When a creditor is owed a debt by the bankruptcy filer and the bankruptcy filer is owed a debt from the creditor and consequently creating a mutual obligation, the creditor can setoff the mutual debt. This means, instead of the creditor paying their debt to the bankruptcy filer the creditor can setoff (subtract) that amount from the amount owed to them by the bankruptcy filer.

In a chapter 13 bankruptcy case, the case is typically closed shortly after the debtor completes their repayment plan and receives a discharge of their debts or shortly after their case is dismissed by the court if they are unable to successfully complete their plan.

Alternatively, in a chapter 7 case, the bankruptcy discharge normally automatically occurs 60 days from the date of the creditor’s meeting (a.k.a. the “341 meeting”).

When you hire a bankruptcy attorney, they are supposed to protect your interests and assets not take a lien against your assets to see that the lawyer gets paid their fees. I witnessed this happen recently and it is shocking a lawyer would do this. It is a very unseemly practice that prioritizes lawyers being paid over clients getting relief.

What is the true impact on your credit after filing bankruptcy? Filing bankruptcy is nearly always a net positive for your credit profile and credit score. How can this be? Pretend I am a banker and you come to me wanting a loan.

Soon, bankruptcy filings will hit record levels in Minnesota. I know it does not look like that can be the case right now, but it will be and sooner than you think. How can I be so confident of that? Easy, Google global debt and you will get part of the picture. But that is only part of the picture. Global debt levels never went away even after the last recession, which started in 2007/2008. We are at a crossroads in our economy that has fundamentally transformed itself without anyone noticing much.

I have recently started running, actually, I have recently started running again. Running is one of those activities that I do not enjoy. But I make a point to do it because I work in an office and spend most of my day sitting.

Issues with your homeowners association can be stressful. Homeowners associations have the power to place a lien on your property or foreclose. When you get behind in your association fees you are putting your property at risk.

Struggling with eviction in Minnesota? Bankruptcy can be a powerful tool to protect your home. This guide explains how the automatic stay in bankruptcy immediately halts eviction proceedings, the nature of repayment plans to repay your rent arrears, and potential debt discharge. Don't let eviction ruin your life. Learn more about how bankruptcy can help you stay in your home.

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If you are suffering from debt, the last thing you want is to work with a group of “professionals” that are not very professional and who treat their clients like widgets on an assembly line. You don’t want to work with a law firm that would really ask their client to put up their clothing to secure the bankruptcy attorney’s fees. This is really happening.

Law firms are largely specialized these days. Many are what we call “boutiques” that cater to clients in one specific area of the law. For example, there are many personal injury law firm boutiques. Many law firms specialize in family law, criminal defense, or even more specific than that, one area of criminal defense like DWI law.

A person who files for bankruptcy (a.k.a. the “debtor”) is protected from creditors by the “automatic stay” which begins on the day they file their petition with the bankruptcy court.

The automatic stay is a court order that prohibits creditors from collecting on debts owed by the debtor, with very limited exceptions (i.e. creditors to whom the debtor owes alimony or child support are not stopped by the automatic stay).

One of the most critical components of bankruptcy law is the “automatic stay,” which is written into law at 11 U.S.C. § 362, and applicable to all bankruptcy cases under Title 11. It is considered “automatic” because it immediately takes effect upon filing of a bankruptcy petition (unless you have filed multiple frequent cases).

When you are looking for the best bankruptcy law firms in Minneapolis, you cannot go wrong with choosing any of these three Minneapolis bankruptcy law firms.

They will vary in prices and service offerings, but you will get experienced chapter 7 and chapter 13 bankruptcy counsel from any of them.

The purpose of bankruptcy is to provide financial relief to debtors who can no longer afford to continue paying their debts. This doesn’t necessarily mean that creditors will get nothing simply because the debtor files for bankruptcy.

When filing for bankruptcy you will have to disclose any transfers of assets you may have had in the last 2 years prior to filing. Assets include cash assets as well as other assets: vehicles, real estate, furniture, or retirement accounts. And you may be asked about assets transferred in the last six years, if the transfer involved a friend or family member.

A common question I hear when clients decide to move forward in a bankruptcy is – will I lose my home or will I lose my car? A lot of the time the answer is, no. If there’s a secured loan attached to your property and I’m able to apply the applicable law to protect the equity, then you won’t lose it. Of course, some secured creditors want you to sign a reaffirmation agreement.