In general, student loan debt is not dischargeable in bankruptcy. The Bankruptcy Code prohibits the discharge of student loans in almost every instance. This boggles the mind given how burdensome student loan debt is to so many Americans, but student loans are not currently covered in bankruptcy.

When filing for bankruptcy, debtors are able to exempt certain assets from the bankruptcy. In other words, there are some assets a debtor can definitely keep in a bankruptcy, be it a home, car, personal belongings, or other property, up to a certain amount of value. In Minnesota, bankruptcy filers can choose to take state or federal exemptions, but not both. Depending on the asset, the state or the federal exemption will be more generous. The exemptions change periodically to adjust for inflation.

 Many people fear that filing bankruptcy means they will never be able to get a loan again—their credit will be ruined and they can kiss any future large purchases goodbye. Not so. Bankruptcy certainly affects credit, but the effects are not overwhelmingly dire, nor irreversible.

A discharge is a court order stating that a debtor is relieved of paying his or her debts. This is the aim of bankruptcy. Bankruptcy does not discharge every type of debt, however, so if you are having trouble paying any of the following debts, bankruptcy may not be right for you.

An important category of documents needed for a 341 meeting is bank statements. The trustee wants to see statements from any kind of account you had on the day you filed for bankruptcy, even if the account had zero dollars in it. The trustee needs statements from every account listed in the bankruptcy petition.

Four types of bankruptcy are available under federal law. They are each intended for different types of debtors and are outlined in Chapter 7, 11, 12, and 13 of the Bankruptcy Code.

There are countless hurdles in life that can push us into financial hardship and no one’s journey to and through bankruptcy is exactly the same. But there do tend to be unavoidable similarities in many cases: drop in income, the dissolution of a relationship, and medical debt are facts of life for many of our clients.

Judgments are issued when a creditor or debt collector takes you to court for the debt that you owe. A summons is sent to you and if you do not respond to that summons or if you lose the case, the court will issue a judgment in favor of the creditor.

Kain & Scott offers a FREE 90-day Credit Repair Program for all of our clients who file a Chapter 7 or 13 bankruptcy through us. A Credit Repair Specialist can help you start rebuilding your credit as efficiently as possible. The program’s services can be performed at any time, but are free for the first 90 days after discharge.

At Kain & Scott, the final step before filing a bankruptcy is the Review & Sign appointment. Clients come into the office to prepare the bankruptcy petition and make sure the client is ready for filing. Being prepared ensures this meeting goes smoothly and allows the bankruptcy to be filed promptly, generally within days of the appointment.

One thing we hear almost daily from our clients is how they wish they would have filed for bankruptcy sooner. They wish they would have pushed aside all of their preconceived ideas about filing and the negative stigmas and gone with their gut.

So, you are preparing to file Chapter 13 Bankruptcy. You have hired a licensed and local Chapter 13 Bankruptcy attorney in your state. You have not called any out of state companies and you have dismissed any law firm that would have you meet with a paralegal.

Many debtors have co-debtors on the debts they owe. For example, debtor may have had a relative or friend co-sign their vehicle loan. If debtor does not pay on the loan, bank will look to co-signor for payment. Co-debtor or a co-signer is a person who pledges their liability on the loan should debtor refuse to or not be able to pay on the loan. Banks routinely ask for co-signers as a way of protecting the loan and making sure the bank is repaid. Co-signing is a form of collateral for the bank, protection against the loan going unpaid if you will.

Think about this for a moment. Can a creditor write in a contract, any contract, that you waive your right to file bankruptcy on this debt/contract, and therefore, further protect creditor’s ability to get paid back on a debt? Wouldn’t this be clever for a creditor to do this? Wouldn’t all creditors do this? If this were possible, and enforceable, all lawyers for creditors would be committing malpractice if they failed to write a provision into every contract waiving debtor’s right to file bankruptcy on this debt.

After a Chapter 13 341 meeting, what happens next? There are a variety of things that can happen after a Chapter 13 341 meeting. One of those events that could happen is a creditor may bring what we call a motion for relief from the automatic stay.

People often want to know what happens after a Chapter 13 Bankruptcy hearing. The next step is a confirmation hearing where the bankruptcy court approves or “confirms” the Chapter 13 Bankruptcy plan. But, prior to the confirmation hearing, creditors also have a chance to object to debtor discharging debts with creditor for certain reasons identified in Section 523 of the Bankruptcy Code.