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Bankruptcy Debt Relief

Providing a bankruptcy consultation with a Minnesota bankruptcy attorney.

Serving people in Eden Prairie, Bloomington, Edina, Roseville, St. Paul, Minneapolis and elsewhere in Minnesota

Bankruptcy as a form of debt relief is often misunderstood. It has a long history that goes back to ancient times. In tracing the use of debt relief some historians point to the practice of creditors in biblical times releasing a debtor from the obligation to pay off indebtedness every seven years. While bankruptcy is generally acknowledged to be an ancient way of clearing debt, the origins of the actual word is not always agreed upon. The concept of releasing debt has been memorialized in the United States laws.

Fear of Bankruptcy

Fears of bankruptcy tend to be based upon bankruptcy myths. A debtor who is in need of debt relief may find in pursuing bankruptcy the needed legal help to deal with pressing financial difficulties related to indebtedness.

Consumer Bankruptcy Law

People who are deeply in debt may explore potential help through filing a consumer bankruptcy. The reality is that the term “consumer bankruptcy” can refer to either chapter 7 bankruptcy or chapter 13 bankruptcy under the United States Bankruptcy Law. These two types of personal bankruptcy are the common options available to people who have a great many unpaid bills that cannot be paid. There is a great deal of law covering these types of bankruptcies. A consumer who is interested in possibly declaring bankruptcy should make sure to understand all relevant bankruptcy laws before making the important decision to try to file for bankruptcy. A Chapter 7 bankruptcy has been referred to as being a "straight bankruptcy," " consumer bankruptcy" or a " personal bankruptcy." Under Chapter 7, an eligible debtor may have many of his or her financial obligations "discharged" (forgiven) by petitioning the Federal Bankruptcy Court for debt relief. All types of debts cannot be discharged such as child support obligations, most tax obligations, student loans (under most circumstances), fines, restitution, damages for injuries incurred as a result of driving under the influence of alcohol or drugs, and a few other types of debt. Chapter 13 bankruptcy can provide relief through the filing of a debt repayment plan that is handled through the Bankruptcy Court. This debt repayment plan includes an understanding that the debtor will repay creditors a portion of his or her debt over a set period of time (36 to 60 months). When the repayment period is concluded, any remaining debt covered under the Chapter 13 plan may be discharged.

The New Bankruptcy Law

The new bankruptcy law refers to the bankruptcy reform legislation that took effect in 2005. This law made changes in previous bankruptcy law, but still provides debt relief for eligible (link to eligibility page) people for either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. To determine the type of bankruptcy for which an individual or husband and wife may qualify, it is necessary to understand the requirements and qualifications that apply to each type of bankruptcy. Each person’s particular financial situation must be examined and analyzed to determine which type of bankruptcy is available to them. Those that pass the “means test”, may be eligible to file a chapter 7 bankruptcy and those whose incomes exceed the median income for their state and who do not pass the “means test” may be eligible for a chapter 13 bankruptcy. The means test, however, is only the beginning of the analysis because there may be other facts and circumstances that may make a chapter 13 filing the more desirable option. Rather than listening to all of the negative hype about the changes to the bankruptcy laws, it is better to meet with an experienced and knowledgeable bankruptcy lawyer to discuss your particular financial situation. Keep in mind that everyone's financial situation is different and the only way to find out about your situation is to meet with a bankruptcy lawyer and discuss how the new bankruptcy law applies to your financial circumstances.

Bankruptcy Legal Requirements

Some of the significant legal requirements that a debtor seeking bankruptcy are that he or she qualifies under existing bankruptcy law for debt relief, they are able to show adequate identification, provide full disclosure, give all information asked for in the bankruptcy paperwork, fully cooperate with the bankruptcy trustee, attend all bankruptcy meetings, do all acts required by the bankruptcy court, fulfill debtor counseling and education.

Bankruptcy Forms

Consumers often get the mistaken notion that filing bankruptcy involves simply filling out some forms and filing them with the bankruptcy court, but that is not the case. Declaring bankruptcy is a very serious matter that requires a commitment by a debtor to providing a full explanation of his or her financial picture including income, monthly expenses, all debts owed by the debtor, assets and other relevant financially related data. The legal paperwork must be complete and accurate in all respects. A consumer must be prepared to attend the Meeting of Creditors and be questioned on relevant concerns related to his or her desire to declare bankruptcy. Consumers who are qualified and properly fulfill all bankruptcy requirements may attain a fresh start.

Bankruptcy Meeting Of Creditors

The reality is that a 341 Hearing in Bankruptcy, otherwise known as a Meeting of Creditors is an important part of the bankruptcy process. This bankruptcy hearing can be dealt with in a straightforward manner by a debtor who makes sure to file full and accurate information on his or her bankruptcy documents. So what is this meeting of creditors? After a bankruptcy has been filed, a notice of the commencement of the debtor’s bankruptcy will be sent out by the Bankruptcy Court. The notice sets forth information to the creditors that a bankruptcy has been filed by the debtor(s) with appropriate warnings related to continued collection efforts. A Meeting of Creditors will be scheduled by the Bankruptcy Court. The Bankruptcy Court Trustee, debtor and his or her lawyer must attend the meeting. It is not mandatory that creditors show up for the meeting and many times they do not attend it. At the meeting, the debtor should expect to answer questions for the Bankruptcy Court Trustee. Some of the relevant questions that may be asked are related to proof of identification, employment status, inquiries about handling of financial matters, property ownership, and any pre-bankruptcy petition transfers by the debtor of money or other property interests and verification that the debtor has read the U.S. Trustee’s statement of information that was made available to the debtor. Similarly, many other fears when carefully examined in light of reality fade. Debtor’s should not be dissuaded from pursuing debt relief based upon rumor or misconception.

Experienced Minnesota Bankruptcy Attorney

Neff Law Firm, P.A., has provided bankruptcy legal help from their experienced Minnesota Bankruptcy Attorneys for over twenty four years. The Minnesota bankruptcy attorneys at Neff Law Firm, P.A., are dedicated to representing consumers through the bankruptcy process. These Minnesota bankruptcy attorneys are well aware of how financial pressures can affect a person. They can provide bankruptcy legal help to Minnesota consumers experiencing financial difficulties with debt repayment, creditor harassment, foreclosure, repossession, garnishment, excessive debt, past due payments, a default judgment, burdensome late payments, predatory debt practices and other financial pressures.

Meeting With a Minnesota Bankruptcy Lawyer

Contact a Minneapolis bankruptcy lawyer at our Edina office or a St. Paul bankruptcy lawyer at the Roseville office of the Neff Law Firm, P.A., to discuss bankruptcy and your options for debt relief by filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy protection. Make a confidential appointment to discuss bankruptcy with an experienced Minnesota bankruptcy attorney at either our Roseville (St. Paul) or Edina (Minneapolis) law office by calling our central scheduling telephone number of (952) 831-6555. We offer flexible appointment times for your convenience.

This page does not intend to give legal advice or does it do so. The reading of this page does not establish an attorney-client relationship or substitute for consulting with a licensed lawyer.

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