When a person files a chapter 7 or chapter 13 bankruptcy case, they are asking the bankruptcy court for relief from their debts.  In a chapter 7 bankruptcy case, a person is completely relieved from most of types of debts by receiving a legal “discharge” of their debt, typically within 3 to 4 months after their case is filed, without the need for making any payments to their creditors. In most chapter 7 cases, the “debtor” (what you call a person who files for bankruptcy) is able to keep most, if not all, of their property in exchange for receiving their discharge. In a chapter 13 case, the debtor does not have to give up any property, but must make regular payments, each month, towards their debts, in a three to five year repayment plan, after which they receive a discharge of most, if not all, of their remaining debts. 

When you file bankruptcy you are listing under penalty of perjury you have included all of your creditors in the case. Unfortunately, this means you cannot pick and choose who you file on. 

A Chapter 13 bankruptcy allows a debtor to cure mortgage arrears in a three-five year repayment plan. It is a structured and organized plan in which the debtor typically makes monthly payments to the bankruptcy trustee to pay back a portion of their unsecured debt, and the amount that is not paid off at the end of the plan is simply wiped out, tax free. If a debtor pays mortgage arrears in their Chapter 13 repayment plan, the debtor may also benefit from working with their mortgage company to modify their mortgage.

Lack of disclosure in a bankruptcy filing can negatively impact a debtor. Clients will often question why they need to disclose certain information or if it would be better to “hide” certain assets from the court.  

Congratulations! Your bankruptcy discharge has gone through. The discharge in your bankruptcy is the order that tells your creditors you are no longer liable on the dischargeable debts.

The U.S. Supreme Court held that inherited IRAs do not qualify for the section 522(b)(3)(C)  exemption.  

That opinion makes clear that a beneficiary faces a choice between (1) "rolling over" the IRA, thus making the IRA subject to the tax and bankruptcy rules for traditional and Roth IRAs, or (2) keeping the IRA as an inherited IRA subject to different tax and bankruptcy rules for inherited IRAs.

A general rule of thumb prior to filing bankruptcy is try not to sell, transfer, or get rid of your property unless you have discussed it with your bankruptcy attorney first. The reason is, transfers, sales and even trade-ins prior to filing are heavily scrutinized by the case Trustee. 

The primary purpose of filing bankruptcy is to award a fresh start to an honest but unfortunate debtor. Occasionally, a debtor may request the dismissal of their chapter 7 case if the debtor would be worse off if he stayed in the chapter 7 case than if the case were to be dismissed. However, the case cannot simply be dismissed because the debtor is unhappy with the outcome of the chapter 7 case, the debtor needs to have acted in good faith. 

When a debtor files a Chapter 13 bankruptcy, they are provided significant financial relief from their creditors. In a Chapter 13 bankruptcy, debtors make affordable, monthly payments towards their debts in a three to five year repayment plan. After their Chapter 13 plan is completed, debtors receive a bankruptcy discharge that wipes out their remaining debts. Immediately upon the filing of a Chapter 13 bankruptcy, debtors are protected from their creditors by the automatic stay – this prevents most creditors from taking any legal action in collecting from the debtor for unpaid debts. The automatic stay prevents creditors from calling debtors, sending bills, filing a lawsuit against them, and it also prevents creditors from enforcing court judgments against debtors (i.e. by garnishing their wages or levying their bank accounts).

Starting on April 1, 2023, new median income figures will be used to determine whether a debtor qualifies for a Chapter 7 bankruptcy. Median household income has recently increased due to several factors, including an increase in wages. A debtor filing a Chapter 7 bankruptcy must pass the means test, in order to qualify for a Chapter 7 bankruptcy. The means test looks at a debtor’s income from the previous six months prior to the time of their bankruptcy filing, and the debtor’s income must be under the state’s median household income in order to qualify for a Chapter 7 bankruptcy.

How do you start the process of choosing the best Minneapolis bankruptcy law firm? This is an excellent question. Whenever I have someone ask me if I happen to know a good bankruptcy lawyer in Denver, Colorado, I say no but I can help you choose an awesome lawyer. 

When you initially file a personal bankruptcy you are filed under a chapter 13 or chapter 7. But what happens if your circumstances change so much you cannot stay in your current chapter filed? Your attorney may mention a conversion. A conversion is converting your case from one chapter to another. Most commonly conversions are from 13 to 7, but you may need to convert 7 to 13. 

Generally, Chapter 7 debtors are entitled to a discharge of their pre-petition debts. However, some debts are excepted from discharge. 11 U.S.C. 523(a). Of those debts that are excepted, some are excepted from discharge as a matter of law, e.g., 11 U.S.C. § 523(a)(5) (domestic support obligations) and Section 523(a)(7) ) (fine, penalty, or forfeiture payable to a governmental unit). 

If you are in a chapter 13 bankruptcy case and you have a pending Motion (either Motion for Relief or Motion to Dismiss), you may have heard the terms cure order. Keep reading to find out more about the cure order and the impact it has on your case. 

This blog will focus on common motions and possible resolutions during your Chapter 13 case.

Motions are common during Chapter 13 cases. A motion is a party requesting a specific order during the Chapter 13.