Medical debt is dischargeable in bankruptcy, both in chapter 7 and chapter 13 cases.

People occasionally tell me they feel bad about not paying their debts when considering bankruptcy. Sometimes, people are even downright distraught and try to apologize for being irresponsible. First things first: you do not have to apologize for taking a problem seriously and considering your options. But it also got me asking myself: is it morally wrong to not pay your debts?

Pursuant to 11 U.S.C. § 548(a)(1)(B) the trustee can avoid certain transfers made within two years before the petition filing date.

Like any problem, the first step is admitting, I have a debt problem. I am not sick, my finances are sick. Once you get that far, you are well on your way to getting your life back. In St. Cloud, MN, we are a bankruptcy law firm right near where you live. If you are looking for a Chapter 7 Bankruptcy lawyer near you or a Chapter 13 Bankruptcy lawyer near you, LifeBack Law in St. Cloud is right in your back yard. We are locating at 13 7^th Avenue South, St. Cloud, MN 56301. We are located downtown St. Cloud on 7^th avenue south; right across the street from Capitol One Bank and a few doors down from Jets Pizza.

If you are planning on filing bankruptcy there are a few things you should try to avoid before your case is filed.

There are two sets of exemptions you can use in Minnesota, state and federal exemptions. You can use whichever is the most beneficial to you. Below are a few examples of why you may pick one over the other.

If you are considering filing bankruptcy, you likely are wondering what you will have to do in order to file. At Life Back Law we make the process easy for those considering filing bankruptcy.

Recently, I have been thinking a lot about the idea of words vs. actions. If you listen to the world, it is a very noisy place. Words and conversations never seem to end. Yet, I am struck by what we say sometimes versus what we do. For example, at LifeBack Law, our values are kindness, helpfulness, professionalism, and exceptional customer service. Would it be kind or helpful to say, we would really like to help you get your life back and then say good day!? Of course not, words, to mean anything, must be followed by actions that are consistent with the words. It is not kind and helpful to say we will be kind and helpful and then hand you a pile of worksheets to fill out would it?

Recently, I have been thinking a lot about the idea of words vs. actions. If you listen to the world, it is a very noisy place. Words and conversations never seem to end. Yet, I am struck by what we say sometimes versus what we do. For example, at LifeBack Law, our values are kindness, helpfulness, professionalism, and exceptional customer service. Would it be kind or helpful to say, we would really like to help you get your life back and then say good day!? Of course not, words, to mean anything, must be followed by actions that are consistent with the words. It is not kind and helpful to say we will be kind and helpful and then hand you a pile of worksheets to fill out would it

The US Constitution gives Congress the power to make laws that pertain to filing bankruptcy. Congress has enacted the Bankruptcy Code to define what Chapter 7 Bankruptcy is and what are the rules that define it. Each year, across the country, hundreds of thousands of citizens use the Chapter 7 Bankruptcy Code to get their lives back. 

Once the decision to file Chapter 13 Bankruptcy has been made, there are documents that you should gather to make the process of filing bankruptcy easier. We already know that credit reports and asset reports should be pulled as part of the process. But, there is more information that is needed by your attorney. If you would like to be your attorney’s hero, starting gathering these documents now.

When you invoke the power of the bankruptcy court, seeking protection from your creditors, you also have duties as well. Section 521 of the Bankruptcy Code outlines many of these duties. Chapter 13 debtors must file a host of schedules with the bankruptcy court and these schedules are verified under penalty of perjury. As such, these schedules must be complete and accurate. Filing inaccurate or incomplete schedules with the bankruptcy court may result in debtor being denied confirmation of the Chapter 13 plan, and worse, a denial of discharge or being charged with bankruptcy fraud.

So, you are thinking about filing Chapter 7 Bankruptcy and you say to yourself, I don’t want to lose my Harley Davidson Some folks are a lot like me, they have high anxiety and want to know who exactly is involved in this process and what do they do?

In an earlier post, I wrote about the decision-making process that our clients go through in determining whether to file a bankruptcy case.  The last post dealt in large part with the advisability of thinking through the financial problems carefully, and involving friends and relatives to get a sense of whether these supporters think the bankruptcy option is a good one.  At the end of the post I wrote that seeing an attorney is essential to good decision-making regarding the wisdom of filing a bankruptcy case.

In an earlier post, I started writing about a common issue in chapter 13 bankruptcy cases: a change in income experienced by the debtor while the chapter 13 plan is open.  The last post looked at why this is an issue - namely, the 2005 revision of the bankruptcy law that required chapter 13 bankruptcy debtors to annually send the chapter 13 trustee copies of filed state and federal income tax returns.  It’s from that tax information that a chapter 13 trustee can ask individuals already in confirmed chapter 13 plans to adjust their income and expense schedules to more accurately reflect the debtor’s month-to-month financial situation.

A chapter 13 bankruptcy is a very helpful tool for many people who are encountering overwhelming financial problems.  For individuals dealing with a potential mortgage foreclosure, chapter 13 offers a structured, affordable way to keep families in their homes.  For a person who has a car payment that has unexpectedly become too expensive, chapter 13 offers a way to restructure the car loan to make the payment more affordable.  For the person who is dealing with child support arrears, or back income taxes, chapter 13 provides a structure to pay these important obligations. 

So, you are thinking about filing Chapter 7 Bankruptcy and you say to yourself, I don’t want to lose my Harley Davidson worth 8k and no liens against it right? So, what do you do? You transfer the title to the Harley to your brother for nothing. Problem solved right? Wrong!