Something that many people ask themselves when contemplating the bankruptcy process is when the right time will be to file.  People may wonder if there is a specific amount of debt that would typically lead to a filing, or whether a creditor taking a specific action, such as bring a lawsuit for collections, is necessary prior to beginning the bankruptcy process.  The answer to these questions is simple; there is no single set of circumstances that dictates the best time to begin the bankruptcy process.  Rather, the best time to consider a bankruptcy filing is when you ready to free yourself of the burdens associated with overwhelming debts, and give yourself your life back. 

There are some topics you simply don’t want to discuss with your employer. Bankruptcy is often one of them. A common concern for those considering filing bankruptcy is whether their employer will receive notice they have filed. 

“Is Bankruptcy Right For Me?” – This is a question that is frequently asked by those who may be experiencing financial hardship or dealing with the burdens imposed by unmanageable debts.  To analyze this query we must first evaluate what bankruptcy is; which is to say we must consider both how the bankruptcy process works and the purpose that it serves.  With regard to the latter, bankruptcy is a legal process established under federal law that exists to provide relief to those who find themselves struggling with overwhelming debt. 

You ask, will I qualify for Chapter 7 Bankruptcy? And the answer is, yes, if your income is below the state’s median income and you do not have money left over after you pay your reasonable and necessary expenses. The idea of who qualifies to file Chapter 7 Bankruptcy (assuming you have not qualified a Chapter 7 Bankruptcy and received a discharge in the last 8 years) is largely based on your household income and expenses. 

Wage garnishments are one of the common reasons individuals decide to file bankruptcy. Wage garnishment is a process where a portion of your wages are withheld by your employer to pay off your debts. Wage garnishments can occur for different reasons such as unpaid debts like credit cards, personal loans, or child support. 

One of the primary element of any bankruptcy filing is something known as a means test.  It plays a pivotal role in determining a number of different things that all play a role in filing bankruptcy, including the chapter that may be filed, and in some cases, how long the bankruptcy itself will last.  The primary factor evaluated by the means test is income – specifically, income earned in the six months prior to filing.

Overwhelming or unmanageable debt can arise for a variety of reasons, and unfortunately, it can often arise due to a circumstance that can be difficult to predict or anticipate such as the loss of a job, the ending of a relationship or the occurrence of an unanticipated expense.  Bankruptcy can be an excellent resource to address such a situation, and is often one of the first solutions explored by anyone who finds themselves in such a circumstance.  However, for those who have already availed themselves of the bankruptcy process to deal with a similar situation previously, it is common to wonder whether bankruptcy can be pursued for a second time to deal with their current circumstances.  

Exemptions protect your assets in bankruptcy. When you file bankruptcy you have to list all of your assets, you then will also list an exemption to protect the asset from the bankruptcy estate, if one is available to you. In Minnesota you can pick between federal and state exemptions, this is not the case for every state though. Your attorney will help you go through your assets and which exemptions to apply. 

A new year brings with it a sense of optimism, a concept of new beginnings that inspires positivity and hope for the year to come.  For many, it also represents the opportunity for a fresh start, a chance to free ourselves from the burdens that we might be carrying with us so that we can move forward into the coming year unencumbered.  Beyond the metaphorical implications of this idea, the New Year can also offer be the perfect time to free ourselves from the burdens imposed by unmanageable debt for any who might find themselves struggling with such a situation.  

While there are a few different types of bankruptcy cases, our firm only files chapter 7s and chapter 13s. A chapter 7 bankruptcy case is 90 days long, with the court ordered discharge being granted at the end of the 90 days. 

When going through the bankruptcy process, it is very common to receive something known as a “reaffirmation agreement” from a lender.  Generally, these agreements will be sent out by lenders with whom you have a secured loan, such as a mortgage, a car loan, or a home equity line of credit.  These agreements are essentially written requests for a debt to be excluded from the bankruptcy discharge.  Should you choose to sign a reaffirmation agreement, it would filed with the court after its completion, and a judge would then determine whether the debt in question should be reaffirmed and excluded from discharge. 

When we break it down, there are opportunities to rise above your current station in life, to do better than your parents, but if you already start out ahead of the curve, your chances of success are far higher.

When you file bankruptcy you have to list all of your assets, including those you may not have yet. For example, even if you have not filed your taxes or haven’t received the refunds yet, you still have to list the tax refund as an asset in your case. When you list your tax refunds, you will list it as a pro rata estimate based on the date of filing. As an example, if your case is filed on December 12, the share of the tax refund belonging to you on the date of filing is about 95%. 

As a society, we have come a long way in attempting to stamp out discrimination. While we are not perfect, there have been tremendous strides forward from where we once were. But, one class in particular remains fodder for criticism, even by their own, the poor. The classification itself seems like an insult. Of course, no one wants to be poor, but somehow there seems to be more shame attached because this classification is often thought of as self-inflicted.

One of the most common forms of bankruptcy that people often pursue is referred to as a “Chapter 13”.  Fundamentally, a Chapter 13 bankruptcy is a three to five year plan wherein you make payments to someone known as the bankruptcy trustee (the federally appointed official responsible for overseeing your bankruptcy).  The idea is that these payments will typically pay down a portion of what you owe, and then at the end of your chapter 13 plan you will receive a bankruptcy discharge which will eliminate any remaining obligation that you have towards the debts being resolved through the bankruptcy.

While there are a few different types of bankruptcy cases, our firm only files chapter 7s and chapter 13s. A chapter 13 bankruptcy case is a restructuring/payment plan, with the discharge being granted at the end. The payments cannot be less than 36 months or more than 60 months.