Minnesota Consumer Bankruptcy Lawyer, Attorney
Our Consumer Bankruptcy lawyers include:
Chapter 7 is the most typical bankruptcy where most unsecured debt is legally discharged or eliminated, which means you never have to repay those debts. Although most kinds of unsecured debt can be discharged in a Chapter 7 filing, taxes, child support or maintenance, and student loans cannot be. Most people who file Chapter 7 can keep their house and cars, as long as they continue to pay the loans against them. Individuals who have recently lost a property to foreclosure in the current housing crisis can eliminate any balance due on junior mortgages in bankruptcy.
One of the most important protections a bankruptcy provides is what is known as the “automatic stay,” which is a freeze that goes into effect immediately upon filing. The stay stops garnishments, levies, repossessions, debt collection, and even foreclosures.
The current bankruptcy law requires that most individuals filing bankruptcy qualify by way of an income averaging test call the Means Test. Most individuals do still qualify for Chapter 7. An additional requirement under the new law is that before a bankryuptcy petition can be filed, the debtor (and his or her spouse, if filing jointly) must complete credit counseling from a United States Trustee approved credit counseling agency and receive a credit counseling certificate. A list of United States Trustee approved pre-bankrupty credit counseling agendies can be found on the court’s website, www.mnb.uscourts.gov, Filing, Guidance, Approved Credit Counseling Agencies, or contact our office to receive a list of the approved credit counseling agencies.
This webpage contains general information and not legal advice. It is based on Minnesota law in effect at the time of writing. An attorney at Farrish Johnson can advise you about how the law applies to your specific situation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.