In today’s world, it can be easy to feel like you are alone. I actually think that “loneliness” is one of the biggest health challenges we face in the world today. Prior to the pandemic, we were already tail spinning our way into a world where we communicate virtually (think Facebook, Twitter, and a myriad of other ways). Once the pandemic hit, our tail spin has become a complete vertical drop into the virtual abyss. The farther away we get from human to human contact, the worse it becomes.

The co-debtor stay is a nice feature of chapter 13 bankruptcy. When an individual files a bankruptcy case, there is an automatic “stay” that is put in place by the Bankruptcy Court. The automatic stay prevents creditors from collecting against a bankruptcy debtor. In chapter 13 that stay can also, in many cases, extend to co-signers and joint account holders. As long as the chapter 13 case is pending, other people obligated on debts that are “in” a chapter 13 case can be protected by the same automatic stay.

Financial problems can generate so much stress that it is difficult for a lot of people to collect financial information – embarrassment and anxiety can cause good people to shut down by not opening mail, answering phone calls or even checking bank balances because of the paralyzing fear that the news is going to be bad.

Still, if someone decides that filing a bankruptcy case is in their best interest, the lawyer representing the client has to prepare a bankruptcy petition and schedules that accurately reflect the client’s financial situation.

Both the Federal Bankruptcy Code and Minnesota State law contains a number of provisions that protect the funds in a debtor’s bank account, along with other property from being taken to pay creditors. Property protected, under law, from creditors is considered “exempt.” In a chapter 13 bankruptcy.

In Minnesota, you are allowed to exempt or protect proceeds stemming from the death of your spouse or parent up to $50,000. You may protect or exempt $12,500 more for each dependent or child. If you have received funds from an unfortunate event such as this and are considering filing bankruptcy, consider letting Kain & Scott help you protect your property and funds.

Many people are naturally anxious about what kind of information and documents they will need to provide in their Minnesota or any bankruptcy case. Given the social stigma about filing for bankruptcy, people often feel ashamed when they decide to file bankruptcy (although they should not!) and are, understandably, worried about having to disclose sensitive information regarding their financial situation and the matters leading up to their case being filed.

A chapter 13 bankruptcy is similar to a debt consolidation plan. All of your unsecured debt will receive a percentage of what is owed. Normally that percentage is not 100%, or in other words, paying back the debt in full, but instead paying a small portion of it. A common question I hear is, who comes up with what amount is paid back, the creditors, the trustee, a judge?

In my last installments about understanding Minnesota law to protect your property (Part 5), I discussed tools of the trade and farm machine. In those cases, I was able to find case law to help describe those laws as viewed by a court. Here, the case law is sparse, so I’m going to keep it brief, but still speak on the subject if when you are allowed to exempt property in Minnesota.

Everyone is in the same boat when it comes to the unknown of how this pandemic will continue to affect our lives. It can be safely assumed that a majority of people seek normalcy in their day-to-day lives, social aspects, and financial security. Although we are unable to predict the future, we can inform you of what to expect from your Minnesota bankruptcy when the pandemic subsides and hopefully, is eradicated.

Chapter 13 payment plans can solve a lot of financial problems: mortgage arrears can be cured, expensive car loans can be restructured, and assets that would have to be surrendered to a chapter 7 trustee can be retained. This is accomplished through a chapter 13 plan where a debtor pays a specified amount of money to the chapter 13 trustee over a defined period of time.

Have you heard the phrase “bankruptcy protection” and wondered how a bankruptcy could protect you? Most potential bankruptcy clients usually have a sense of what filing a bankruptcy means, but are often unsure of how the process actually works.

One common question that potential clients have is "How does filing a bankruptcy protect me?" The short answer is that through something called the Automatic Stay, most creditors are prevented from continuing the collection activity during bankruptcy, and many debts may even be dismissed.

Everyone that files bankruptcy is required to take a court mandated credit counseling course prior to filing. This can be done either online or by telephone, and usually takes between 30-60 minutes to complete. At Kain and Scott, P.A., we would provide you the website or phone number to use, and the fee for such a course as part of our services.

Under Minn. Stat. § 550.37, subd. 6, you are allowed to exempt property if your interest in that property consists of “tools, implements, machines, instruments, office furniture, stock in trade, and library reasonably necessary in the trade, business, or profession of the debtor…”.

If you file bankruptcy and your spouse does not file with you, your spouse will remain liable on any joint debt. In a chapter 13 bankruptcy filing, priority debts like tax debt must be paid in the plan or through the bankruptcy. This is great news if you want a payment plan for your tax debt. However, the co-debtor on the tax debt is not protected by the automatic stay in a chapter 13 bankruptcy from the taxing authority.

It’s tough to pick up the phone and call our office to set up an appointment to speak with one of the attorneys at Kain & Scott about your financial troubles. Everyone at our office knows this, and we honor your courage in making that call. When you’ve made the phone call and set up the appointment – whether it’s in-person, over the phone, or using a video platform – we want to shift our focus to having that first meeting be productive for both you and us.

Here are some ways that our clients help us provide the best service we can.

In Minnesota, there's a specific limit on how much money you can keep in your bank account during Chapter 7 bankruptcy. This limit is known as the cash exemption. If you have more than the exemption, you may need to surrender the excess to the bankruptcy trustee.

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