Filing for bankruptcy often raises questions about the fate of your possessions, especially financed furniture. If you’re wondering, “Can I keep the furniture I am financing after I file bankruptcy in St. Paul, Minnesota?” – the answer is often yes, but it depends on several factors. This comprehensive guide will help you understand your rights and options regarding financed furniture during bankruptcy.

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Unfortunately, I have witnessed the carnage that can occur when someone thinks it is a good idea to file Chapter 7 Bankruptcy on your own. I feel bad for people who do this. I feel worse for people when I see the looks on their face when they realize what deep trouble they are in because they thought they could save a few dollars bypassing a good bankruptcy law firm, and in the end, that desire costs them far more than a good bankruptcy lawyer. Oh sure, there are software programs out there and organizations that crow about filing bankruptcy yourself. Some of these organizations are even non-profit and I think mean well.

     You got the headline right. If you live in Minneapolis, MN and you are thinking about debt consolidation vs bankruptcy, forget debt consolidation right now. I feel bad for people suffering with debt. I know you want to pay the debt, we all do. But, debt consolidation is a waste of time, energy, and money. First, who do you trust to help you with this? Many of the “debt consolidation” companies are owned by the credit card companies so who do you think they are there to help?

A Chapter 13 bankruptcy provides a debtor with a fresh start by allowing the debtor to make monthly payments to the bankruptcy trustee in a 3-5 year repayment plan to pay back a small portion of their debts, after which they will receive a discharge of the remaining debt that remains unpaid. A Chapter 13 bankruptcy allows a homeowner to cure mortgage arrears (past due mortgage payments). However, debtors must pay future monthly mortgage payments on time during a Chapter 13 bankruptcy, in order to avoid a foreclosure of their house.

     How do you file a Chapter 7 Bankruptcy in Minneapolis, MN by relaxing? Easy, you reach out to LifeBack Law Firm! At LifeBack Law Firm, we do most of the work while you relax. At LifeBack Law Firm, we pamper our clients who have suffered enough as it is. Here is the thing, at LifeBack, we have no bankruptcy worksheets to fill out. We pull asset and credit reports for you and gather much of the information that is needed to file Chapter 7 Bankruptcy in Minneapolis. 

Filing a chapter 13 bankruptcy is a great way for many Minnesotans to deal with their creditors and get rid of debt.  In a chapter 13 bankruptcy, the debtor (the legal term for a person who files a bankruptcy case) makes monthly payments to their creditors in a three to five year repayment plan, after which they receive a discharge of their remaining debt. 

When a person files a chapter 7 bankruptcy case in Minnesota, they can choose what to do with their secured debts such as home mortgages and car loans.

Boating could very well be considered the quintessential Minnesota pastime! With 10,000 lakes (well, 11,842 lakes to be exact) it’s no wonder Minnesotans love to go boating. For many Minnesotans, their boat is one of their most valuable pieces of property that they own. So, it is no surprise that many Minnesotans who are considering filing for bankruptcy wonder if they will be able to keep their boat after their case is filed.

 At LifeBack Law we strive to make the process of filing a bankruptcy as stress free as possible. This is done in a few steps. 

A Chapter 13 bankruptcy allows a debtor to cure mortgage arrears, keep all nonexempt property without paying the trustee additional cash, and pay priority tax debt in their Chapter 13 plan. Priority tax debt is tax debt that was incurred by a debtor in the previous 3 years prior to the filing of their Chapter 13 bankruptcy. Priority tax debt would otherwise be nondischargeable in a Chapter 7 bankruptcy. A Chapter 13 bankruptcy allows debtors in a challenging financial situation to repay a portion of all of their debts in a structured and organized way, by making affordable monthly payments to the Chapter 13 trustee’s office.

After a Chapter 13 bankruptcy is filed, it must be confirmed at the Chapter 13 confirmation hearing. A Chapter 13 confirmation hearing is a hearing in which the bankruptcy judge formally approves the debtor’s Chapter 13 plan, and determines whether the plan meets the Chapter 13 requirements. Debtors do not need to attend this hearing. The confirmation of a Chapter 13 plan is important, as after the Chapter 13 plan is confirmed, debtors may start to rebuild their credit and it will be easier for debtors to obtain new financing, such as for a new vehicle. In order for a debtor’s Chapter 13 plan to be formally confirmed by the court, it is crucial that debtors in a Chapter 13 bankruptcy, file all required tax returns for tax periods ending within 4 years of their Chapter 13 filing. This is a requirement dictated by the Bankruptcy Code. Additionally, the Bankruptcy Code also requires that debtors must continue to pay all current taxes as they become due and continue to file all required tax returns timely throughout their Chapter 13 bankruptcy. A debtor’s failure to file tax returns or pay current taxes during a Chapter 13 bankruptcy may result in their case being dismissed, or may result in their Chapter 13 plan not being formally confirmed by the court. The Chapter 13 trustee will review the debtor’s Chapter 13 plan, and will look for changes in income. The trustee will also review the debtor’s tax returns each year, to determine if there is a change in income that is significant enough to require a modification in the debtor’s monthly Chapter 13 payment plan. The trustee will also review the debtor’s tax returns to determine if the debtor will receive any tax refunds that must be turned over to the trustee. In Minnesota, the Chapter 13 trustee’s office allows joint tax filers to keep $2,000 of their tax refund and allows single tax filers to keep $1,200 of their tax refunds each year in the Chapter 13 bankruptcy. The Chapter 13 trustee also allows the debtor to keep any portion of their state and federal refund that derives from the federal earned income credit and Minnesota working family credit, in addition to these amounts. Any portion of the debtor’s tax refunds that the trustee does not allow the debtor to keep, will generally have to be turned over to the trustee. These funds would be used to pay the debtor’s creditors.

     Over the years, I have seen some brave Minnesotans think it is a good idea to file bankruptcy themselves. Here is what they quickly discovered. For those I spoke with, they regretted filing bankruptcy themselves. Usually that regret surfaced after meeting with a Chapter 7 trustee and after listening to the trustee’s commentary and realized, they were in some trouble.

When you take the leap to speak with a bankruptcy attorney, a big weight should be lifted off your shoulders, as you will be given your options for taking control of your finances again.