Suppose you filed a Chapter 7 Bankruptcy in Minneapolis, MN. You have a lot of equity in your home so your attorney correctly uses the Minnesota Exemption scheme to protect your assets the best she can. I say the best she can because when using the Minnesota Bankruptcy Exemption scheme, we know not all of your assets will be protected. Why? Because the Minnesota Bankruptcy Exemption scheme is fairly rigid; your assets either fit neatly into a Minnesota Exemption or it does not. There is no “wild card” exemption as there is in the Federal Exemption scheme. 

Recently, the US Supreme Court handed down two decisions that are morally, ethically, legally, and spiritually wrong. 

The 40 hour work week was signed into law in 1940 as part of The Fair Labor and Standards Act, but should society continue to allow this standard? To understand if the 40 hour work week should remain, we must first discuss the origin of the 40 hour work week, and how we came to accept this standard for the past 70 years. 

    Filing Chapter 7 Bankruptcy can be a daunting prospect emotionally for many people. The Chapter 7 Bankruptcy filing basics should not be daunting to understand. Chapter 7 Bankruptcy, sometimes referred to as a “Fresh Start Bankruptcy” is like pushing a re-set button on your debts. One minute the debts are there and sometime later they are gone. 

Chapter 13 bankruptcies are three to five years with a monthly payment plan where you restructure your debt. Depending on your case during a chapter 13 you may hear the following terms or phrases. 

Reduce, reuse and recycle. We have heard this mantra many times.  And the message is clear, continue consuming, and you can consume relatively guilt free, just recycle that old shampoo bottle and it will ultimately become part of someone’s tennis shoe or maybe new kid’s toy. An amazing feat, and what we know now, an amazing lie. 

Bankruptcy is a vast area of law with many nuisances and interesting facts.

A Chapter 13 plan must meet the requirements of section 1325(a) to be confirmed. 11 U.S.C. § 1329(b)(1). Plan compliance is discussed in section 1325(a)(6). That section states that "the court shall confirm a plan if the debtor will be able to make all payments under the plan and to comply with the plan." 11 U.S.C. § 1325(a)(6).

Addiction is a disease and one that should not be treated lightly. At LifeBack Law, we have seen debt from all sorts of additions. Whether your addiction is gambling, drugs or alcohol, shopping, etc., we do not judge you we help you get your life back. 

Student loans continue to be an issue for many Americans. The pending litigation surrounding the loan forgiveness of the Biden Administration is being watched carefully for those that may be eligible for loan forgiveness. 

     If you are contemplating filing Chapter 7/13 Bankruptcy your bankruptcy attorney will need you to gather some documents. These documents are necessary for you to gather to make the bankruptcy filing process smoother. 

Secured creditors are those creditors with security interest in your collateral. Commonly this is houses, vehicles, boats, cabins or land. The creditor will take a security interest in the property, so if payments are not made they can get the value of their loan back from a repossession or foreclosure. 

     As a bankruptcy attorney, this is the most common question we get from concerned clients prior to filing bankruptcy. What will my credit look like after filing Chapter 7 Bankruptcy in Minneapolis, MN? The question is legitimate. Who would not be concerned about the impact of Chapter 7 Bankruptcy on your credit?

A Chapter 13 bankruptcy is a three-five year repayment plan, whereby the debtor pays in as much as they can afford to their creditors each month. At the end of the plan, the debtor will receive a bankruptcy discharge of their remaining debts. Therefore, in a Chapter 13 bankruptcy, typically a debtor does not pay their debts back completely in full. Absent certain exceptions, a debtor will receive a “wipe out” of most of their unsecured debts. Although a Chapter 13 bankruptcy provides a great opportunity for many Minnesotans who are struggling to pay their debts to achieve financial relief, not all Chapter 13 bankruptcy plans are successful. The most common reason for an unsuccessful Chapter 13 bankruptcy is the failure to make consistent monthly payments. Debtors often encounter unforeseen and difficult circumstances that arise after their case is filed. For example, the debtor may experience significant loss in income or a reduction in household income due to a loss of a job or unforeseen expenses. In many of these cases, the bankruptcy court may allow the debtor to file a modified plan based on these changed circumstances, as long as the modified plan still provides the minimum amount that needs to be paid to creditors. 

Although a bankruptcy discharge will cover a lot of an average consumers’ debt, there are some debts that are not subject to discharge.