Learn more about the Bankruptcy Process
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So what is Bankruptcy?
Bankruptcy is the set of federal laws that shield people and businesses from the collection actions of the people and companies to whom they owe money. To obtain such protection, people and businesses must file under one of the bankruptcy chapters (Chapter 13, Chapter 11, Chapter 7. Once the appropriate paperwork (i.e., “petition”) is filed with the court, the filer receives both short-term and long-term bankruptcy relief.
The short-term bankruptcy relief is called the “automatic stay.” The stay is a court injunction that prohibits creditors and nearly all debt collectors from contacting the person or business for the debt or from using state laws to garnish or levy on the person or business’ income or property. The short-term bankruptcy relief continues while the court examines the case and ensures it is proper under the laws.
Long-term bankruptcy relief is called a “discharge.” A discharge is the court ordering that none of a filer’s debts (with certain exceptions) can be collected on ever again. The purpose of the bankruptcy laws is to give you a “fresh start,” so that you can get back on your feet financially and be able to contribute to yourself, your family, and society.
A chronological explanation of a typical Chapter 7 Bankruptcy process....more
A Chapter 7 is the classic bankruptcy that comes to mind when people think of bankruptcy. In a Chapter 7, you must report what assets you own to the court when you file. There are protection rules, called “exemptions,”, that determine what you are allowed to keep and what may be taken by the court in order to be sold....more
A Chapter 13 bankruptcy is more of a repayment plan. Unlike a plan through a Debt Consolidation company, this does not necessarily mean that you have to pay back 100% of the debt. Instead, Mike will help you propose a payment plan to the court based upon your income and expenses....more
Not sure what everything means? Don't worry even we need a reference once and a while. Take a look and get informed on Bankruptcy Terminology....more
Clients seek advice from our Minneapolis Bankruptcy Law Firm on the full range of financial or collection options available to them. Our firm has the negotiating skills and the ability to quickly understand a company's business in order to analyze its potential for turnaround....more
The procedural aspects of the bankruptcy process are governed by the Federal Rules of Bankruptcy Procedure (often called the "Bankruptcy Rules") and local rules of each bankruptcy court. The Bankruptcy Rules contain a set of official forms for use in bankruptcy cases....more
Learn more about various sub topics within Minnesota Bankruptcy Law or Bankruptcy Law in general....more
This content is not meant to constitute advice of any kind, including without limitation, legal advice of any kind. If you require advice in relation to any legal matter you should consult an appropriately qualified lawyer.