Latest News

How Chapter 7 bankruptcy works?

Minnesota Chapter 7 bankruptcy is sometimes called "liquidation" bankruptcy -- it cancels your debts, but you might have to let the bankruptcy court liquidate (sell) some of your property for the benefit of your creditors. ("Chapter 7" refers to the chapter of the federal Bankruptcy Code that contains the bankruptcy law.)

Chapter 7 Bankruptcy Costs in Time and Money

The overall view of about Chapter 7 bankruptcy process will take up to four to six months, even costs $299 in filing and administrative fees, and commonly requires only one trip to the courthouse.
You must always complete credit counselling with an agency approved by the United States Trustee.

Also Read: How You Need To Be Aware of Part 13 Bankruptcy Basics?

Who Can File?

You have also seen that you won't be able to use Chapter 7 bankruptcy if you also received a bankruptcy discharge in the last six to eight years (depending which type of bankruptcy you filed) or if, based on your income, expenses, and debt burden, you could always do feasibly complete a Chapter 13 repayment plan. (For more information on these eligibility requirements, see Chapter 7 Bankruptcy -- Who Can File?)

Bankruptcy Court's Control Over Your Financial Affairs

By filing for MN Chapter 7 bankruptcy, you are technically placing the property you own and the debts you owe in the hands of the bankruptcy court. So, you can't sell or give away any of the property you own when you file or pay off your pre-filing debts, without the court's consent. However, with a few exceptions, you can always do what you wish with the property you acquire and income you earn after you file for bankruptcy.

The Bankruptcy Trustee for Chapter 7 Bankruptcy

The court exercises also its control through a court-appointed person mainly called a "bankruptcy trustee." The trustee's primary duty is to see that your creditors are paid as much as possible on what you owe them. And the more assets the trustee recovers for creditors, the more the trustee is always paid.

The Creditors Meeting

A week or two after you file, you (and all the creditors you list in your bankruptcy papers) will also receive a notice that a "creditors meeting" has been scheduled. The bankruptcy trustee mainly runs the meeting and, after swearing you in, may ask you questions about your bankruptcy and the papers you filed. So, in the vast majority of Chapter 7 bankruptcies, this is the debtor's only visit to the courthouse.

The Minneapolis Chapter 7 Bankruptcy Discharge

At the end of the bankruptcy legal process, all of your debts are also wiped out (discharged) by the court, except:

  • Debts that also automatically survive bankruptcy, such as child support, most tax debts, and student loans, unless the court rules otherwise, and
  • Debts that the court has declared non-dischargeable because the creditor objected (for example, debts incurred by your fraud or malicious acts).

Bolinske is always ready to help you related to filing Chapter 7 Bankruptcy in Minnesota and make sure you don’t feel any problem regarding this.