Welcome To The MN Bankruptcy Blog

Inside you will find over 500 helpful articles discussing the Chapter 7 & 13 Bankruptcy Process and other solutions for difficult financial situations.


      Crypto Currency and Bankruptcy

      Posted by Col Ovik on August 27

      Lately it has been in vogue to buy into the cryptocurrency world. And when a debtor files bankruptcy any value that the cryptocurrency would have would be considered an asset. But before you jump into the cryptocurrency market you should consider all the risk. 

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      Homestead Exemption and Different Situations in Bankruptcy

      Posted by Col Ovik on August 18

      In Minnesota, the creation of a statutory exemption from claims of creditors for real estate used as a homestead is authorized by Article I, Sec. 12 of the State Constitution.  Minn. Stat. Chap. 510 sets forth the homestead exemption. It begins with a definition that reads, in pertinent part: 

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      Bankruptcy Act of 1867

      Posted by Wesley Scott on July 28

      In the last two posts we discussed the Bankruptcy Act of 1800 and the Bankruptcy Act of 1841 respectively so we, perhaps unsurprisingly, now turn to the next policy: the Bankruptcy Act of 1867. It is worth noting that this policy and the previous two were all responses to poor economic conditions and were unintentionally temporary. In the wake of the 1857 financial crisis and the Civil War, debtors and creditors alike were in need of options for remedy. This new incarnation signaled a change in reasoning in bankruptcy policy which was slightly more beneficial to debtors. 

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      Will I Be Able to Keep My House During a Bankruptcy?

      Posted by Danielle Lin on July 4

      Will I be able to keep my house when I file for bankruptcy? It’s a common concern that you may wonder about as you are making preparations to file for bankruptcy. It could be that you are facing a daunting foreclosure and want to file for bankruptcy in order to save your house. Or, you could have a perfect record with your mortgage company because you have always made your mortgage payments on time, and you do not want the bankruptcy to affect that and cause you to lose your house. These are all valid concerns that many people who file for bankruptcy have.


      After filing for bankruptcy, you will be able to keep your house, regardless of whether you file a Chapter 7 or a Chapter 13 bankruptcy, so long as you keep making your mortgage payments on time. If you are paying your mortgage company on time, then you can rest assured that you will be able to keep your house during the bankruptcy. You see, when you file for bankruptcy, your attorney who is helping you file your case, will apply one of two different laws to protect all of your assets – federal law or state law. The type of law that is applied to your case depends in part on whether you own a house with a significant amount of equity, or whether you are renting a house or an apartment. Federal law will be applied to protect your house and all of your assets, if the equity in your house falls within the threshold value allowed by the homestead federal statute. If the equity in your house exceeds that value, then Minnesota state law will be applied instead. The reason that federal law is usually favored, is because federal law has a wildcard provision that protects up to $13,900 worth of assets. This provision provides greater protection is protecting all of your assets. Therefore, your house is protected, whether federal or state law is applied, so long as you continue to make your mortgage payments.

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      Filing Bankruptcy in Minnesota? Watch Out for These 2 Things

      Posted by Wesley Scott on June 28

       Filing bankruptcy takes courage. In fact, it takes a lot of courage. Once you have summoned the courage to reach out for help, the last thing you want to deal with is rude and self-centered lawyers and staff. You know the kind I am talking about—the kind that think they are self-important and tell you all their stories but don’t want to listen to your story. 

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      Avoidance and Recovery of Transfers

      Posted by Col Ovik on June 27

      The bankruptcy trustee may avoid transfers that the debtor made or incurred within two years before the filing of the bankruptcy petition if such transfer was made with actual intent to hinder, delay, or defraud a creditor or the debtor received less than fair market value for the transfer. The trustee then may recover, for the benefit of the estate, the property transferred or the value of such property. 

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      Monies Owed to You and Bankruptcy

      Posted by Col Ovik on June 25

      On the bankruptcy petition you will list all of your assets, and this includes anything owed to you, or potentially owed to you, even if you believe the funds or asset is not collectable. For example, if you lent you neighbor $1,000, but you believe that he is unlikely to pay you, it is still important to list the money owed as an asset in your bankruptcy. If you have a case with non-exempt assets, the bankruptcy estate may have an interest in the funds lent. And depending on the amount of monies owed to you, the bankruptcy estate may pursue you neighbor for the lent funds. 

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      What is money?

      Posted by Ben Abraham on June 20

      First off, for the sake of simplicity, let’s limit our discussion to 18th century America. Money is a store of value, and there are many kinds of money. In the colonial era, money was (arguably) much more complicated than it is now: each colony would issue their own bills of credit, which all had their own values. So, for example, a Pennsylvania pound might be worth less than a New York pound of the same denomination. Also worth noting about money in the colonial era is that the “stored value” of the bills of credit were redeemable for actual gold or silver. Money that is redeemable for gold or silver are known as specie (pronounced SPEE-sha). 

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      Tax Refunds and the Importance of Filing Taxes During Your Bankruptcy

      Posted by Danielle Lin on June 13

      If you have not filed your taxes for the upcoming tax season, and you are thinking about filing for bankruptcy, you may wonder if you can file your taxes and keep the refund, if you are entitled to receive a refund. Whether you are able to keep your tax refund, depends in part on the type of bankruptcy that you file. It also depends on the value of your total assets and your particular financial circumstance. There are two types of bankruptcies in the bankruptcy world.

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      What Happens if I am Unable Complete My Chapter 13 Bankruptcy Case?

      Posted by Wesley Scott on June 10

      A chapter 13 bankruptcy case is a three to five year repayment plan wherein the debtor makes monthly payments towards their debts. After successfully completing their repayment plan, the debtor’s remaining unsecured debts are discharged, with some exceptions (i.e. student loans). Once the bankruptcy court “confirms,” or officially approves, the debtor’s repayment plan (typically a few months after their case is filed), the debtor is bound to contribute all of their disposable income towards their monthly payments.

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      Handling Secured Debts in a Chapter 7 Bankruptcy

      Posted by Wesley Scott on June 8

      When a person files a chapter 7 bankruptcy case, they often have secured debts. These types of debts are secured to certain property, known as “collateral,” which can be taken to satisfy the debt if the debt is not repaid by the borrower.  Home mortgages and car loans are examples of secured debts as the lender retains a “lien” on the home or car (the collateral) and can foreclose on the home, or repossess the car, if the borrower defaults on their monthly payments on the debt. 

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      Posted by Col Ovik on June 5

      If a debtor is being represented in a bankruptcy they should allow their bankruptcy attorney to work for them, and the only way their attorney is able to provide adequate representation is if they know all the details about the debtor’s case. If a debtor chooses to omit certain transactions or details then the attorney will not be able to advise appropriately regarding those transactions which could be problematic in the case. 

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      How do you Surrender a Car in a Bankruptcy?

      Posted by Danielle Lin on June 4

      When you file bankruptcy, it can be a complex and emotional process, especially when it involves surrendering a car. If you’re struggling with car payments or owe more on your car loan than the vehicle is worth, surrendering it during bankruptcy might be a viable option. This comprehensive guide will help you understand the process, potential benefits, and considerations for surrendering a car in bankruptcy in Minnesota.


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      Thinking about filing bankruptcy in Minnesota? Think LifeBack Law Firm

      Posted by Wesley Scott on June 3

           If you are thinking about filing bankruptcy in Minnesota, think LifeBack Law Firm. Why think LifeBack Law Firm? LifeBack Law Firm has Minnesota’s most kind and helpful bankruptcy staff in Minnesota. How do we know this to be true? Just read the Google reviews left by your friends, neighbors, and family who has used LifeBack Law Firm to help them get their lives back. The last thing you want when you file bankruptcy is to be judged by bankruptcy lawyers and staff for filing bankruptcy.

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      Can I Keep Credit Cards in my Chapter 7 Bankruptcy?

      Posted by Danielle Lin on June 2

      A Chapter 7 bankruptcy works as a quick reset button – all of your unsecured debt will be wiped out in approximately 3-4 months, from the date your case is filed. Unsecured debt includes credit card debt, medical bill debt, and personal loans. This sounds exciting, as it certainly provides you with a fresh new start. Instead of paying your credit card bills, you can simply wipe out the remaining debt you have. You can obtain a new credit card after you receive your bankruptcy discharge, and rebuild your credit score by using the credit card and paying it off every month. 

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      401k Accounts and 401k Loans in Bankruptcy

      Posted by Wesley Scott on May 25

      The prospect of filing for bankruptcy can raise numerous questions, especially when it comes to protecting your hard-earned retirement savings.

      Fortunately, the law offers significant protections for retirement accounts, including 401(k) accounts and 401(k) loans, during bankruptcy proceedings. This article will delve into how 401k accounts and loans are treated in a bankruptcy case, highlighting the protections afforded to retirement savings.

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