When filing bankruptcy, it is common to wonder which creditors will be included in the filing.  Related to this, it is also very common to wonder how various loans will be treated or resolved.  In certain circumstances there may be a specific creditor that you do not wish to discharge a debt with.  Similarly, there may be a specific loan, such as a mortgage, car loan or retirement account loan that you do not wish to discharge either.  One of the many benefits of the bankruptcy process is that it does not require you to treat all debts in exactly the same way; herein we shall examine a few of the ways in which this principle is observed.  

When you file bankruptcy, you will list all of your assets- this includes assets you currently have or are entitled to in the future (think inheritances or causes of action). 

When filing a Chapter 13 Bankruptcy, many often wonder how payments are calculated and to what extent their financial means will be considered in the process of determining that payment.  Fundamentally, payments are calculated according to two principles: the best interests test, (also referred to as the BIT) and the best efforts test.    

Something that many people wonder when they file bankruptcy is how the filing will effect a car loan that exists at the time that the bankruptcy is filed.  It is a natural question, and one that is highly important in the context of ensuring that you are able to keep your vehicle after the bankruptcy is filed.  Ultimately, the treatment of the car loan will depend on the chapter of bankruptcy that you file, but in most circumstances you will be able to retain the vehicle and continue to make payments on the related loan.  

If you are in a chapter 13 bankruptcy or preparing to file one, you may have heard the term “step up” used by your attorney or the trustee of your case. A step up is when your payments are stepping up in amount, for one reason or another. These are typically set dates where the payment will go up, due to some triggering event. 

Any time that someone is contemplating on whether they will need to hire an attorney to assist with a legal matter, one of the first things that they will consider is how to determine who to work with.  This is as true in bankruptcy as it is in any other area of the law; ultimately, the attorney and the law firm that you work with are going to play a critically important role in the way that your case is handled.  To that end, there are a few things that you may wish to consider when deciding who to hire.

Another common question we receive here at LifeBack Law is “how will my income be calculated in bankruptcy.” It’s a fantastic question. Income varies. Sometimes we get overtime and bonuses, other times we barely get the hours we’re promised. How can you provide an average income, if it changes so often? This blog explores how income is calculated in both a Chapter 7 and a Chapter 13 and why it matters.

When you file bankruptcy, you will list all of your assets and debts, including assets that you are wanting to keep, like vehicles and mortgages. Although you list the assets and the creditors, you can keep paying on the debts, if you want to keep the property they are secured to.  

A Chapter 13 bankruptcy can be a powerful tool to stop a sheriff's sale in Minnesota. By filing for Chapter 13, you may be able to halt foreclosure proceedings and develop a repayment plan to catch up on missed mortgage payments.

Yes, you can typically keep your tax refund in a Chapter 13 bankruptcy. However, there are specific rules and exceptions. To ensure you understand your rights and options, it's crucial to consult with a Minnesota bankruptcy attorney who specializes in Chapter 13 cases. They can provide personalized guidance based on your unique circumstances.

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In most cases, when you file for Chapter 7 bankruptcy in Minnesota, your tax refund becomes part of your bankruptcy estate, meaning the bankruptcy trustee may claim it to pay off creditors. However, you may be able to protect part or all of your tax refund by using Minnesota's state or federal bankruptcy exemptions.

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In most cases, personal injury settlements received before filing for Chapter 7 bankruptcy are exempt from being included in the bankruptcy estate. This means you can typically keep the money. However, if the settlement was received after filing, it may be subject to creditor claims. It's crucial to consult with a bankruptcy attorney in Minnesota to understand how your specific situation may be affected.

Wage garnishment is a legal process that allows creditors to collect on debts directly from your pay before the funds are paid to you. In Minnesota, this process is governed by state laws, ensuring that creditors cannot take more than what is legally permitted from your earnings. Wage garnishment can occur for various reasons, including unpaid debts like child support, taxes, or court judgments.

A Chapter 13 trustee in Minnesota identifies and investigates preferential payments made by the debtor within a specific period before filing bankruptcy. If a preference is found, the trustee may seek to recover the payment for the benefit of creditors. This process aims to ensure fairness and equitable distribution of assets among all creditors.

Filing a Chapter 13 bankruptcy in Minnesota typically takes around 3-4 months. This timeframe can vary depending on factors like the complexity of your case and how quickly you provide the necessary documentation.

A common question that many people ask when filing bankruptcy is how the bankruptcy will affect any co-signers that they may have at the time of filing.  Depending on the circumstances, the impact will differ.  If, for example, two spouses are both filing bankruptcy together and they are co-signed on a number of shared debts, then the fact that they are co-signers with one another will not have a significant impact on the bankruptcy.  Alternatively, if you are filing bankruptcy and have a co-signer who is not also filing, the impact on the co-signer will be different than it would for two spouses filing jointly.