ends meet and is living paycheck to paycheck. 

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      Criminalizing the Poor in Minneapolis, MN

      Posted by Col Ovik on October 25

      In the current way our society is structured, the rich are exemplified as the model American, no matter how they obtained their wealth: inheritance, lying, cheating, evading taxes and the poor are vilified regardless of how they got there: mental health issues, medical limitations, inadequate and unfair wages, and the poverty trap. 

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      Filing Chapter 7 Bankruptcy in Minneapolis, MN: The Credit Counseling Course

      Posted by Col Ovik on October 24

      To be an eligible debtor in a Chapter 7 bankruptcy filing in Minneapolis, Minnesota, a debtor must complete a credit counseling course within 180 days prior to the bankruptcy filing. The event that prompts the 180-day period is the filing of a petition for relief, not the completion of the credit counseling.

       

       

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      Why Should I File Bankruptcy in Minneapolis, Minnesota

      Posted by Amanda Scharber on October 23

      Although, there are many great reasons to file bankruptcy, below are five of the biggest reasons a lot of clients decide to file. 

      The biggest reason is a chapter 7 or chapter 13 bankruptcy is going to discharge your unsecured debts (there are exceptions). Although this list is not exclusive, exceptions include, fines or penalties, student loans, taxes, and domestic support obligations. 

       

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      Dismissal or Conversion of a Chapter 13 Bankruptcy in St. Paul, MN

      Posted by Danielle Lin on October 21

          There are various reasons a Chapter 13 bankruptcy could be dismissed or converted to a Chapter 7 bankruptcy. A Chapter 13 bankruptcy may be voluntarily converted to a Chapter 7 bankruptcy at any time. A Chapter 13 bankruptcy may be voluntarily converted to a Chapter 7 for a number of reasons, including a change in your financial circumstances that may allow a Chapter 7 bankruptcy to be more suitable.

       

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      Avoiding Preferential Transfers in St. Paul, MN

      Posted by Danielle Lin on October 20

          Preferences are a type of transfer made by a debtor to a creditor before a bankruptcy petition is filed that the trustee may avoid and force the creditor to pay back to the estate. 11 U.S.C. § 547(b). The bankruptcy system was created to promote fairness to creditors while at the same time provide debtors a fresh and new financial start. Therefore, the payment of creditors must be equitable and no one creditor can be favored over another. This equitable principle applies, even before the debtor has filed for bankruptcy.

       

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      Public Benefits #2 in Minneapolis, MN; Bankruptcy and public benefits.

      Posted by Wesley Scott on October 19

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits, specifically social security and other 20th century public benefits. 

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      LifeBack Law Firm is Now Serving Residents Filing for Bankruptcy in St. Paul, Minnesota

      Posted by Danielle Lin on October 19

          LifeBack Law Firm is Minnesota’s nicest, largest, and most helpful bankruptcy law firm. At LifeBack Law Firm, clients are not only treated as clients, but as friends or family members. We recently opened a new office location in the heart of the Cathedral Hill neighborhood in St. Paul, Minnesota. This new office address is located at: 370 Selby Ave Suite 224, St. Paul, MN 55102. Our modern, quaint, and historical St. Paul office is located just outside of downtown St. Paul in the charming Cathedral Hill neighborhood. The Cathedral Hill neighborhood of St. Paul, Minnesota borders Summit Avenue to the south, Marshall Avenue to the north,

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      Keeping Your Car or Home When You Get Behind on Payments in St. Paul, Minnesota

      Posted by Wesley Scott on October 18

          It’s easy to fall behind on car or mortgage payments, especially with the challenging economic times we now find ourselves in.  Falling behind on these payments can lead to one’s car being repossessed or a foreclosure upon one’s home. Creditors are often not easy to deal with, and frequently, many people find themselves in a position where they are unable to negotiate with the creditor to avoid losing their home or car. However, these people are not helpless. There is a tool available to help them and it’s called bankruptcy. A chapter 13 bankruptcy, in particular, is designed to allow people who fall behind on car or home payments to get caught back up with a court-approved repayment plan.

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      What to Expect in a Chapter 7 Bankruptcy 341 Hearing in St. Paul, Minnesota

      Posted by Danielle Lin on October 15

          After a debtor has completed the bankruptcy schedules and a Chapter 7 bankruptcy has been filed with the court, a debtor must attend a 341 hearing, also known as a meeting of creditors. Several days after the bankruptcy case is filed, a debtor will receive a notice of the 341 hearing. The notice will indicate the date, time and method by which the meeting will occur. Currently, in the state of Minnesota, 341 hearings are conducted virtually, either by telephone or by Zoom. A 341 hearing is also called “meeting of creditors,” however, creditors rarely attend. A debtor’s assigned bankruptcy trustee will conduct the 341 hearing.

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      Effects of filing Chapter 7 Bankruptcy on your credit in Minneapolis, MN

      Posted by Wesley Scott on October 14

           Thousands of Minneapolis, MN residents contemplate filing Chapter 7 Bankruptcy each year. The inevitable question that arises is how will filing a Chapter 7 Bankruptcy in Minneapolis, MN affect my credit score? It is a respectable question and one that I would want to know the answer to myself. So many people think if you file Chapter 7 Bankruptcy, your credit score is sort of doomed forever. Not true at all. In fact, in many instances, it is just the opposite. 

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      What Do I Need to File Bankruptcy in Minneapolis, Minnesota

      Posted by Amanda Scharber on October 12

      If you are looking at filing bankruptcy in Minneapolis, Minnesota, you may be wondering what steps you have to take and what you need to file. Every case is different, therefore the below is a general guideline and idea. 

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      How Bankruptcy Can Help You Get Rid of Your Junker Car in Saint Paul Minnesota

      Posted by Wesley Scott on October 9

          Cars depreciate in value quickly. Your car may have been your pride and joy when you first drove it off of the dealership lot. However, after many miles of wear and tear, you may feel differently. It is not uncommon for people to find themselves in a position in which their vehicle is worth much less than what they still owe on their car loan. This is not surprising when you consider the amount of interest the car loan lenders make you pay (and don’t get me started on all those extra fees the dealerships like to throw in).  However, there is a solution to that expensive eyesore taking up space in your driveway. You guessed it! You can file a personal bankruptcy case.

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      Can I File Bankruptcy on My Utility Provider in Minneapolis, Minnesota

      Posted by Amanda Scharber on October 8

      Life happens, we do not set out to owe our creditors money we cannot payback. If you are in a situation where you owe your utility providers for a current service you use, you may be wondering, can I include my utility provider as a creditor in my bankruptcy?
      The answer, is yes. Although, you can include your utility providers, read on to find out requirements for doing so.

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      Bankruptcy and Baseball in Saint Paul, Minnesota

      Posted by Wesley Scott on October 7

      Summer in Saint Paul is a thing of beauty. Everywhere you look, there’s trees, rich foliage, and lots of flowers.  The weather is typically sunny and warm, but not too hot. The city is full of people engaging in outdoor activities such as boating, swimming, jogging, and playing in the park. However, one of the best things about the summertime in St. Paul is the sports.  

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      Judgment Liens in Minneapolis, MN and Bankruptcy

      Posted by Col Ovik on October 5

      Once a creditor obtains a judgment against a debtor in order for the creditor to obtain payment from the debtor the creditor will attempt to enforce the judgment. Enforcement of the judgment can be in the form of a bank levy or garnishment but it can also be a lien against the debtor’s real estate. 

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      Looking for the Best Bankruptcy Law Firm in Minneapolis, MN? You Found It!

      Posted by Wesley Scott on October 3

      LifeBack Law Firm is Minnesota’s most kind and helpful bankruptcy law firm. We recently opened up a new location right where you live in Minneapolis, MN! We are now located at 310 E 38 Street, Suite 111, Minneapolis, MN 55409. We are just south of downtown Minneapolis and located on a bus line with plenty of free parking. If you live in Minneapolis, and you are suffering from overwhelming debt, and you need to file bankruptcy and get your life back, look no further than LifeBack Law Firm. LifeBack has been protecting Minnesotans from their creditors since 1972, and we can protect you too. 

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      Nondischargeability of Debts in Bankruptcy in Minneapolis, MN: 523(A)(6)

      Posted by Col Ovik on October 2

      Not all debts in a bankruptcy are dischargeable. 11 U.S.C. § 523 of the Bankruptcy Code provides exceptions to the dischargeability of some debts. This blog will address the nondischargeability of debts encompassed by Section 523(a)(6). 

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      What Is the Effect of Chapter 7 Bankruptcy, on My Credit, in Minneapolis, MN?

      Posted by Wesley Scott on October 1

           It is the age-old question isn’t it? What effect does filing Chapter 7 Bankruptcy have on my credit? It’s not what you think and here is why. Suppose you say to me, I have 50k in credit card debt and I have fallen behind on my payments. The credit card companies have not sued me yet but I am in default on all my payments and I am starting to hear from collection agencies. We all know collection agencies are the last stop before you get sued and your wages garnished and accounts levied by creditors.

       

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      Where Will My Bankruptcy Case Be Filed?

      Posted by Amanda Scharber on September 30

      Almost every client wants to know where their case will be filed and whether the county they live in is the location for filing. The county you live in does determine where your case is filed, but your case will not be filed in your local county courthouse. 

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      Public Benefits and bankruptcy

      Posted by Wesley Scott on September 28

      Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we discuss public benefits, which are today are generally couched as welfare. 

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      Filing for a Chapter 7 Bankruptcy as a Business Owner

      Posted by Danielle Lin on September 27

       If you own an LLC or a corporation, and are thinking about filing for bankruptcy, you may have some questions or concerns regarding whether your business debt will be discharged in a Chapter 7 bankruptcy. By owning an LLC or a corporation, you probably have business debt and personal debt. Business debt is debt that arises from the operation of your business. It is money that you owe from running your business. It is debt that is owed by the business entity, which is separate from the debt owed by you as the owner of the business. Personal debts from running a business can come in the form of taking out loans and incurring credit card debt to pay business expenses. It can also come about when you as the business owner, agree to “personally guarantee” a business loan, which means that you as the owner, agree to be personally responsible for repaying the business loan, in the event the business is unable to pay the loan itself.

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      Should I File for Bankruptcy with My Spouse?

      Posted by Wesley Scott on September 26

      Bankruptcy law allows debtors to file a personal chapter 7 or 13 bankruptcy case either by themselves, individually, or jointly with their spouse. Typically, when both spouses have a substantial amount of debt, it makes good sense for them to file a joint case together. That way, both spouses can wipe out all of their debt, at the same time, without having to go through the additional time and cost of filing two separate cases (debtors don’t have to pay twice for attorney fees and court filing fees).

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      Can I Modify My Mortgage During My Chapter 13 Bankruptcy?

      Posted by Danielle Lin on September 23

          If you are struggling with making your mortgage payments on time, or if you are facing an impending foreclosure on your house, a Chapter 13 bankruptcy may be the type of bankruptcy that will best suit your needs. A Chapter 13 bankruptcy involves an affordable, monthly payment plan. This monthly payment plan can cure mortgage arrears, and at the same time, protect your house from a foreclosure. A Chapter 13 bankruptcy is a structured and organized way to pay back a small portion of your debt, cure mortgage arrears, and stop a foreclosure; meanwhile, you are able to keep all of your assets and come out of the bankruptcy in 3-5 years debt free. In a Chapter 13 bankruptcy, you will make monthly, affordable payments to your bankruptcy trustee’s office, which can be set up to monthly ACH withdrawals from a bank account of your choice. That monthly, affordable payment can allow you to pay down any mortgage arrears that you may have. 

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      Bankruptcy Policy Rationales in the 20th Century

      Posted by Wesley Scott on September 22

      Over my last posts, we discussed the bankruptcy regimes in the United States up to the Chandler Act of 1938. It is worth taking a moment to plot the policy concerns over those periods.

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      I Do Not Eat Spiders

      Posted by Col Ovik on September 21

      We live in the historical period known as the information age. Everyone has information right at their fingertip, however, are they receiving the correct information? How do we know the information we are reading online is the best, and most current information. Consider the source of the information: is the information coming from someone’s blog or an academic paper, and cross-reference the sources. It can be an arduous task to complete a thorough search on a topic, but likely necessary if you want the entire truth. 

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      Socrates, debt, morality, and bankruptcy

      Posted by Wesley Scott on September 19

      Though we have been tracing the history of bankruptcy policy in America, this week, we will take a break from that discussion. We turn instead to Greek philosophers and discuss some of their ideas about debts and society so we can gain perspective on our modern situation.

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      Dismissal or Conversion of a Chapter 13 Bankruptcy

      Posted by Danielle Lin on September 17

          There are various reasons a Chapter 13 bankruptcy could be dismissed or converted to a Chapter 7 bankruptcy. A Chapter 13 bankruptcy may be voluntarily converted to a Chapter 7 bankruptcy at any time. A Chapter 13 bankruptcy may be voluntarily converted to a Chapter 7 for a number of reasons, including a change in your financial circumstances that may allow a Chapter 7 bankruptcy to be more suitable. It may also be that due to the nature of the proof of claims that filed by your creditors, confirmation of your Chapter 13 plan is not feasible and converting to a Chapter 7 would resolve issues with creditors, make more sense, and be more beneficial for you. While only a notice of conversion needs to be filed if a Chapter 13 is voluntarily converted to a Chapter 7 bankruptcy, it would be wise to consult with an experienced attorney prior to deciding whether a conversion to a Chapter 7 would be best for your financial situation, needs, and circumstances. 

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      How Bankruptcy Provides Protection from Creditors

      Posted by Danielle Lin on September 16

      At the moment you file for bankruptcy, “automatic stay” kicks in, pursuant to Section 362 of the U.S. Bankruptcy Code. It is an order that gets sent to your creditors immediately, after you file for bankruptcy. The automatic stay affords protections throughout your bankruptcy, regardless of whether you file a Chapter 7 or a Chapter 13 bankruptcy. It is a provision in bankruptcy law that acts as a protective shield and protects you from creditors, while at the same time, providing you time to reorganize your debts, finances, and financial affairs.

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      Afraid to File Bankruptcy? You Are Not Alone

      Posted by Wesley Scott on September 15

      Each year, thousands of Minnesotans reach out to LifeBack Law Firm to ask for help with debt. And we know exactly how you feel reading this blog right now. Our former clients felt the same way. But do you know what they found? They found LifeBack Law Firm is Minnesota’s most kind and helpful bankruptcy law firm in Minnesota. When you are suffering with debt and run out of options, that is when you need to feel kindness the most. At LifeBack Law, we excel in helping Minnesotans file bankruptcy while emphasizing kindness and helpfulness. 

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      Chapter 13 Bankruptcy: My Income Has Changed

      Posted by Amanda Scharber on September 14

      If you are in a current chapter 13 or thinking of filing a chapter 13, you may be wondering what happens if your income changes during your pending bankruptcy. This is an excellent question, as a chapter 13 bankruptcy commits your disposable income during the 3-5 years of the case.  

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      Co-Signors in Bankruptcy

      Posted by Amanda Scharber on September 13

      It is very common that two people will co-sign on each other’s debt. Whether this is a spouse, parent, child, or significant other. If one liable party on the loan decides to file bankruptcy, you may be wondering what will happen to the other party/the co-signor? 

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      Can I Keep My Recreational Vehicles in Bankruptcy?

      Posted by Wesley Scott on September 12

          Many people who file for bankruptcy have “toys” that they use for recreational purposes. These can include motorcycles, boats, snowmobiles, ATVs, motorhomes, etc. Bankruptcy is a powerful tool that enables many people to become free from their crushing debt. Generally speaking, bankruptcy law is designed to allow a person who files a bankruptcy case (aka the “debtor”) to keep a modest amount of property that is necessary to prevent the debtor becoming completely impoverished, and allows them to “get back on their feet” after their debt is wiped out. The debtor’s homestead (primary place of residence), a modest vehicle, and basic personal property (i.e. clothes, personal effects, and basic furniture) are generally “exempt,” meaning legally protected from being taken or used to satisfy debts. Whether debtors are allowed to keep their recreational toys, which are often not exempt, nor considered necessary for the debtor to possess, depends upon the circumstances and type of bankruptcy that is filed. 

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      Looking for a bankruptcy lawyer in St. Paul, MN?

      Posted by Wesley Scott on September 11

         I am excited to report that LifeBack Law Firm has moved our Roseville, MN location to St. Paul, MN! We are super thrilled to be at our new St. Paul location at 370 Selby Avenue, Suite 224, St. Paul, MN 55102. We are right where you live in the Capitol of Minnesota on Cathedral hill. Our St. Paul location is on the bus line and is surrounded by fantastic restaurants and coffee shops. 

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      Can My Bankruptcy Discharge Not Go Through?

      Posted by Amanda Scharber on September 9

      If you are filing bankruptcy you may be wondering, can my bankruptcy discharge possibly not go through? This is a common worry and I can see why. If you do all the work of filing a bankruptcy, you don’t want to last second not receive a discharge of your debts. I am here to tell you not to worry- read on to find out why. 

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      Bankruptcy and Responsibilities

      Posted by Col Ovik on September 9

      Filing bankruptcy is a court action. The bankruptcy filer will file a petition, and receive a case number, meet with a trustee, and there is a possibility of additional court actions, motions, and ultimately the case will be discharged and closed. But, as a bankruptcy filer you have some responsibilities to the court. Bankruptcy exists for the protection of the debtor and to provide the debtor with relief from their creditors, but there is also an onus on the debtor when filing. 

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      Will My Non-Filing Spouse be Impacted by My Bankruptcy?

      Posted by Amanda Scharber on September 7

      Just because you file bankruptcy does not mean your spouse has to file with you. If your spouse does not file, you may be wondering, will they be impacted by my filing? 

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      Creditor Collections After Filing Bankruptcy

      Posted by Col Ovik on September 6

      When a bankruptcy is filed the automatic stay is immediate, but not unlimited.  The automatic stay typically lasts until the debtors discharge but through the filing of a motion for relief from the stay, a creditor can request permission from the court to continue collection efforts against a debtor. For example, a mortgage company can ask for relief to foreclose on a homestead for non-payment of the mortgage or a vehicle lender can request relief to repossess a vehicle for failure to keep the vehicle properly insured. The creditor must show the court that a reason or a cause exists to lift the automatic stay.

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      What is An Adversary Proceeding in bankruptcy?

      Posted by Amanda Scharber on September 5

      For most chapter 7 and chapter 13 cases, the words adversary proceeding will not come up. Most clients will complete their bankruptcy without having any. If you have an adversary proceeding or there is a chance that you may, you may be wondering what it is? An adversary proceeding is litigation within your bankruptcy case.

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      DISCLOSURES AND BANKRUPTCY

      Posted by Col Ovik on September 5

      Bankruptcy relief affords debtors with the benefit of the discharge of debts. But the cost of this discharge is: debtor must be honest and truthful in their disclosures to the court. If a debtor does not provide an honest and accurate accounting of assets to the court and creditors they will jeopardize the discharge of their debts.  

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      Minnesotans looking to file bankruptcy: watch out for this!

      Posted by Wesley Scott on September 4

      Recently, I spoke to a gentleman who was desperate to file bankruptcy and thought he could do it on his own. He quickly realized bankruptcy is too complicated of a legal process to do it himself. So then, he reached out to an out-of-state company to help him file bankruptcy “on the cheap”. The company was quick to gain access to his checking account and deduct money from his account for their fees ($500 by the time he reached out to LifeBack Law Firm). Soon after hiring this out of state company he began to get a sinking feeling in his stomach that this company was not what it purported to be.

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      Preparing for a Bankruptcy Filing

      Posted by Danielle Lin on September 2

      There are various ways you can prepare for a bankruptcy filing, even before you meet with your bankruptcy attorney. As a prerequisite to filing bankruptcy, one must provide full financial disclosure to the bankruptcy court. One must also be completely open and forthright and must be willing to provide any and all documents requested by the bankruptcy trustee, after the case is filed. When preparing for filing a future bankruptcy case, it is wise to keep detailed records of any large financial transactions and to begin collecting paystubs, bank statements, and recent tax returns, as they are all subject to be requested by the bankruptcy trustee.

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      2022 Update to Federal Bankruptcy Code Property Exemptions

      Posted by Wesley Scott on September 2

      People who file a bankruptcy case in Minnesota have the option of choosing the exemptions specifically provided by the Federal Bankruptcy Code (commonly referred to as the “Federal exemptions”), or any other applicable Minnesota State or Federal laws (aka “State exemptions”), to protect their property from creditors.

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      Will I Be Able to Keep My Tax Refunds in bankruptcy?

      Posted by Danielle Lin on August 29

      If you are are planning on filing for bankruptcy soon, and are also expecting to receive a future tax refund, you may wonder whether you can keep your tax refund after filing a bankruptcy case, or whether you would have to turnover that refund to your bankruptcy trustee. Whether you are able to keep your tax refund or not, depends in large part on what type of law is applied to your case in order to protect all of your assets. There are two types of law that can be applied to any given bankruptcy case – federal or state law. Your bankruptcy attorney will determine which type of exemptions to use in order to best protect your property during your bankruptcy. 

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      An Introduction to St. Cloud, Minnesota

      Posted by Wesley Scott on August 28

         Welcome to St. Cloud, Minnesota nestled along the tranquil backwaters of the upper Mississippi River. The population of St. Cloud (according to the 2020 census) was 68,881 making it Minnesota’s 12 largest city. St. Cloud is famous for its granite quarries which have been worked since 1868. In fact, St. Cloud has been nicknamed the “granite city”. 

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      Crypto Currency and Bankruptcy

      Posted by Col Ovik on August 27

      Lately it has been in vogue to buy into the cryptocurrency world. And when a debtor files bankruptcy any value that the cryptocurrency would have would be considered an asset. But before you jump into the cryptocurrency market you should consider all the risk. 

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      Unemployment Benefits and Overpayment in Bankruptcy

      Posted by Wesley Scott on August 26

      Many Minnesotans file bankruptcy due to the financial strain of being unemployed for a long period of time. During their period of unemployment, many people often receive unemployment compensation in order to afford to pay their bills. Unemployment benefits are completely “exempt” in bankruptcy. This means unemployment benefits cannot be taken, or used, for the purpose of satisfying a person’s debts when they file a personal chapter 7 or chapter 13 bankruptcy case. When a person files for bankruptcy in Minnesota, they are allowed to choose whether they use Federal or State law to exempt their property. Regardless of which law they choose, any money they receive for unemployment compensation will be exempt, and protected. 

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      Reaffirmation Agreements in bankruptcy: What They Are and Why You Shouldn’t Sign One

      Posted by Amanda Scharber on August 24

      A bankruptcy filing will discharge your personal liability on most debt. This includes secured assets, for example, vehicles or mortgages. Although your personal liability on the loan is dischargeable, if you want to keep the secured property you have to keep making payments. Some creditors will also request you sign a reaffirmation agreement after your chapter 7 bankruptcy is filed. A reaffirmation agreement typically says that you will keep your terms of your debt the same as if you had not filed bankruptcy, including your personal liability on the loan. 

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      If I Currently Live Out-of-State, Can I File Bankruptcy in Minnesota?

      Posted by Danielle Lin on August 22

      If you currently live outside of Minnesota, you may wonder if you can still file for bankruptcy in Minnesota. Do I need to be a resident of Minnesota to file for bankruptcy in Minnesota? Well, the residency requirements to file in Minnesota are quite easy to be met. You simply have to have lived in Minnesota for at least 91 days in order to file for bankruptcy in Minnesota. 

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      Example of a Preference in Bankruptcy

      Posted by Amanda Scharber on August 20

      A preference is essentially a payment that benefits one creditor over others. This commonly occurs with payments to unsecured creditors of $600 or more in the 90 days prior to filing or to a relative of $600 or more in the 1 year prior to filing. The trustee in your chapter 7 bankruptcy will want the funds received from this preference, to distribute to all of your creditors. 

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      Don’t Pay Back Family Members before Filing a Chapter 7 Bankruptcy Case

      Posted by Wesley Scott on August 19

      Bankruptcy provides financial relief for many people who are struggling to pay their debts. A chapter 7 bankruptcy case is a powerful tool that allows people to completely wipe out most types of debts without having to make any payments to their creditors. In the vast majority of cases, people who file for bankruptcy lose little-to-no property in exchange for receiving their discharge. When considering filing a chapter 7 bankruptcy case, one should be very cautious about the financial transactions they engage in with close friends and family members prior to filing their case. Although one may be acting with the best of intentions, their actions may have an unintended negative impact upon their bankruptcy case and even upon their own close friends and family members.

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      Homestead Exemption and Different Situations in Bankruptcy

      Posted by Col Ovik on August 18

      In Minnesota, the creation of a statutory exemption from claims of creditors for real estate used as a homestead is authorized by Article I, Sec. 12 of the State Constitution.  Minn. Stat. Chap. 510 sets forth the homestead exemption. It begins with a definition that reads, in pertinent part: 

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      What are the Different Types of Creditors and How Do They Affect My Bankruptcy?

      Posted by Danielle Lin on August 17

      If you are thinking about filing for bankruptcy, it is helpful to understand the different types of creditors and what kind of creditors you have. The type of debt and creditors that you have can be determinative of the type of bankruptcy that you file. A creditor is somebody you owe money to. When you file for bankruptcy, all of your creditors will be listed in your petition and schedules – those are the legal documents that are filed with the court in order to start your bankruptcy case.

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      Examples of Fraudulent Transfers in Bankruptcy

      Posted by Amanda Scharber on August 15

      A fraudulent transfer is a transfer before a bankruptcy filing with some type of fraud that the bankruptcy trustee can claw back. Common examples are when something is sold or transferred with the intent to hinder, delay, or defraud your creditors or you transfer something under fair market value before filing. But there are other types of fraudulent transfers as well. Your attorney will go through your case with you and should let you know if there is any risk with filing and fraudulent transfers. Your attorney should be able to discuss if there are any possible defenses, as well. Under federal law the look back period for fraudulent transfers is two years. 

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      The history of bankruptcy in America: The Chandler Act

      Posted by Wesley Scott on August 13

      Carrying on from our discussion putting past bankruptcy policies in context, we arrive at the 20th century and the development of our modern bankruptcy regime. The Bankruptcy Act of 1898 was never repealed, lasting until the enactment of the Bankruptcy Act of 1938.  The Chandler Act, as it became known, was not revolutionary. It simply increased access to debtors and made voluntary bankruptcy more attractive for debtors. Technically, the Chandler Act merely amended the previous policy, so an incremental change to bankruptcy policy is not surprising. It is worth noting that modern case law occasionally looks back to these 20th century policies for precedential decisions. 

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      Chapter 7 Liquidation Examples

      Posted by Amanda Scharber on August 11

      A chapter 7 bankruptcy is referred to as a liquidation bankruptcy. This is because any assets above what the bankruptcy exemptions cover will have to be liquidated or you will have to pay their value to keep them. Non-exempt assets can happen in both Minnesota and Federal exemption cases. That being said, they are more common in Minnesota exemption cases. Let’s look at a few examples:

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      LifeBack Law Firm: Minnesota’s Highest Google Reviewed Bankruptcy law firm

      Posted by Wesley Scott on August 9

        There are some law firms who game the system. They use software to generate and “gate” bad reviews so the reviews that display are typically stronger reviews. This is unethical and dishonest. At LifeBack Law Firm, we have never used software to generate any Google reviews. All of our reviews are left from people who came in contact with the firm in one form or another and were moved to leave a review. LifeBack Law Firm’s Google reviews are the most heartfelt reviews in the bankruptcy business. 

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      What are the Benefits of a Chapter 13 bankruptcy?

      Posted by Danielle Lin on August 8

      If you are thinking about filing for bankruptcy, you may be deciding between whether a Chapter 7 or a Chapter 13 would be better for you. While a Chapter 7 bankruptcy is known to give you a quick refresh button by wiping out all of your unsecured debt in 3-4 months, there are advantages to a Chapter 13 bankruptcy too. A Chapter 13 bankruptcy also provides benefits that a Chapter 7 cannot. 

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      NOT EVERY CREDITOR ACTION IN BANKRUPTCY IS A VIOLTION OF THE AUTOMATIC STAY

      Posted by Col Ovik on August 7

      Section 362 provides that a bankruptcy petition "operates as a stay, applicable to all entities" and "generally prohibits attempts to collect prepetition debts against the debtor or the debtor's property or attempts to enforce liens and other interests against property of the bankruptcy estate”

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      NEED TO FILE BANKRUPTCY IN ST. CLOUD, MN? YOU ARE NOT ALONE

      Posted by Wesley Scott on August 5

           I think the disease of loneliness is the biggest disease faced by Minnesotans. It is easy to feel alone when you are suffering with a problem like a debt problem. But you are not alone. LifeBack Law Firm has been protecting Minnesotans from their creditors since 1972 and we can protect you too. I know bankruptcy is scary and can make you feel alone and afraid. When you run out of options with your debt, and need to consider bankruptcy, that is when you need kindness the most. Thankfully, LifeBack Law Firm is the most kind and helpful bankruptcy law firm in Minnesota.

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      VALUING YOUR ASSETS IN BANKRUPTCY

      Posted by Col Ovik on August 3

      When filing for bankruptcy your attorney will ask you to value and disclose all your assets on the bankruptcy petition. The importance of an accurate, complete and honest disclosure of assets cannot be emphasized enough. Disclosures are required as to the nature, value, and disposal of assets. Knowingly and fraudulently undervaluing assets or nondisclosure of assets can equate to the intent necessary for the denial of discharge under 11 U.S.C. Section 727.  The intent requisite to preclude a discharge must be an actual fraudulent intent as distinguished from constructive intent. Actual intent such as to hinder a creditor may be inferred from the debtor's actions, like intentional undervaluing of assets or omitting assets. 

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      WHICH MINNESOTA BANKRUPTCY LAW FIRM IS THE BEST?

      Posted by Wesley Scott on August 1

           When Minnesotans are suffering with debt, that is when you need to feel kindness the most. One Minnesota bankruptcy law firm excels at filing bankruptcy for Minnesotans while delivering the most kind and helpful bankruptcy service in the industry. The Minnesota bankruptcy law firm that delivers the most kind and helpful service by far and away is LifeBack Law Firm.  Just this morning we received one of the most heartfelt 5 star Google reviews I have ever read and it gives a shout out to numerous LifeBack Law team members involved in her case. I am always amazed at the willingness of people to file bankruptcy and then post their name publicly with a review. To me, it tells me these people were extremely moved by the kindness they felt while working with the LifeBack Law team.

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      Bankruptcy Act of 1867

      Posted by Wesley Scott on July 28

      In the last two posts we discussed the Bankruptcy Act of 1800 and the Bankruptcy Act of 1841 respectively so we, perhaps unsurprisingly, now turn to the next policy: the Bankruptcy Act of 1867. It is worth noting that this policy and the previous two were all responses to poor economic conditions and were unintentionally temporary. In the wake of the 1857 financial crisis and the Civil War, debtors and creditors alike were in need of options for remedy. This new incarnation signaled a change in reasoning in bankruptcy policy which was slightly more beneficial to debtors. 

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      How Will Bankruptcy Impact My Mortgage?

      Posted by Amanda Scharber on July 23

      When you file for bankruptcy you have to list all of your creditors, including those you intend to keep. For example, even though you may want to keep your home and keep paying your mortgage, the mortgage company will have to be listed in the case and receive notice of the filing. If you are thinking about filing bankruptcy or already have, you may be wondering how your mortgage company receiving notice of your filing will impact your mortgage.

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      SCOTUS When to Worry

      Posted by Col Ovik on July 18

      There have been some headline making US Supreme Court opinions recently. Some decisions you may agree with, and some you may disagree with, but the real question is when and why should the public be concerned with these decisions. 

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      Need to File Bankruptcy in Eagan, Minnesota? Avoid This…

      Posted by Wesley Scott on July 16

           If you are like a lot of people who live in or around Eagan, MN, you may find yourself needing to file bankruptcy. As of the date I am writing this blog, June 18, 2022, the economy is starting to crack, inflation is skyrocketing, business is slowing, and lay-offs are beginning. Many good people will find themselves needing to file bankruptcy. The humility of being alive. However, do a little research before you choose a bankruptcy law firm because you don’t want to end up with a lawyer who is stuck in a closet in virtual space with no support staff.

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      Plan Objections: Chapter 13

      Posted by Col Ovik on July 11

      Chapter 13 bankruptcies are repayment plans based on the debtor’s ability to pay. When meeting with your attorney you will discuss your monthly budget: income and expenses, and determine a proposed monthly payment. Once the petition is filed, a creditor’s meeting and confirmation hearing will be scheduled.  Prior to the confirmation hearing, the creditors can objection to the confirmation of the plan.

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      Looking for the Most Kind and Helpful Bankruptcy Law Firm in Minneapolis?

      Posted by Wesley Scott on July 8

           Minnesotans who reside in and around Minneapolis looking for a Chapter 7 Bankruptcy law firm near them want a team of professionals who are kind and helpful. How is it we know this to be true? They tell us this over and over. You see, if you are suffering with a debt problem, it was likely triggered by some awful event in your life: business failure, income drop, divorce or relationship break up, medical problems, or just bad financial decisions (we have all made them). But, the last thing you want is to deal with a lawyer or staff that are self-centered, mean, or act like you have to jump hurdles to get relief from your debts.

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      Will I Be Able to Keep My House During a Bankruptcy?

      Posted by Danielle Lin on July 4

      Will I be able to keep my house when I file for bankruptcy? It’s a common concern that you may wonder about as you are making preparations to file for bankruptcy. It could be that you are facing a daunting foreclosure and want to file for bankruptcy in order to save your house. Or, you could have a perfect record with your mortgage company because you have always made your mortgage payments on time, and you do not want the bankruptcy to affect that and cause you to lose your house. These are all valid concerns that many people who file for bankruptcy have.

       

      After filing for bankruptcy, you will be able to keep your house, regardless of whether you file a Chapter 7 or a Chapter 13 bankruptcy, so long as you keep making your mortgage payments on time. If you are paying your mortgage company on time, then you can rest assured that you will be able to keep your house during the bankruptcy. You see, when you file for bankruptcy, your attorney who is helping you file your case, will apply one of two different laws to protect all of your assets – federal law or state law. The type of law that is applied to your case depends in part on whether you own a house with a significant amount of equity, or whether you are renting a house or an apartment. Federal law will be applied to protect your house and all of your assets, if the equity in your house falls within the threshold value allowed by the homestead federal statute. If the equity in your house exceeds that value, then Minnesota state law will be applied instead. The reason that federal law is usually favored, is because federal law has a wildcard provision that protects up to $13,900 worth of assets. This provision provides greater protection is protecting all of your assets. Therefore, your house is protected, whether federal or state law is applied, so long as you continue to make your mortgage payments.

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      The Bankruptcy Act of 1898

      Posted by Wesley Scott on July 1

      In the last post, we discussed The Bankruptcy Act of 1898 and its new focus on the wellbeing of debtors, rather than solely as a remedy for creditors. Previously, we had discussed the prior bankruptcy policies in America: the bankruptcy acts of 1800, 1841, 1867, and 1898. Let’s use this post to recap some of those policies and put them in context. 

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      Fiat Currency

      Posted by Ben Abraham on June 30

      Last time we did a slap-dash history of specie currency, so now let’s turn to the modern concept of fiat currency. Fiat money is issued by a government (or a just a bank but that is out of scope). It is not backed by a commodity. Rather, the government merely backs U.S. dollars as legal tender. Furthermore, as a product of the money no longer being tied to a physical item of limited source, they could print as much money as they wanted. 

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      I Can File a Chapter 7 Bankruptcy but Should I?

      Posted by Col Ovik on June 29

      Not everyone is eligible to file a chapter 7 bankruptcy. There are income requirements to filing a chapter 7 and those individuals that do not meet the income requirements, will not be able to file a chapter 7 bankruptcy. But, even those that do meet the eligibility requirements to file a chapter 7, may find the outcome of filing a chapter 7 disagreeable. While chapter 7 filings are effective vehicles for discharging unsecured debt and they are short in duration, there are times when even those eligible for a chapter 7 bankruptcy may choose to file a chapter 13 instead.

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      Filing Bankruptcy in Minnesota? Watch Out for These 2 Things

      Posted by Wesley Scott on June 28

       Filing bankruptcy takes courage. In fact, it takes a lot of courage. Once you have summoned the courage to reach out for help, the last thing you want to deal with is rude and self-centered lawyers and staff. You know the kind I am talking about—the kind that think they are self-important and tell you all their stories but don’t want to listen to your story. 

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      Avoidance and Recovery of Transfers

      Posted by Col Ovik on June 27

      The bankruptcy trustee may avoid transfers that the debtor made or incurred within two years before the filing of the bankruptcy petition if such transfer was made with actual intent to hinder, delay, or defraud a creditor or the debtor received less than fair market value for the transfer. The trustee then may recover, for the benefit of the estate, the property transferred or the value of such property. 

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      Monies Owed to You and Bankruptcy

      Posted by Col Ovik on June 25

      On the bankruptcy petition you will list all of your assets, and this includes anything owed to you, or potentially owed to you, even if you believe the funds or asset is not collectable. For example, if you lent you neighbor $1,000, but you believe that he is unlikely to pay you, it is still important to list the money owed as an asset in your bankruptcy. If you have a case with non-exempt assets, the bankruptcy estate may have an interest in the funds lent. And depending on the amount of monies owed to you, the bankruptcy estate may pursue you neighbor for the lent funds. 

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      Should I Surrender My “Cross-Collateralized” Collateral in my Chapter 7 Bankruptcy?

      Posted by Danielle Lin on June 23

      You may have heard of the principle of “Cross-Collateralization” and have wondered to yourself, what it means in regards to your Chapter 7 bankruptcy. How does it affect my Chapter 7 bankruptcy? Cross-collateralization clauses can be found in loan agreements you may sign with a lender. For instance, if you borrowed money from a bank to purchase an asset, the loan agreement you signed, may have contained a cross-collateralization clause in it.

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      What is money?

      Posted by Ben Abraham on June 20

      First off, for the sake of simplicity, let’s limit our discussion to 18th century America. Money is a store of value, and there are many kinds of money. In the colonial era, money was (arguably) much more complicated than it is now: each colony would issue their own bills of credit, which all had their own values. So, for example, a Pennsylvania pound might be worth less than a New York pound of the same denomination. Also worth noting about money in the colonial era is that the “stored value” of the bills of credit were redeemable for actual gold or silver. Money that is redeemable for gold or silver are known as specie (pronounced SPEE-sha). 

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      Do You Fear Filing Chapter 7 Bankruptcy? Call Lifeback Law Firm

      Posted by Wesley Scott on June 16

       It is not unusual for Minnesotans to fear filing Chapter 7 Bankruptcy. Prospective clients often come to LifeBack Law Firm feeling very afraid. We know how you feel. Most of our former clients felt the same way you do now. But do you know what they found? They found that LifeBack Law Firm has the most kind and helpful bankruptcy staff in Minnesota. LifeBack Law Firm clients get spoiled by the staff. We honor the courage it took for you to reach out for help with a debt problem.

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      Are There Some Types of Debt That Cannot Be Discharged In Bankruptcy? (Part I)

      Posted by Wesley Scott on June 14

      One of the questions that we commonly hear is whether there are types of debt that cannot be discharged in bankruptcy. Unfortunately for many debtors, there are, indeed, types of common debts that cannot be discharged in bankruptcy, as well as some uncommon types. Over the course of the next several blog posts, we will discuss some of those debts. Note: this is not meant to be an all-inclusive list.

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      Tax Refunds and the Importance of Filing Taxes During Your Bankruptcy

      Posted by Danielle Lin on June 13

      If you have not filed your taxes for the upcoming tax season, and you are thinking about filing for bankruptcy, you may wonder if you can file your taxes and keep the refund, if you are entitled to receive a refund. Whether you are able to keep your tax refund, depends in part on the type of bankruptcy that you file. It also depends on the value of your total assets and your particular financial circumstance. There are two types of bankruptcies in the bankruptcy world.

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      Bankruptcy and Bank Accounts

      Posted by Wesley Scott on June 12

      Many people wonder how filing for bankruptcy will impact their bank accounts. In many cases, people have checking and savings accounts with banks, and also have debts owed to the bank such as credit cards, personal loans, car loans, and home mortgage loans.

      If a person does not have any debts with the bank, they can continue to maintain and use their bank accounts, as the bank is not a creditor impacted by the bankruptcy. However, if the “debtor” (person filing for bankruptcy) owes debt directly to the bank, the bank will be considered a creditor in the bankruptcy case, and whether the bank decides to close the debtor’s bank account or allow them to continue using the bank’s services depends on the amount of debt owed to the bank and the type of debt owed to the bank. 

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      What Happens if I am Unable Complete My Chapter 13 Bankruptcy Case?

      Posted by Wesley Scott on June 10

      A chapter 13 bankruptcy case is a three to five year repayment plan wherein the debtor makes monthly payments towards their debts. After successfully completing their repayment plan, the debtor’s remaining unsecured debts are discharged, with some exceptions (i.e. student loans). Once the bankruptcy court “confirms,” or officially approves, the debtor’s repayment plan (typically a few months after their case is filed), the debtor is bound to contribute all of their disposable income towards their monthly payments.

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      I Just Found Out I Have a Judgment

      Posted by Col Ovik on June 10

      There is a process and procedure for serving defendants and initiating a lawsuit. Plaintiffs do have to follow the correct procedures for proper service. Some individuals are successfully sued and a judgment is awarded to the plaintiff without any knowledge by the defendant. The defendant only becomes aware of the judgment when the creditor begins to enforce the judgment through a bank levy or a garnishment. The question I receive from debtors is: how can they vacate or remove the judgment because they were not properly served with the lawsuit.

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      The Bankruptcy Act of 1841

      Posted by Ben Abraham on June 8

      In my last post, we discussed the first bankruptcy code in the United States, the Bankruptcy act of 1800; in this post we will turn to the second incarnation, The Bankruptcy Act of 1841. Clearly, congress was not interested in creative nomenclature. Nonetheless, there were other improvements in the content of the new code. First, debtors could now file bankruptcy for themselves, voluntarily. Second, bankruptcy was available to individuals rather than just merchants. Third, the more informal processes utilizing administrators was left behind in favor of using the district courts. 

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      Handling Secured Debts in a Chapter 7 Bankruptcy

      Posted by Wesley Scott on June 8

      When a person files a chapter 7 bankruptcy case, they often have secured debts. These types of debts are secured to certain property, known as “collateral,” which can be taken to satisfy the debt if the debt is not repaid by the borrower.  Home mortgages and car loans are examples of secured debts as the lender retains a “lien” on the home or car (the collateral) and can foreclose on the home, or repossess the car, if the borrower defaults on their monthly payments on the debt. 

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      The Timing of Your Bankruptcy Filing

      Posted by Col Ovik on June 6

      Carefully considering when to file your bankruptcy can maximize the benefit you achieve from the filing. There are many factors that may speed-up or delay the need to file. 

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      HONESTY IN BANKRUPTCY

      Posted by Col Ovik on June 5

      If a debtor is being represented in a bankruptcy they should allow their bankruptcy attorney to work for them, and the only way their attorney is able to provide adequate representation is if they know all the details about the debtor’s case. If a debtor chooses to omit certain transactions or details then the attorney will not be able to advise appropriately regarding those transactions which could be problematic in the case. 

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      How do you Surrender a Car in a Bankruptcy?

      Posted by Danielle Lin on June 4

      If you are thinking about filing for bankruptcy, you may wonder whether you are able to give up a car that you are financing, through the bankruptcy, and therefore relieve your liability on the loan. Surrendering a car is easy to do in a bankruptcy. If you own a car that has no equity, meaning that you owe more on it than its worth, you can simply surrender the car in the bankruptcy, without having to owe any more payments on it. After you receive your bankruptcy discharge, you may finance a new car with the money that you have saved from ceasing payments on the surrendered car. Surrendering a vehicle that has essentially no equity can also be beneficial because you can reduce your monthly expenses and save money. 

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      Thinking about filing bankruptcy in Minnesota? Think LifeBack Law Firm

      Posted by Wesley Scott on June 3

           If you are thinking about filing bankruptcy in Minnesota, think LifeBack Law Firm. Why think LifeBack Law Firm? LifeBack Law Firm has Minnesota’s most kind and helpful bankruptcy staff in Minnesota. How do we know this to be true? Just read the Google reviews left by your friends, neighbors, and family who has used LifeBack Law Firm to help them get their lives back. The last thing you want when you file bankruptcy is to be judged by bankruptcy lawyers and staff for filing bankruptcy.

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      Can I Keep Credit Cards in my Chapter 7 Bankruptcy?

      Posted by Danielle Lin on June 2

      A Chapter 7 bankruptcy works as a quick reset button – all of your unsecured debt will be wiped out in approximately 3-4 months, from the date your case is filed. Unsecured debt includes credit card debt, medical bill debt, and personal loans. This sounds exciting, as it certainly provides you with a fresh new start. Instead of paying your credit card bills, you can simply wipe out the remaining debt you have. You can obtain a new credit card after you receive your bankruptcy discharge, and rebuild your credit score by using the credit card and paying it off every month. 

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      What is interest?

      Posted by Ben Abraham on June 1

      In my last post, we discussed whether paying back debts is a moral issue – now let’s turn that question to the issue of interest. It is believed that interest rates originated as early as 2400 BC and were primarily used to stimulate agricultural and urban development. Aristotle viewed money not as a good in itself, but primarily as a means of exchange, and so viewed “money begetting money” as unnatural. In a similar vein, Plato saw the potential for interest leading to social instability – perhaps like the municipal bankruptcies we discussed in the last post. 

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      Can Second or Third Mortgages on Your House be Removed in a Chapter 13 Bankruptcy?

      Posted by Danielle Lin on May 30

      One of the benefits of a Chapter 13 bankruptcy is the ability to pay mortgage arrears, past due house payments, through a Chapter 13 payment plan. But, can second mortgages be removed in a Chapter 13 bankruptcy? Many people have multiple liens on their house, because they have taken out a second or a third mortgage. Often times, people take out a subsequent loan against a house that is already mortgaged, in order to pay for large expenses, such as buying a second house, or paying for a wedding.

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      Can I File Multiple Bankruptcy Cases?

      Posted by Wesley Scott on May 27

      Bankruptcy provides tremendous relief to people who become unable to pay back their debts. After the debtor receives their bankruptcy discharge, their creditors are forever legally prevented from undertaking further debt collection efforts against the debtor, with certain limited exceptions (i.e. generally student loan debt, domestic support obligations, and most income tax debt remain collectable).  

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      How Will Bankruptcy Affect My Credit Score?

      Posted by Danielle Lin on May 26

      One of the biggest concerns people often have when considering whether to file for bankruptcy, is the effect it will have on their credit score. The main effect bankruptcy initially has on your credit score immediately upon filing for bankruptcy, depends in large part on how high your credit score was prior to filing.

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      401k Accounts and 401k Loans in Bankruptcy

      Posted by Wesley Scott on May 25

      The law is very generous for allowing people who file for bankruptcy (aka “debtors) to keep and protect their retirement accounts.  Absent unusual circumstances, retirement accounts, such as IRAs, 401k accounts, and pension plans are generally fully exempt in bankruptcy, meaning that they cannot be taken to pay creditors.  One of the most common types of retirement accounts that people have is a 401k account.

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      Can I File bankruptcy on Medical Debt?

      Posted by Amanda Scharber on May 24

      Medical debt is dischargeable in bankruptcy, both in chapter 7 and chapter 13 cases.

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      How Restrictive is a Chapter 13 Bankruptcy?

      Posted by Wesley Scott on May 21

      A chapter 13 bankruptcy repayment plan is not designed to be easy but it is almost always worth the effort. This is due to the fact that a person who files a chapter 13 bankruptcy case (aka the debtor) gets to keep all of their property, is protected from the direct collection efforts of their creditors (absent limited circumstances), and usually pays back only a fraction of their debt before receiving a discharge of any remaining debt at the end of the plan.  

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      Where Can the Attorneys at LifeBack Law Firm File Your Bankruptcy Case?

      Posted by Amanda Scharber on May 20

      Here, at LifeBack Law Firm, we make filing bankruptcy as simple as we can. There are not countless worksheets to fill out, we do the drafting for you, and a licensed attorney will be working with you during the bankruptcy process. All the attorneys at LifeBack Law Firm are licensed to practice in Minnesota. Therefore, we can only file bankruptcy cases in Minnesota.

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      How should you feel about filing bankruptcy?

      Posted by Wesley Scott on May 19

      People occasionally tell me they feel bad about not paying their debts when considering bankruptcy. Sometimes, people are even downright distraught and try to apologize for being irresponsible. First things first: you do not have to apologize for taking a problem seriously and considering your options. But it also got me asking myself: is it morally wrong to not pay your debts?

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      Why Should You Hire An Attorney To File Your Bankruptcy?

      Posted by Amanda Scharber on May 18

       I was at a hearing just the other day where someone filed their chapter 7 bankruptcy case pro se, meaning they did not have attorney representation. Although, it is perfectly legal to file a case for yourself, typically it is not a good idea to do so. This is because bankruptcy law is vast and nuanced.

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      Bankruptcy Attorney Near Me in Maple Grove, MN

      Posted by Wesley Scott on May 17

         I like to think of LifeBack Law Firm as an oasis away from the cruelty of the world we live in. Too many people use cruelty and insecurity to hurt other people. It is really sad. When you have a debt problem the last thing you want is for law firm staff to be rude, condescending, or just mean. Unfortunately, we hear all the stories along these lines from clients who first went to another law firm to file bankruptcy only to find out, the lawyer and staff are rude.

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      How Long Does a Bankruptcy Case Take?

      Posted by Amanda Scharber on May 16

       We file two different kinds of bankruptcy cases at LifeBack Law, both Chapter 7 and Chapter 13. How long each will take and a timeline of what happens in each differs. Below we will go through both.

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      Life After Bankruptcy and the Promotion of Human Dignity

      Posted by Wesley Scott on May 15

      Recently, I spoke to a woman who told me she is a client of LifeBack Law Firm. She said she came to us after she spoke to another person and ended up doing some work for the firm herself. She said when she came into one of our office locations she knew she would be ok asking for help with bankruptcy. She knew she was in a safe, non-judgmental place. As a lawyer myself, I find these words from someone like her to be precious. No one feels good about having to file bankruptcy. But what people really don’t want is to work with someone who is unprofessional and judgmental.

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      Judgments

      Posted by Col Ovik on May 14

      When a creditor has failed to obtain payments from the debtor, the creditor may sell the debt to a debt collector. If the debt collector or creditor is still unable to collect on the debt they may employ a law firm to pursue the debt through a lawsuit. The initial start of the lawsuit begins with notice to the debtor that they are being sued.  

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      Minnesotans prefer to file bankruptcy with LifeBack Law Firm

      Posted by Wesley Scott on May 13

      Why do Minnesotans prefer to file Chapter 7 and Chapter 13 Bankruptcy with LifeBack Law Firm? Just read our hundreds and hundreds of Google reviews and you will see why. Minnesotans favor LifeBack Law because LifeBack Law excels at helping Minnesotans get their lives back while treating clients and co-workers with kindness, helpfulness, professionalism, and exceptional customer service.

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      Who is the Trustee?

      Posted by Amanda Scharber on May 12

      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.

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      Never Hire a Bankruptcy Lawyer Who Hangs the Phone up on You

      Posted by Wesley Scott on May 11

          Recently, I spoke to potential client who told me a story about a Minnesota bankruptcy lawyer who hung the phone up on him after the lawyer discovered the potential client wanted to retain LifeBack Law Firm instead of this other lawyer.

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      Trustee Powers and Prepetition Transfers

      Posted by Col Ovik on May 10

      Pursuant to 11 U.S.C. § 548(a)(1)(B) the trustee can avoid certain transfers made within two years before the petition filing date.

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      Gettting Your Life Back by Filing Chapter 7/13 Bankruptcy

      Posted by Wesley Scott on May 9

      Have you ever wondered what life could be like without overwhelming debt? It is possible to get your life back by filing Chapter 7 or 13 Bankruptcy. When you have unwanted debt, your finances are sick, you are not. Your finances need to take a shot of medicine and become healthy again. Money is not your life. Debt is not your life. And yet, debt can have tragic effects on the quality of your life.

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      Bankruptcy Terms

      Posted by Charles Nguyen on May 6

      Previously, I wrote about different individuals you’ll come across in your bankruptcy.  Here, I want to discuss and provide common terms you’ll come across as well.

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      How to File Chapter 7 Bankruptcy in Maple Grove, Minnesota

      Posted by Wesley Scott on May 5

         If you find yourself knee deep in debt, you are not alone. Each, year, thousands and thousands of Minnesotans just like you and I end up with overwhelming debt and the need to file Chapter 7 Bankruptcy. Hitting the reset button on your financial life is not as hard as you think. Once you wrap your mind around the “b” word, the actual process of filing Chapter 7 Bankruptcy is no so difficult to tolerate.

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      Calculating a Chapter 13 Payment Amount

      Posted by Charles Nguyen on May 4

      A chapter 13 is a reorganization bankruptcy where you establish a repayment plan that usually lasts 5 years.  Typically, the repayment plan is based on a budget that is created by looking at your net income and then your expenses.  

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      LifeBack Law Firm: bankruptcy is all we do, since 1972

      Posted by Wesley Scott on May 3

         LifeBack Law Firm has roots dating back to 1972. Since 1972, LifeBack Law Firm has been protecting Minnesotans from their creditors, and we can protect you too. Don’t you think a law firm that is 50 years old has spent an enormous amount of time perfecting the process of filing bankruptcy so it is as comforting and soothing to the guests as possible? You would be correct. LifeBack Law Firm has been perfecting the process of filing bankruptcy for Minnesotans just like you. Trust me, not all bankruptcy law firms are the same.

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      The Individuals in Your Bankruptcy

      Posted by Charles Nguyen on May 2

      When you decide to file bankruptcy there are other individuals and terms that are used when describing the process and your case.  Here are a few different parties you’ll come across during your bankruptcy.

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      This why Minnesotans choose LifeBack Law Firm for bankruptcy

      Posted by Wesley Scott on May 1

        Recently, I came across a set of circumstances that left me baffled. LifeBack Law Firm chose to represent bankruptcy clients where the clients had an original attorney of record who refused to complete their representation in bankruptcy. LifeBack Law would never leave a client stranded and left to their own devices. And yet, this original attorney of record did exactly that. She left the clients dangling even the though she is and still is the client’s original attorney of record.

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      What Is Bankruptcy?

      Posted by Wesley Scott on April 29

      The word “bankrupt” come from the Italian words, “banca rotta”, which means “broken bench”. In Italy, money dealers worked from benches or tables. If a dealer ran out of money, his bench was broken in half and he was out of business.  

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      What is Chapter 7 Bankruptcy in Eagan, MN?

      Posted by Wesley Scott on April 26

      What is a Chapter 7 Bankruptcy anyway? Will I lose everything I own if I file bankruptcy? Will the bankruptcy law firms in my area treat me with the dignity I deserve? When you are suffering from debt, many things cross your mind. One of them is will I lose all my assets if I file Chapter 7 Bankruptcy? Chapter 7 Bankruptcy is referred to as a “fresh start” or “liquidation” bankruptcy where the focus is on the assets you own, wherever situated in the world, on the date you file bankruptcy.

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      What Can and Cannot Happen In a Chapter 7 and Chapter 13 Bankruptcy

      Posted by Charles Nguyen on April 23

      Here is what CAN occur in a Chapter 7 Bankruptcy:

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      The process of filing bankruptcy in St. Cloud, Minnesota

      Posted by Wesley Scott on April 21

      Like any problem, the first step is admitting, I have a debt problem. I am not sick, my finances are sick. Once you get that far, you are well on your way to getting your life back. In St. Cloud, MN, we are a bankruptcy law firm right near where you live. If you are looking for a Chapter 7 Bankruptcy lawyer near you or a Chapter 13 Bankruptcy lawyer near you, LifeBack Law in St. Cloud is right in your back yard. We are locating at 13 7th Avenue South, St. Cloud, MN 56301. We are located downtown St. Cloud on 7th avenue south; right across the street from Capitol One Bank and a few doors down from Jets Pizza.

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      Your Options Before Filing Bankruptcy

      Posted by Charles Nguyen on April 19

      There are many options to try and resolve an abundance of debt.  Many of our clients seek these options before filing bankruptcy and that’s okay, since bankruptcy can be an intimidating process.  So, let’s breakdown your other options.

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      Don’t hire any bankruptcy law firm where the bankruptcy attorney answers the phone

      Posted by Wesley Scott on April 17

       I am not against any lawyer opening up a new law office or starting out from scratch. But, I am not a huge fan of having the lawyer start out on me, that’s all. There is something “unprofessional” about a bankruptcy lawyer answering his/her own phone with home noises in the background like dogs or cats or other household things. It just doesn’t feel professional at all. If I were the client, I would want a team of professionals helping me, not a lawyer answering his/her own phone.

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      Debt Collection and Bankruptcy

      Posted by Charles Nguyen on April 15

      If you owe money to your credit card company, and if you stop paying them, they can sue you for the amount owed.  If that same credit card company obtains a judgment from a court, they can take that judgment and garnish your wages.

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      Co-Debtors in Bankruptcy

      Posted by Wesley Scott on April 13

      It’s very common for people to be jointly liable for debt as co-signers. For example, students going to college often require their parents, or another adult, to be a co-signer in order to be approved for a student loan. People who do not have a great credit history may need someone to co-sign on other types of loans like home mortgages, car loans, or personal loans in order to be approved for financing. It’s also common for married couples to be jointly liable for other debts such as credit card and medical debt.

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      Can I File bankruptcy on Medical Debt?

      Posted by Amanda Scharber on April 11

      Medical debt is dischargeable in bankruptcy, both in chapter 7 and chapter 13 cases.

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      Avoiding Judicial Liens in a Chapter 13 Bankruptcy Case

      Posted by Wesley Scott on April 9

       In a chapter 13 bankruptcy case, the debtor must pay all of their disposable income towards their debts in a three to five year repayment plan before their remaining debts are discharged. Disposable income is the income remaining after paying the debtor’s normal monthly expenses. This differs from a chapter 7 bankruptcy case, in which the debtor is not required to make payments towards their debts before receiving a discharge a few months after their case is filed.

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      Can Gambling Debt be Included in Bankruptcy?

      Posted by Amanda Scharber on April 7

      Gambling debt can be included and discharged in your bankruptcy case.

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      Unemployment Benefits and Related Claims in a Chapter 7 Bankruptcy Case

      Posted by Wesley Scott on April 5

       Job loss is a common reason that people file for bankruptcy. In many cases, when an individual loses their job, they are entitled to certain benefits to help them while they seek new employment. While these types of unemployment benefits are generally “exempt,” meaning legally protected from creditors, there are some exceptions and nuances in the law. Debtors filing for bankruptcy in Minnesota may choose between Federal exemptions and State exemptions to exempt, and protect, their property.

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      What Do I Provide to The Trustee in a Chapter 7?

      Posted by Amanda Scharber on April 3

      In a chapter 7 bankruptcy, typically, the only hearing you will attend is the 341 hearing. This happens about 4-6 weeks after your case is filed.

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      CAN I PROTECT MY HOME IN A CHAPTER 7 BANKRUPTCY?

      Posted by Wesley Scott on April 1

      When a person files for chapter 7 bankruptcy, they are asking the court to discharge, or completely wipe out, their debts without having to make any payments to their creditors. Usually, all their debts are discharged, except for certain types of debts (i.e. student loan debt, most tax debt, and debt owed as alimony or child support). In order to qualify for a chapter 7 bankruptcy discharge, the debtor must be unable to afford making payments to their creditors, as they would have to do in a chapter 13 repayment plan.

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      What Happens if I Have Nonexempt Property in a Chapter 7 Bankruptcy?

      Posted by Wesley Scott on March 30

      Unlike a chapter 13 bankruptcy case in which the debtor makes payments to creditors in a three to five year payment plan before receiving a discharge, a chapter 7 requires no payments to any creditors, and involves a discharge a mere few months after the case is filed. However, while the debtor gets to keep all their property in a chapter 13 case, this is not always so in a chapter 7 case. In the majority of chapter 7 cases, the debtor gets to keep all their property due to the fact it is “exempt”, or legally protected from being taken to pay creditors. However, in some chapter 7 cases, the debtor has certain nonexempt property that they must either surrender to the trustee to be liquidated (sold with proceeds going to pay creditors) or, alternatively, must be paid for by the debtor for their right to keep the nonexempt property. Any money paid by the debtor to keep nonexempt property likewise goes to pay creditors.

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      What Hearings Do I Attend in Bankruptcy?

      Posted by Amanda Scharber on March 29

      In most chapter 7 and chapter 13 cases, there is only one hearing you will need to attend.

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      Cost of filing Chapter 7 Bankruptcy in Eagan, MN

      Posted by Wesley Scott on March 26

      Right now, there are hundreds of people in Eagan, Minnesota wondering how much it costs to file Chapter 7 Bankruptcy. Why do they wonder this? Because they are saddled with crippling debt and are looking to get their lives back.

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      What Debts Aren’t Discharged in a Bankruptcy

      Posted by Charles Nguyen on March 24

      One of the most important parts of filing a bankruptcy is the ability to get rid, or discharge your debts.  

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      Will I Lose My Tax Refunds In Chapter 13 Bankruptcy?

      Posted by Wesley Scott on March 23

      It is that time of year, again. Tax filing season is upon us. If you find yourself in a Chapter 13 Bankruptcy in Minnesota, you may be wondering if you are able to keep your tax refunds. The answer to this question is determined by what your specific plan calls for. If your Chapter 13 plan is silent as to tax refunds, presumably you are allowed to retain possession of 100% of your tax refunds. However, if your plan has specific provisions dealing with excess tax refunds, you must comply with them.

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      Can I Add a Creditor After Filing?

      Posted by Amanda Scharber on March 21

      It is typically easiest if all of your creditors are listed in your case correctly when the case is first filed. But, that cannot always happen. Sometimes you are unsure that a debt went to collections, maybe it was sold, maybe the creditor is finally trying to collect after years of not doing anything with the debt, or maybe you even forgot it existed. You can add creditors after your case is filed, but there are a few exceptions.

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      Is Certain Property Automatically Exempt in a Chapter 7 Bankruptcy?

      Posted by Wesley Scott on March 18

      When a person files for chapter 7 bankruptcy, they are allowed to claim certain property as “exempt,” or legally protected from creditors up to a certain value. Property that is exempt cannot be taken by the chapter 7 trustee to be used to pay the debtor’s creditors, whereas “nonexempt” property can be taken for that purpose. Minnesota allows debtors to elect either “State exemptions” or “Federal exemptions” to exempt, and protect, their property. The Federal exemptions are those specifically provided in the Federal Bankruptcy Code. State exemptions include any Minnesota State law, or applicable Federal law, not provided for in the Bankruptcy Code. Deciding whether to use State or Federal exemptions is complicated and better elaborated upon in other blogs. However, it is imperative that the debtor select the correct exemptions to use, as it often drastically impacts how much property they will be able to exempt. This is why it is also a good idea to discuss one’s potential bankruptcy case with an experienced bankruptcy attorney before filing one’s bankruptcy case.

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      Chapter Bankruptcy 13 Plans

      Posted by Col Ovik on March 16

      When filing a personal bankruptcy, you have to choose the bankruptcy chapter that will work best for your situation. Your attorney can help advise you on selecting the appropriate chapter. Although, some debtors are not eligible for filing a chapter 7, and will have to select a chapter 13 filing, others will voluntarily select to file a chapter 13. There are several reasons a debtor may choose a chapter 13 filing over a chapter 7, but once you have decided a chapter 13 is the right choice for you-you will next consider the length of the commitment period.

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      Looking For A Bankruptcy Lawyer Near Me In EAGAN, MN?

      Posted by Wesley Scott on March 14

      LifeBack Law is your neighbor! LifeBack Law is Eagan’s favorite bankruptcy law firm and we are located near you in Eagan, Minnesota at 4480 Erin Drive, Eagan, MN 55122. If you are looking for Minnesota’s HIGHEST GOOGLE reviewed bankruptcy law firm, look no further than LifeBack Law Firm right near where you live. When Eagan, MN residents are suffering from overwhelming debt, they want a law firm whose staff pampers them and takes care of them, not a law firm whose staff is self-centered and could care less about you.

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      Do I Have to File a Joint Bankruptcy?

      Posted by Amanda Scharber on March 11

      If you are considering filing bankruptcy and wondering whether your spouse will have to file with you, the answer, which may surprise you, is no.

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      Estate Planning Lawyers: Bankruptcy Issues/Pitfalls and How to Avoid Them

      Posted by Wesley Scott on March 10

      Are you an estate planning lawyer in Minnesota? I am not. I am the managing partner at LifeBack Law Firm, Minnesota’s largest bankruptcy law firm. And I am writing this article to highlight some issues we bankruptcy lawyers see often; including pitfalls and how to avoid them. When you meet with your estate planning clients, I suspect the subject of bankruptcy does not come up often. In other words, how is what you are doing with the client, in terms of estate planning, impacting a non-client heir who needs to file bankruptcy? 

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      Looking For A Chapter 7 Bankruptcy Attorney Near Eden Prairie, MN?

      Posted by Wesley Scott on March 10

      Life is so humbling. Your best plans can go awry, quickly. I mean, who among us hopes when you get married, your marriage will be a failure? Who among us wishes for our business venture to turn into a disaster? Who among us hopes for an extended illness that costs tens of thousands of dollars and leaves us off work without pay? Nobody does this. We humans make elaborate plans and dream big dreams, and we should. However, life does not always play out the way you had planned it. I have accepted this broken road.

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      What Does it Mean When a Creditor Gets a Judgment Against Me?

      Posted by Wesley Scott on March 9

      Receiving a Summons and Complaint from a creditor, or being threatened with a judgment can be scary, but what does it really mean for you financially? This is a question that a lot of potential clients have when we first meet. Please read on to find out more!

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      Bankruptcy and Your Inheritance

      Posted by Charles Nguyen on March 8

      If you receive an inheritance before filing bankruptcy, whether it’s cash or physical property, then those items may become part of your bankruptcy.  

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      Can Personal Income Tax Debt Be Discharged in a Bankruptcy?

      Posted by Wesley Scott on March 7

      One of the most common questions we field this time of year is whether personal income tax debt is dischargeable. So many people are under the impression that tax debt can never be discharged in a bankruptcy, but that is not always the case! As with many things in life, and bankruptcy, the answer is not a simple yes or no. Read more to find out if your tax debt might be discharged in a bankruptcy.

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      Should I Use Retirement Funds to Pay My Debt?

      Posted by Jesse Horoshak on March 4

      If you have debt that is piling up and you have found yourself in a situation where you just simply cannot keep up with your monthly bills, but you also have been wise about saving for retirement, it can be awful tempting to see that retirement fund as a piggy bank that you can use now to pay off your debt and get back on track. DON’T DO IT! Read more to find out why!

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      My Co-Debtor And My Unsecured Debt

      Posted by Col Ovik on March 3

      Before filing bankruptcy many debtors try other means of dealing with their debt. Occasionally debtors will take out additional debt in hopes of consolidating the debt. But for the creditors to provide additional credit to a potentially risky lender they may ask that the debtor obtain a co-signer on the debt. This co-signer will remain liable on the unsecured debt even after the debtor has received a discharge in the bankruptcy.

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      Will I Lose My Tax Refunds If I File Chapter 7 Bankruptcy?

      Posted by Wesley Scott on March 2

      During tax season many of our clients and potential clients are asking that very question. Unfortunately, it is not always a black and white answer. Read more to find out if your refund would be protected.

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      What Shouldn’t You Do Before Filing Bankruptcy?

      Posted by Amanda Scharber on March 1

      If you are planning on filing bankruptcy there are a few things you should try to avoid before your case is filed.

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      Will Bankruptcy Stop a Garnishment?

      Posted by Amanda Scharber on February 28

      Bankruptcy filing stops creditor collection efforts from continuing. It will stop calls, letters, statements, judgments, garnishments, and more. The protection you receive from bankruptcy comes from the automatic stay. 

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      Interesting Facts about Bankruptcy

      Posted by Amanda Scharber on February 25

       Bankruptcy is a big topic, with many interesting facts. 

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      Bankruptcy And Real Estate Transactions

      Posted by Col Ovik on February 24

      When you file bankruptcy you are required to list all of your assets on your petition. This includes any real estate you currently have an interest in. What a debtor should also consider is any previous real estate transactions they may have been involved in. This is especially true for recent real estate transactions. A trustee will likely inquire about any recent sales or purchases of real estate. If the property was sold, there will likely be questions about proceeds from the sale and how the funds were spent. 

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      AFFORDABLE BANKRUPTCY LAWYER NEAR ME IN EDEN PRAIRIE, MN

      Posted by Wesley Scott on February 24

           If you are looking for an affordable bankruptcy attorney near you in Eden Prairie, MN, look no further than LifeBack Law Firm. For what you get at LifeBack Law Firm, we are the cheapest bankruptcy attorneys in Minnesota. A lot of people will just want the price without asking what you get. If you want the cheapest bankruptcy attorney in Minnesota I can give you the phone number to who I believe is the cheapest bankruptcy attorney in Minnesota, but you won’t like my referral. For one, he files hardly no bankruptcy cases even though he touts being the cheapest bankruptcy attorney in Minnesota. The fact he boasts being the cheapest should tell you something about his practice and what you will get. I recall one person meeting with this lawyer in his “conference” room that had a picnic table in it. 

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      How are Social Security Benefits Treated in Bankruptcy?

      Posted by Wesley Scott on February 23

      Many people depend on social security payments to be able to afford their basic needed living expenses. The Social Security Act of 1935, while originally intended to serve a financial safety net for those who needed temporary economic assistance, has become generally accepted as something that most seniors will depend upon after they retire.  This recognized dependence upon social security benefits by so many of our seniors is the reason why such benefits are given special protection under the law. 

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      Home Sales And Bankruptcy

      Posted by Col Ovik on February 22

      If you have recently sold your home or are planning to sell your home prior to filing bankruptcy there are things to consider and discuss with your bankruptcy attorney regarding any remaining home proceeds from the sale. After the sale of the home, the proceeds should be kept separate from general income: wages, bonuses, pension income, and funds from the sale of other assets. The proceeds from the home sale maybe exemptible, if you qualify to use Minnesota exemptions and the sale of the home was within one year of the bankruptcy filing. (Your attorney can help you determine if you are eligible for Minnesota exemptions). It is important to note that home proceeds are not exemptible infinitely. If the home was sold over a year from the filing of the bankruptcy petition and proceeds remain from the home sale, these funds are not exemptible using the Minnesota homestead exemption. 

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      Chapter 7 Bankruptcy Attorney Near Me In Eden Prairie, MN

      Posted by Wesley Scott on February 21

          LifeBack Law Firm has been helping Eden Prairie, MN residents get their lives back since 1972, and we can help you too. LifeBack Law Firm is a Chapter 7 Bankruptcy attorney near me in Eden Prairie, MN. We have an office location right near you. We are located at 7525 Mitchell Road, Suite 208, Eden Prairie, MN 55344. When you are down and out and you are suffering from a debt problem, let the kind and helpful people at LifeBack Law Firm help you get rid of debt and help repair your credit using LifeBack Law Firm FREE 90-Day Credit Repair Program. 

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      Tax Debt and a Chapter 13 Bankruptcy

      Posted by Charles Nguyen on February 18

      Typically, you can’t get rid of tax debt in a Chapter 7 bankruptcy.  But, if you can afford the payments, then a Chapter 13 bankruptcy is a great tool to help you with this type of debt.  This is because you’re allowed to pay your tax debt through a Chapter 13 repayment plan, which lasts 3 or 5 years.  Even if your tax debt is considerably large, filing a Chapter 13 may still make financial sense, since you’re not incurring interest and penalties during your bankruptcy.  Plus, you’re not paying back your credit credits, unsecured loans, and medical bills, and those debts will go away once you’re finished with your Chapter 13 plan! 

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      Th Impact of Bankruptcy Upon Spouses When One Spouse Files for Bankruptcy and the Other Does Not

      Posted by Wesley Scott on February 17

      Spouses are allowed to jointly file a single bankruptcy case together. This is often advantageous to both spouses when they both have a significant amount of debt, as they do not have to incur the additional time and expense of filing separate cases. However, it is not uncommon for only one spouse to file for bankruptcy, while the other does not. But what is the impact of the bankruptcy upon the spouse who is filing for bankruptcy, and upon the spouse who decides not to file?

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      Individual Retirement Accounts And Bankruptcy

      Posted by Col Ovik on February 16

      IRAs are exempt assets in bankruptcy proceedings, and are thus beyond the reach of the debtor’s creditors. The exemption in the Bankruptcy Code is based on the tax-exempt status of the IRA. 11 USC §522(d)(12) provides an exemption to “[r]etirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 408 of the Internal Revenue Code.”

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      What is an “Avoidable Transfer” in a Chapter 7 Bankruptcy?

      Posted by Wesley Scott on February 16

      Both the Bankruptcy Code and Minnesota State law prohibit certain types of transfers of money or property made by the debtor prior to the filing of their bankruptcy case. These prohibited transfers are “avoidable” by the bankruptcy trustee. This means that the chapter 7 trustee can avoid, or undo, the transfer by demanding return of the transferred property from the person or entity to whom the transfer was made, and the trustee can even bring a lawsuit against that person to enforce their legal right to the return of the property.

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      Religious and Charitable Donations in Bankruptcy

      Posted by Wesley Scott on February 11

          Many people frequently make regular donations to charities and religious organizations. Our laws generally promote and encourage these types of donations due to the positive impact it has on our social institutions and other members of society.  For example, the IRS Tax Code allows for certain tax breaks for people and companies who make charitable donations. The Bankruptcy Code also specifically makes certain allowances for those who donate to religious organizations and charities. 

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      What Questions Are Asked At Your 341 Meeting?

      Posted by Charles Nguyen on February 10

      Your 341 Meeting or the Meeting of Creditors is the opportunity for your Trustee and creditors to ask you questions about your petition and schedules, while under oath.  

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      Can Utility Companies Discontinue Service After Filing Bankruptcy?

      Posted by Wesley Scott on February 9

          From the very first day a debtor files their bankruptcy case, they receive protection from the “automatic stay,” which is a court order that prevents most creditors from taking any debt collection efforts against the debtor. This protection lasts through the debtor’s bankruptcy case, unless a creditor receives court permission to “lift the automatic stay” and pursue the debt. This is typically only allowed in special circumstances such as where the debtor is using, or possessing, valuable property used to secure a debt owed to the creditor for which the debtor is not fairly compensating the creditor, to the detriment of the creditor’s rights (i.e. driving a car around with a loan against it and not making payments).  

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      What Exemptions Should I Use in Minnesota?

      Posted by Amanda Scharber on February 8

      There are two sets of exemptions you can use in Minnesota, state and federal exemptions. You can use whichever is the most beneficial to you. Below are a few examples of why you may pick one over the other.

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      Interesting Facts about Bankruptcy Continued

      Posted by Amanda Scharber on February 7

      Bankruptcy has a wide variety of interesting facts. A few are listed below:  

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      What Is The First Step To Filing Bankruptcy In Eden Prairie, MN?

      Posted by Wesley Scott on February 4

          I constantly tell people who live in Eden Prairie, Minnesota, that the first step to filing bankruptcy is wrapping your head around the word, bankruptcy. Yes, there are better words in the English dictionary than the word, bankruptcy. But, once you actually wrap your head around the word bankruptcy and the thought of filing bankruptcy, do know the actual process of filing bankruptcy and getting your life back is easier.

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      Can I Keep My Lease in Bankruptcy?

      Posted by Amanda Scharber on February 3

      If you are considering filing bankruptcy, you may be wondering whether you can keep your lease. 

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      Can You Keep Debts Out Of Your Bankruptcy?

      Posted by Charles Nguyen on February 2

      A very common question I get when I speak to potential clients is – can I keep one credit card out of my bankruptcy?  In short, no.  This is due to the fact that you have to list all your debts.  This includes unsecured debt, so all your credit cards, and unsecured loans, your tax debt, domestic support obligations, such as child support, and all secured debt, including your home and cars. 

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      LifeBack Law Firm: Minnesota’s most kind and helpful bankruptcy law firm

      Posted by Wesley Scott on February 1

           At LifeBack Law Firm, we constantly honor the courage it takes for thousands of Minnesotans to reach out every year and ask for help with overwhelming debt. We honor that courage by having the most kind and helpful staff in Minnesota. Does this make a difference? You bet it does. If I am embarrassed about something I want a professional who is the most kind and helpful person ever. I mean it. I want my hand held the whole time.

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      Your Credit Union and Bankruptcy

      Posted by Charles Nguyen on January 31

      You may think that your credit union is the same as a typical bank, and in many respects, it is; but, there are some differences. For example, your credit union is a nonprofit, whereas a bank like Huntington Bank, is for profit.

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      Are you looking for a bankruptcy lawyer near St. Cloud, MN?

      Posted by Wesley Scott on January 29

           If you find yourself living in or near St. Cloud, MN there is only one bankruptcy law firm I would recommend, and that is LifeBack Law Firm. LifeBack Law Firm is not like other law firms. At LifeBack Law Firm we hire, reward, and discipline our employees based on how well they treat co-workers and clients. Is this unique for a law firm? Trust me when I tell you that most law firm cultures are pure snake pits where the focus is on money and not people. At LifeBack Law Firm, we don’t grade our employees or attorneys on how much revenue they bring in but on how well they treat their co-workers and clients.

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      How Do I Repair My Credit After I File For Bankruptcy?

      Posted by Charles Nguyen on January 27

      Two common questions I get when I speak to clients are – what happens to my credit and how do I repair it after I file my bankruptcy? Bad news first, your credit will suffer negatively when you file. Now the good news, filing bankruptcy is often the fastest way to repair credit and obtain better financing.

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      Is There a Minimum Debt Requirement to File Bankruptcy?

      Posted by Amanda Scharber on January 25

      A common question I receive is whether there is a minimum debt requirement to file a bankruptcy? Good news! The answer, which may surprise you, is no.

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      How Could My Employer Find Out About My Bankruptcy?

      Posted by Amanda Scharber on January 23

      You may be wondering whether your employer will find out about your bankruptcy filing. Below we explore possible ways your employer can be informed of your filing.

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      What Information Is Included When I File for Bankruptcy?

      Posted by Charles Nguyen on January 21

      When you file for bankruptcy, you’re seeking relief from your debts, but you’re also declaring and disclosing all your assets, liabilities and income. You must submit your petition and complete 10 different schedules, a complete statement of financial affairs and calculate a means test. The purpose of the means test is to see whether or not you can file a chapter 7 bankruptcy.

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      LifeBack Law Firm: A bankruptcy firm in Brainerd, MN near you

      Posted by Wesley Scott on January 19

           Northern Minnesota is a summer and winter paradise. Movie stars and locals flock to Northern, Minnesota each summer to enjoy Northern, Minnesota’s pristine beauty. Lake, rivers, and forests become playgrounds for locals and out of towners alike.

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      LifeBack Law Firm’s salute to Dr. Martin Luther King, Jr.

      Posted by Wesley Scott on January 17

      Can you even begin to imagine the courage Dr. King had? I cannot. I only wish I had a sliver of the courage Dr. King had to stand and speak the truth in the face of pure hate and division. Dr. King said any society that has hate and division is a sick society. How prophetic are Dr. King’s words today in the face of unspeakable hate and division? And yet, in the face of adversity, there are signs of brotherly love. We have witnessed forgiveness for unspeakable acts of hate and racism by the victims of racism and hate.

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      Is a Debtor’s Right to Receive Child Support and Alimony Protected in a Bankruptcy?

      Posted by Wesley Scott on January 14

      Many people who file bankruptcy rely upon the support of regular child support or alimony payments to meet their basic needs, and many are owed large amounts of past due child support or alimony from the other parent. Bankruptcy law generally protects a debtor’s right to receive these domestic support benefits but this right is not absolute. When a debtor in Minnesota files bankruptcy, they may choose to use either “Federal exemptions” (those provided in the Federal Bankruptcy Code) or “State exemptions” (those provided for under the Minnesota Statutes and other applicable Federal law) to “exempt,” or legally protect their property from being taken to pay creditors. This is important because debtors in a chapter 7 bankruptcy case may have to surrender money or property that is not exempt to the trustee to pay their creditors. It is also important in a chapter 13 case, as the more property that is not exempt, the higher their monthly payment, because they are required to pay to their unsecured creditors, at minimum, the value of the nonexempt property.

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      Are Future Tax Refunds Protected in Bankruptcy?

      Posted by Wesley Scott on January 12

      Many people are entitled receive tax refunds each year for overpayments to the IRS and Minnesota State Department of Revenue from taxes withheld from their paychecks. Sometimes, these refunds can be quite substantial. A debtor’s right to receive a future tax refund is considered property of the “bankruptcy estate.” In a chapter 7 bankruptcy case, property of the bankruptcy estate is all of the debtor’s money and property that is subject to being taken by the bankruptcy trustee to pay the debtor’s creditors. In many cases, most, if not all, the debtor’s money and property is “exempt,” or legally protected from being taken to pay their creditors.

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      What Deadlines Are There in Bankruptcy?

      Posted by Amanda Scharber on January 10

      When you file bankruptcy your creditors will receive a notice of filing. This goes out to all of the creditors listed in your bankruptcy case. On this notice of filing there are certain deadlines listed that your creditors, the trustee, and you will need to abide by. The following are the deadlines listed on the notice of filing:

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      Trusts in Bankruptcy

      Posted by Wesley Scott on January 8

      In a legal “Trust,” money, or other property, that is owned by a “Beneficiary,” is controlled by a “Trustee” (not to be confused with a bankruptcy trustee), whose responsibility it is to distribute the property to the Beneficiary in accordance with the terms of a written “Trust Agreement.” The person who creates the legal trust, via the Trust Agreement, is called the “Settlor,” and there can be multiple Settlors, Trustees, and Beneficiaries.

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      NON-EXEMPT ASSETS AND MY CHAPTER 13 BANKRUPTCY

      Posted by Col Ovik on January 6

      A chapter 7 bankruptcy is a liquidation bankruptcy, consequently non-exempt assets in a chapter 7 bankruptcy are liquidate or debtor may be able to purchase their non-exempt assets back from the bankruptcy estate. In a chapter 7 bankruptcy, the debtor has a limited amount of time to purchase back their non-exempt assets or relinquish the assets to the bankruptcy estate. If a debtor is unable to purchase back their assets from the estate or is unwilling to give up their non-exempts the debtor may consider filing a chapter 13. (Your attorney will let you know which assets in your case are non-exempt).

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      Will My Minor Children Be Involved in My Bankruptcy?

      Posted by Amanda Scharber on January 4

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      IS EVERY CREDITOR LEGITIMATE

      Posted by Col Ovik on January 2

      Occasionally debtors will find themselves in a situation where they are continuously being hounded by creditors. The debts have been sold and resold and many times debtors are not even sure who they owe funds to anymore. Unfortunately, this can make those debtors vulnerable to scams. If a debtor receives a call from an aggressive creditor demanding payment and the creditor is offering a substantial discount the debtor may be tempted to take the deal-even though the debtor does not know the exact source of the debt.

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      Minnesotans struggling with debt can beat their debt problems in 2 steps

      Posted by Wesley Scott on December 29

           If you live in Minnesota, and you are struggling with a debt problem, you can solve your debt problem for good in 2 steps:

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      What is the Filing Process at Life Back Law?

      Posted by Amanda Scharber on December 28

      If you are considering filing bankruptcy, you likely are wondering what you will have to do in order to file. At Life Back Law we make the process easy for those considering filing bankruptcy.

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      LifeBack Law Firm: Minnesota’s bankruptcy law firm since 1972

      Posted by Wesley Scott on December 27

       LifeBack Law Firm is Minnesota’s bankruptcy law firm, since 1972. We have been protecting Minnesotans from their creditors since 1972 and we can protect you too. Our entire focus, from the time we come to work until the time we go home, is protecting Minnesotans just like you from their creditors. How successful are we at doing our job? Ask the people who left us over 1,400 Google reviews and they will tell you how they were treated and what getting their lives back meant to them. Each month, hundreds of Minnesotans just like you reach out to LifeBack Law Firm for help with a debt problem. We protect each and every one of these people who retain LifeBack Law from their creditors and we can protect you too.

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      How to know for sure if you should file Chapter 7 Bankruptcy?

      Posted by Wesley Scott on December 24

           How can a person tell for sure if they should file Chapter 7 Bankruptcy? A tall tale sign is if you are thinking about Chapter 7 Bankruptcy, a lot. In fact, if you are reading this blog now you might be need to file Chapter 7 Bankruptcy. Why do I say this? Well, many people try to avoid the “b” word, so if you start looking for the “b” word that means you are seriously looking at filing Chapter 7 Bankruptcy. What is a great resource to research Minnesota bankruptcy? Go to Minnesota’s largest bankruptcy law firm’s website at www.lifebacklaw.com. You will be impressed with three levels of information about Chapter 7 Bankruptcy.

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      Helping the Victims of Scams: Why I love my job.

      Posted by Wesley Scott on December 23


      The prevalence of scams in our evermore connected world is undeniable.
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      What Can I Spend Money on if I am Considering Filing for Bankruptcy?

      Posted by Wesley Scott on December 22

      Filing for bankruptcy is very often the best option for someone who is in a financial position where they are unable to afford to pay their ongoing bills and expenses in addition to their debts. When this happens, a person should try their best to continue paying their necessary ongoing expenses and bills, such as their mortgage payment, car payment, utility bills, and groceries. These needed expenses are more important than paying on old debts, especially if a person is planning on filing for bankruptcy and getting rid of those old debts anyways.

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      Bankruptcy and Socrates: what do they have in common?

      Posted by Wesley Scott on December 21

           Recently, I have been reading about and materials belonging to some of the ancient Greek philosophers. Socrates left behind no works or books. What we gleam from Socrates and who he was comes from students of Socrates like Plato and others. One of the comments Socrates is known to have said is, “When the argument is lost, slander becomes the tool of the loser.” I absolutely love this statement made by Socrates because it is 100% truth. How often have you been in a debate with someone only to have the other person resort to name calling or worse? Socrates was himself punched, kicked, had his hair pulled, and ultimately killed for searching for the truth. And yet today, in 2021, slander is alive in well from those who try and conceal bad faith arguments or bad acts.

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      Would You Ever Hire A Bankruptcy Attorney Who Was Fired From Their Previous Job?

      Posted by Wesley Scott on December 20

           Would you consider hiring a bankruptcy lawyer who was fired from their job filing bankruptcies? I would not. I would prefer my bankruptcy law not have been terminated from their former firm for any reason. If you were terminated from your job, I would naturally wonder why were you terminated from your previous job? I mean, do you struggle following boundaries, easy boundaries set by your former employer? How do I know you will follow simple boundaries with me as a client?

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      Who or what is a bankruptcy trustee?

      Posted by Charles Nguyen on December 16

      There are a number of parties when you decide to file for bankruptcy.  There’s you, the debtor.  Your attorney, if you choose to hire one, who represents you.  There are your creditors, companies or individuals you owe money to.  And, there’s a trustee.  A trustee is an individual who reviews and investigates your bankruptcy petition and schedules.  They are supervised by the courts and the United States Trustee Program, which is a part of the Department of Justice.

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      Wedding Rings and Engagement Rings in Bankruptcy

      Posted by Wesley Scott on December 15

      When a person files for bankruptcy, their property is considered either exempt, meaning protected from creditors under the law, or non-exempt, meaning not protected from creditors. In a chapter 7 bankruptcy case, the debtor is required to give any non-exempt property they have to the trustee to be used to pay creditors, or enter into an agreement with the trustee, wherein they agree to pay the trustee to keep the non-exempt property. In a chapter 13 case, in which the debtor makes payments towards their debts in a 3 to 5 repayment plan, the debtor gets to keep their nonexempt property but must pay to their unsecured creditors at least as much as the creditors would have received had the debtor hypothetically filed a chapter 7 case.

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      Chapter 13 Bankruptcy: Negotiating your debts on a more even playing field.

      Posted by Wesley Scott on December 14

      Chapter 7, or “liquidation” bankruptcy is the most straightforward path to bankruptcy relief for most of the people I talk to who are seeking bankruptcy relief (called “debtors”).

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      Renting In Bankruptcy

      Posted by Wesley Scott on December 13

      People file bankruptcy when they can no longer continue keeping up with paying their debts.  When faced with the decision of staying current on your rent or making payments upon your debts, it is always advisable to choose to make your rent payment rather than paying on the debts. Nobody wants to be evicted and most of your debts will be likely be wiped out by your bankruptcy discharge anyways (except for most types of tax debt, domestic support obligations, and student loan debt, etc.)

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      Personal Injury Lawsuits In A Chapter 7 Bankruptcy

      Posted by Wesley Scott on December 10

      When a person files for chapter 7 bankruptcy, all of their existing rights to property, as of the date they file their case, is considered property of the “bankruptcy estate.”  This includes not only property that they actually own at the time of filing, but also, includes their right to receive property in the future.  An example of this would be money they have a right to receive as a consequence of a current or future lawsuit. If, at the time the bankruptcy case is filed, the debtor has an existing right to file a lawsuit for monetary damages, the debtor’s claim to the money is property of the bankruptcy estate, regardless of how far into the future the money is actually received (even if it’s years after the debtor files their case and gets their discharge).  

      For example, if a debtor is injured in a car accident a month before filing bankruptcy due to the negligence of another driver, the debtor’s right to make a claim against the other driver to receive money damages from a future personal injury lawsuit is property of the bankruptcy estate. This is because their right to make a legal claim against the other driver exists at the time they filed their bankruptcy case and it does not matter whether they have even considered filing a lawsuit or haven taken any legal action to recover money for their injuries (i.e. consulted with, or hired, a personal injury lawyer).  

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      Mortgage Arrears And A Chapter 13 Bankruptcy

      Posted by Col Ovik on December 9

      Getting behind on your mortgage payments is not uncommon, but when the amount of the arrears (the amount you owe from the missed payments) is substantial it can be hard to get caught back up with your mortgage payments. There are many reasons people get behind on their payments: temporary job loss, divorce, medical issues. And sometimes working with the mortgage company to make arrangements to repay the missed payments can be daunting and frustrating especially if the mortgage company has already started the foreclosure process.

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      All My Assets

      Posted by Col Ovik on December 8

      When you file bankruptcy you are required to list all of your assets on your bankruptcy petition.  In fact, you will be required to testify under oath that you have listed all of your assets and any interest you may have in an asset.

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      I Am Terrified Of Bankruptcy; Can You Help?

      Posted by Wesley Scott on December 7

          Every single person I have ever met was a bit terrified of the “b” word. Some are more terrified than others. My heart hurts for those people who suffer far too long with a debt problem because they are terrified of the “b” word. Our former clients know how you feel. They all felt the same way you do now. But what they found is the “b” word was not only not terrifying, it became the key that unlocked their future and freed them from an incredible burden.

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      Never Do This If You Are Thinking About Filing Bankruptcy In Minnesota

      Posted by Wesley Scott on December 6

           What is the single biggest mistake I see people in Minnesota make when they are looking for bankruptcy representation? I see two common mistakes. First, too many people chose the first firm they talk with. Now if the first firm you talk with is LifeBack Law Firm, a quality Minnesota bankruptcy law firm, you have got something. But too often I hear the horror stories of people who select the first firm only to find out later that firm’s reviews are horrible. Just take a look at some of these law firms Google reviews and even Glassdoor reviews and you will see you may want to keep dialing the phone.

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      Guns And Bankruptcy: Will I Lose All My Guns?

      Posted by Wesley Scott on December 3

      It is quite odd that in bankruptcy, there is no specific exemption to protect guns. Now this is a bit odd considering that there is a Second Amendment right to bear arms. However, just because something is a constitutional right does not necessarily mean it is exempt in bankruptcy and protected from your creditors. I am not telling you this is right, I am just telling you this is the reality of the Federal and Minnesota exemption schemes as it is right now

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      Who Can File A Chapter 7 Bankruptcy

      Posted by Col Ovik on December 2

      Not everyone qualifies to file a chapter 7 bankruptcy. In order to curb perceived abuse, Congress modified the Bankruptcy Code. On April 20, 2005, President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (the "Act"). The Act was intended to address certain abuses of the bankruptcy process. Among the abuses identified by Congress was the easy access to chapter 7 liquidation proceedings by consumer debtors who, if required to file under chapter 13, could afford to pay some dividend to their unsecured creditors. 

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      Will All My Debts Be Discharged In My Bankruptcy

      Posted by Col Ovik on December 1

      Not all debts are treated the same in bankruptcy. Unsecured debts are those debts that are not secured by collateral. Of course, secured debt remains secured to the collateral even in bankruptcy, but strictly speaking about unsecured debt-will it all be discharged in the bankruptcy?

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      Live In Minnesota And Need To File Bankruptcy?

      Posted by Wesley Scott on November 27

      You are not alone. Each year, thousands of good Minnesotans find themselves suffering with overwhelming debt often through no fault of their own. Broken relationships, businesses that fail, medical problems that occur, incomes that drop, and yes, bad financial decisions that get made because we are human and not robots. But when you are suffering from debt, the last thing you ever want is to deal with a law firm full of cold and antiseptic people who simply don’t care about you at all and you can feel it. There is a better way.

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      Are Tools Used For My Business Protected In Bankruptcy?

      Posted by Wesley Scott on November 26

      In bankruptcy, a debtor sometimes has property that is nonexempt, meaning not legally protected from being taken to satisfy debts owed to creditors.  In a chapter 7 bankruptcy case, this means the debtor must surrender the nonexempt property to the trustee, or pay the trustee to keep it, which the trustee then uses to pay towards the debtor’s debts. In a chapter 13 case, the debtor is permitted to keep the nonexempt property but must pay, at minimum, the value of the nonexempt property to their unsecured creditors in their repayment plan.  

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      Chapter 13 Bankruptcy: The Basics

      Posted by Wesley Scott on November 25

      Chapter 13 Bankruptcy is a government sponsored debt consolidation plan with several favorable twists for debtors. 

      First, the plan duration is typically 3-5 years and your payment is typically what you can afford to pay to a trustee after you have paid your other reasonable and necessary expenses. For example, if you have $500.00 a month in disposable income, then $500.00 a month is your payment. If your income is over the
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      Minnesota Bankruptcy And LifeBack Law Firm

      Posted by Wesley Scott on November 24

      Minnesota Bankruptcy and LifeBack Law Firm are one in the same. You cannot think about bankruptcy in Minnesota without thinking about LifeBack Law Firm. When people have debt they want to be treated really well. No other law firm in Minnesota honors a Minnesotan’s courage to reach out for help in solving a debt problem like LifeBack Law Firm. 

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      LifeBack Law Firm: Actions Are More Important Than Words

      Posted by Wesley Scott on November 23

      Recently, I have been thinking a lot about the idea of words vs. actions. If you listen to the world, it is a very noisy place. Words and conversations never seem to end. Yet, I am struck by what we say sometimes versus what we do. For example, at LifeBack Law, our values are kindness, helpfulness, professionalism, and exceptional customer service. Would it be kind or helpful to say, we would really like to help you get your life back and then say good day!? Of course not, words, to mean anything, must be followed by actions that are consistent with the words. It is not kind and helpful to say we will be kind and helpful and then hand you a pile of worksheets to fill out would it?

      Recently, I have been thinking a lot about the idea of words vs. actions. If you listen to the world, it is a very noisy place. Words and conversations never seem to end. Yet, I am struck by what we say sometimes versus what we do. For example, at LifeBack Law, our values are kindness, helpfulness, professionalism, and exceptional customer service. Would it be kind or helpful to say, we would really like to help you get your life back and then say good day!? Of course not, words, to mean anything, must be followed by actions that are consistent with the words. It is not kind and helpful to say we will be kind and helpful and then hand you a pile of worksheets to fill out would it

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      Secured Vs Unsecured Debts

      Posted by Charles Nguyen on November 22

      Within your bankruptcy schedules, there are two types of debt that the bankruptcy court require you to disclose – secured and unsecured.  Understanding what type of debt a bankruptcy debtor has will help them understand their bankruptcy better and with their finances once they’ve completed their bankruptcy. 

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      Bankruptcy And Divorce

      Posted by Col Ovik on November 21

      A bankruptcy and a divorce are both intensive processes that require a lot of financial disclosures. When trying to determine which process to start first an individual needs to consider their own unique situation. 

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      Most Popular Bankruptcy Law Firm In Minnesota By Far: Lifeback Law Firm

      Posted by Wesley Scott on November 20

      Our name says what we do for our guests; we help you get your life back. People who are suffering with debt problems just want their life back again. Struggling with debt suppresses life in many ways. Debt occupies your mind and steals your time (life) away from what you should be really focused on: living! 

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      Looking To Hire A Bankruptcy Lawyer? Watch Out For This

      Posted by Wesley Scott on November 19

       

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      Chapter 7 Bankruptcy: The Basics

      Posted by Wesley Scott on November 18

      Chapter 7 Bankruptcy can be a scary set of words put together. What is a Chapter 7 Bankruptcy and how does it benefit those people who file one? 

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      We Don't Judge You, We Help You Get Your Life Back™! | LifeBack Law

      Posted by Wesley Scott on November 17

      You might be familiar with this slogan: it belongs to Minnesota bankruptcy law firm, LifeBack Law. This slogan is not just a slogan, it is our promise to our clients. We don’t, judge you, we HELP you get your life back! We have been protecting Minnesotans from their creditors since 1972 and we can protect you too. If you are looking for the best law firm customer service experience in Minnesota, well, you found it. At LifeBack Law, all lawyers and staff must treat co-workers and clients with kindness, helpfulness, professionalism, and exceptional customer service.

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      Protecting Your Wages in Bankruptcy in Minnesota | LifeBack Law Firm

      Posted by Tim Tonga on November 17

      A common concern for many people considering filing for bankruptcy is whether they will be able to protect their wages after they file. The Federal Bankruptcy Code is very generous about allowing debtors to keep the money that they earn from work to provide for their basic needed monthly bills and expenses.

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      Get Your Life Back in Bankruptcy With Two Simple Steps | LifeBack Law

      Posted by Wesley Scott on November 17

      That is right; LifeBack Law’s sole mission is to HELP you get your life back. We do this in two simple steps: Step 1, we HELP you eliminate debt. No worksheets to fill out and zero money up front on our fees (requires the use of a third party promissory note signer).

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      A Simple Act | Col Orvik for Minnesota LifeBack Law Firm

      Posted by Col Ovik on November 15

      Yesterday, after I work, I exited the building and started my walk home, like I do every day. But, as I was leaving, I saw a young lady in distress sitting in the corner of the parking ramp. I did not immediately approach her. Part of me was thinking: do not get involved or she was being dramatic or was it even safe for me to approach her.

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      Don't Pay Back Your Relatives Before Bankruptcy! | LifeBack Law Firm

      Posted by Charles Nguyen on November 14

      You’ve decided to file bankruptcy to get rid of your outstanding debt. But, you owe your parents money and don’t want to include them in your bankruptcy. So, you decide to pay them back and then file. While your intentions are good, you’ve made a common mistake of making an insider preferential payment.

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      Thinking of Filing Bankruptcy in Duluth, MN? | LifeBack Law Firm

      Posted by Wesley Scott on November 13

      You live in Duluth, MN or maybe on the outskirts of the city of Duluth and you are drowning in debt. Suffering with a debt problem is not fun. At LifeBack Law Firm we understand the stress debt can cause and we know the courage it takes to reach out for help.

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      Protecting Minnesotans from Their Creditors Since 1972 | LifeBack Law

      Posted by Wesley Scott on November 12

      LifeBack Law Firm has been protecting Minnesotans from their creditors since 1972, and we can protect you. LifeBack Law Firm is a Minnesota based bankruptcy law firm that caters to Minnesotans suffering from overwhelming debt. Chapter 7 and Chapter 13 Bankruptcy is not just what we do, it’s all we do.

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      Can Bankruptcy Help Get Rid of Liens on My Property? | LifeBack Law

      Posted by Tim Tonga on November 11

      A lien is defined by the Federal Bankruptcy Code as a “charge against or interest in property to secure payment of a debt or performance of an obligation” owed by a debtor to a creditor. Generally speaking, a bankruptcy case discharges, or wipes out, debt owed to creditors but does not eliminate a creditor’s lien held against the debtor’s property.

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      How Can Cross Collateralization Affect My Bankruptcy in MN? | LifeBack

      Posted by Col Ovik on November 10

      Banking and financing with one institution is convenient, but there could be unforeseen issues with letting one institution handle all your financing needs. Banking with one institution does seem to be stress-free. You can easily pay all of your loans online and transfer funds easily, and in theory, you are often dealing with the same individuals time after time. But, what you may not have realized is if you have secured loans and unsecured loans with the same institution, the lender may have collateralized your new loans to the same collateral.

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      Gambling and Bankruptcy in Minnesota and Beyond | LifeBack Law Firm

      Posted by Charles Nguyen on November 9

      Gambling is an addiction brought on by a combination of psychological, societal, and familial factors. The repercussions of gambling affects you, your family, your job and other important parts of your life. Serious gamblers take out personal loans, use their retirement accounts, savings, and even borrow against their home or car loan.

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      What Is a Summons and Complaint in Minnesota? | LifeBack Law Firm

      Posted by Charles Nguyen on November 8

      If you have been unable to pay your debt back for some time, your creditors may seek legal action against you to collect that debt. Usually, when you miss a payment, your creditors will they start with phone calls, then letters, or e-mails, and they get more aggressive.

      After some time, they will start a lawsuit and you will know by receiving a summons and complaint. If you receive a summons and complaint, do not ignore it like a phone call or regular letter!

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      What Happens to My Co-signor When I File Bankruptcy? | LifeBack Law

      Posted by Amanda Scharber on November 7

      When you receive your bankruptcy discharge, your liability on the debt is discharged, but your co-signors isn’t. What will happen to them after you file and whether their credit will be impacted by your filing are common questions.

      If the co-signor is someone not filing a joint Chapter 7, Chapter 13, or other bankruptcy with you, like a spouse, they should not be impacted by your filing as long as payments on the debt stay current. This includes their credit, if payments stay current after filing, there shouldn’t be a drop in your co-signors credit, even though you filed for bankruptcy.

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      How Long Will My Chapter 13 Bankruptcy Case Last in MN? | LifeBack Law

      Posted by Tim Tonga on November 6

      Chapter 7 bankruptcy cases typically last three to four months and do not require that the debtor make any payments to their creditors. On the other hand, chapter 13 cases last three to five years and do require that the debtor make monthly payments to their creditors before receiving a discharge of their remaining debt once their case is finished.

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      LifeBack Law Protects Minnesotans from Their Creditors | LifeBack Law

      Posted by Wesley Scott on November 5

      Hi, Wes Scott from LifeBack Law Firm, one of the busiest bankruptcy law firms in Minnesota. LifeBack Law has been protecting Minnesotans from their creditors since 1972 and we can protect you too. The most kind, helpful, professional and exceptional customer service in the industry. Get your life back by calling today, you will be so glad you did.

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      Your Car in a Minnesota Chapter 7 Bankruptcy | LifeBack Law Firm

      Posted by Charles Nguyen on November 4

      With the possible exception of your home, your car is usually your most important asset. You need it to get to work, buy groceries, take your child to their doctor appointment, etc. When you file a chapter 7 bankruptcy, you may be able to keep your car, but that depends are a number of factors.

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      Love, Marriage, and Bankruptcy: Who Should File in MN?

      Posted by Wesley Scott on November 3

      As I wind down from the high from my own recent marriage, I am reminded of a common issue that comes up when I talk to married people: Who of a married couple should file for bankruptcy?

      My answer is usually the same: Both if possible and if they both need bankruptcy relief.

      Married couples can either file a joint bankruptcy or individual bankruptcies.

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      Why Am I Asked About Receiving Inheritance During Bankruptcy in MN?

      Posted by Col Ovik on November 2

      During your bankruptcy you will be asked about the likelihood that you may inherit any property or money. Your attorney will likely ask you this question and the trustee will also let you know if you do inherit any funds during the bankruptcy you need to let the trustee’s office know. Why? Because the bankruptcy estate will have an interest in the inherited property.

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      What Are Residency Requirements for Filing a Bankruptcy Case in Minnesota?

      Posted by Tim Tonga on November 1

      In order for a person to file their bankruptcy case in the State of Minnesota they must either be a current resident of this State, have their principal place of business or principal assets here, or be “domiciled” in the State. Practically speaking, this means that they need to be a resident living, or doing business, in Minnesota in order to file their case here.

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      Chapter 13 Bankruptcy and Setoffs in Minnesota | LifeBack Law Firm

      Posted by Col Ovik on October 29

      When a creditor is owed a debt by the bankruptcy filer and the bankruptcy filer is owed a debt from the creditor and consequently creating a mutual obligation, the creditor can setoff the mutual debt. This means, instead of the creditor paying their debt to the bankruptcy filer the creditor can setoff (subtract) that amount from the amount owed to them by the bankruptcy filer.

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      When Will My Chapter 7 Bankruptcy Case Be Finalized in Minnesota?

      Posted by Tim Tonga on October 28

      In a chapter 13 bankruptcy case, the case is typically closed shortly after the debtor completes their repayment plan and receives a discharge of their debts or shortly after their case is dismissed by the court if they are unable to successfully complete their plan.

      Alternatively, in a chapter 7 case, the bankruptcy discharge normally automatically occurs 60 days from the date of the creditor’s meeting (a.k.a. the “341 meeting”).

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      Never Hire a MN Bankruptcy Lawyer That Takes a Lien to Pay Their Fees

      Posted by Wesley Scott on October 28

      When you hire a bankruptcy attorney, they are supposed to protect your interests and assets not take a lien against your assets to see that the lawyer gets paid their fees. I witnessed this happen recently and it is shocking a lawyer would do this. It is a very unseemly practice that prioritizes lawyers being paid over clients getting relief.

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      The True Impact on Your Credit After Bankruptcy in MN | LifeBack Law

      Posted by Wesley Scott on October 26

      What is the true impact on your credit after filing bankruptcy? Filing bankruptcy is nearly always a net positive for your credit profile and credit score. How can this be? Pretend I am a banker and you come to me wanting a loan.

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      Bankruptcy Filings Will Soon Hit Record Levels in Minnesota | LifeBack

      Posted by Wesley Scott on October 25

      Soon, bankruptcy filings will hit record levels in Minnesota. I know it does not look like that can be the case right now, but it will be and sooner than you think. How can I be so confident of that? Easy, Google global debt and you will get part of the picture. But that is only part of the picture. Global debt levels never went away even after the last recession, which started in 2007/2008. We are at a crossroads in our economy that has fundamentally transformed itself without anyone noticing much.

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      Beginning a Bankruptcy in Minnesota Can Be at Your Speed | LifeBack

      Posted by Col Ovik on October 24

      I have recently started running, actually, I have recently started running again. Running is one of those activities that I do not enjoy. But I make a point to do it because I work in an office and spend most of my day sitting.

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      Homeowners Associations and Automatic Stay Violations in MN | LifeBack

      Posted by Col Ovik on October 23

      Issues with your homeowners association can be stressful. Homeowners associations have the power to place a lien on your property or foreclose. When you get behind in your association fees you are putting your property at risk.

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      How Does Bankruptcy Affect Eviction in Minnesota? | LifeBack Law Firm

      Posted by Charles Nguyen on October 22

      Since mid-2020, an eviction moratorium has been in place to assist renters due to the ongoing Covid-19 pandemic. This has been a great lifesaver for renters, but the moratorium won’t last forever and your obligation to pay rent will continue when the moratorium ends.

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      The BEST Minneapolis Bankruptcy Law Firm: LifeBack Law Firm | LifeBack

      Posted by Wesley Scott on October 21

      If you are suffering from debt, the last thing you want is to work with a group of “professionals” that are not very professional and who treat their clients like widgets on an assembly line. You don’t want to work with a law firm that would really ask their client to put up their clothing to secure the bankruptcy attorney’s fees. This is really happening.

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      Minnesota Lawyers Refer Their Bankruptcy Clients to LifeBack Law Firm

      Posted by Wesley Scott on October 20

      Law firms are largely specialized these days. Many are what we call “boutiques” that cater to clients in one specific area of the law. For example, there are many personal injury law firm boutiques. Many law firms specialize in family law, criminal defense, or even more specific than that, one area of criminal defense like DWI law.

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      What Rights Do My Creditors Have in Bankruptcy in MN?

      Posted by Tim Tonga on October 19

      A person who files for bankruptcy (a.k.a. the “debtor”) is protected from creditors by the “automatic stay” which begins on the day they file their petition with the bankruptcy court.

      The automatic stay is a court order that prohibits creditors from collecting on debts owed by the debtor, with very limited exceptions (i.e. creditors to whom the debtor owes alimony or child support are not stopped by the automatic stay).

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      The Minnesota Automatic Stay: Both a Shield and a Sword | LifeBack Law

      Posted by Jake Peden on October 18

      One of the most critical components of bankruptcy law is the “automatic stay,” which is written into law at 11 U.S.C. § 362, and applicable to all bankruptcy cases under Title 11. It is considered “automatic” because it immediately takes effect upon filing of a bankruptcy petition (unless you have filed multiple frequent cases).

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      The 3 Best Minneapolis Bankruptcy Law Firms | LifeBack Law Firm

      Posted by Wesley Scott on October 15

      When you are looking for the best bankruptcy law firms in Minneapolis, you cannot go wrong with choosing any of these three Minneapolis bankruptcy law firms.

      They will vary in prices and service offerings, but you will get experienced chapter 7 and chapter 13 bankruptcy counsel from any of them.

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      How Much Money Do My Creditors Receive in Bankruptcy? | LifeBack Law

      Posted by Tim Tonga on October 14

      The purpose of bankruptcy is to provide financial relief to debtors who can no longer afford to continue paying their debts. This doesn’t necessarily mean that creditors will get nothing simply because the debtor files for bankruptcy.

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      Why Do I Have to Disclose Asset Transfers During Bankruptcy in MN?

      Posted by Col Ovik on October 13

      When filing for bankruptcy you will have to disclose any transfers of assets you may have had in the last 2 years prior to filing. Assets include cash assets as well as other assets: vehicles, real estate, furniture, or retirement accounts. And you may be asked about assets transferred in the last six years, if the transfer involved a friend or family member.

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      What Does It Mean to Reaffirm Your Loan After Bankruptcy? | LifeBack

      Posted by Charles Nguyen on October 12

      A common question I hear when clients decide to move forward in a bankruptcy is – will I lose my home or will I lose my car? A lot of the time the answer is, no. If there’s a secured loan attached to your property and I’m able to apply the applicable law to protect the equity, then you won’t lose it. Of course, some secured creditors want you to sign a reaffirmation agreement.

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      When Should You Wait to File Bankruptcy in Minnesota? | LifeBank Law

      Posted by Charles Nguyen on October 11

      Bankruptcy is a last option for many people. Before making a decision to file, most people will struggle with their rent or mortgage and other bills. Due to ongoing stress, mistakes will occur, such as paying a credit card bill instead of an electric bill or paying the monthly balance on a personal loan instead of their home owner’s association fee.

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      Minnesotans Refer Their Friends and Family to LifeBack Law Firm for Bankruptcy

      Posted by Wesley Scott on October 9

      Why do Minnesotans refer their friends and family to LifeBack Law Firm, P.A. for bankruptcy? There are many reasons but the biggest reason is they used LifeBack Law to get their lives back and they really felt good about how they were treated.

      After all, LifeBack Law is Minnesota’s highest Google reviewed bankruptcy law firm. If you care for your friends and family, refer them to LifeBack Law and we promise to use soft gloves and treat them exceptionally well.

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      Staying Positive During Your Bankruptcy in Minnesota | LifeBack Law

      Posted by Col Ovik on October 8

      Recently, I started watching a new television series call Ted Lasso and I was quite wonderfully surprised. This is a show about positivity, kindness, and thoughtfulness. Even faced with the ugliest of characters, Ted Lasso continues his crusade of positivity.

      This is a message we should all embrace. Many times I find myself passively watching some television show and the characters are awful to one another or some reality tv show that displays people at their absolute worst. At best, maybe I get a laugh from it, and at the worst, I walk away with a dampened outlook on human kind.

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      Clothes as Collateral: Beware of How You Pay for Your Bankruptcy

      Posted by Wesley Scott on October 7

      As incredible as this may sound, there is a bankruptcy law firm that will actually ask you to put up your clothing as collateral for the attorney fees in a bankruptcy case.

      LifeBack Law will never ask any of it’s’ clients to put up the clothing on their back as collateral for our fees. At LifeBack Law Firm, we accept payment in one of three ways for a Chapter 7 Bankruptcy.

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      What Happens After You File Bankruptcy in Minnesota? | LifeBack Law

      Posted by Charles Nguyen on October 7

      Filing a chapter 7 or chapter 13 bankruptcy can be a scary process, but in the right hands of a proper attorney, it doesn’t have to be. Let’s say you file and now you want to know what happens after you’ve filed.

      First, the automatic stay is applied when your case is filed. This stay prevents your creditors from pursuing any further collection activity, including lawsuits or garnishments.

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      Bankruptcy in Minnesota: You Are Not Sick, Your Finances Are Sick

      Posted by Wesley Scott on October 4

      I constantly remind Minnesotans, your finances are sick, you are not. If you need a metaphor to think about this, here is one; actors and actresses many times need to be told, you are not the same person as the actor or actress.

      You are two different people. So when people criticize the actor/actress, they are not criticizing you, they are criticizing someone else. Same thing with debt. You are not your debt. You are you and your finances are separate and if your finances are sick we need to give medicine to your finances (bankruptcy) not you.

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      Will My Retirement Account Be Protected in a Bankruptcy in MN?

      Posted by Tim Tonga on October 3

      A common concern for many people filing for Chapter 7 or Chapter 13 bankruptcy is whether their retirement account will be protected. Bankruptcy law is very generous about protecting debtors’ retirement accounts such as IRAs, 401ks, and pensions. The vast majority of these retirement plans are “exempt,” or fully protected, under law.

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      5 Tips to Remember for Your 341 Meetings During COVID-19 in MN

      Posted by Jake Peden on October 1

      Once your bankruptcy case is filed, it is required that you give testimony at what is called a “341 Meeting.” It is called 341 meeting, because it is required by law at 11 U.S.C. § 341.

      The 341 meeting is intended to be a time where any interested parties may appear and ask you questions about your bankruptcy petition and intentions. The meeting is ran by a Trustee, and while creditors are all given notice of the hearing time, it is VERY rare that they show up at the 341 meeting.

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      The Dangers of Repaying Family and Friends Before Filing Bankruptcy

      Posted by Col Ovik on September 30

      It is tempting to repay friends and family members, after all, these are the people that were there for you when you were in a bind. So naturally, when you find yourself in a position to finally repay a friend or family member that is exactly what you are going to do. While this seems like the right thing to do, during a bankruptcy, it can lead to a lot of complications.

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      Can Minnesota Bankruptcy Stop Wage Garnishment and Get My Money Back?

      Posted by Tim Tonga on September 29

      A creditor who sues a person and gets a court judgement against them can collect the money that the person owes the creditor through a garnishment of the person’s wages. To do so, the creditor can serve a summons on the person’s employer directing them to withhold their wages to be paid to the creditor.

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      What Are My Obligations During My Bankruptcy Case in Minnesota?

      Posted by Amanda Scharber on September 28

      During your Minnesota bankruptcy case there are going to be moving parts. There will be at least one hearing you have to attend (typically only one), your date for discharge, and other details of which you should be aware.

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      Can Bankruptcy Stop Eviction in Minnesota?

      Posted by Charles Nguyen on September 27

      Since mid-2020, an eviction moratorium has been in place to assist renters due to the ongoing Covid-19 pandemic. This has been a great lifesaver for renters, but the moratorium won’t last forever and your obligation to pay rent will continue when the moratorium ends.

      Read More

      How Does Filing a Bankruptcy in Minnesota Protect Me?

      Posted by Jesse Horoshak on September 26

      Have you heard the phrase “bankruptcy protection” and wondered how a bankruptcy could protect you? Most potential bankruptcy clients usually have a sense of what filing a bankruptcy means, but are often unsure of how the process actually works. One common question that potential clients have is "How does filing a bankruptcy protect me?"

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      Forgiven Debt and Tax Liabilities in Minnesota

      Posted by Col Ovik on September 25

      Under the Internal Revenue Code, the general rule is that the discharge of a debt is a form of gross income. The forgiveness of a debt does sound nice, but it does come with some consequences. For example, if a creditor forgives a debt of $20,000, you would have an additional $20,000 for taxable income. At a conservative tax rate of 15% you would owe an additional $3,000 in federal income taxes for that year.

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      My Home in Bankruptcy - The Minnesota Homestead Exemption

      Posted by Col Ovik on September 24

      Schedules A/B of the bankruptcy petition requires the debtor to list and describe all real estate that the debtor has an interest in. This includes: life estates, remainderman interests, interests in mineral rights, and partial interests in real estate.

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      How Are Civil Lawsuits and Bankruptcy Connected in Minnesota?

      Posted by Charles Nguyen on September 23

      Imagine having job security, being able to pay your bills, and life being just fine. Then, you lose your job and you can’t keep up with your bills and all of the sudden you’re sued for not paying your credit card or a creditor bringing you to court for breaching your contract to them. This happens all the time.

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      What Financial Transactions Are Permitted After Filing for Bankruptcy?

      Posted by Tim Tonga on September 22

      A common concern for people considering filing for bankruptcy is whether they will be restricted from buying or selling property, or taking out more debt, during their bankruptcy case. Whether these types of transactions are permitted partially depends on whether they file a chapter 13 or chapter 7 bankruptcy case.

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      Can I Get Rid of My Vehicle and Vehicle Loan in Bankruptcy?

      Posted by Amanda Scharber on September 22

      Say you have a vehicle, that for whatever reason, you do not want to keep anymore. Maybe it needs significant repair, maybe you can’t afford it anymore, or maybe you just do not want it. Whatever the reason, you may be wondering whether you can get rid of the vehicle and its loan in bankruptcy? The answer is yes.

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      Will I Be Discriminated Against for Filing Bankruptcy in Minnesota?

      Posted by Tim Tonga on September 21

      A common concern for people who are filing for chapter 7 and chapter 13 bankruptcy is whether others will find out about their bankruptcy, and if so, whether they will get discriminated against for filing. One concern people often have is whether friends or family members will discover that they filed for bankruptcy.

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      What Is a Chapter 13 Cram Down in Minnesota?

      Posted by Charles Nguyen on September 20

      As you may know, a chapter 13 bankruptcy is a reorganization bankruptcy where you establish a repayment plan that usually lasts 5 years. Typically, the repayment plan is based on a budget that is created by looking at your net income and then your expenses.  One of the many benefits of a chapter 13 bankruptcy is the availability to lower or “cram down” a debt from the current loan balance to the value of that debt.

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      The Minnesota Homestead Exception: Chapter 7 v. Chapter 13

      Posted by Col Ovik on September 19

      As a general matter, homestead exemptions are to be liberally construed in favor of the exemption. All presumptions are to be made in favor of preservation and retention of the homestead. This is good news for a bankruptcy filer who wishes to protect/exempt their homestead when filing bankruptcy.

      The effect of claiming an exemption is to technically exclude property from the bankruptcy estate.

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      Does the Value of My Home Matter in Minnesota Bankruptcy?

      Posted by Jake Peden on September 18

      When I meet with clients who own their home, protecting their loved ones and their family home are the number one concerns. As far as protecting your home in bankruptcy goes, Minnesota is one of the best states in the country as far as protecting your equity. Currently, you can have up to $450,000.00 worth of home equity and not lose any of it in filing for bankruptcy relief.

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      I Received a Motion to Dismiss My Chapter 13 in Minnesota, Now What?

      Posted by Amanda Scharber on September 17

      A Motion to Dismiss your chapter 13 case is generally brought by the chapter 13 trustee. This motion is usually brought by the trustee to dismiss your case, because of failure to follow some sort of provision in your plan or the bankruptcy code.

      Commonly, Motions to Dismiss are brought for the following reasons, failure to make your plan payments, failure to turn over tax refunds or other property of the bankruptcy estate, and failure to provide your tax returns.

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      Should You Wait to File Bankruptcy in Minnesota?

      Posted by Charles Nguyen on September 16

      Bankruptcy is a last option for many people. Before making a decision to file, most people will struggle with their rent or mortgage and other bills. Due to ongoing stress, mistakes will occur, such as paying a credit card bill instead of an electric bill or paying the monthly balance on a personal loan instead of their home owner’s association fee. They may even skip one or two mortgage payments to pay an unsecured debt.

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      Can Bankruptcy Help Me With My Medical Debt?

      Posted by Tim Tonga on September 15

      There are lots of reasons that people file for bankruptcy. One very common reason is because they have lots of medical debt. Medical services can be very expensive, particularly for those who have no or little insurance. Medical debt is considered general unsecured debt, just like credit cards and personal loans that are not secured by any collateral. This type of debt can be completely wiped out by a bankruptcy discharge.

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      How Does a Chapter 13 Bankruptcy Really Work Minnesota?

      Posted by Wesley Scott on September 14

      You are sitting at home, at your kitchen table, and you are working your way through a pile of bills that need to be paid. Some of these bills are past due. When you whip out the calculator and add all of the credit card debt, medical bills, and unsecured lines of credit, you get a total of $75,000.00 with monthly payments that total $3,250.00 to service just the minimum payments on all of the debts.

      Is chapter 13 bankruptcy in Minnesota something you should start considering?

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      Living With Positivity, Despite Adversity

      Posted by Col Ovik on September 13

      Recently, I started watching a new television series call Ted Lasso and I was quite wonderfully surprised. This is a show about positivity, kindness, and thoughtfulness. Even faced with the ugliest of characters, Ted Lasso continues his crusade of positivity. This is a message we should all embrace.

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      Can Bankruptcy Get Rid of Debt Owed to the Government?

      Posted by Tim Tonga on September 12

      Whether a bankruptcy can wipe out debt owed to the government is one question that many people have when considering filing for a chapter 7 or chapter 13 bankruptcy. Whether a bankruptcy discharge will eliminate this type of debt depends on the specific nature of the debt owed to the government. One common form of government debt is tax debt. Tax debt is generally not dischargeable in bankruptcy.

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      Is There Confidential Information Listed in My Minnesota Bankruptcy?

      Posted by Amanda Scharber on September 11

      Bankruptcy filings like Chapter 7 and Chapter 13 are technically public record. The full case and associated documents are filed with the court. The case and associated filings are then accessible on the United States Bankruptcy Court’s website.

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      Should You Ever Give a Bankruptcy Attorney a Lien on Your Own Clothing?

      Posted by Wesley Scott on September 10

      Unfortunately, in the bankruptcy world, there are some very unseemly practices. There are some companies who disguise themselves as law firms only to be referral agencies in reality. They take your phone call and have non-lawyers sign you up, and then refer you back to a Minnesota bankruptcy attorney. If you want crappy service, you should definitely do this.

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      How Does Wage Garnishment Work in Minnesota?

      Posted by Charles Nguyen on September 9

      A garnishment is when someone, usually a creditor or someone you owe money to, goes into your bank account or paycheck to obtain money that you owe.

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      Can Bankruptcy Help Me With My Tax Debt in Minnesota?

      Posted by Tim Tonga on September 8

      Tax debt is a major reason that people file for bankruptcy. Despite the fact that the State and Federal taxing authorities (i.e. the IRS and MN Department of Revenue) are often willing to offer payment plans to assist people with this type of debt, owing a large amount of taxes can create both a financial and emotional burden. This is especially true when one has other expenses, debts and bills with which to contend.

      Bankruptcy can often provide a great deal of assistance for those dealing with lots of tax debt.

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      Per Capita Benefits and Other Benefits to Native American Band Members in Bankruptcy

      Posted by Jake Peden on September 7

      On July 8, 2021, the United States Bankruptcy Court for the District of Minnesota issued a ruling upholding the rights for bankruptcy debtors who receive benefits under the Federal Indian Gaming Regulatory Act of 1988, 25 U.S.C. §§ 2701, et seq. (“IGRA”).

      The 18 page opinion ends with a clear admonishment: “even outside of the Pokagon Band’s sovereign authority to create and define property rights, the per capita payments are not property of the estate in policy, logic, or equity.”

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      Can You Imagine a Bankruptcy Lawyer Taking Your Clothes as Collateral for Fees?

      Posted by Wesley Scott on September 6

      We cannot either. Recently, we heard of one Minnesota law firm that seems so hard up for money they actually take their clients clothing, along with furnishings and appliances, as collateral for their fees. We cannot imagine anything more distasteful than this. Bankruptcy lawyers are supposed to protect their clients assets not expose them to creditors, and especially themselves. Instead, the lawyer seizes an opportunity to take their clients property as collateral? Ridiculous. At LifeBack Law Firm we would never engage in this kind of chicanery to get paid.

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      What Is My Right to Amend My Bankruptcy Schedules in Minnesota?

      Posted by Jake Peden on September 5

      A fundamental part of the bankruptcy process, is that the person(s) filing for bankruptcy relief must file schedules, statements and related documents, which are true, complete, and correct to the best of their knowledge, information and belief.

      When disclosing the bankruptcy filer’s assets, it is important that all interests in property or assets (even if contingent) are disclosed. However, it is inevitable that from time to time, things may be overlooked or forgotten about.

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      What Are Forgiven Debts and Taxes in Minnesota? | LifeBack Law Firm

      Posted by Col Ovik on September 5

      Under the Internal Revenue Code, the general rule is that the discharge of a debt is a form of gross income. The forgiveness of a debt does sound nice, but it does come with some consequences.

      For example, if a creditor forgives a debt of $20,000, you would have an additional $20,000 for taxable income. At a conservative tax rate of 15% you would owe an additional $3,000 in federal income taxes for that year.

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      Watch Out for Good Deeds When Helping a Friend in Bankruptcy

      Posted by Col Ovik on September 4

      Everyone knows the old adage, no good deed goes unpunished, and this is also true in bankruptcy. So, while it may be noble to help out a friend or family member, it can also complicate your bankruptcy. Expensive gifts, gifted while you are insolvent can be a point of contention in your bankruptcy, but what about other good deeds: lending money, co-signing on loans, or taking out loans for someone else?

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      Are You Over Withholding on Your Paychecks in MN?

      Posted by Jesse Horoshak on September 3

      If you are one of the millions of Americans that are unable to meet their monthly debt obligations, but are having trouble figuring out why, it may be because you are withholding too much from your paychecks for income tax.

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