A Chapter 7 Bankruptcy is a bankruptcy where your liability on your debts goes away and you do not make payments back to your creditors. Instead, the focus is on your assets not your income. With assets, the question is, are all your assets protected or are some of them not protected and you will lose. Most people who file bankruptcy in St. Cloud, Minnesota have no assets to lose. In other words, all the assets they own they get to keep.
For example, most people who file Chapter 7 Bankruptcy do not lose their homes, vehicles, clothing furnishings, pensions, 401ks, or yard items. Now look, if you own a 100k condo in Florida and you own it debt free-- that is going to be a problem. But for the majority of Chapter 7 Bankruptcy filers in St. Cloud, Minnesota there are no problems. You keep all your assets and lose all your debt.
Now while we say you lose all your debt we really mean you lose all your “dischargeable” debt. We all know that certain debts in bankruptcy are not dischargeable. Debts like child support and alimony never go away in bankruptcy. Debts like taxes and student loans do not get discharged unless you meet very limited exceptions. So if you have 75k in credit card debt, your liability on all of this debt gets wiped out, tax free, forever. Slick right? We think so too.
One final caveat about a Chapter 7 Bankruptcy. Chapter 7 trustees are able to avoid certain payments to creditors before filing bankruptcy and certain transfers you have made prior to bankruptcy as well. As always, make sure you get qualify bankruptcy advice from a competent Minnesota bankruptcy law firm.
Call now for a free strategy session from a MN Bankruptcy Lawyer at Kain & Scott
When the time is right, or when you are ready, reach out to Minnesota’s LARGEST bankruptcy law firm by going now to www.kainscott.com. You will be so glad you did!
