Bankruptcy is a big topic, with many interesting facts. 

Many people depend on social security payments to be able to afford their basic needed living expenses. The Social Security Act of 1935, while originally intended to serve a financial safety net for those who needed temporary economic assistance, has become generally accepted as something that most seniors will depend upon after they retire.  This recognized dependence upon social security benefits by so many of our seniors is the reason why such benefits are given special protection under the law. 

If you have recently sold your home or are planning to sell your home prior to filing bankruptcy there are things to consider and discuss with your bankruptcy attorney regarding any remaining home proceeds from the sale. After the sale of the home, the proceeds should be kept separate from general income: wages, bonuses, pension income, and funds from the sale of other assets. The proceeds from the home sale maybe exemptible, if you qualify to use Minnesota exemptions and the sale of the home was within one year of the bankruptcy filing. (Your attorney can help you determine if you are eligible for Minnesota exemptions). It is important to note that home proceeds are not exemptible infinitely. If the home was sold over a year from the filing of the bankruptcy petition and proceeds remain from the home sale, these funds are not exemptible using the Minnesota homestead exemption. 

IRAs are exempt assets in bankruptcy proceedings, and are thus beyond the reach of the debtor’s creditors. The exemption in the Bankruptcy Code is based on the tax-exempt status of the IRA. 11 USC §522(d)(12) provides an exemption to “[r]etirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 408 of the Internal Revenue Code.”

    From the very first day a debtor files their bankruptcy case, they receive protection from the “automatic stay,” which is a court order that prevents most creditors from taking any debt collection efforts against the debtor. This protection lasts through the debtor’s bankruptcy case, unless a creditor receives court permission to “lift the automatic stay” and pursue the debt. This is typically only allowed in special circumstances such as where the debtor is using, or possessing, valuable property used to secure a debt owed to the creditor for which the debtor is not fairly compensating the creditor, to the detriment of the creditor’s rights (i.e. driving a car around with a loan against it and not making payments).  

Bankruptcy has a wide variety of interesting facts. A few are listed below:  

If you are considering filing bankruptcy, you may be wondering whether you can keep your lease. 

You may be wondering whether your employer will find out about your bankruptcy filing. Below we explore possible ways your employer can be informed of your filing.

When you file for bankruptcy, you’re seeking relief from your debts, but you’re also declaring and disclosing all your assets, liabilities and income. You must submit your petition and complete 10 different schedules, a complete statement of financial affairs and calculate a means test. The purpose of the means test is to see whether or not you can file a chapter 7 bankruptcy.

 LifeBack Law Firm is Minnesota’s bankruptcy law firm, since 1972. We have been protecting Minnesotans from their creditors since 1972 and we can protect you too. Our entire focus, from the time we come to work until the time we go home, is protecting Minnesotans just like you from their creditors. How successful are we at doing our job? Ask the people who left us over 1,400 Google reviews and they will tell you how they were treated and what getting their lives back meant to them. Each month, hundreds of Minnesotans just like you reach out to LifeBack Law Firm for help with a debt problem. We protect each and every one of these people who retain LifeBack Law from their creditors and we can protect you too.

Filing for bankruptcy is very often the best option for someone who is in a financial position where they are unable to afford to pay their ongoing bills and expenses in addition to their debts. When this happens, a person should try their best to continue paying their necessary ongoing expenses and bills, such as their mortgage payment, car payment, utility bills, and groceries. These needed expenses are more important than paying on old debts, especially if a person is planning on filing for bankruptcy and getting rid of those old debts anyways.

     Recently, I have been reading about and materials belonging to some of the ancient Greek philosophers. Socrates left behind no works or books. What we gleam from Socrates and who he was comes from students of Socrates like Plato and others. One of the comments Socrates is known to have said is, “When the argument is lost, slander becomes the tool of the loser.” I absolutely love this statement made by Socrates because it is 100% truth. How often have you been in a debate with someone only to have the other person resort to name calling or worse? Socrates was himself punched, kicked, had his hair pulled, and ultimately killed for searching for the truth. And yet today, in 2021, slander is alive in well from those who try and conceal bad faith arguments or bad acts.

     Would you consider hiring a bankruptcy lawyer who was fired from their job filing bankruptcies? I would not. I would prefer my bankruptcy law not have been terminated from their former firm for any reason. If you were terminated from your job, I would naturally wonder why were you terminated from your previous job? I mean, do you struggle following boundaries, easy boundaries set by your former employer? How do I know you will follow simple boundaries with me as a client?

     What is the single biggest mistake I see people in Minnesota make when they are looking for bankruptcy representation? I see two common mistakes. First, too many people chose the first firm they talk with. Now if the first firm you talk with is LifeBack Law Firm, a quality Minnesota bankruptcy law firm, you have got something. But too often I hear the horror stories of people who select the first firm only to find out later that firm’s reviews are horrible. Just take a look at some of these law firms Google reviews and even Glassdoor reviews and you will see you may want to keep dialing the phone.

You are not alone. Each year, thousands of good Minnesotans find themselves suffering with overwhelming debt often through no fault of their own. Broken relationships, businesses that fail, medical problems that occur, incomes that drop, and yes, bad financial decisions that get made because we are human and not robots. But when you are suffering from debt, the last thing you ever want is to deal with a law firm full of cold and antiseptic people who simply don’t care about you at all and you can feel it. There is a better way.