If you have recently sold your home or are planning to sell your home prior to filing bankruptcy there are things to consider and discuss with your bankruptcy attorney regarding any remaining home proceeds from the sale. After the sale of the home, the proceeds should be kept separate from general income: wages, bonuses, pension income, and funds from the sale of other assets. The proceeds from the home sale maybe exemptible, if you qualify to use Minnesota exemptions and the sale of the home was within one year of the bankruptcy filing. (Your attorney can help you determine if you are eligible for Minnesota exemptions). It is important to note that home proceeds are not exemptible infinitely. If the home was sold over a year from the filing of the bankruptcy petition and proceeds remain from the home sale, these funds are not exemptible using the Minnesota homestead exemption. 

    LifeBack Law Firm has been helping Eden Prairie, MN residents get their lives back since 1972, and we can help you too. LifeBack Law Firm is a Chapter 7 Bankruptcy attorney near me in Eden Prairie, MN. We have an office location right near you. We are located at 7525 Mitchell Road, Suite 208, Eden Prairie, MN 55344. When you are down and out and you are suffering from a debt problem, let the kind and helpful people at LifeBack Law Firm help you get rid of debt and help repair your credit using LifeBack Law Firm FREE 90-Day Credit Repair Program. 

Typically, you can’t get rid of tax debt in a Chapter 7 bankruptcy.  But, if you can afford the payments, then a Chapter 13 bankruptcy is a great tool to help you with this type of debt.  This is because you’re allowed to pay your tax debt through a Chapter 13 repayment plan, which lasts 3 or 5 years.  Even if your tax debt is considerably large, filing a Chapter 13 may still make financial sense, since you’re not incurring interest and penalties during your bankruptcy.  Plus, you’re not paying back your credit credits, unsecured loans, and medical bills, and those debts will go away once you’re finished with your Chapter 13 plan! 

Spouses are allowed to jointly file a single bankruptcy case together. This is often advantageous to both spouses when they both have a significant amount of debt, as they do not have to incur the additional time and expense of filing separate cases. However, it is not uncommon for only one spouse to file for bankruptcy, while the other does not. But what is the impact of the bankruptcy upon the spouse who is filing for bankruptcy, and upon the spouse who decides not to file?

IRAs are exempt assets in bankruptcy proceedings, and are thus beyond the reach of the debtor’s creditors. The exemption in the Bankruptcy Code is based on the tax-exempt status of the IRA. 11 USC §522(d)(12) provides an exemption to “[r]etirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 408 of the Internal Revenue Code.”

Both the Bankruptcy Code and Minnesota State law prohibit certain types of transfers of money or property made by the debtor prior to the filing of their bankruptcy case. These prohibited transfers are “avoidable” by the bankruptcy trustee. This means that the Chapter 7 trustee can avoid or undo the transfer by demanding the return of the transferred property from the person or entity to whom the transfer was made, and the trustee can even bring a lawsuit against that person to enforce their legal right to the return of the property.

Your 341 Meeting or the Meeting of Creditors is the opportunity for your Trustee and creditors to ask you questions about your petition and schedules, while under oath.  

Many people frequently make regular donations to charities and religious organizations. Our laws generally promote and encourage these types of donations due to the positive impact it has on our social institutions and other members of society. For example, the IRS Tax Code allows for certain tax breaks for people and companies who make charitable donations.

    From the very first day a debtor files their bankruptcy case, they receive protection from the “automatic stay,” which is a court order that prevents most creditors from taking any debt collection efforts against the debtor. This protection lasts through the debtor’s bankruptcy case, unless a creditor receives court permission to “lift the automatic stay” and pursue the debt. This is typically only allowed in special circumstances such as where the debtor is using, or possessing, valuable property used to secure a debt owed to the creditor for which the debtor is not fairly compensating the creditor, to the detriment of the creditor’s rights (i.e. driving a car around with a loan against it and not making payments).  

There are two sets of exemptions you can use in Minnesota, state and federal exemptions. You can use whichever is the most beneficial to you. Below are a few examples of why you may pick one over the other.

Bankruptcy has a wide variety of interesting facts. A few are listed below:  

I constantly tell people who live in Eden Prairie, Minnesota, that the first step to filing bankruptcy is wrapping your head around the word, bankruptcy. Yes, there are better words in the English dictionary than the word, bankruptcy. But, once you actually wrap your head around the word bankruptcy and the thought of filing bankruptcy, do know the actual process of filing bankruptcy and getting your life back is easier.

If you are considering filing bankruptcy, you may be wondering whether you can keep your lease. 

A very common question I get when I speak to potential clients is – can I keep one credit card out of my bankruptcy?  In short, no.  This is due to the fact that you have to list all your debts.  This includes unsecured debt, so all your credit cards, and unsecured loans, your tax debt, domestic support obligations, such as child support, and all secured debt, including your home and cars. 

     At LifeBack Law Firm, we constantly honor the courage it takes for thousands of Minnesotans to reach out every year and ask for help with overwhelming debt. We honor that courage by having the most kind and helpful staff in Minnesota. Does this make a difference? You bet it does. If I am embarrassed about something I want a professional who is the most kind and helpful person ever. I mean it. I want my hand held the whole time.

You may think that your credit union is the same as a typical bank, and in many respects, it is; but, there are some differences. For example, your credit union is a nonprofit, whereas a bank like Huntington Bank, is for profit.