ANSWER: No, you are not permitted to pay off some of your creditors prior to filing for bankruptcy. That would give those creditors an advantage over the other creditors with respect to how quickly and/or completely they were paid. This is referred to as a preference. Accordingly, the court may order any such payments to be rescinded so that the money may be fairly allocated among the various creditors in the case. You may, however, choose to pay off some of your debts early after you file, as long as you keep up with your court-ordered monthly payments. There are some legal planning techniques that can be used to pay some creditors, and in some cases relatives, without violating any bankruptcy statutes. An experienced bankruptcy attorney should be able to explain how this can be accomplished.
ANSWER: Individuals may file for personal bankruptcy without their respective spouses filing. However, the spouse of a bankruptcy petitioner must provide certain information for use in the debtor’s bankruptcy paperwork. In addition, a debtor’s spouse may be affected by the petitioner’s bankruptcy even if the spouse is not actively participating in the proceedings. In Chapter 13 cases, much of the debtor’s income will be ordered to go toward monthly payments. In Chapter 7 cases, jointly owned property may not be completely exempt and therefore not completely protected. Also the non-filing spouse will still be liable for the jointly owed debts, even if the debt is discharged for the debtor.
ANSWER: Yes. Since 2005, bankruptcy petitioners are required by the Bankruptcy Code to attend a Credit Counseling course prior to filing and a Financial Management class within sixty days of their Section 341 Meeting of Creditors. The Section 341 Meeting of Creditors, or “341 hearing” for short, is a very brief (usually five to ten minutes) informational meeting that is scheduled for approximately thirty days from the date of filing. At this meeting that you attend with your attorney, the bankruptcy trustee will question the debtor about the bankruptcy petition that was filed to verify the accuracy of the information contained in it.
ANSWER: Chapter 7 bankruptcy in the most common form of bankruptcy use by individuals and allows for the wiping out of most unsecured debt. Unlike a Chapter 13 bankruptcy which involves a payment plan established by the bankruptcy court and you and allows for the ordering payoff of your debt. Chapter 7 bankruptcy allows you to keep certain property. The property that you are allows to keep is referred to as exemptions. This allows for what is commonly known as a “fresh start”.
ANSWER: Contact our office to schedule an appointment to speak with us. You can reach us by using our online form. We can also be reached by phone at MN (952) 920-1001 or AZ (480) 207-2203. Our attorneys can help you to decide whether bankruptcy is right for you and, if so, which type makes the most sense for your particular circumstances. Different types of bankruptcy have different eligibility requirements, and so it is very important that you consult with an attorney prior to planning any bankruptcy-related action.
ANSWER: It can be scary and stressful to work hard at your job only to find that you don’t have enough money to pay your bills at the end of the month. You know that you can’t keep living like this, but you aren’t sure what to do to end the cycle to regain control of your life.
There are, unfortunately, creditors, collection agencies, debt consolidation companies, and other entities out there that will try to take advantage of your situation. They may pressure you to make immediate financial decisions without thinking through the consequences or they may tell you that you have no choice but to follow their directions.
It is important to be wary of what these people, companies, or groups are telling you. They are looking out for their own best interests, not yours.
It is important to contact a Hennepin County bankruptcy lawyer. As a wage earner, you may be eligible for a Chapter 13 bankruptcy in Minnesota. There may be a way for you to keep your assets and get financial relief. Your Hennepin County bankruptcy attorney is required to look out for your best interests and to provide you with trustworthy legal advice.
For more information about what you can do to get out of financial trouble, please call one of our experienced Hennepin county bankruptcy attorneys today for a free consultation. We can be reached at MN (952) 920-1001 or AZ (480) 207-2203. We also encourage you to read our FREE book, What You Need to Know About Filing Bankruptcy in Minnesota, for more information.
ANSWER: A Chapter 13 bankruptcy proceeding in Minnesota may allow you to keep your home and avoid foreclosure. Even if you are behind on your mortgage payments, you may be able to keep your home in Chapter 13 bankruptcy cases.
In a Chapter 13 bankruptcy case, you together with your Minneapolis St. Paul bankruptcy lawyer will file a repayment plan to deal with paying your bankruptcy eligible debts. If you are behind on your mortgage payments, then the repayment plan may include monthly payments over a 3-5 year period to pay off your past payments.
At the end of the repayment period, some of your other debts, such as your credit cards may be discharged. Thus, you would have more income available each month to pay your mortgage and stay in your home.
If are struggling financially and you are committed to staying in your home, then it is important to contact an experienced Minneapolis bankruptcy attorney as soon as possible. Attorney Barry Rosenzweig will help you understand your legal options and take the necessary steps to achieve your goals.
You do not have to live in fear of losing your home. Nor do you have to fear being judged when you call our Minneapolis bankruptcy law firm. We understand your situation and will do everything that we can to help you achieve your goals. Please call us today at MN (952) 920-1001 or AZ (480) 207-2203 for more information. We also invite you to read our FREE book, What You Need to Know About Filing Bankruptcy in Minnesota to learn more.
ANSWER: While the terms sound similar, there are significant legal and practical differences between Chapter 13 bankruptcy dismissals and Chapter 13 bankruptcy discharges. As a Minneapolis Chapter 13 bankruptcy petitioner, it is important to understand the difference between these two possible ends to your bankruptcy case.
A Chapter 13 bankruptcy dismissal means that the Bankruptcy Court has dismissed, or ended, your case before you achieve a legal discharge. If a dismissal occurs, then your debts have not been legally satisfied and creditors may continue to use legal methods to obtain recoveries.
However, if your Chapter 13 case is discharged, then it means that you have satisfied all of the Chapter 13 bankruptcy requirements. The debts that were at issue in your case are deemed satisfied and those creditors no longer have any valid claims against you.
Given these important differences, it is a Minneapolis bankruptcy discharge that you want. It is bankruptcy discharge, not a bankruptcy dismissal, which will allow you to move forward with your life and take charge of your financial future.
For more information about how to achieve a Chapter 13 bankruptcy discharge and how to avoid a Chapter 13 bankruptcy dismissal, please call an experienced Minneapolis-St. Paul Chapter 13 bankruptcy lawyer today at MN (952) 920-1001 or AZ (480) 207-2203. We also invite you to download a complimentary copy of our FREE book, What You Need to Know About Filing Bankruptcy in Minnesota, to learn more about bankruptcy protections.
ANSWER: Even with the debtor’s limited ability to dispose of property to operate its business, business debtors sometimes need additional loans for operating capital. In these cases, the debtor may obtain the necessary loan by having the court grant superpriority status to the new lender, which puts that lender ahead of other unsecured creditors with regard to repayment. Alternatively, the court may give the new lender secured status by approving the use of collateral.
ANSWER: A lien is a security interest held by a creditor that enables the creditor to take an ownership interest in a debtor’s property in the event of unpaid debt. For example, a mechanic’s lien provides construction companies and other contractors who improved real or personal property with ownership rights in the improved property if labor costs are not paid.
To find out more information about bankruptcy in Minnesota, please read our FREE book: What You Need to Know BEFORE you File for Bankruptcy in Minnesota.
Contact our office to schedule an appointment to speak with us. You can reach us by using our online form. We can also be reached by phone at MN (952) 920-1001 or AZ (480) 207-2203. Our attorneys can help you to decide whether bankruptcy is right for you and, if so, which type makes the most sense for your particular circumstances. Different types of bankruptcy have different eligibility requirements, and so it is very important that you consult with an attorney prior to planning any bankruptcy-related action.