24 Hour Toll Free Help

Minnesota Bankruptcy Information

Filing Chapter 7 Bankruptcy in Minnesota

Chapter 7 bankruptcy is the form of personal bankruptcy that is most frequently filed in Minnesota. In Chapter 7, your non-exempt property is given to a bankruptcy trustee. The trustee then liquidates your property and gives the proceeds to your unsecured creditors. In exchange for this, you are entitled to a discharge of some of your debt.

Chapter 7 is called \"straight\" or \"liquidation\" bankruptcy. The reason many people want to file Chapter 7 bankruptcy in Minnesota is because you can have all of your unsecured debts wiped away (discharged). Unsecured debts are things like medical bills and credit cards. Another reason you probably would like to file Chapter 7 is that some of your secured debts like your auto and home may be exempt. In fact, you may not have any property that is non-exempt. This means you will not have to lose anything.

Filing Chapter 13 Bankruptcy in Minnesota

Chapter 13 is the other kind of personal bankruptcy that is usually filed in Minnesota. In Chapter 13 bankruptcy, you keep possession and ownership of all of your assets. In return for this, you have to give some portion of your future income to repay your creditors. Usually, this lasts over a period of three to five years.

Chapter 13 is quite a bit different from Chapter 7. It is called \"reorganization\" or \"rehabilitation\" bankruptcy. You get to keep your non-exempt property and schedule a repayment plan for paying at least a portion of your secured debts. This is called a Chapter 13 plan. It can continue under Court supervision for as long as five years.

Should I File Chapter 13 or Chapter 7 Bankruptcy in Minnesota?

Chapter 7 may seem like a \"no brainer\". It may look a lot better than Chapter 13 bankruptcy. But, there are conditions where filing Chapter 13 will be the right choice for you. If you have property that you would like to keep, and it is not exempt, Chapter 13 is probably a better choice. Also, if you do not qualify to file Chapter 7 in Minnesota, except in rare instances, Chapter 13 bankruptcy is your only option.

The key to eligibility for filing Chapter 7 bankruptcy in Minnesota is your income. There is a median for a family your size in Minnesota. You can usually file Chapter 7 if your income is lower. If it is higher, your income is put through the \"Means Test\". This test checks what is referred to as \"disposable\" income. If you have enough to pay back at least a portion of your unsecured debts, you cannot file Chapter 7 in Minneapolis.

Take the first step by using our free, confidential legal evaluation tool to see if bankruptcy can wipe your slate clean and give you the financial fresh start you deserve. Remember, when deciding if filing chapter 7 or chapter 13 bankruptcy is right for you, that our Minnesota attorneys are on your side.


Find Other Articles

  • Tagged with the keyword:
    filing

Chapter 7 and Chapter 13 Bankruptcy Help

The two most common consumer bankruptcies are Chapter 7 and Chapter 13, our sponsoring lawyers handle these types exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Our Bankruptcy attorneys will fight to protect your rights and your property, fight the aggressive and annoying creditors for you, and they can help you keep your home, vehicles and other property.

A lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.

Get Help Now

Recent Bankruptcy Articles

  • Home Equity and Bankruptcy
    If you have equity on your house, then it is possible to use that equity in order to pay off your Chapter 13 bankruptcy at a much faster pace.
    - read more

  • Fair Credit Reporting Act
    The primary purpose of the Fair Credit Reporting Act is to ensure fairness and accuracy of credit reporting, and that the procedures followed are reasonable.
    - read more

  • Most Common Reasons for Bankruptcy
    A list of ten most common reasons people usually file for bankruptcy, including harassment from creditors and to end wage garnishments.
    - read more

  • Student Loans and Bankruptcy
    According to new changes, your student loan will only be discharged if the bankruptcy court is convinced that paying back the loan would bring about undue hardships for you or the people who are dependent on you.
    - read more