Minneapolis Personal Bankruptcy—Chapter 7
Who can file for a Minneapolis Chapter 7 bankruptcy
The bankruptcy attorneys at Sugar Creek Legal Services help to determine if Chapter 7 is the right option for you. Chapter 7, also known as liquidation, can be a big help for people who have high unsecured debt like medical bills, credit card debt, or unsecured personal loans.
Chapter 7 is available to:
- Individuals
- Married couples
- Corporations
- Partnerships
However, you must be eligible for a Chapter 7 bankruptcy in Minneapolis. To qualify, you must earn less than the median income for a family of your size in Minnesota. This is called "the means test."
What Chapter 7 Bankruptcy means to you
A Chapter 7 Bankruptcy can mean:
- Immediate relief to those in difficult financial circumstances
- A fresh start for individuals, partnerships, and corporations with no hope of repairing their financial situations
- Relief from phone calls and letters. Once filed, an automatic stay immediately goes into effect that stops creditors and debt collectors in their tracks
- Protection. When your case is pending, creditors are not allowed to take any action to collect their debt or seize your property in order to satisfy their claims
- A wide variety of debts discharged
A discharge means the successful removal of unsecured debts such as credit card debt, medical bills, most personal loans, some older tax debts, and garnishments. Liquidation means that most or all of your non-exempt assets are sold, and the proceeds are distributed to your creditors. Generally, some of your assets are declared exempt and retained--most notably your car and primary residence. If you have no equity in real estate your exemption is much larger (up to $11,000 per person)
How Chapter 7 in Minneapolis works
Your Chapter 7 bankruptcy case begins with going to bankruptcy court to file:
- An official petition
- Several schedules
- A statement of financial affairs that includes:
- A complete list of creditors
- The amount and type of their claims
- The amount of income and frequency of pay
- A list of your property
- A detailed list of monthly expenses
Once you file for bankruptcy, creditors are prevented from trying to collect on your debts, through an "automatic stay." This stay preserves your property and prevents you from being sued.
