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 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) 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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Four Dischargeable Debts In A Minnesota Chapter 7

Posted by William Kain on July 1

Just like there is good cholesterol and bad cholesterol, there is also good debt and bad debt. The average Minnesota household has about $134,000 in debt. But much of this debt is secured debt, like mortgages and auto loans. Most people do not mind paying these loans, as long as the terms are reasonable and they like the car, house, or other collateral.

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(Video) 3 THINGS TO DO WHEN SUFFERING FROM OVERWHELMING DEBT IN MINNESOTA

Posted by Wesley Scott on June 3

If you are living in or around Woodbury, MN and suffering from overwhelming debt, you are not alone. Each year, more than 15,000 Minnesotans file for bankruptcy protection because the debt simply becomes unmanageable. Suffering from overwhelming debt is mentally and physically stressful. If you find yourself in this position, there are a few things to do right now.

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Will Bankruptcy Clear All Of My Debt?

Posted by William Kain on April 23

Technically, the answer to this question is “yes.” However, there may be some debt that you do not want bankruptcy to clear.

There’s a significant difference between secured and unsecured debt. Secured debt includes things like home mortgages and auto loans. If the debtor violates the security agreement, the moneylender has the right to repossess the collateral. That right remains in place whether the debtor files bankruptcy or not. Unsecured debts are things like credit cards and medical bills. As outlined below, these debts sometimes have collateral consequences as well. But in most cases, they are quite limited.

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What Bankruptcy Wipes Out Debt?

Posted by William Kain on April 11

All bankruptcy wipes out debt. The type of bankruptcy you need to file usually depends on the type of debts you owe.

David Debtor had some unexpected medical bills last year. His daughter had emergency surgery out-of-network and he ran his car off the road one night. He now owes tens of thousands of dollars that he can’t afford to pay. He tried to retire the debt as best he could. But his payments hardly made a dent and put him behind in other areas. He’s not quite at the desperation point, but he is getting close.

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How to Find a Winning Minnesota Bankruptcy Law Firm

Posted by Kelsey Quarberg on February 21

Sports fans have been anxiously waiting and the time is almost here: March Madness. As you gear up for a series of exciting games and limitless chicken wings, there’s one preparation that any dedicated basketball fan takes very seriously: picking a winning bracket.

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Getting the Most Out of Your Minnesota Bankruptcy

Posted by Kelsey Quarberg on February 10

If you’re one of the thousands of Minnesota residents who is considering filing for either Chapter 7 or Chapter 13 bankruptcy, follow these simple tips to help you get the most out of your Minnesota bankruptcy.

 

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How Does Bankruptcy “Work” - Part 4

Posted by William Kain on February 8

For the last three weeks, I’ve written about the function of bankruptcy to serve the twin purposes Congress set out in passing bills that codified bankruptcy law into the Bankruptcy Code: treating creditors fairly and allowing debtors to live with dignity.  I’ve written about why the bankruptcy debtor has to list assets and liabilities accurately in her schedules, about the specific features of chapter 13, the benefits of the automatic stay in bankruptcy and the requirement that the bankruptcy debtor list all of her creditors in her bankruptcy paperwork.  This week, I’ll continue to look at how bankruptcy law and procedure seeks to meet the policy goals of Congress.

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(Video) Common Fears Associated With Filing Bankruptcy In Minnesota

Posted by Wesley Scott on February 1

If you live in Minnesota and you are contemplating filing a Chapter 7 or Chapter 13 Bankruptcy, you might feel nervous about doing so. After all, you don’t file bankruptcy every day. You will have a lot of questions about doing so. You may feel nervous about filing bankruptcy.

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How Much Does Filing for Bankruptcy in Minnesota Cost?

Posted by Kelsey Quarberg on January 30

You may have heard or seen advertisements claiming that this firm or that firm offers low-cost bankruptcy filing. But do you know what that advertised “low price” will actually cost you?

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Are Bankruptcy Discharged Debts Taxable In Minnesota?

Posted by William Kain on January 29

Typically, if someone else pays a person’s debts, the IRS considers such payments to be taxable income. Prominent exceptions include certain student loan repayments and gift repayments. Based on that analysis, many people think the answer to this question is a resounding “yes.” But it is actually a surprising “no,” because bankruptcy discharge is different from debt repayment.

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How Does Bankruptcy “Work” - Part 2

Posted by William Kain on January 24

Last week, I wrote about the nuts and bolts of bankruptcy - how bankruptcy “works.” In doing so, I concentrated on the paperwork any bankruptcy debtor has to file with the court: the bankruptcy petition, schedules and statements.  And I wrote about those documents through the lens of the two goals of bankruptcy: to treat a debtor’s creditors fairly, and to allow the debtor to live with dignity.  This week, I want to take a deeper look at how bankruptcy law attempts to satisfy those two goals.

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Can I File Bankruptcy For my Deceased Parent’s Home in Walker, MN?

Posted by Misty Myers on January 22

What happens when the unexpected happens? You are going along and unexpectedly (or perhaps it is expected), your parent passes away without a will, leaving their home to you as the beneficiary. You are now trying to juggle the mortgage payment on your parent’s home in an effort to keep the home in the family, in addition to another mortgage and your own debt. Pretty soon you realize that your parents were behind on their mortgage payments when they passed away and you get that dreaded foreclosure notice. You were barely making ends meet before and now you need to come up with additional money to save the house.

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Can Bankruptcy Be Filed On Medical Debt In Edina, Minnesota?

Posted by Wesley Scott on January 10

Medical bills are the worst kind of debt there is. They are impossible to predict and certainly not preventable. I have a relative who is a young woman who has brain cancer. Do you have any idea how huge the medical bills are for something like this? That is not to mention the amount of other debt incurred along with medical bills.

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