The bankruptcy trustee may avoid transfers that the debtor made or incurred within two years before the filing of the bankruptcy petition if such transfer was made with actual intent to hinder, delay, or defraud a creditor or the debtor received less than fair market value for the transfer. The trustee then may recover, for the benefit of the estate, the property transferred or the value of such property. 

On the bankruptcy petition you will list all of your assets, and this includes anything owed to you, or potentially owed to you, even if you believe the funds or asset is not collectable. For example, if you lent you neighbor $1,000, but you believe that he is unlikely to pay you, it is still important to list the money owed as an asset in your bankruptcy. If you have a case with non-exempt assets, the bankruptcy estate may have an interest in the funds lent. And depending on the amount of monies owed to you, the bankruptcy estate may pursue you neighbor for the lent funds. 

You may have heard of the principle of “Cross-Collateralization” and have wondered to yourself, what it means in regards to your Chapter 7 bankruptcy. How does it affect my Chapter 7 bankruptcy? Cross-collateralization clauses can be found in loan agreements you may sign with a lender. For instance, if you borrowed money from a bank to purchase an asset, the loan agreement you signed may have contained a cross-collateralization clause in it, creating a cross collateralized loan.

First off, for the sake of simplicity, let’s limit our discussion to 18^th century America. Money is a store of value, and there are many kinds of money. In the colonial era, money was (arguably) much more complicated than it is now: each colony would issue their own bills of credit, which all had their own values. So, for example, a Pennsylvania pound might be worth less than a New York pound of the same denomination. Also worth noting about money in the colonial era is that the “stored value” of the bills of credit were redeemable for actual gold or silver. Money that is redeemable for gold or silver are known as specie (pronounced SPEE-sha). 

 It is not unusual for Minnesotans to fear filing Chapter 7 Bankruptcy. Prospective clients often come to LifeBack Law Firm feeling very afraid. We know how you feel. Most of our former clients felt the same way you do now. But do you know what they found? They found that LifeBack Law Firm has the most kind and helpful bankruptcy staff in Minnesota. LifeBack Law Firm clients get spoiled by the staff. We honor the courage it took for you to reach out for help with a debt problem.

One of the questions that we commonly hear is whether there are types of debt that cannot be discharged in bankruptcy. Unfortunately for many debtors, there are, indeed, types of common debts that cannot be discharged in bankruptcy, as well as some uncommon types. Over the course of the next several blog posts, we will discuss some of those debts. Note: this is not meant to be an all-inclusive list.

If you have not filed your taxes for the upcoming tax season, and you are thinking about filing for bankruptcy, you may wonder if you can file your taxes and keep the refund, if you are entitled to receive a refund. Whether you are able to keep your tax refund, depends in part on the type of bankruptcy that you file. It also depends on the value of your total assets and your particular financial circumstance. There are two types of bankruptcies in the bankruptcy world.

Many people wonder how filing for bankruptcy will impact their bank accounts. In many cases, people have checking and savings accounts with banks, and also have debts owed to the bank such as credit cards, personal loans, car loans, and home mortgage loans.

If a person does not have any debts with the bank, they can continue to maintain and use their bank accounts, as the bank is not a creditor impacted by the bankruptcy. However, if the “debtor” (person filing for bankruptcy) owes debt directly to the bank, the bank will be considered a creditor in the bankruptcy case, and whether the bank decides to close the debtor’s bank account or allow them to continue using the bank’s services depends on the amount of debt owed to the bank and the type of debt owed to the bank. 

A chapter 13 bankruptcy case is a three to five year repayment plan wherein the debtor makes monthly payments towards their debts. After successfully completing their repayment plan, the debtor’s remaining unsecured debts are discharged, with some exceptions (i.e. student loans). Once the bankruptcy court “confirms,” or officially approves, the debtor’s repayment plan (typically a few months after their case is filed), the debtor is bound to contribute all of their disposable income towards their monthly payments.

There is a process and procedure for serving defendants and initiating a lawsuit. Plaintiffs do have to follow the correct procedures for proper service. Some individuals are successfully sued and a judgment is awarded to the plaintiff without any knowledge by the defendant. The defendant only becomes aware of the judgment when the creditor begins to enforce the judgment through a bank levy or a garnishment. The question I receive from debtors is: how can they vacate or remove the judgment because they were not properly served with the lawsuit.

In my last post, we discussed the first bankruptcy code in the United States, the Bankruptcy act of 1800; in this post we will turn to the second incarnation, The Bankruptcy Act of 1841. Clearly, congress was not interested in creative nomenclature. Nonetheless, there were other improvements in the content of the new code. First, debtors could now file bankruptcy for themselves, voluntarily. Second, bankruptcy was available to individuals rather than just merchants. Third, the more informal processes utilizing administrators was left behind in favor of using the district courts. 

When a person files a chapter 7 bankruptcy case, they often have secured debts. These types of debts are secured to certain property, known as “collateral,” which can be taken to satisfy the debt if the debt is not repaid by the borrower.  Home mortgages and car loans are examples of secured debts as the lender retains a “lien” on the home or car (the collateral) and can foreclose on the home, or repossess the car, if the borrower defaults on their monthly payments on the debt. 

Carefully considering when to file your bankruptcy can maximize the benefit you achieve from the filing. There are many factors that may speed-up or delay the need to file. 

If a debtor is being represented in a bankruptcy they should allow their bankruptcy attorney to work for them, and the only way their attorney is able to provide adequate representation is if they know all the details about the debtor’s case. If a debtor chooses to omit certain transactions or details then the attorney will not be able to advise appropriately regarding those transactions which could be problematic in the case. 

When you file bankruptcy, it can be a complex and emotional process, especially when it involves surrendering a car. If you’re struggling with car payments or owe more on your car loan than the vehicle is worth, surrendering it during bankruptcy might be a viable option. This comprehensive guide will help you understand the process, potential benefits, and considerations for surrendering a car in bankruptcy in Minnesota.

     If you are thinking about filing bankruptcy in Minnesota, think LifeBack Law Firm. Why think LifeBack Law Firm? LifeBack Law Firm has Minnesota’s most kind and helpful bankruptcy staff in Minnesota. How do we know this to be true? Just read the Google reviews left by your friends, neighbors, and family who has used LifeBack Law Firm to help them get their lives back. The last thing you want when you file bankruptcy is to be judged by bankruptcy lawyers and staff for filing bankruptcy.