A common concern people contemplating filing Chapter 7 Bankruptcy have is what assets can I keep if I file Chapter 7 Bankruptcy? Will I lose all my assets? Can I keep all my assets? Exactly what will I lose and what can I keep?

Judging by what you see and hear in the media, it's not uncommon to hear about businesses filing for bankruptcy. Some of these businesses go on to success in life after bankruptcy. And these aren’t just huge, national corporations - according to the Small Business Administration, roughly 80 percent of small businesses will fail. If you’re a sole proprietor whose business is facing insurmountable debt, you may be wondering whether bankruptcy is a viable option for you.

Chapter 13 bankruptcy is an attractive option for people who just need to reorganize and better manage their debt. In order to accomplish this, Chapter 13 requires people to enter into a repayment plan that is approved by the court and managed by the trustee. Your creditors have to halt any collection efforts and are required to make a good-faith effort to work with you on repayment terms that you can afford. The payment plan can take up to five years to repay your debts.

Bankruptcy filings declined again in 2017, but only by 0.07 percent. That’s the smallest decline since 2010, and it signals that the number of filings may soon inch back up. The growing number of retail and other business bankruptcies may accelerate this trend. Small brick-and-mortar, mom-and-pop businesses in Minnesota and elsewhere simply cannot compete anymore.

That last point is an important one. Moneylenders like to promote the myth that only people who recklessly overspend and are financial failures file bankruptcy. This myth discourages people from seeking Chapter 7 and other bankruptcy relief. In some cases, overspending is a problem. But in most cases, there are other issues involved. Typically, these issues are beyond the debtor’s control.

Every year, the IRS collects over $3 trillion. Given the size of this revenue stream, many people think that the Service will overlook a few thousand dollars in unpaid taxes here or there. But that’s definitely not the case. The IRS is, in effect, the world’s largest bill collector. And this agency has access to many tools that private debt collectors can only dream about.

Bankruptcy is usually the best way, and sometimes the only way, to keep the IRS at bay. As outlined below, it gives families breathing space and also permanently eliminates tax debt in many cases.

Bankruptcy is quite unlike other civil cases in Minnesota. In a divorce or commercial dispute, the judge controls almost everything that goes on in the case. But in a bankruptcy, the debtor may not ever even see the judge. In fact, it’s not uncommon for the debtor never to even go in a courtroom.

Instead, the trustee has day-to-day responsibilities in terms of case management. These responsibilities vary significantly between a Chapter 7 and a Chapter 13. However, the trustee’s overall role in a Minnesota bankruptcy remains the same. The trustee, who is not a judge and may not even be a lawyer, must do what is in the best interests of the creditors. The trustee is not on your side. That’s your lawyer’s job.

At Kain & Scott, we want our Minneapolis guests to be careful who they hire to represent them in their bankruptcy case.  Why do you have to be careful who what Minneapolis Bankruptcy Lawyer you hire? Because there are “professionals” who try and solicit you to file bankruptcy with them who are not necessarily the best qualified to represent you in the bankruptcy case.

At Kain & Scott, we have an all-points bulletin and warning for those of you living in Minneapolis, Minnesota and are looking to file bankruptcy. Be very careful who you choose to file your bankruptcy case. Why? Because there are “professionals” out there that may have their bottom line as a priority over your well-being. Be very careful of people advertising to you who are located out of state. Be careful of those people advertising bankruptcy services on park benches, billboards, or even tv!

Absolutely not. Financial problems are so common that they touch almost everyone. Many people live paycheck-to-paycheck. So even a slight income disruption or a small unexpected expense is often devastating. One in four Minnesotans worry about money so much that they have PTSD-like symptoms. That figure is self-reported, so the actual number may be even higher.

In other words, if financial problems could affect your job, many of us would be out of work. That’s simply not a workable environment, so bankruptcy discrimination is illegal.

Chances are, if you are considering filing Chapter 7 Bankruptcy in Minneapolis, MN, you are thinking that filing bankruptcy would be terrible for your credit score and profile. If you believe this, you are like the vast majority of Minnesotans. When most Minnesotans think about bankruptcy, and its’ impact on ones’ credit score, you think that bankruptcy would be devastating. Guess what? You are all wrong!

Yes, I know, there are better words in the English dictionary than ‘bankruptcy”. But, not filing bankruptcy is even worse! Don’t believe me, let’s talk. My opinion has always been the same, Minneapolis, Minnesotan’s should err on the side of Minneapolis Bankruptcy. Debt consolidation sucks. Why? Well, there are numerous reasons why debt consolidation sucks, but here are three.

Depending on the timing, bankruptcy’s automatic stay often stops eviction actions in Minneapolis, even if the wolves are already gathering at the door.

To fully answer this question, it’s important to understand how the eviction process works in the Gopher State. In most cases, landlords give notice of the defect and an opportunity to cure. Most Minneapolis evictions are based on unpaid rent. Some other common grounds include a lease violation (e.g. an unauthorized pet or roommate), drug activity, prostitution, weapons violations, or some other public nuisance, and a holdover tenancy. This letter is not a legal eviction notice, even if it contains the E-word.