Minnesota Bankruptcy Lawyers
Talk to a Minnesota bankruptcy attorney about your financial future.
If you're working hard every week only to find that your paycheck never quite covers the bills and your balances are climbing, talk to a Minnesota bankruptcy attorney.
A local personal bankruptcy lawyer can examine your finances and may recommend whether Chapter 7 or Chapter 13 bankruptcy as a possible solution for you.
Connect with an attorney today. Just fill out the form below or call 877-833-2410, and we'll put you in touch with a local bankruptcy lawyer for a no-obligation consultation. Take control of your finances—get information about your situation.
Minnesota Bankruptcy Laws
Filing Chapter 7 Bankruptcy
Bankruptcy laws give two main options to individual seeking relief from unmanageable debt: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Each can provide unique protections and solutions to financial difficulty depending on your situation.
Bankruptcy laws are designed to provide protection from creditors. When you file bankruptcy, a special court order known as the automatic stay goes into effect, which prevents creditors from contacting you on the debts you've included in your filing during the duration of your case.
The automatic stay may put a halt to foreclosure, lawsuits, and collection calls and allow you to focus on what matters: moving forward from your bankruptcy.
Personal Bankruptcy Options
Chapter 7 bankruptcy is the most common type of bankruptcy filed in Minnesota bankruptcy courts.
In a Chapter 7 bankruptcy case, debts related to credit cards, medical bills and personal loans may be completely eliminated by the bankruptcy court.
Debts are eliminated through a process known as liquidation, in which certain assets may be sold by the bankruptcy court to repay creditors. However, Minnesota laws protect certain assets from liquidation, including:
- Homestead: Property up to 160 acres worth up to $300,000. If used primarily for agriculture, valued up to $750,000.
- Wages: Up to 75% of gross earnings
- Automobile: $2,000 for one vehicle; up to $20,000 for a vehicle modified to accommodate physical disability
- All clothing, utensils, food, and musical instruments
- Bible, church pew and burial plot
- One watch, and up to $1,225 for wedding rings
- Up to $4,500 for household appliances, phonographs, radios and televisions
- Up to $5,000 for tools of the trade
Thanks to these exemptions, many Chapter 7 cases are "no-asset" cases, meaning that the individual seeking bankruptcy relief does not have to part with any possessions.
In order to file Chapter 7 bankruptcy, you must qualify under the means test, which compares your income to the median for your family size in Minnesota. A bankruptcy attorney can help you determine your eligibility.
Filing Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy case, you, the bankruptcy court and your creditors create an affordable repayment plan, which allows you to repay some or all of your debts over a period of three to five years.
Chapter 13 bankruptcy is typically used by those who do not qualify for Chapter 7 under the bankruptcy means test, who have valuable assets not protected by exemptions, or who wish to repay their debts over time.
Many homeowners facing foreclosure turn to Chapter 13 bankruptcy, as it allows them to halt the foreclosure process via bankruptcy's automatic stay, and to catch up on past-due payments.
Ask a Minnesota Attorney Which Bankruptcy Chapter is Right for You
Deciding to file bankruptcy may be the first step to a life free from overwhelming debt. Ask a Minnesota bankruptcy lawyer which chapter might be right for you, and take the next step toward financial freedom.
Minnesota bankruptcy laws may have changed since our last update. For
the latest information on your state's bankruptcy laws, speak to a local
Minnesota bankruptcy lawyer.