Minnesota Chapter 7 Bankruptcy Process

If you are like most of our clients and are overwhelmed by debt and feeling like you can never get ahead this blog will help explain how chapter 7 bankruptcy works. We represent clients in Minnesota and around the Twin Cities region, so the focus of the blog is regarding the process for Minnesota. The first step of the process is for one of our potential clients to realize that something is not quite right about their finances. The first clue is generally that you have a lot of stress dealing with bills including, house payments, rent payments, credit card payments, past due tax bills, medical bills, wage garnishments, bank garnishments, and lawsuits. If you are dealing with any of these issues then you may want to speak with a bankruptcy lawyer to see about your options.
Once the potential clients have determined that they have a problem and resolved to fix the problem, they come speak with one of our bankruptcy lawyers. At this meeting the potential client and attorney sit down to discuss your current situation and the options available to help you out of your problems. At this meetings the normal items discussed are bankruptcy and alternatives to bankruptcy. A lot of our clients have used debt consolidation services before contacting our office, and are currently having their wages garnished. They discovered that the bankruptcy alternative of debt consolidation was not as good as it sounded when they talked to the debt consolidation salesperson.
In most cases the client retains our office to help with filing a bankruptcy. Once the client has retained our office, they refer all the creditors calls to our office. We then begin working on the petition once the client has given us all the required documentation. The normal documentation includes pay stubs, tax returns, some statements for bills, business information, asset information and bank statements. Once we have this information along with a questionnaire filled out and returned we start work on the petition. It is our offices job to make sure the client is aware of issues regarding their case and that the petition is filled out correctly.
Once the client oks the petition is gets filed with the bankruptcy court. The client will then receive notice regarding the 341 meeting. The 341 meeting is probably the most stressful time for our clients, but in realty the meeting is normally not that bad. We meet with our clients before the 341 meeting to make sure all their questions are answered and they feel comfortable with what is happening in their case. Our job is to make sure our clients are not stressed about the process. At our office our clients can call and speak with one of the attorneys at any point, if they have a question or concern about their case.
After the 341 meeting we communicate all the things that are happening with our clients case, to make sure the client is informed. The client normally has to wait 60-65 days after the 341 meeting to receive their chapter 7 discharge. Once the discharge is received it means that all of your debt is gone, except for a few items that would not be discharged. You would have to speak with our office for an explanation of all the types of debt that cannot be discharged in a chapter 7 bankruptcy. After the discharge you can begin working on repairing your credit and attempt to save some money to prevent needing credit cards in the future. For further questions contact our law firm at 952-294-0144.