Filing bankruptcy is not an easy decision and often leaves clients with a complex mix of feelings. No matter how you feel, you are not alone. Every day, we have clients sharing with us their stories and how bankruptcy makes them feel, and every day one of the most common things we hear is relief. But relief is definitely not the only thing we see. Here are some common emotional experiences associated with the bankruptcy process:

In a generation where the prices of homes, cars, and pretty much anything are rapidly rising, it more and more clients come to us saying they own “absolutely nothing.” Now that’s usually not true. Most of us own clothes, maybe a pot or pan, a few pieces of jewelry. But when we talk about assets, most people think of homes and vehicles. So let’s talk about the “good” side of having “absolutely nothing.”

Another common question we receive here at LifeBack Law is “how will my income be calculated in bankruptcy.” It’s a fantastic question. Income varies. Sometimes we get overtime and bonuses, other times we barely get the hours we’re promised. How can you provide an average income, if it changes so often? This blog explores how income is calculated in both a Chapter 7 and a Chapter 13 and why it matters.

In most cases, personal injury settlements received before filing for Chapter 7 bankruptcy are exempt from being included in the bankruptcy estate. This means you can typically keep the money. However, if the settlement was received after filing, it may be subject to creditor claims. It's crucial to consult with a bankruptcy attorney in Minnesota to understand how your specific situation may be affected.

A Chapter 13 trustee in Minnesota identifies and investigates preferential payments made by the debtor within a specific period before filing bankruptcy. If a preference is found, the trustee may seek to recover the payment for the benefit of creditors. This process aims to ensure fairness and equitable distribution of assets among all creditors.

There’s a new buzz word going around the personal finances section of social media: Lifestyle Creep.

You can file bankruptcy as long as you are at least 18 years old. Whether you should file and what filing will look like, at whatever age you are, should be discussed with an attorney. 

Continuing on our journey of debt relief history, we’ll move on next to two of the most famous ancient civilizations: Greece and Rome. (Fun fact: The author of this blog actually has a degree in ancient history and archaeology). 

When filing bankruptcy, something that many people are curious about are the ways in which the bankruptcy process will protect them from creditors.  Related to this, many also wonder when these protections take effect, and how they will continue to function after the bankruptcy has formally concluded.  These are both excellent questions, and they both address one of the fundamental, foundational purposes of bankruptcy, which is: to provide you, your family and your loved ones with peace of mind concerning debt, creditors, and their efforts to pursue those debts.  

Another common question we often hear at LifeBack Law is: Are my veteran’s disability benefits protected? This is a very valid question. Many veterans receive at least something from military disability, while some even have to live off of these payments. So if you are a veteran going through financial struggles, and have questions about your benefits and potential bankruptcy, you’ve come to the right place!

Financial difficulties often have us feeling alone, isolated, or ashamed. No one wants to file bankruptcy and we often feel like we can’t reach out the people for help. These difficult situations are scary, but it is not a path you have to walk alone. Bankruptcy and debt relief are thousands of years old, and you will not be the first nor the last person to consider this route. As a former history nerd, I find history can be comforting when facing the unknown or the uncertain. It helps to know that people were in a similar situation years ago and they managed to survive too.

If you are thinking of filing bankruptcy or have already filed and have a co-signor on a debt that is included in your case, you may be wondering what happens to the co-signor after you file? 

When you file bankruptcy you will list all of your creditors. This includes secured creditors, like mortgages. In your bankruptcy schedules you will list what you intend to do with the debt/asset. For example, you can surrender the property or keep paying on it. 

If English is not your first language or you are worried about translation, that should not prevent you from filing bankruptcy. At LifeBack Law Firm, we often will use translators to best serve our clients. 

If you have done any sort of research into bankruptcy, you’ve likely seen one word pop up over and over again: 

 If you are filing bankruptcy, but have a trip planned or even paid for already, you may be wondering if there are repercussions to filing and taking vacations.