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.

Bankruptcy is a last option for many people. Before making a decision to file, most people will struggle with their rent or mortgage and other bills. Due to ongoing stress, mistakes will occur, such as paying a credit card bill instead of an electric bill or paying the monthly balance on a personal loan instead of their home owner’s association fee.

Why do Minnesotans refer their friends and family to LifeBack Law Firm, P.A. for bankruptcy? There are many reasons but the biggest reason is they used LifeBack Law to get their lives back and they really felt good about how they were treated.

After all, LifeBack Law is Minnesota’s highest Google reviewed bankruptcy law firm. If you care for your friends and family, refer them to LifeBack Law and we promise to use soft gloves and treat them exceptionally well.

Recently, I started watching a new television series call Ted Lasso and I was quite wonderfully surprised. This is a show about positivity, kindness, and thoughtfulness. Even faced with the ugliest of characters, Ted Lasso continues his crusade of positivity.

This is a message we should all embrace. Many times I find myself passively watching some television show and the characters are awful to one another or some reality tv show that displays people at their absolute worst. At best, maybe I get a laugh from it, and at the worst, I walk away with a dampened outlook on human kind.

As incredible as this may sound, there is a bankruptcy law firm that will actually ask you to put up your clothing as collateral for the attorney fees in a bankruptcy case.

LifeBack Law will never ask any of it’s’ clients to put up the clothing on their back as collateral for our fees. At LifeBack Law Firm, we accept payment in one of three ways for a Chapter 7 Bankruptcy.

Filing a chapter 7 or chapter 13 bankruptcy can be a scary process, but in the right hands of a proper attorney, it doesn’t have to be. Let’s say you file and now you want to know what happens after you’ve filed.

First, the automatic stay is applied when your case is filed. This stay prevents your creditors from pursuing any further collection activity, including lawsuits or garnishments.

I constantly remind Minnesotans, your finances are sick, you are not. If you need a metaphor to think about this, here is one; actors and actresses many times need to be told, you are not the same person as the actor or actress.

You are two different people. So when people criticize the actor/actress, they are not criticizing you, they are criticizing someone else. Same thing with debt. You are not your debt. You are you and your finances are separate and if your finances are sick we need to give medicine to your finances (bankruptcy) not you.

A common concern for many people filing for Chapter 7 or Chapter 13 bankruptcy is whether their retirement account will be protected. Bankruptcy law is very generous about protecting debtors’ retirement accounts such as IRAs, 401ks, and pensions. The vast majority of these retirement plans are “exempt,” or fully protected, under law.

Once your bankruptcy case is filed, it is required that you give testimony at what is called a “341 Meeting.” It is called 341 meeting, because it is required by law at 11 U.S.C. § 341.

The 341 meeting is intended to be a time where any interested parties may appear and ask you questions about your bankruptcy petition and intentions. The meeting is ran by a Trustee, and while creditors are all given notice of the hearing time, it is VERY rare that they show up at the 341 meeting.

It is tempting to repay friends and family members, after all, these are the people that were there for you when you were in a bind. So naturally, when you find yourself in a position to finally repay a friend or family member that is exactly what you are going to do. While this seems like the right thing to do, during a bankruptcy, it can lead to a lot of complications.

A creditor who sues a person and gets a court judgement against them can collect the money that the person owes the creditor through a garnishment of the person’s wages. To do so, the creditor can serve a summons on the person’s employer directing them to withhold their wages to be paid to the creditor.