Welcome To The MN Bankruptcy Blog

Inside you will find over 500 helpful articles discussing the Chapter 7 & 13 Bankruptcy Process and other solutions for difficult financial situations.

 
You can search for specific topics or just click around. If you can't find what you're looking for here or in our FAQs please Send Us A Message
 

How Bankruptcy Can Help after a Serious Illness

Posted by William Kain on November 15

It’s widely known that overwhelming medical debt pushes many Americans into bankruptcy, even if the specific percentage of bankruptcy cases is hotly debated. If you’re recovering from a major illness, the overall numbers don’t matter - the important fact is that you’re drowning in medical debt. Maybe you’ve lost income, or maybe you’re now partially or totally disabled as a result of your medical condition. Whatever your situation, you’re probably extremely anxious about your future and understandably so.

Read More

Discharging Debts in Bankruptcy

Posted by William Kain on November 13

The ultimate goal of a consumer bankruptcy case is the discharge of debts. While a discharge can greatly improve your financial situation, it is not a magic eraser that wipes out all types of debts. The following are some frequently asked questions about the debt discharge at the end of a bankruptcy case.

Read More

(Video) WHO ARE THE MAJOR PLAYERS IN A CHAPTER 7 BANKRUPTCY AND WHAT DO THEY DO?

Posted by Wesley Scott on November 10

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?

Read More

MAKING THE DECISION - PART TWO

Posted by William Kain on November 9

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.

Read More

Repayment Plans in Chapter 13 Cases

Posted by William Kain on November 8

Instead of liquidating assets, Chapter 13 bankruptcy requires you to make monthly payments for three to five years before you can receive a discharge. The court will want to make sure you have enough regular income to make reasonable payments toward your debts. If you don’t have enough income, you may have to file for Chapter 7 bankruptcy instead of Chapter 13. The following is some additional information about how repayment plans work in a Chapter 13 case.

Read More

WHAT HAPPENS WHEN YOUR INCOME CHANGES WHILE YOU ARE IN A CHAPTER 13? PART TWO

Posted by William Kain on November 8

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.

Read More
Learn What To Expect From Your Free Bankruptcy Consultation

What Happens When You File Bankruptcy: Bankruptcy Discharge

Posted by William Kain on November 7

The goal in consumer bankruptcy cases is the discharge of debts. Both a successful Chapter 7 and Chapter 13 bankruptcy will end with the court discharging a debtor’s qualified debts, which releases their obligation to pay those debts. It is important to understand what happens when you file bankruptcy,when a discharge occurs and how it works to improve your financial situation.

Read More

What Happens When You File Bankruptcy: Chapter 13 Repayment Plan

Posted by William Kain on November 6

Chapter 13 bankruptcy is commonly known as the “reorganization” bankruptcy. Under this chapter of the U.S. Bankruptcy Code, the bankruptcy trustee will reorganize your debts based on priority, and then will require a debtor to make monthly payments, which the trustee will then distribute to creditors. Your repayment plan can last for three to five years, depending on your financial situation. Some debts must be fully repaid during the repayment plan, and the court may discharge any qualified debts that remain upon completion of the plan.

Read More

WHAT HAPPENS WHEN YOUR INCOME CHANGES WHILE YOU ARE IN A CHAPTER 13?

Posted by William Kain on November 5

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. 

Read More
Download our Free Debt Solutions Comparison Chart

(Video) WHAT NOT TO DO BEFORE FILING CHAPTER 7 BANKRUPTCY

Posted by Wesley Scott on November 4

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!

Read More

(Video) WHAT IS A REAFFIRMATION AGREEMENT IN A CHAPTER 7 BANKRUPTCY?

Posted by Wesley Scott on November 3

To understand what a reaffirmation agreement is in Chapter 7 Bankruptcy, you first must understand what the goal of a Chapter 7 Bankruptcy is. The goal of a Chapter 7 Bankruptcy is to obtain a Chapter 7 Bankruptcy discharge. A Chapter 7 Bankruptcy discharge absolves you of your personal liability for the underlying debt. Creditor must write the debt off and is not able to pursue debtor for the debt again.

Read More

(Video) WHO NORMALLY ATTENDS A CHAPTER 7 MEETING OF CREDITORS?

Posted by Wesley Scott on November 2

I think one of the most anxiety producing events for a client is the meeting of creditors or 341 meeting. This is the meeting where the Chapter 7 trustee has debtor verify that the information on the schedules is true and correct and complete.

Read More

(Video) WHAT IS A CHAPTER 7 341 MEETING OF CREDITORS AND WHY DO I HAVE TO ATTEND?

Posted by Wesley Scott on November 1

Section 341 of the Bankruptcy Code requires Chapter 7 trustees to conduct and for Chapter 7 debtors to attend a meeting of creditors. The code requires that a meeting of creditors must be conducted within a reasonable time from filing the Chapter 7 Bankruptcy. The purpose of the meeting of creditors is two-fold. First, it is to give the Chapter 7 trustee a chance to verify that the information contained in debtor’s schedules is true, correct, and complete. Second, the purpose of the meeting is to give creditors a chance to appear and ask debtors questions about debtor’s assets and debts and financial circumstances.

Read More

(Video) WHAT ARE THE DUTIES OF A CHAPTER 7 TRUSTEE?

Posted by Wesley Scott on October 31

Section 704 of the Bankruptcy Code outlines the duties of a Chapter 7 trustee. A chapter 7 trustee’s primary role is to administer the Chapter 7 Bankruptcy case. This means that once assigned a Chapter 7 case by the US Trustee’s Office, a Chapter 7 trustee must review the schedules, question the debtor at a 341 meeting, and generally make sure debtor’s schedules are verified by debtor themselves.

Read More

(Video) WHAT ARE REDEMPTION AGREEMENTS IN CHAPTER 7 BANKRUPTCY?

Posted by Wesley Scott on October 30

We have discussed what reaffirmation agreements are in Chapter 7 Bankruptcy but what is a redemption agreement in a Chapter 7 Bankruptcy? The best way to illustrate a redemption agreement is to give you an example. Say you own a vehicle worth 5k but you owe 12k on the underlying loan.

Read More