Are you considering foregoing a bankruptcy filing in favor of attempting to settle your debt? Whether you're attempting to settle debt directly with your creditors or with some third-party debt relief agency, it is important to first consider the potential tax consequences that will arise from pursuing debt settlement.

It is tempting to repay friends and family members while before filing a bankruptcy. 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.

Unfortunately, repayments of loans to family members and close friends are considered preferential payments.

The court can dismiss your case, upon request of the bankruptcy trustee, for good cause, including things like unreasonable delay by the debtor, failure by the debtor to timely file documents, failure by the debtor to pay fees, and failure to make payments in a chapter 13 plan.

Dismissal is typically granted when the debtor does not fulfil their obligations under the Bankruptcy Code to the harm of creditors. However, is it possible for the debtor to voluntarily dismiss their case on their own?

A common question I get from Minnesotans who are suffering from debt and considering filing for bankruptcy relief is: “how does the court know how much stuff I have and what it is worth?” The answer is very simple. We tell them.

If you have filed a bankruptcy, or are considering filing a bankruptcy, you may find yourself wondering if there is anything different you would need to do when filing your tax returns following a bankruptcy filing. In most cases, the answer is no, but in some cases, there may be an extra form that you might need to file.

Individual people can file either a Chapter 7 or Chapter 13 bankruptcy in order to get relief from their personal debt. Chapter 7 bankruptcies are typically the more attractive option to potential bankruptcy filers for a couple of reasons. First, people in a Chapter 7 bankruptcy are not required to make any payments towards their debt like they do in a Chapter 13. Second, a Chapter 7 typically lasts only a few months, unlike a Chapter 13, which lasts 3 to 5 years.

When I meet with clients who own their home, protecting their loved ones and their family home are the number one concerns. As far as protecting your home in bankruptcy goes, Minnesota is one of the best states in the country as far as protecting your equity. Currently, you can have up to $450,000.00 worth of home equity and not lose any of it in filing for bankruptcy relief.

Individuals looking for a fresh start seek a bankruptcy to get rid of their overwhelming debt. They may be able to file under a chapter 7 or chapter 13, or they may be eligible for just a chapter 13.

There are lots of reasons that people file for bankruptcy. One very common reason is because they have lots of medical debt. Medical services can be very expensive, particularly for those who have no or little insurance. Medical debt is considered general unsecured debt, just like credit cards and personal loans that are not secured by any collateral. This type of debt can be completely wiped out by a bankruptcy discharge.

If you are one of the millions of Americans that are unable to meet their monthly debt obligations, but are having trouble figuring out why, it may be because you are withholding too much from your paychecks for income tax. Although it may not be the only reason, one simple change to your withholding, could put more money in your pocket each pay period.

People move from state to state for several different reasons—taking a new job opportunity, attending school, following a loved one, or getting a fresh start are just a few—and when they move, they might leave behind family, friends, or belongings, but one thing that does not stay behind is their debt. Because this is true, it is very common for people who have just moved to a new place to inquire about their ability to file a bankruptcy to get a fresh start.

The prospect of having to file for bankruptcy can be daunting and intimidating, especially for someone who has never filed for bankruptcy, or maybe, has never even been in court before.

Most bankruptcy cases are very routine and are relatively simplistic in terms of the process. Often, the most challenging part of the process is preparing the initial petition and accompanying court paperwork to be filed with the court. For this reason, it is always advisable to consult with an experienced bankruptcy attorney before filing for bankruptcy.

When filing a Chapter 13 bankruptcy the number one question by potential clients is: what will be my monthly payment? There are many factors that are considered when determining a chapter 13 payment:

• income,
• necessary expenses,
• non-exempt assets,
• repayments to creditors in the 90 days prior to filing,
• and repayments to friends and family members.

When you have filed and received a discharge in a prior chapter 7 or chapter 13, timing matters if you want to receive a discharge in a new case.

In bankruptcy there are certain exemptions you can choose from. These exemptions are what protect your assets from liquidation and asset seizure.

Occasionally clients will tell me that they would only like to file bankruptcy on one or just a few of their creditors. While this is not entirely possible, there are some similar options.