Filing a bankruptcy case in Minnesota is, for almost everyone, a fairly straight-forward process: a person facing financial difficulties meets with an MN Bankruptcy Attorney well-versed in bankruptcy practice and, during that (or subsequent) meetings, the person decides to file a bankruptcy case. Once the lawyer is retained, the lawyer’s office, with the assistance of the bankruptcy client, prepares a petition, schedules and statements identifying the debtor, listing assets, liabilities, income and expenses, together with disclosures of any financial transactions in which the debtor has engaged during defined periods prior to filing the bankruptcy case.

Last week I wrote a second installment about Exemptions Available To Bankruptcy Debtors, under both the Federal Bankruptcy Code or state law. Last week, I looked at a number of exemptions available to debtors to protect tools of the trade, life insurance policies and the several exemptions that exist to protect the right of a debtor to receive government benefits, child support and maintenance. This week we’ll look at a few more Bankruptcy Exemptions. We’ll also try to draw a clear distinction between the exemption provisions of the Bankruptcy Code and Minnesota Statutes - and what do the differences say about the policies of the United States Congress (Bankruptcy Code) and Minnesota State Legislature (Minnesota Statutes).

Last week, I wrote about the Bankruptcy Exemption Laws contained in both the Federal Bankruptcy Code as well as the exemptions contained in Minnesota’s debtor-creditor statutes. As noted, Minnesota is one of 15 states that are “opt-in” states - states that allow bankruptcy debtors to choose between the Bankruptcy Code exemptions or state law to protect property in a bankruptcy case. We also covered the exemptions available for commonly-owned property: homestead real estate, motor vehicles, household goods and furnishings, clothing and personal effects and jewelry. This week we’ll take a look at the exemptions available to people filing a bankruptcy case for property that is not quite as commonly present for most people. And we’ll look at what the differences and similarities in the state statutes and the Code tell us about the philosophy of bankruptcy law.

Financial difficulty brings with it a lot of distress. A person who is facing overwhelming debt is searching for ways to cope with, and eventually, overcome the financial challenges with which he or she is dealing. Many individuals dealing with the stress of debt that cannot be serviced look at bankruptcy as an option to resolve financial problems. But in considering whether to file a bankruptcy case, these individuals often worry about whether the property that they own ­ whether it is real estate or personal property ­will be protected if the individual decides to file a bankruptcy case.

The past two weeks I’ve written about the Bankruptcy Code’s provisions that govern who can file a bankruptcy case and in what state a bankruptcy case may be filed. I looked at the definitions of who may be a debtor - and noted the differences between the very inclusive chapter 7 and the much more exclusive chapter 13. I discussed the venue of a case last week - and noted the requirements in Title 28 of the United States code that governs venue of a bankruptcy case: residence, domicile and the existence of the principal place of business and/or the location of the principal assets of a business.

MN Bankruptcy Law is very much rooted in the provisions of the Bankruptcy Code - the laws passed by Congress to regulate bankruptcy in the United States. There really isn’t a “common law” of bankruptcy - that is, there aren’t court decisions that establish substantive law and procedure in bankruptcy cases; rather, court decisions simply interpret the provisions of the bankruptcy code that governs the filing, administration and discharge of cases.

For the last month I have been writing weekly about the challenges and issues that surround closing a business that is no longer profitable. I’ve discussed the decision to close, the steps needed to treat employees and trade creditors correctly and issues regarding business withholding and sales tax and personal income tax. I’ve also written about business owners filing a personal chapter 7 bankruptcy to protect the owners from their personal financial obligations related to the business. Last week I wrote about the rare instances in which a business that operates as an LLC or corporation is well-advised to file its own chapter 7 case. This week I will wrap up this business-centric discussion by looking at the situations in which filing a chapter 13 bankruptcy makes sense for a business owner. But first, let’s take a look at the bankruptcy chapter that specifically protects businesses that file bankruptcy - chapter 11.

My last three blogs have dealt with the issues, problems and complications of closing a business that is no longer profitable. And I’ve written about using a personal chapter 7 bankruptcy as an option to protect an individual’s income and property from collection when business obligations have been personally guaranteed by a business owner. The focus has been on a personal chapter 7 as the most common option for a situation in which a small business has failed and the business owner now owes obligations to business creditors because the business can no longer honor the obligations. In this blog, I will write about the limited occasions in which an LLC or corporation should file a Chapter 7 Bankruptcy.

Many people struggle with their finances and are unsure as to how to seek relief. All circumstances are different and there are a variety of legal remedies designed to aid in your financial recovery. Because of the complexity of these matters it is advised you seek the knowledgeable professional advice of experienced Roseville MN Bankruptcy Lawyers to determine what is right for you. In this blog we will begin to look at some of the key points regarding both types of bankruptcies most commonly used by individuals at Our Roseville Location. Your future needs and goals may play a large factor in determining which type of bankruptcy is right for you and depending on your circumstances.

My last two blogs, Help For Small Business in Financial Trouble & Help For Small Business in Financial Trouble - Part 2, have dealt with the decision as to whether to close a business that is no longer performing financially as the owner hoped. 

Last week in my blog Help For Business In Financial Trouble - Part 1, I wrote about the decision many small business owners face: in light of the financial difficulties the business is facing, should the business close down? The decision is usually very personally painful for a person who has worked long and hard to own and operate a business. The feelings can be compounded when the reasons for business failure have to do with outside market forces more than the business decisions made by the owner. Imagine the hard-working video store owner from 1996 - today it’s very likely that the video store is no longer in business, regardless of whether the owner was a smart, capable businessman.

Last week I started talking about little “surprises” that can happen after someone files a bankruptcy case. At the end of last week’s blog, I started discussing the issues that arise after (and sometimes significantly after) a person has received a bankruptcy discharge when someone who filed a bankruptcy attempts to refinance a mortgage that was in existence at the time the bankruptcy case was filed. Often, the mortgage company will continue to report the mortgage as “in bankruptcy” long after the bankruptcy case is done and over. Some, not all, mortgage companies do this - although the companies that do report mortgages as “in bankruptcy” are often the large, nation-wide mortgage issuers.

One of the most rewarding experiences an individual can have is to start and grow his own business. Our economy depends on people deciding to become entrepreneurs. And people with a plan, good financing, attention to detail and a strong work ethic can position themselves to do well financially. But any successful entrepreneur will tell you besides all these attributes, the successful business owner needs a big helping of good luck. Good fortune does not visit every small business. And no matter how diligently a business owner follows processes designed to successfully start and grow a business, bad luck might dash all of the hopes and dreams the business owner had when she set out to start the business.

I remember the conversation clearly, even though it took place more than 10 years ago: I had just finished meeting with a client - let’s call him “Josh” - to review a draft of the petition and schedules our office prepared for his Chapter 7 Bankruptcy. We reviewed the draft carefully to make sure that we were listing all of the assets Josh owned and that he had listed all of the creditors to whom he owed money. We took a good look at his payroll records to make sure that his monthly income was being reported accurately. We made sure that any unusual financial transactions that took place shortly before our meeting were disclosed, and the requisite detail provided. Once we knew the information was accurate, Josh signed the papers...  

Bankruptcy has many negative connotations and is often perceived by society to be a sign of one’s failure to manage one’s finances effectively. But this could not be farther from the truth when we take a careful look at many of the contributing factors which force individuals to turn to Minneapolis MN Bankruptcy Lawyers for financial relief. Many institutions and lenders have gone through great lengths to structure their agreements and contracts with consumers so that the lenders may profit greatly from potential hardships a consumer may unexpectedly face.

For the past two weeks, I’ve written about the issue of timing in bankruptcy cases. Two weeks ago I looked at timing from the perspective of collection by creditors in my blog, How our Minneapolis Bankruptcy Lawyers Know When You Should File. Last week, I looked at timing as a function of the Bankruptcy Code, and talked specifically about timing the filing of a chapter 7 case. This week I want to discuss timing issues with chapter 13 cases.