A Chapter 7 bankruptcy provides debtors with a new and fresh financial start. It is a remedy that allows debtors to wipe out unsecured debt in approximately 3-4 months. Unsecured debt includes credit card debt, medical debt, and personal loans. A debtor filing a Chapter 7 bankruptcy must list and disclose all known debts in their bankruptcy petition and schedules.

In a chapter 13 bankruptcy case, a person makes payments towards their debts in a three to five year repayment plan. In most cases, the debtor pays only a fraction of their total debt. After successfully completing their repayment plan at the end of three to five years, the debtor receives a discharge which relieves them from any further responsibility to pay their remaining debts, with limited exceptions.  Chapter 13 bankruptcy often affords a tremendous amount of financial relief for those who are struggling to pay their debts and make ends meet.  

There are many reasons you may want or need to file a chapter 13 bankruptcy. The main reasons clients consider filing a chapter 13 are income, transfers, tax debt, arrears, and assets. 

Filing for bankruptcy brings a lot of relief to thousands of Minnesotans each year. When a person files a personal chapter 7 bankruptcy case, they are afforded a great deal of protection from their creditors and relief from their debts, most of which are completely wiped out forever when they receive their discharge. Up until when a person files a bankruptcy case, they often continue to attempt to pay their creditors as much as they can. Often, it is only when a person realizes that it is futile to continue to pay their debts, and simultaneously afford to pay their other necessary bills, that a person decides to file bankruptcy and stops paying their creditors.  

No matter how much you love your home, when you file bankruptcy a question that likely will pop into the back of your mind is, if I file will I ever be able to sell my home? The short answer is yes. Although you have filed a bankruptcy, you are still able to sell your home down the road and keep all of the exempt net proceeds from the sale. 

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s return to the not-often discussed intersection of philosophy and finance.

Getting behind on your mortgage is an extremely stressful situation. If you are wondering what your options are, you have come to the right place. Please keep in mind the options in this blog are general ideas for mortgage arrears and are not specific advice. You should speak to a licensed attorney for advice on your specific situation. 

In a chapter 13 bankruptcy case, a person makes payments towards their debts in a three to five year repayment plan. Upon successful completion of the payment plan, that person (known as the “debtor”) receives a discharge of most of their remaining debts with a few exceptions. Although Minnesotans who earn more than the median income for their household size in the State of Minnesota must file a chapter 13 bankruptcy case, rather than a chapter 7 case, any individual with regular income can file a chapter 13 case. In addition to providing the benefit of allowing a person to receive a discharge of their debts, typically after only having to pay a small portion of total debt, a chapter 13 also is a good opportunity to help a person afford their vehicle payments. 

Bankruptcy is technically public information. Anyone can see your case, but there are steps that need to be taken first. Your bankruptcy case should not be published in your local paper though.  

     Recently, I began writing about a topic that is of interest to me and impacts thousands of Minnesotans suffering with debt. When you run a Google search for “bankruptcy attorney near me in Minneapolis, MN” you assume the results Google pulls up are actually close to you. Unfortunately, that is not always true. 

Medical debt is something that will impact almost every American during their lifetime. It doesn’t matter if you have no insurance or your insurance doesn’t cover the full cost, medical debt can pile up fast. For this reason medical debt is fairly common in bankruptcy cases.  

The housing market is always fluctuating between highs and lows. This makes it difficult for the average property owner to really know what their property is worth. If you are planning to file bankruptcy, you need to know your property’s value.  

The answer is yes! When I am asked this question, I often respond with another question: Can you get a home loan or vehicle loan now without a co-signor or paying high interest? You see, here is the thing, future lenders don’t care about you paying your current debts. What future lenders really care about is are you going to pay them? This is the game. This is why you see dealerships and other lenders advertise things like, “filed bankruptcy?” “No problems”.

 As a bankruptcy attorney, I hear all of the time I need to file a medical bankruptcy. Typically this means someone has an abundance of medical debt they want to file a bankruptcy for. Whenever I hear someone mention medical bankruptcy, I clarify, there is no such thing as a medical bankruptcy.

A chapter 13 bankruptcy is an awesome tool that allows people to get rid of most types of debt by allowing a person to pay as much as they can afford in a 3 to 5 year payment plan, after which they receive a discharge of their remaining debts. In addition to wiping out debt with the discharge, a chapter 13 bankruptcy is also a great tool that can enable people to get caught up on past-due car and home payments.

All year long there are reasons to spend money that may put you over your monthly budget. Whether this is from medical bills, home repairs, birthdays, holidays, or various other financial obligations, they put a strain on your finances.