Chapter 7
The liquidation chapter for individuals. Qualifying debts are discharged, usually within a few months, and the exemptions you claim decide what property you keep.
See DetailsConsumer And Business Bankruptcy
Bankruptcy Lawyer In Minneapolis, MN
Bankruptcy is a federal court process that gives people and businesses a lawful way out from under debt they cannot pay. Depending on the chapter, it either wipes out qualifying debts or puts them into a payment plan you can actually keep. In most cases the filing itself triggers the automatic stay under 11 U.S.C. § 362, which halts collection calls, lawsuits, wage garnishments and foreclosure sales while the case is open.
How It Works
What Can BankruptcyDo For You?
Whitlock Reyes LLP handles consumer and business bankruptcy from its office on Marquette Avenue in downtown Minneapolis, for people and companies across Hennepin County, Ramsey County and the rest of the Twin Cities. You speak with the partner who will run your case, and the first conversation is a free consultation that ends with a clear picture of which chapter, if any, fits your situation.
A filing is a legal tool, not a verdict on you. Used well, it is a way to reset and plan the next few years with the pressure off.
Tobias Reyes
Name Partner, Whitlock Reyes LLP
Practice Areas
Bankruptcy Options
Four Chapters,One Attorney.
Chapter 11
Reorganization for businesses and real estate owners that want to keep operating while they restructure their debts under the supervision of the court.
See Details
Subchapter V
A faster, simpler form of Chapter 11 for qualifying small businesses, created by the Small Business Reorganization Act, with no creditor veto over a fair plan.
See Details
Chapter 13
A court-approved repayment plan of three to five years, often used to catch up on a mortgage and keep a home.
Read About Chapter 13Who It Is For
Is Bankruptcy The RightAnswer For You?
Most people who call have not done anything wrong. A job ends, a medical problem takes away income, a divorce splits one household's bills across two, or a business hits a slow season that lasts longer than the savings. Bankruptcy can happen to anyone, and it is a tool the law provides for exactly these situations.
It is often worth a closer look if you are using one credit card to pay another, if a creditor has sued you or started garnishing your wages, if a sheriff's sale date has been set on your home, or if a business you own cannot keep up with its obligations. It is often not the answer if the problem is small and short-term, or if most of what you owe is the kind of debt bankruptcy does not discharge. Part of the first meeting is finding out whether bankruptcy can be avoided altogether.
Step By Step
What To Expect,Step By Step
The first conversation
A free consultation with the partner who would handle your case. You explain what is going on and learn which options deserve a closer look.
Credit counseling
Federal law requires a short course from an approved agency within the 180 days before you file.
Reading the numbers
Income, debts, property and exemptions, including the means test for Chapter 7, reviewed with you line by line.
Filing and the stay
The petition and schedules are filed in the bankruptcy court, and the automatic stay takes effect.
The trustee meeting
Most individual cases have one meeting with the trustee about a month after filing. You are prepared for it.
Discharge or plan
A Chapter 7 case moves toward discharge and a Chapter 13 case into the plan, after a short debtor education course.
The Details
Which Debts CanBankruptcy Address?
| Topic | What to know |
|---|---|
| Credit cards, medical bills and personal loans. | These are unsecured debts, the kind a Chapter 7 discharge most commonly covers or a Chapter 13 plan pays at a reduced rate. |
| Foreclosure. | A filing generally triggers the automatic stay, which pauses a foreclosure sale while the case is open. Chapter 13 can then give you years, rather than weeks, to catch up. |
| Student loans. | Student loans are hard to discharge and usually require a separate showing of undue hardship. A plan for everything else still changes what you can afford to pay on them. |
| Taxes. | Some older income taxes can be discharged if they meet timing rules; recent taxes and payroll trust fund taxes generally cannot. The IRS problems page explains the other tools. |
| Mortgage modifications and other alternatives. | Sometimes the answer is not bankruptcy at all: a mortgage modification, a settlement with a creditor, or a payment arrangement. We explain the options with and without filing. |
In Detail
Bankruptcy,Question By Question.
How does Chapter 13 help you keep a house?
Chapter 13 is the chapter people ask about most when a home is at risk. You propose a plan to repay part or all of what you owe over three to five years, under the protection of the court, and missed mortgage payments can be spread across the plan while you keep up with the current ones. While the plan is followed, the lender generally cannot foreclose over the arrears the plan is curing.
Chapter 13 can also protect property that would not be protected in Chapter 7, pay tax debts over time, and shield a co-signer on a consumer debt while the plan runs. Whether the plan lasts three or five years depends largely on whether your household income is above or below the median for your state.
Keeping the house is the goal many people bring through the door. Whether a plan can reach it depends on your income, expenses and debts, so the numbers come first.
What does the law let you keep?
Every filer claims exemptions, the list of property the law protects from creditors. Some states require their own list, and others, Minnesota among them, let a filer choose between the state list and the federal list in the Bankruptcy Code. The choice is made once, for the whole case, and it can change the outcome considerably.
Exemption lists typically protect some equity in a home, a vehicle up to a set value, household goods, tools of a trade, qualifying retirement accounts and certain insurance and public benefits. The dollar limits change from time to time, so the current figures are checked against your own property before anything is filed.
There are timing rules. Where you lived in the two years before filing can decide which exemptions you may use, and a home bought shortly before filing can be capped under federal law. These details are checked before anything is filed.
Which court handles a Twin Cities case?
Bankruptcy is federal, so cases from Hennepin and Ramsey Counties are filed in the United States Bankruptcy Court for the District of Minnesota, not in the county courthouse. Hearings are held in the federal courthouses in Minneapolis and Saint Paul, and many routine matters, including most trustee meetings, now take place by phone or video.
What should you bring?
Recent pay stubs or other proof of income, your last two tax returns, recent bank statements, your bills and collection letters, any lawsuit, garnishment or foreclosure papers, your mortgage and car loan statements, and a rough list of what you own and what it is worth.
Missing some of it? Call anyway.
Questions
Questions AboutBankruptcy.
When to call us
Call for a free consultation. You leave the first conversation knowing whether bankruptcy fits, which chapter makes sense, what the process would ask of you, and what happens next.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
(555) 014-2200Is bankruptcy the right choice for me?
It depends on your income, your debts and what you want to protect. For some people it is the right tool; for others a settlement or a modification works better. The first consultation is free, and it exists to answer this question for your situation.
What is the difference between Chapter 7 and Chapter 13?
Chapter 7 discharges qualifying debts, usually within a few months, and is generally for people who pass the means test. Chapter 13 is a three to five year repayment plan, often used to keep a home or other property that is behind on payments.
Can bankruptcy halt a foreclosure?
Often, at least for a time. Filing generally triggers an automatic stay that pauses a foreclosure sale while the case is open, and Chapter 13 can give you a way to catch up on missed payments. Your own facts and the timing matter, so call as early as you can.
Will bankruptcy ruin my credit for good?
No. A bankruptcy can stay on a credit report for years, seven for Chapter 13 and ten for Chapter 7, but many people see their credit begin to recover once old debts are discharged. For someone already behind, the missed payments often did more damage than the filing will.
Can I file bankruptcy more than once?
Yes, with waiting periods. For example, a new Chapter 7 discharge is generally not available within eight years of a previous Chapter 7 filing. Your filing history is checked at the first meeting.
Does my spouse have to file with me?
No. One spouse can file alone. Whether that makes sense depends on whose name the debts are in and how your property is titled.
Free Consultation
Tell Us What Is Going On.The First Call Is Free.
- A plain answer on the first call
- You speak with a partner, not an intake line
- Open weekdays, 8:00 to 6:00, or leave a message
Marguerite Whitlock