Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits in the 21st century. Thus far, we have been picking and choosing public benefit programs to discuss based on whether they provide a true monetary benefit, but there are so many public benefit programs that offer funds or necessities. Now, we will discuss some public housing benefits.

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits in the 20th-century public, other than traditional social security. 

At LifeBack Law we file both chapter 7 and chapter 13 bankruptcy cases. A chapter 7 is referred to as a liquidation bankruptcy, where as a chapter 13 bankruptcy is a restructuring of your debt.

The timing of your bankruptcy discharge will depend on which chapter you file. With a chapter 7 bankruptcy you will receive your discharge roughly 90 days after filing. For a chapter 13 your discharge date will be three to five years after your case was filed. 

    Once a creditor files a lawsuit and gets the court to enter a judgment against a person for they can then take action against that person to collect on the judgment. One of the ways a creditor can collect on their judgment is by garnishing the person’s wages. In Minnesota, a creditor may garnish up to 25% of a person’s net pay (the money they actually take home after deductions, like taxes, are taken out of their paycheck). This can cause a significant hardship to that person’s financial circumstances, especially if a person is already struggling to make ends meet and is living paycheck to paycheck. 

In the current way our society is structured, the rich are exemplified as the model American, no matter how they obtained their wealth: inheritance, lying, cheating, evading taxes and the poor are vilified regardless of how they got there: mental health issues, medical limitations, inadequate and unfair wages, and the poverty trap. 

To be an eligible debtor in a Chapter 7 bankruptcy filing in Minneapolis, Minnesota, a debtor must complete a credit counseling course within 180 days prior to the bankruptcy filing. The event that prompts the 180-day period is the filing of a petition for relief, not the completion of the credit counseling.

Although, there are many great reasons to file bankruptcy, below are five of the biggest reasons a lot of clients decide to file. 

The biggest reason is a chapter 7 or chapter 13 bankruptcy is going to discharge your unsecured debts (there are exceptions). Although this list is not exclusive, exceptions include, fines or penalties, student loans, taxes, and domestic support obligations. 

    There are various reasons a Chapter 13 bankruptcy could be dismissed or converted to a Chapter 7 bankruptcy. A Chapter 13 bankruptcy may be voluntarily converted to a Chapter 7 bankruptcy at any time. A Chapter 13 bankruptcy may be voluntarily converted to a Chapter 7 for a number of reasons, including a change in your financial circumstances that may allow a Chapter 7 bankruptcy to be more suitable.

    Preferences are a type of transfer made by a debtor to a creditor before a bankruptcy petition is filed that the trustee may avoid and force the creditor to pay back to the estate. 11 U.S.C. § 547(b). The bankruptcy system was created to promote fairness to creditors while at the same time provide debtors a fresh and new financial start. Therefore, the payment of creditors must be equitable and no one creditor can be favored over another. This equitable principle applies, even before the debtor has filed for bankruptcy.

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits, specifically social security and other 20^th century public benefits. 

    LifeBack Law Firm is Minnesota’s nicest, largest, and most helpful bankruptcy law firm. At LifeBack Law Firm, clients are not only treated as clients, but as friends or family members. We recently opened a new office location in the heart of the Cathedral Hill neighborhood in St. Paul, Minnesota. This new office address is located at: 370 Selby Ave Suite 224, St. Paul, MN 55102. Our modern, quaint, and historical St. Paul office is located just outside of downtown St. Paul in the charming Cathedral Hill neighborhood. The Cathedral Hill neighborhood of St. Paul, Minnesota borders Summit Avenue to the south, Marshall Avenue to the north,

    It’s easy to fall behind on car or mortgage payments, especially with the challenging economic times we now find ourselves in.  Falling behind on these payments can lead to one’s car being repossessed or a foreclosure upon one’s home. Creditors are often not easy to deal with, and frequently, many people find themselves in a position where they are unable to negotiate with the creditor to avoid losing their home or car. However, these people are not helpless. There is a tool available to help them and it’s called bankruptcy. A chapter 13 bankruptcy, in particular, is designed to allow people who fall behind on car or home payments to get caught back up with a court-approved repayment plan.

    After a debtor has completed the bankruptcy schedules and a Chapter 7 bankruptcy has been filed with the court, a debtor must attend a 341 hearing, also known as a meeting of creditors. Several days after the bankruptcy case is filed, a debtor will receive a notice of the 341 hearing. The notice will indicate the date, time and method by which the meeting will occur. Currently, in the state of Minnesota, 341 hearings are conducted virtually, either by telephone or by Zoom. A 341 hearing is also called “meeting of creditors,” however, creditors rarely attend. A debtor’s assigned bankruptcy trustee will conduct the 341 hearing.

     Thousands of Minneapolis, MN residents contemplate filing Chapter 7 Bankruptcy each year. The inevitable question that arises is how will filing a Chapter 7 Bankruptcy in Minneapolis, MN affect my credit score? It is a respectable question and one that I would want to know the answer to myself. So many people think if you file Chapter 7 Bankruptcy, your credit score is sort of doomed forever. Not true at all. In fact, in many instances, it is just the opposite. 

If you are looking at filing bankruptcy in Minneapolis, Minnesota, you may be wondering what steps you have to take and what you need to file. Every case is different, therefore the below is a general guideline and idea. 

    Cars depreciate in value quickly. Your car may have been your pride and joy when you first drove it off of the dealership lot. However, after many miles of wear and tear, you may feel differently. It is not uncommon for people to find themselves in a position in which their vehicle is worth much less than what they still owe on their car loan. This is not surprising when you consider the amount of interest the car loan lenders make you pay (and don’t get me started on all those extra fees the dealerships like to throw in).  However, there is a solution to that expensive eyesore taking up space in your driveway. You guessed it! You can file a personal bankruptcy case.