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What Is Bankruptcy?

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Providing a bankruptcy consultation with a Minnesota bankruptcy attorney.

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

The Minnesota bankruptcy attorneys at Neff Law Firm, P.A., greater Minneapolis law office in Edina and greater St. Paul law office in Roseville, Minnesota are often asked about the history of bankruptcy. These Minneapolis bankruptcy lawyers and St. Paul bankruptcy lawyers have over fifty years of combined legal experience providing Minnesota bankruptcy information to consumers, acting as Minnesota foreclosure attorneys, helping debtors with Minnesota Chapter 7 bankruptcy, assisting consumers with Minnesota Chapter 13 bankruptcy and providing debt relief services. The Neff Law Firm, P.A., Minnesota bankruptcy lawyers welcome the opportunity to meet with consumers in person who are considering bankruptcy.Set forth below is a brief history of bankruptcy.

History of Bankruptcy

Bankruptcy is a form of debt relief that, contrary to misconceptions, goes back many years. Long before the United States was founded, as far back as ancient times, the concept of debts being forgiven at timely intervals was a common practice. For example, historians can point to biblical times -- approximately four thousand years ago -- when there allegedly was the practice of every seven years creditors releasing a debtor from the obligation to pay off an indebtedness.

There is reference to the release of debt in the book of Deuteronomy. The Romans recognized the concept of bankruptcy as well. Some historians believe the word bankruptcy derives from the Romans while others have claimed it may have come from another source.

No matter what the source of the term, it is generally acknowledged as being a very old term. In the early nineteenth century the United States government periodically showed sympathy for the problem of indebtedness through its practices of relieving financial stress in the country. In the United States in 1833 imprisonment for debt was ended at the federal level. Many states agreed with the United States government that imprisonment for debt should be eliminated and their laws were changed accordingly..

This concept of releasing indebtedness has been a part of Western society for thousands of years and is memorialized through the federal law that Congress has created. Periodically this law has been changed to meet new needs and situations. For example, the Bankruptcy Act of 1898 was replaced by the Federal Bankruptcy Reform Act of 1978. The law was again changed by the Bankruptcy Reform Act of 2005, which is commonly referred to as the new bankruptcy law.

Bankruptcy Misconception

Contrary to the misconception of some people, the new law does not destroy the right to debt relief but rather adds some changes, such as qualification standards to be able to file for bankruptcy, credit counseling, financial management courses, and more potential paperwork and documentation. Nevertheless, these changes do not hurt the ability of many people to file for bankruptcy and should not destroy a person’s initiative in seeking available legal ways to receive debt relief.

Minnesota Chapter 7 Bankruptcy

The bankruptcy law allows a qualified debtor to discharge certain types of debts under Chapter 7. This law may be used by an eligible person in Minnesota to get debt relief. A qualified debtor declaring a Chapter 7 bankruptcy would be able to not only discharge certain types of debt but temporarily stop a lender from foreclosing on the home of the debtor.

Minnesota Chapter 13 Bankruptcy

Prevailing bankruptcy allows an eligible debtor to develop a wage earner plan under Chapter 13 of the bankruptcy law that can be used for debt relief. Filing a chapter 13 plan not only can help pay off debts, but to temporarily stop foreclosure. A person filing a Chapter 13 bankruptcy may be able to develop a repayment plan that is structured to cover the mortgage payments that have been missed.

Minnesota Foreclosure Attorney

The bankruptcy law can be used by qualified debtors to deal with the threat of foreclosure. A Minnesota foreclosure attorney from Neff Law Firm, P.A., has helped many people deal with the threat of foreclosure through filing for bankruptcy.

Schedule Consultation With a Minnesota Bankruptcy Attorney

Contact a Minneapolis bankruptcy lawyer at our Edina office or at the Roseville office of the Neff Law Firm, P.A., to discuss your specific situation and your options for debt relief by filing for Chapter 7 or Chapter 13 bankruptcy protection today. We encourage you to schedule a confidential appointment to meet in person 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.

Legal Assistance with Bankruptcy

A St. Paul bankruptcy attorney from the Neff Law Firm, P.A.'s, Roseville office in Ramsey County, or a Minneapolis bankruptcy attorney from the Edina office in Hennepin county can meet in person with a consumer who is considering bankruptcy and go over all pertinent financial matters to help evaluate his or her potential for filing bankruptcy. These Twin Cities bankruptcy attorneys have many years of experience assisting debtors

Minneapolis Bankruptcy Lawyer or St. Paul Bankruptcy Lawyer

Consumers can meet with either a Minneapolis bankruptcy lawyer at the firm's Edina office or a St. Paul bankruptcy lawyer at the firm's Roseville office. These Twin Cities bankruptcy attorneys are available for consultations to consumers throughout Minnesota including people living in Minneapolis, St. Paul, Edina, Roseville, Bloomington, Golden Valley, St. Louis Park, Robbinsdale, Brooklyn Center, Anoka, Columbia Heights, Oakdale, Eagan, Mendota Heights, Eden Prairie, Deep Haven, Minnetonka, Wayzata, Mound, Hopkins, Chaska, New Brighton, Chanhassen, Excelsior, Orono, Shakopee, Richfield, Brooklyn Park, Plymouth, St. Anthony and Maple Grove.

For an appointment to meet a twin cities bankruptcy lawyer for a bankruptcy consultation in the greater Minneapolis office in Edina, Minnesota or in the greater St. Paul office in Roseville, Minnesota, please call Neff Law Firm, P.A.'s, central scheduling telephone number of (952) 831-6555.

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