Chapter 13 bankruptcy, often called a "wage earner's plan," offers a structured path to debt relief for individuals with regular income in Minnesota. While it allows you to keep your assets and catch up on missed payments, it's natural to wonder how restrictive this process might be. Let's delve into the financial commitments and lifestyle adjustments involved in a Chapter 13 bankruptcy.

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Here, at LifeBack Law Firm, we make filing bankruptcy as simple as we can. There are not countless worksheets to fill out, we do the drafting for you, and a licensed attorney will be working with you during the bankruptcy process. All the attorneys at LifeBack Law Firm are licensed to practice in Minnesota. Therefore, we can only file bankruptcy cases in Minnesota.

People occasionally tell me they feel bad about not paying their debts when considering bankruptcy. Sometimes, people are even downright distraught and try to apologize for being irresponsible. First things first: you do not have to apologize for taking a problem seriously and considering your options. But it also got me asking myself: is it morally wrong to not pay your debts?

 I was at a hearing just the other day where someone filed their chapter 7 bankruptcy case pro se, meaning they did not have attorney representation. Although, it is perfectly legal to file a case for yourself, typically it is not a good idea to do so. This is because bankruptcy law is vast and nuanced.

   I like to think of LifeBack Law Firm as an oasis away from the cruelty of the world we live in. Too many people use cruelty and insecurity to hurt other people. It is really sad. When you have a debt problem the last thing you want is for law firm staff to be rude, condescending, or just mean. Unfortunately, we hear all the stories along these lines from clients who first went to another law firm to file bankruptcy only to find out, the lawyer and staff are rude.

 We file two different kinds of bankruptcy cases at LifeBack Law, both Chapter 7 and Chapter 13. How long each will take and a timeline of what happens in each differs. Below we will go through both.

Recently, I spoke to a woman who told me she is a client of LifeBack Law Firm. She said she came to us after she spoke to another person and ended up doing some work for the firm herself. She said when she came into one of our office locations she knew she would be ok asking for help with bankruptcy. She knew she was in a safe, non-judgmental place. As a lawyer myself, I find these words from someone like her to be precious. No one feels good about having to file bankruptcy. But what people really don’t want is to work with someone who is unprofessional and judgmental.

When a creditor has failed to obtain payments from the debtor, the creditor may sell the debt to a debt collector. If the debt collector or creditor is still unable to collect on the debt they may employ a law firm to pursue the debt through a lawsuit. The initial start of the lawsuit begins with notice to the debtor that they are being sued.  

Why do Minnesotans prefer to file Chapter 7 and Chapter 13 Bankruptcy with LifeBack Law Firm? Just read our hundreds and hundreds of Google reviews and you will see why. Minnesotans favor LifeBack Law because LifeBack Law excels at helping Minnesotans get their lives back while treating clients and co-workers with kindness, helpfulness, professionalism, and exceptional customer service.

The trustee is another attorney who is assigned to your case by the US Trustee to represent the bankruptcy estate. The trustee is the person who administers your estate and distributes any funds that come in during your case. They also make sure what you said in your bankruptcy case is truthful and correct and verify the information you provided. You will meet with the bankruptcy trustee at the 341 hearing, usually about 4 to 6 weeks after your case is filed.

    Recently, I spoke to potential client who told me a story about a Minnesota bankruptcy lawyer who hung the phone up on him after the lawyer discovered the potential client wanted to retain LifeBack Law Firm instead of this other lawyer.

Pursuant to 11 U.S.C. § 548(a)(1)(B) the trustee can avoid certain transfers made within two years before the petition filing date.

Have you ever wondered what life could be like without overwhelming debt? It is possible to get your life back by filing Chapter 7 or 13 Bankruptcy. When you have unwanted debt, your finances are sick, you are not. Your finances need to take a shot of medicine and become healthy again. Money is not your life. Debt is not your life. And yet, debt can have tragic effects on the quality of your life.

Previously, I wrote about different individuals you’ll come across in your bankruptcy.  Here, I want to discuss and provide common terms you’ll come across as well.

   If you find yourself knee deep in debt, you are not alone. Each, year, thousands and thousands of Minnesotans just like you and I end up with overwhelming debt and the need to file Chapter 7 Bankruptcy. Hitting the reset button on your financial life is not as hard as you think. Once you wrap your mind around the “b” word, the actual process of filing Chapter 7 Bankruptcy is no so difficult to tolerate.

Chapter 13 bankruptcy, also known as a reorganization bankruptcy, offers a lifeline for individuals struggling with debt. Unlike Chapter 7, which involves liquidating assets to repay creditors, Chapter 13 allows you to create a structured repayment plan, typically spanning three to five years. An essential aspect of this plan is the minimum monthly payment, which is a required amount you must pay monthly towards your debts.