MN Bankruptcy And How It Affects Our Future

Written by Wesley Scott | October 3, 2016 at 6:52 PM

Many Americans seek financial recovery each year through the liquidation proceedings involved with Chapter 7 Bankruptcy yet few are aware what Chapter 7 Bankruptcy involves. In a Chapter 7 Bankruptcy any non-exempt assets the debtor possesses will be liquidated by the trustee as allowed within the US Bankruptcy Code and the revenue is to be divided among creditors based on the priorities set forth within the bankruptcy code. The vast majority who seek relief through Chapter 7 Bankruptcy have no non-exempt assets to be liquidated or perhaps the cost and effort involved addressing these assets is deemed impractical by the trustee when compared to their potential value to creditors. But what about our investments and our ideas; what about these seeds we have sown which may someday still bear fruit? Where do they stand throughout the bankruptcy process?

What You Can And Can’t Do With Money Before Filing

Some of us may have money in our savings account that we have refused to part with in spite of our financial difficulties because of one principle or another. Perhaps the funds were intended for your children of for emergency medical expenses or even the purchase of your first home. Whatever the case may be as to why you have this money is irrelevant in the eyes of the trustee, the fact remains that this money may not exempt in your bankruptcy. It is ill-advised to withdraw money prior to filing bankruptcy in an effort to keep it excluded and in your possession as this could be construed as bankruptcy fraud and carry penalties far more significant than the money you’re attempting to shelter. Your bank records for several months prior to filing will be reviewed and any discrepancies will raise concern with your Bankruptcy Trustee.

So what do we do with this money? There are a number of options available to debtors as long as these actions are taken in good faith and not seen as an excessive or an obvious misuse of the provisions outlined in Chapter 7 of the Bankruptcy Code. If your car is on its last legs now may be a good time to trade it in for something more reliable or pay for the needed repairs. There is often no issue with investing in necessities or paying your debts as the debts come due.

If there is a debt or expense which you wish to exclude from your Bankruptcy this may be a wise place to channel money that may potentially be lost in bankruptcy. Be certain, though, that any unsecured debt you pay prior to filing your bankruptcy case has a balance of less than $600. You also may be able to exempt your savings based on some very specific allowable exemption guidelines but navigating those complex waters is a matter best left to a legal expert. Contact us today so that we may provide you with professional insight regarding your income and asset planning prior to filing bankruptcy.

What Will Happen To My Inheritance

The loss of someone dear is always difficult and it is very commonplace for individuals to inherit money of assets from a departed friend of family member but if your relative dies within 6 months after your case is filed, that inheritance becomes property of the Bankruptcy Estate, and can be administered by a Bankruptcy Trustee. If you are aware of a potential inheritance be sure to disclose this to your counsel so that you can be provide with the best possible advice for your specific situation.

What Will Happen To My Intellectual Property

We live in a technologically advanced time and this ease of access has allowed many of us to pursue our dreams and passions in an effort to shape these concepts into our own financial success. Perhaps you operate a small business based on something you developed or conceived or maybe you retain the rights to visual or literary works which you are developing further until the time in which they may bear lucrative fruit. These concepts and ideas which you have secured trademarks or patents on as well as your copyrighted material can be non-exempt assets, if the intellectual property is valuable enough.

This means you could lose your control over your intellectual property should you File Chapter 7 Bankruptcy. This can make bankruptcy very difficult to consider for anyone working to develop original concepts or currently holding rights to an idea or product. Our team of knowledgeable bankruptcy experts can assist you in determining what is best for your individual situation.

Where Can I Get A Good Bankruptcy Lawyer?

Bankruptcy often involves many difficult choices. The decisions one must consider are often not immediately obvious nor is the impact these choices could potentially have on our futures. Our team of MN Bankruptcy Attorneys are here to help you through every step of the process and to make sure you are fully aware of all aspects of your bankruptcy and its potential impact on your goals moving forward. We are happy to meet with you and discuss what it is that you hope to achieve through filing bankruptcy and to help get you back on the path to financial stability. Bankruptcy can be the beginning to a bright new future for your finances. Contact us today, we can help!

MN Bankruptcy And How It Affects Our Future

What You Can And Can’t Do With Money Before Filing

What Will Happen To My Inheritance

What Will Happen To My Intellectual Property

Where Can I Get A Good Bankruptcy Lawyer?

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