If you are thinking about filing for bankruptcy, you may be deciding between whether a Chapter 7 or a Chapter 13 would be better for you. While a Chapter 7 bankruptcy is known to give you a quick refresh button by wiping out all of your unsecured debt in 3-4 months, there are advantages to a Chapter 13 bankruptcy too. A Chapter 13 bankruptcy also provides benefits that a Chapter 7 cannot. 

Section 362 provides that a bankruptcy petition "operates as a stay, applicable to all entities" and "generally prohibits attempts to collect prepetition debts against the debtor or the debtor's property or attempts to enforce liens and other interests against property of the bankruptcy estate”

     I think the disease of loneliness is the biggest disease faced by Minnesotans. It is easy to feel alone when you are suffering with a problem like a debt problem. But you are not alone. LifeBack Law Firm has been protecting Minnesotans from their creditors since 1972 and we can protect you too. I know bankruptcy is scary and can make you feel alone and afraid. When you run out of options with your debt, and need to consider bankruptcy, that is when you need kindness the most. Thankfully, LifeBack Law Firm is the most kind and helpful bankruptcy law firm in Minnesota.

When filing for bankruptcy your attorney will ask you to value and disclose all your assets on the bankruptcy petition. The importance of an accurate, complete and honest disclosure of assets cannot be emphasized enough. Disclosures are required as to the nature, value, and disposal of assets. Knowingly and fraudulently undervaluing assets or nondisclosure of assets can equate to the intent necessary for the denial of discharge under 11 U.S.C. Section 727.  The intent requisite to preclude a discharge must be an actual fraudulent intent as distinguished from constructive intent. Actual intent such as to hinder a creditor may be inferred from the debtor's actions, like intentional undervaluing of assets or omitting assets. 

     When Minnesotans are suffering with debt, that is when you need to feel kindness the most. One Minnesota bankruptcy law firm excels at filing bankruptcy for Minnesotans while delivering the most kind and helpful bankruptcy service in the industry. The Minnesota bankruptcy law firm that delivers the most kind and helpful service by far and away is LifeBack Law Firm.  Just this morning we received one of the most heartfelt 5 star Google reviews I have ever read and it gives a shout out to numerous LifeBack Law team members involved in her case. I am always amazed at the willingness of people to file bankruptcy and then post their name publicly with a review. To me, it tells me these people were extremely moved by the kindness they felt while working with the LifeBack Law team.

In the last two posts we discussed the Bankruptcy Act of 1800 and the Bankruptcy Act of 1841 respectively so we, perhaps unsurprisingly, now turn to the next policy: the Bankruptcy Act of 1867. It is worth noting that this policy and the previous two were all responses to poor economic conditions and were unintentionally temporary. In the wake of the 1857 financial crisis and the Civil War, debtors and creditors alike were in need of options for remedy. This new incarnation signaled a change in reasoning in bankruptcy policy which was slightly more beneficial to debtors. 

When you file for bankruptcy you have to list all of your creditors, including those you intend to keep. For example, even though you may want to keep your home and keep paying your mortgage, the mortgage company will have to be listed in the case and receive notice of the filing. If you are thinking about filing bankruptcy or already have, you may be wondering how your mortgage company receiving notice of your filing will impact your mortgage.

There have been some headline making US Supreme Court opinions recently. Some decisions you may agree with, and some you may disagree with, but the real question is when and why should the public be concerned with these decisions. 

     If you are like a lot of people who live in or around Eagan, MN, you may find yourself needing to file bankruptcy. As of the date I am writing this blog, June 18, 2022, the economy is starting to crack, inflation is skyrocketing, business is slowing, and lay-offs are beginning. Many good people will find themselves needing to file bankruptcy. The humility of being alive. However, do a little research before you choose a bankruptcy law firm because you don’t want to end up with a lawyer who is stuck in a closet in virtual space with no support staff.

Chapter 13 bankruptcies are repayment plans based on the debtor’s ability to pay. When meeting with your attorney you will discuss your monthly budget: income and expenses, and determine a proposed monthly payment. Once the petition is filed, a creditor’s meeting and confirmation hearing will be scheduled.  Prior to the confirmation hearing, the creditors can objection to the confirmation of the plan.

     Minnesotans who reside in and around Minneapolis looking for a Chapter 7 Bankruptcy law firm near them want a team of professionals who are kind and helpful. How is it we know this to be true? They tell us this over and over. You see, if you are suffering with a debt problem, it was likely triggered by some awful event in your life: business failure, income drop, divorce or relationship break up, medical problems, or just bad financial decisions (we have all made them). But, the last thing you want is to deal with a lawyer or staff that are self-centered, mean, or act like you have to jump hurdles to get relief from your debts.

Will I be able to keep my house when I file for bankruptcy? It’s a common concern that you may wonder about as you are making preparations to file for bankruptcy. It could be that you are facing a daunting foreclosure and want to file for bankruptcy in order to save your house. Or, you could have a perfect record with your mortgage company because you have always made your mortgage payments on time, and you do not want the bankruptcy to affect that and cause you to lose your house. These are all valid concerns that many people who file for bankruptcy have.

After filing for bankruptcy, you will be able to keep your house, regardless of whether you file a Chapter 7 or a Chapter 13 bankruptcy, so long as you keep making your mortgage payments on time. If you are paying your mortgage company on time, then you can rest assured that you will be able to keep your house during the bankruptcy. You see, when you file for bankruptcy, your attorney who is helping you file your case, will apply one of two different laws to protect all of your assets – federal law or state law. The type of law that is applied to your case depends in part on whether you own a house with a significant amount of equity, or whether you are renting a house or an apartment. Federal law will be applied to protect your house and all of your assets, if the equity in your house falls within the threshold value allowed by the homestead federal statute. If the equity in your house exceeds that value, then Minnesota state law will be applied instead. The reason that federal law is usually favored, is because federal law has a wildcard provision that protects up to $13,900 worth of assets. This provision provides greater protection is protecting all of your assets. Therefore, your house is protected, whether federal or state law is applied, so long as you continue to make your mortgage payments.

In the last post, we discussed The Bankruptcy Act of 1898 and its new focus on the wellbeing of debtors, rather than solely as a remedy for creditors. Previously, we had discussed the prior bankruptcy policies in America: the bankruptcy acts of 1800, 1841, 1867, and 1898. Let’s use this post to recap some of those policies and put them in context. 

Last time we did a slap-dash history of specie currency, so now let’s turn to the modern concept of fiat currency. Fiat money is issued by a government (or a just a bank but that is out of scope). It is not backed by a commodity. Rather, the government merely backs U.S. dollars as legal tender. Furthermore, as a product of the money no longer being tied to a physical item of limited source, they could print as much money as they wanted. 

Not everyone is eligible to file a chapter 7 bankruptcy. There are income requirements to filing a chapter 7 and those individuals that do not meet the income requirements, will not be able to file a chapter 7 bankruptcy. But, even those that do meet the eligibility requirements to file a chapter 7, may find the outcome of filing a chapter 7 disagreeable. While chapter 7 filings are effective vehicles for discharging unsecured debt and they are short in duration, there are times when even those eligible for a chapter 7 bankruptcy may choose to file a chapter 13 instead.

 Filing bankruptcy takes courage. In fact, it takes a lot of courage. Once you have summoned the courage to reach out for help, the last thing you want to deal with is rude and self-centered lawyers and staff. You know the kind I am talking about—the kind that think they are self-important and tell you all their stories but don’t want to listen to your story.