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.

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. 

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.

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. 

     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.

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).  

The prospect of filing for bankruptcy can raise numerous questions, especially when it comes to protecting your hard-earned retirement savings.

Fortunately, the law offers significant protections for retirement accounts, including 401(k) accounts and 401(k) loans, during bankruptcy proceedings. This article will delve into how 401k accounts and loans are treated in a bankruptcy case, highlighting the protections afforded to retirement savings.

Chapter 13 bankruptcy, often called a "wage earner's plan," offers a structured path to debt relief for individuals with regular income in Minnesota. While it allows you to keep your assets and catch up on missed payments, it's natural to wonder how restrictive this process might be. Let's delve into the financial commitments and lifestyle adjustments involved in a Chapter 13 bankruptcy.

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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?

   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.

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.

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.

    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.

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.

   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.

   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.