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
 

(Video) What Assets Must Be Disclosed In Chapter 7?

Posted by Wesley Scott on July 21

This is a common question we get. Do I have to disclose all my assets? Yes, when you file Chapter 7 Bankruptcy, you are required to sign the disclosures you make under penalty of perjury that all of the information contained in the disclosures are true, correct, and complete. In other words, you are required to disclose all your assets including your home and vehicles.

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(Video) What Is A Chapter 7 Bankruptcy?

Posted by Wesley Scott on July 20

A Chapter 7 Bankruptcy is an asset based bankruptcy. Debtors do not make payments back to their creditors. Instead, debts get wiped out or discharged to the extent there are no non-exempt assets to liquidate and disburse to creditors. The vast majority of Chapter 7 Bankruptcies are what we call no-asset bankruptcies. That is, debtor have no non-exempt (unprotected) assets they would lose to a Chapter 7 trustee.

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(Video) Do You Have To Include All Debt In Chapter 7?

Posted by Wesley Scott on July 19

You don’t make payments back to your creditors in a Chapter 7 Bankruptcy. This is the opposite of a Chapter 13 Bankruptcy where you make regular monthly payments back to your creditors through a Chapter 13 Bankruptcy trustee.

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(Video) DO CREDITORS GET PAID IN A CHAPTER 7 BANKRUPTCY?

Posted by Wesley Scott on July 18

You don’t make payments back to your creditors in a Chapter 7 Bankruptcy. This is the opposite of a Chapter 13 Bankruptcy where you make regular monthly payments back to your creditors through a Chapter 13 Bankruptcy trustee.

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(Video) Why Is Chapter 7 Referred to as a "Fresh Start" Bankruptcy?

Posted by Wesley Scott on July 17

You have heard this before right? A Chapter 7 Bankruptcy is sometimes referred to as a “Fresh Start” bankruptcy? But what does this mean? It means this- it means that in a Chapter 7 Bankruptcy, you do not make payments back to your creditors. At the end of about a 4 month process your liability on your debts is wiped out (discharged), forever, tax free! Now, that sure seems like a “Fresh Start” to me, how about you?

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(Video) What Is A Chapter 7 Bankruptcy Discharge?

Posted by Wesley Scott on July 17

Not sure why, but when I think of the word “discharged” I think you have been discharged from duty in the military sense. Obviously, that is not what discharge means in the Chapter 7 Bankruptcy sense. When we say you have been “discharged” in the Chapter 7 Bankruptcy sense, we are referring to what happens with respect your personal liability on your debts. A discharge is granted under Section 727 of the Bankruptcy Code.

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(Video) What Does It Mean To Liquidate Assets In A Bankruptcy?

Posted by Wesley Scott on July 17

The language of bankruptcy attorneys can seem like Greek to the non-attorney. What does it mean for a Chapter 7 trustee to “liquidate” assets? When would the trustee do such a thing anyway? When we say, a Chapter 7 trustee will “liquidate” assets, we mean the Chapter 7 trustee will sell the assets and reduce the physical assets to money. You can’t take physical assets and distribute those assets to creditors. Instead, you sell the assets, reduce the assets to money, and disburse those proceeds to creditors pro rata and based on a set of priorities.

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(Video) What is a Chapter 7 “No-Asset” Case?

Posted by Wesley Scott on July 17

So you are reading up on Chapter 7 Bankruptcies and you come across the term “no-asset case” and you wonder what that means. The vast majority of Chapter 7 cases filed in the United States are what we lawyers refer to as “no-asset cases”.

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(Video) Are Debts Discharge In Chapter 7 Taxable?

Posted by Wesley Scott on July 16

This is a great question to ask. Normally, debts that are forgiven are taxable income to you. For example, if you had 100k in debt and your creditors all said- forget about it and wiped it out that is fantastic, except, you now will have to pay taxes on the 100k. Why? Anytime an entity writes off a loss on their taxes it is income to someone else. Make sense?  Now, let’s be clear, paying taxes on 100k is better than paying 100k. If your tax bill is 35k you just saved 65k.

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If I File Bankruptcy in Minnesota How Much Cash Can I Keep?

Posted by Wesley Scott on July 15

Over a third of Minnesotans have more than $1,000 which they keep for financial emergencies. Credit card payments and medical bills usually do not qualify as such. So, many Minnesota bankruptcy filers have at least a few hundred extra dollars in the bank. Sometimes, this money is not even an emergency fund. They simply need it to pay bills.

The bad news is that, in a Chapter 7 bankruptcy, the trustee liquidates as many nonexempt assets as possible to pay the debtors’ medical bills, credit cards, and other unsecured debts. The good news is that cash is often an exempt asset in Minnesota. Even if that’s not the case, at Kain & Scott, we know how to use legal loopholes in your favor.

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Can Chapter 13 Save My Minnesota House?

Posted by Wesley Scott on July 14

Most banks have very little patience when it comes to missed mortgage payments. In fact, many lenders begin pre-foreclosure proceedings after just two missed payments. So, distressed Minnesota homeowners have very little safety cushion.

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What Really Happens When You File Bankruptcy?

Posted by Wesley Scott on July 13

So you decided to file bankruptcy, and get your life back. You have resolved yourself to the fact that of all the options available to you, filing for bankruptcy, getting a fresh start, makes the most sense. I am really proud of you and honor your courage and anxiety! There is a lot of fear about filing bankruptcy. You wonder what people will think of you, what will they ask you and if you have to go to court?

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Buying a House After Bankruptcy

Posted by Wesley Scott on July 12

For many people, the thought of buying a house after bankruptcy is one of the reasons why they want to avoid filing for relief from their debts. They assume that once they file bankruptcy they will not be able to obtain any type of credit, including a mortgage, because of the bankruptcy.  Unfortunately, this fear keeps some people from filing a bankruptcy case or delays the decision to file bankruptcy until matters are much worse.  The bankruptcy myth that a debtor will never qualify to buy a house after bankruptcy is simply that — a myth.  

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WHAT TO DO WHEN YOUR CHAPTER 13 PLAN DOESN’T “WORK” ANYMORE - PART 5

Posted by Wesley Scott on July 11

In the last few blogs, I’ve written about the choices people who are in a chapter 13 bankruptcy case have when, for whatever reason, the chapter 13 plan payments have become difficult to afford.  I wrote about simply catching up on past-due payments, or setting up a structured repayment plan, called a cure order, when the financial problem facing a chapter 13 debtor is temporary.  In my last blog, I looked at plan modification, a restructuring of the chapter 13 plan, in cases where post-bankruptcy-filing financial problems are more permanent and profound.

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(Video) WHAT YOU NEED TO KNOW ABOUT DECLARING BANKRUPTCY

Posted by Wesley Scott on July 10

I am a proponent of erring on the side of filing bankruptcy. Why? Because hitting the reset button is good for you mentally and physically. Who among us wants to live with overwhelming debt that results in stress and worry that sometimes doesn’t end for years? Not me. I have high anxiety. I don’t necessarily mind problems, but I cannot have no solutions. I also don’t want solutions that delay getting relief. For, me delayed relief from a problem, is no relief.

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