The bankruptcy process is intended to provide individuals a way out from under mounds of debt and an opportunity to rebuild their lives, and their credit, and begin daily life with a fresh start. Most bankruptcies are filed under chapters 7, 11, and 13 of the Bankruptcy Code. Chapter 7 bankruptcy is one of the
Minnesota Chapter 7 Bankruptcy Attorney
There are different chapters of bankruptcy laid out in the Bankruptcy Code and it is important to determine which chapter most closely applies to your situation.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy provides for the liquidation of the debtor’s nonexempt assets to be used to pay off their debt. In this case a trustee is designated to gather and sell the assets. However, not all of the debtor’s assets can be sold. Exempt assets include, but are not limited to: Motor vehicles, necessary clothing, necessary household goods, household appliances, jewelry up to a certain value, pensions, some of the equity in the home, tools of their trade, some of unpaid earned wages, public benefits, and damages awarded for personal injury.
Who Can File for Chapter 7 Bankruptcy?
An individual, partnership, corporation, or other business may qualify for Chapter 7 bankruptcy. The amount of debt accrued by the debtor cannot disqualify them from seeking relief under this chapter. However, none of the above described may file for bankruptcy under Chapter 7 or any other chapter if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.
How to for Chapter 7 Bankruptcy
To begin a Chapter 7 bankruptcy the debtor must file a petition with the court. The Court charges a $245 case filing fee, a $46 miscellaneous administrative fee, and a $15 trustee surcharge. When a petition is filed the collection by creditors automatically stops. A short period of time after the petition is filed, the trustee will hold a meeting with the creditors where they, along with the debtor, will discuss the financial affairs and property of the debtor.
Chapter 7 Bankruptcy Liquidation Basics
Individual people can file for bankruptcy. Businesses can file for bankruptcy. Different laws apply to individuals and businesses, and some businesses are not considered different from the people behind them, such as sole proprietorships. LLCs and corporations have separate identities than the individuals behind them. Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13,
The Chapter 7 Bankruptcy Process in Minnesota
There are bankruptcy provisions for businesses, bankruptcy provisions for individuals, bankruptcy provisions for reorganization, and bankruptcy provisions for liquidation. Each individual or business must determine his, her, or its own needs and abilities when considering bankruptcy. Chapter 7 bankruptcy is often referred to as the liquidation provision. There are alternatives to liquidation. A liquidation does
Minnesota Chapter 7 Bankruptcy: The Trustee in Action
More Chapter 7 bankruptcy petitions are filed than any other type of bankruptcy proceedings. Additionally, more individual consumers file bankruptcy cases than businesses. Roughly seventy percent of bankruptcy filings are Chapter 7 petitions filed by individual consumers. In Chapter 7 cases, the United States Trustee litigates issues that affect the integrity of the bankruptcy system.
Chapter 7, the Estate, and the Tax Obligations | Minnesota Bankruptcy Liquidation
Bankruptcy proceedings begin with the filing of a petition with the bankruptcy court. A bankruptcy petition is a request that the debtor obtain some relief from current debts owed. Sometimes the request for relief is a request that many or all debts be extinguished. Sometimes the request for relief is a request that current amounts
Liquidation and Qualification | Chapter 7 Bankruptcy Basics
Bankruptcies have become more and more common in today’s economy. There are many types of bankruptcies. You may have heard of Chapter 7 bankruptcy, Chapter 11 bankruptcy, or Chapter 13 bankruptcy. Those are probably the most common types. Most people who have heard of these types of bankruptcy, however, have no idea what they mean
The Duties of the Chapter 7 Trustee | Minneapolis Bankruptcy Trustees
Chapter 7 bankruptcy is known as the “liquidation” bankruptcy process. There are other processes under other chapters of the United States Bankruptcy Code, however. Statistics show that debtors file Chapter 7 bankruptcy petitions more frequently than petitions under any other chapter. This is likely due to the discharge of many assets available to individual debtors
Who is Chapter 7 Bankruptcy Trustee and Where Does Trustee Come From? | MN Bankruptcy Attorney
Chapter 7 bankruptcy cases are the most commonly filed form of bankruptcy in the United States. Both individuals and businesses may file a Chapter 7 bankruptcy, if they can meet the requirements. Discharge, however, is only available to individual debtors. Qualifying for Chapter 7 Bankruptcy Individuals who qualify under what is called the “means test”
An Overview of Chapter 7, 11, 12, and 13 Bankruptcy | Minnesota Bankruptcy Law
Is your debt consuming you? Do you believe you will never be able to get on top of it? Do you get further and further behind every day? You are not alone. In 2009 there were nearly one and a half million bankruptcy filings across the United States. There were 1,473,675 to be precise. Over
Minnesota Bankrupcy: What Happens in a Chapter 7 Bankruptcy and Who Qualifies
In today’s world bankruptcies are much more common than they used to be. One factor is, of course, the drop in the economy. Some people hesitate to explore the possibility of bankruptcy because they are embarrassed. There is no need to feel ashamed if you are considering bankruptcy. You are not alone. You are by