Bankruptcy is an option for individuals and families suffering from the difficult economic times we find ourselves in. Chapter 7 bankruptcy often offers individuals a fresh start by discharging all dischargeable debts, while allowing the debtor to retain all of his or her exempt property. There are certain qualifications that a debtor must meet in order to qualify for a Chapter 7 bankruptcy. To determine whether or not you would qualify for a chapter 7 bankruptcy it is best to contact one of our attorneys. The income requirements change regularly and vary depending upon the size of the debtor's household.
Bankruptcy Property Exemptions in a Chapter 7 Bankruptcy
Both Minnesota and Federal laws dictate what property is exempt in a bankruptcy. The vast majority of debtors filing chapter 7 bankruptcy have a no asset bankruptcy, meaning that all of the assets of the debtor are exempt and not liquidated or sold by the trustee. A debtor has a great number of exemptions he or she can use to keep their property exempt during a chapter 7 bankruptcy. For instance, debtors can exempt some or all of the following; Car, Home, household goods and furnishings, jewelry, certain investment accounts, including IRAs and 529s, life insurance policies, and in some instances even a $10,000 wild card exemption for property that does not have a specific exemption provided for by law. If you would like to find out if a specific asset or piece of property is exempt, or what the monetary limit for an exemption is please contact one of our attorneys to discuss.
Bankruptcy Process and how long does it take?
Typically once a petition has been filed the debtor will receive a decision from the trustee within 4 months. Following our office's filing of the petition on the debtor's behalf the Court schedules a 341 hearing where the trustee assigned to the case questions the debtor regarding their assets and liabilities. Every bankruptcy client will have an attorney from our office present at the 341 hearing to assist. Following the meeting of creditors debtors wait for a decision which can take up to 3 months. Fortunately for the debtor who is receiving daily calls from creditors, the filing of a chapter 7 petition stops all collection actions, including phone calls and letters, from creditors unless the creditor specifically requests and is a grant a stay from the court.
Bankruptcy affect on credit and ability of Debtor to borrow money, get credit cards, or purchase a home?
Every debtors situation is different. However, many clients are surprised to learn that in as short as one year following bankruptcy their credit score may increase above what it was before filing. Typically recently discharged debtors begin receiving credit applications soon after their discharge. Every situation is unique and if you would like a more comprehensive examination of your situation please contact our office and ask to speak with one of our bankruptcy attorneys.
Contact a Minneapolis/St Paul, Minnesota, Bankruptcy Attorney Today
If you are seeking information about how to file for bankruptcy or what form of bankruptcy would best suit your situation, contact our office today. You can reach an experienced bankruptcy lawyer at 651-315-8755, Toll Free at 866-929-0453, or online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
