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.  

     What is a reaffirmation agreement in bankruptcy? First, it is important to note that a reaffirmation agreement is a subject discussed in Chapter 7 Bankruptcy, not Chapter 13 Bankruptcy. There is no such thing as a reaffirmation agreement in Chapter 13 Bankruptcy. In Chapter 13 Bankruptcy, collateral on a loan is either surrendered, paid on the plan, or paid outside the plan, with language on the plan that binds both debtor and creditor. 

Bankruptcy provides a relief to debtors who are facing unsurmountable debt and is an avenue towards better financial management. While the remedy bankruptcy affords is a wipe out of old debt that was incurred prior to filing for bankruptcy, it is important that debtors are aware and cautious about how they are spending their money in the 90 days prior to filing for bankruptcy

     The prospect of filing Chapter 7 Bankruptcy can be daunting. For those of us with high anxiety, it can push you to the far edge of your comfort zone, and beyond. Even for those with lower anxiety, the thought of filing Chapter 7 Bankruptcy can be overwhelming. Unfortunately, there are ways to make a bad situation worse. These are two things you should watch out for when filing Chapter 7 Bankruptcy in Minneapolis, MN. 

     You live in Minneapolis, MN and you are contemplating hiring LifeBack Law Firm to file Chapter 7 Bankruptcy on your behalf. You know you are going to hire LifeBack Law Firm as your bankruptcy law firm because LifeBack Law Firm is Minnesota’s most kind and helpful bankruptcy law firm. But before you file, you want to know, what do Chapter 7 Bankruptcy trustee’s look for in a Chapter 7 Bankruptcy case. The first thing you need to understand is Chapter 7 trustee’s get paid a small fee to administer most Chapter 7 Bankruptcy cases. Most would not be a trustee if they were paid this small fee only. 

A debtor may choose to file a Chapter 7 bankruptcy in order to wipe out their unsecured debt in three to four months. This provides the debtor with a fresh, new start. In a debtor’s Chapter 7 bankruptcy, the debtor’s assigned bankruptcy trustee may “avoid” or “undo” particular transfers of money or property the debtor made prior to the filing of their case. The bankruptcy trustee can avoid a transfer by demanding the return of the transferred property or money from the person or entity to whom the transfer was made.

Filing for chapter 7 bankruptcy is a great way for individuals struggling with debt to find financial relief. When filing bankruptcy, anyone who earns less than the median Minnesota State income, based on their household size, can file a chapter 7 bankruptcy case. When they do so, the court discharges their personal liability on all of their debts, with a few exceptions (i.e. past due child support, most taxes, criminal fines, etc.)

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.