Filing a chapter 7 bankruptcy case allows people who are struggling to pay their debts find financial relief. Anybody who is under the Minnesota State median income level for their household size can file a chapter 7 case. 

When a person files a chapter 7 bankruptcy case, they must make a decision as to what they intend to do with their existing secured vehicle loans. Bankruptcy eliminates the debtor’s personal legal responsibility to repay a vehicle loan but does not eliminate the lender’s lien against the vehicle. Therefore, when a debtor files a chapter 7 case, they must choose whether to keep the vehicle and pay for it, or stop making payments, and surrender the vehicle back to the lender.