Bankruptcy Exemptions Available In Minnesota

In Minnesota debtors can choose between two sets of exemptions. In most cases debtors in Minnesota use the federal exemption system, which allows them to keep most of their property. In some cases people will use the Minnesota exemptions. The main reason to use the Minnesota exemptions is because they may be expecting a large personal injury settlement or have equity in their home.
Recently most of the clients we see use the federal exemptions because they do not have a lot of equity in their home due to the housing market crash. The federal exemptions allows an individual to exempt some equity in a home, and also allows a generous wildcard exemption. Most of our clients will have their assets fully exempted by using the federal system, but in some cases our clients may need to use Minnesota exemptions.
The choice of which exemptions to choose is one that should be looked at by an experienced attorney. The exemptions you choose for your bankruptcy will determine what things you get to keep after filing for bankruptcy. Most of our clients will keep all of their assets after filing for bankruptcy protection. This means they keep their house, cars, clothes, personal goods, and money in bank accounts. In some cases a clients assets will exceed the available exemptions. In most cases the clients will be aware of this possibility in advance of filing for bankruptcy. If you know you will have non exempt assets it is important to make a plan with your bankruptcy attorney, and get an estimate of what is not exempt.

Bankruptcy Options Which One Is Best For Me.

Most people who are thinking about filing for bankruptcy wonder which options is best for me. The choice on what type of bankruptcy file can be confusing considering the choices available. The most common type of consumer bankruptcy filings are chapter 7 bankruptcy and chapter 13 bankruptcy. If you have a small business and want to reorganize you may look at a chapter 11 bankruptcy.
The most common type of bankruptcy is a chapter 7 bankruptcy and for most people involves keeping your exempt assets, and shedding your unsecured debts. The most common type of bankruptcy is a no asset bankruptcy. In this type of chapter 7 bankruptcy your creditors will not get paid anything from your assets. The other type of chapter 7 case is an asset bankruptcy. In this type of bankruptcy creditors will be paid back from money collected from the bankruptcy estate. In Minnesota the most common reason for assets being available to the bankruptcy estate are using the Minnesota State Exemptions when filing.
The next most common type of bankruptcy in Minnesota is a chapter 13 bankruptcy. This is a bankruptcy that allows you to pay back your debt over the next 36 to 60 months. The difference in payment terms depends upon your income. If you income is above the median income you can do a 60 month payment plan, if you income is below the median you can do a 36 month plan. This type of bankruptcy works well if you have debt that cannot be discharged in a chapter 7 bankruptcy. Or if you have assets that you do not want liquidated in a chapter 7 bankruptcy. The chapter 13 bankruptcy option is a far better option for most people than debt consolidation. The chapter 13 allows all of your debt to be rolled into one payment that you make monthly. It stops all the interest on the debt and stops all collection activity.
If you are stressed out from debt that you know you cannot pay back, or if you have wage garnishments or bank levys, you need to talk to an attorney to determine if bankruptcy is a good option for you. In most cases the longer you wait to consult a bankruptcy lawyer the worse the debt becomes.

Bankruptcy Help For Individuals

We see clients everyday who need our help to eliminate debt. Our job is to evaluate their financial circumstance and find the best solution to their problem. In some cases the best solution is to file for bankruptcy. In other cases the best solution is to talk to your creditors and work out a settlement of your debt. I do not know what your best solution is until we talk about your finances. I recently saw a client who owed around $50,000.00 and was thinking about using retirement funds to pay for the debt. Of course this was the only savings that this person had in their life. After we talked the client decided to file for a chapter 7 bankruptcy. The bankruptcy allowed this client to keep their home, car, retirement savings, and job. The creditors who were attempting to garnish wages were stopped by filing the bankruptcy, and the client was out of debt, and out of the stress that financial problems create. I have a lot of stories from clients we have helped by getting rid of the stress associated with debt.

Attorneys For Bankruptcy

If you are looking for attorneys to handle your bankruptcy case you want to make sure you are hiring a good experienced attorney. This attorney should be able to give you advice regarding all of your debt settlement options including chapter 7, chapter 13 and other types of bankruptcy protection. This attorney should also have experience dealing with debt collectors and be able to offer advice on settling your debts, if that is the best option. If you have questions about bankruptcy law in Minnesota give our office a call at 952-294-0144.

Twin Cities Bankruptcy Lawyers

If you have been thinking about filing for bankruptcy protection, you need to hire an experienced MN bankruptcy lawyer. You want to make sure that your attorney has filed and seen your type of case before. It is important when the bankruptcy is filed to keep the things you want including your house, car, and other personal possessions. Our office can help you file for chapter 7 bankruptcy or chapter 13 bankruptcy.