We all have fears. Some of us has have anxiety levels that are quite low and others quite high. Over the years, I have seen both sides. I tend to be on the higher anxiety side. But I have had people come in over the years needing to file bankruptcy and they could not care less they are filing Chapter 7 Bankruptcy. I find that amazing. I mean I am envious of someone who has so little anxiety like that. However, in my career, that is not the norm. Most people are terrified of filing Chapter 7 Bankruptcy.

During a Chapter 7 or a Chapter 13 bankruptcy, judgment liens recorded against a debtor’s property may be removed. This is known as lien avoidance. 11 U.S.C. §522(f)(1) provides that, “notwithstanding any waiver of exemptions, but subject to paragraph (3), the debtor may avoid the fixing of a lien on an interest of the debtor in property to the extent that such lien impairs an exemption to which the debtor would have been entitled under, subsection (b) of this section, if such lien is a judicial lien.” In other words, a judgment lien on a piece of property can be avoided if the lien would result in a loss of some or all of the exempt equity if the property were sold.

    A chapter 7 bankruptcy is a great and powerful tool that allows people to get rid of huge amounts of debts that they can no longer financially afford to pay. Unlike, in a chapter 13, in which a person pays as much as they can towards their debts in a 3 to 5 year repayment before receiving a discharge of their remaining debts, a person in a chapter 7 bankruptcy case is not required to make payments towards their debts, and typically receives a discharge within 3 to 4 months after filing their case. Any person is allowed to file for chapter 7 bankruptcy so long as they qualify based on their income (the person must have an income that is below the State median income for their family size).  

A claim in a bankruptcy case is essentially a creditor’s assertion of the dollar amount that is due and owing from the debtor, as of the date the bankruptcy petition was filed. A claim establishes a creditor’s right to receive future payments from a debtor’s bankruptcy estate, assuming that there are assets and money available for distribution. The distribution of money to creditors is subject to the priority rules laid out under the Bankruptcy Code. The Bankruptcy Code’s definition of a claim is very broad. A claim does not have to be a fixed amount that is due at the time the bankruptcy case was filed – it could merely be an estimated amount or unliquidated. A claim must be “allowed,” before the claim holder or creditor can be entitled to receive any distributions from the bankruptcy estate. 

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk about a more current topic: cryptocurrency. This post will merely skim the surface of current cryptocurrency issues, for what it is worth. 

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency. This post will continue to merely skim the surface of current cryptocurrency issues, for what it is worth. Today, let’s introduce the topic of non-fungible tokens, also known as NFTs.

When filing bankruptcy, debtors may be tempted to transfer assets in an effort to protect the assets from the bankruptcy estate. However, § 548(a)(a)(A) encompasses transfers made by the debtor within two years of filing the bankruptcy, and such transfers would be fraud if transferred "with actual intent to hinder, delay, or defraud any entity to which the debtor was or became, on or after the date that such transfer was made or such obligation incurred, indebted . . . ." 11 U.S.C. § 548(a)(1)(A).  

     We have many people who reach out to LifeBack Law Firm concerned about these type of questions. And they are legitimate fears of course. But what we tell people is there really is two issues to dissect when it comes to this question.

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency. This post will continue to merely skim the surface of current cryptocurrency issues, for what it is worth. Today, let’s discuss a scam that occurs in the industry: pump and dump.

If you are in an active bankruptcy or thinking of filing a bankruptcy case, you may be wondering how you can improve your budget and disposable income. 

Receiving notice of a judgment can be scary and very unfamiliar. If you have been notified of a judgment from one of your unsecured creditors, you may be wondering what your next step should be.

Call LifeBack Law to schedule a free consultation with one of our licensed attorneys. We have offices around Minnesota in St. Paul, St. Cloud, Maple Grove, Eden Prairie, Duluth, Eagan, and Brainerd. Appointments can be done in-person or virtually (phone, Zoom, Skype, or FaceTime) and usually last a half hour to one hour. During the appointment the attorney will get information regarding your situation and then discuss options, including whether a bankruptcy is the right fit for you. 

 I have pity for humans who try to avoid the “b” word because they want to pay their debt. We all want to pay our debt. The issue is this: who comes first, your family or your creditors? Your family has to come first.

The property of the bankruptcy estate cannot be removed from the bankruptcy court’s exclusive jurisdiction except by proceedings in the bankruptcy court. The bankruptcy case filing vests exclusive jurisdiction over the debtor’s property in the bankruptcy court so that it may control the administration of the case.