We live in the historical period known as the information age. Everyone has information right at their fingertip, however, are they receiving the correct information? How do we know the information we are reading online is the best, and most current information. Consider the source of the information: is the information coming from someone’s blog or an academic paper, and cross-reference the sources. It can be an arduous task to complete a thorough search on a topic, but likely necessary if you want the entire truth. 

Though we have been tracing the history of bankruptcy policy in America, this week, we will take a break from that discussion. We turn instead to Greek philosophers and discuss some of their ideas about debts and society so we can gain perspective on our modern situation.

    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. It may also be that due to the nature of the proof of claims that filed by your creditors, confirmation of your Chapter 13 plan is not feasible and converting to a Chapter 7 would resolve issues with creditors, make more sense, and be more beneficial for you. While only a notice of conversion needs to be filed if a Chapter 13 is voluntarily converted to a Chapter 7 bankruptcy, it would be wise to consult with an experienced attorney prior to deciding whether a conversion to a Chapter 7 would be best for your financial situation, needs, and circumstances. 

At the moment you file for bankruptcy, “automatic stay” kicks in, pursuant to Section 362 of the U.S. Bankruptcy Code. It is an order that gets sent to your creditors immediately, after you file for bankruptcy. The automatic stay affords protections throughout your bankruptcy, regardless of whether you file a Chapter 7 or a Chapter 13 bankruptcy. It is a provision in bankruptcy law that acts as a protective shield and protects you from creditors, while at the same time, providing you time to reorganize your debts, finances, and financial affairs.

Each year, thousands of Minnesotans reach out to LifeBack Law Firm to ask for help with debt. And we know exactly how you feel reading this blog right now. Our former clients felt the same way. But do you know what they found? They found LifeBack Law Firm is Minnesota’s most kind and helpful bankruptcy law firm in Minnesota. When you are suffering with debt and run out of options, that is when you need to feel kindness the most. At LifeBack Law, we excel in helping Minnesotans file bankruptcy while emphasizing kindness and helpfulness. 

If you are in a current chapter 13 or thinking of filing a chapter 13, you may be wondering what happens if your income changes during your pending bankruptcy. This is an excellent question, as a chapter 13 bankruptcy commits your disposable income during the 3-5 years of the case.  

It is very common that two people will co-sign on each other’s debt. Whether this is a spouse, parent, child, or significant other. If one liable party on the loan decides to file bankruptcy, you may be wondering what will happen to the other party/the co-signor? 

Many people who file for bankruptcy own recreational vehicles (RVs) like motorcycles, boats, snowmobiles, ATVs, and motorhomes. The ability to keep these recreational vehicles in bankruptcy is governed by the bankruptcy code, which outlines the legal framework for such cases. While bankruptcy offers a fresh financial start, it’s natural to worry about losing these valuable assets. The good news is that, under certain circumstances, it’s possible to keep your recreational vehicles even after filing for bankruptcy. However, the outcome depends on various factors, including the type of bankruptcy you file, the value and equity in your RVs, and your overall financial situation.

   I am excited to report that LifeBack Law Firm has moved our Roseville, MN location to St. Paul, MN! We are super thrilled to be at our new St. Paul location at 370 Selby Avenue, Suite 224, St. Paul, MN 55102. We are right where you live in the Capitol of Minnesota on Cathedral hill. Our St. Paul location is on the bus line and is surrounded by fantastic restaurants and coffee shops. 

If you are filing bankruptcy you may be wondering, can my bankruptcy discharge possibly not go through? This is a common worry and I can see why. If you do all the work of filing a bankruptcy, you don’t want to last second not receive a discharge of your debts. I am here to tell you not to worry- read on to find out why. 

Filing bankruptcy is a court action. The bankruptcy filer will file a petition, and receive a case number, meet with a trustee, and there is a possibility of additional court actions, motions, and ultimately the case will be discharged and closed. But, as a bankruptcy filer you have some responsibilities to the court. Bankruptcy exists for the protection of the debtor and to provide the debtor with relief from their creditors, but there is also an onus on the debtor when filing. 

Just because you file bankruptcy does not mean your spouse has to file with you. If your spouse does not file, you may be wondering, will they be impacted by my filing? 

When a bankruptcy is filed the automatic stay is immediate, but not unlimited.  The automatic stay typically lasts until the debtors discharge but through the filing of a motion for relief from the stay, a creditor can request permission from the court to continue collection efforts against a debtor. For example, a mortgage company can ask for relief to foreclose on a homestead for non-payment of the mortgage or a vehicle lender can request relief to repossess a vehicle for failure to keep the vehicle properly insured. The creditor must show the court that a reason or a cause exists to lift the automatic stay.

For most chapter 7 and chapter 13 cases, the words adversary proceeding will not come up. Most clients will complete their bankruptcy without having any. If you have an adversary proceeding or there is a chance that you may, you may be wondering what it is? An adversary proceeding is litigation within your bankruptcy case.

Bankruptcy relief affords debtors with the benefit of the discharge of debts. But the cost of this discharge is: debtor must be honest and truthful in their disclosures to the court. If a debtor does not provide an honest and accurate accounting of assets to the court and creditors they will jeopardize the discharge of their debts.  

Recently, I spoke to a gentleman who was desperate to file bankruptcy and thought he could do it on his own. He quickly realized bankruptcy is too complicated of a legal process to do it himself. So then, he reached out to an out-of-state company to help him file bankruptcy “on the cheap”. The company was quick to gain access to his checking account and deduct money from his account for their fees ($500 by the time he reached out to LifeBack Law Firm). Soon after hiring this out of state company he began to get a sinking feeling in his stomach that this company was not what it purported to be.