When people hear the word “bankruptcy,” a lot of myths start swirling around, like some scary campfire stories about what you will lose and how your life will change. One of the biggest fears we hear all the time is: “Are they going to take everything I own? Even Grandma’s cookie jar?”

If you're experiencing a debt problem, filing a bankruptcy can take a lot of stress and anxiety off of your plate. At LifeBack Law Firm, we assist clients all over Minnesota with filing chapter 7 and chapter 13 bankruptcies. Many potential clients we meet with are curious about the difference between the two, so below is some further information on each chapter of personal bankruptcy.

It’s one of the most common questions we hear during the bankruptcy process:
“Why do you need my creditor statements? Can’t you just pull my credit report?” It’s a fair question! After all, a credit report seems like it should tell the full story of who you owe and how much. Unfortunately, it doesn’t always paint the complete picture. Here’s why those statements still matter so much in your bankruptcy case: 

After the initial consultation with Lifeback Law, you will receive the checklist of documents that we need to build your case. If you have received one of these checklists, you may have noticed the ‘Credit Counseling Course.’ In the state of Minnesota, the bankruptcy courts require that all debtors take two educational course in addition to their filing — one before you file and one after. But what exactly are these courses, and why are they required? Here is a closer look at the first credit counseling course: 

Let’s face it: Minnesota, and the country overall, is currently in a really rough financial place these days. It seems like every month we inch closer to a recession, job growth is continually shrinking, and many working class Minnesotans, regardless of income level, are feeling the bind.  Across the country, Google searches for “bankruptcy lawyer” are at a record high, but a lot of people we speak to are anxious about filing for bankruptcy in such uncertain financial times for a variety of reasons.

Divorce and financial hardship are two of life’s biggest curveballs, and dealing with both at once can feel very overwhelming. While it’s definitely tough to navigate through, understanding how they overlap can help you come out stronger on the other side.

Filing for bankruptcy is one of the most personal financial decisions you can make, so it’s understandable to think, “It’s my petition—can’t I choose what goes in it?” After all, it’s your name on the paperwork, your debts, and your life being laid out on paper. 

For anyone who may find themselves living with overwhelming or unmanageable debt, bankruptcy will often be one of the first options that they consider when pondering how to best address their financial quandary.  Bankruptcy is a powerful and effective tool that is well suited to help those who might find themselves in such a situation, and therefore it is understandable that it stands at the forefront of options that may be considered when facing the prospect of overwhelming debt.  However, a question that anyone considering bankruptcy will likely ask themselves as part of this consideration is – “when is the right time to file?”  It’s an excellent question, and herein we shall delve into a few of the factors that can play a role in determining when that optimal timing may be.  

Bankruptcy is all about disclosure. When filing a bankruptcy case, you have to disclose all assets, all property transfers over a period of time, and you have to list all debts you owe in the petition. There are a couple reasons why this is important, and I will lay these out below.

  Social Security is a crucial lifeline for many retired or disabled people in the United States, but oftentimes is not enough to cover both living expenses and payments towards debt. At LifeBack Law Firm, we have worked with many clients on a fixed income file for bankruptcy to improve their financial situation. A common question we receive is “will filing a bankruptcy impact my Social Security payments?” The short answer is no, but we’ll get into the long answer with this post!

If you have a pet, rest assured—we’ll make sure they’re protected in your petition. Your purrrfect pal isn’t just part of your family, they’re part of the bigger picture of your life. At LifeBack, we love all our furry, scaled and feathered friends. Here is the inside scoop on how your pet fits into your bankruptcy case:

 One of the most less-common questions people ask before their 341 Hearing is, what should I wear? For many, court appearances are not a daily occurrence, so it is completely normal question to have while preparing for the next step in your case. 

  In a nutshell, the bankruptcy petition is a collection of legal documents that explain who you are, what you have, who you owe, what you make and spend in an average month, as well as your recent financial history. These legal documents are separated into sections called schedules, and the complete collection of schedules is what makes up the petition.

  If you're considering filing for bankruptcy in Minnesota, you might wonder if you need to go to court for the case. The short answer is not necessarily, but there is a hearing you attend! 

Many Americans are dealing with student loans. While the standard for the discharge of student loans has changed, it is likely still not a dischargeable debt for many people who file bankruptcy. It is very difficult to wipe out student loans in a bankruptcy.