Confused by the legal jargon in your bankruptcy case? Join the club. You don’t need your master’s degree in Law to understand some of the terms thrown around during your bankruptcy case. Just read on:

Common Minnesota Bankruptcy Filing Terms

Bankruptcy Trustee – the bankruptcy trustee is the person who the court will appoint to review your bankruptcy filing, conduct the meetings with the creditors and determine whether or not you are eligible for a discharge. You will meet with the bankruptcy trustee during your meeting of creditors around 30 days after you file for bankruptcy.

Notice of Commencement of Case – this is a document that will be sent out to you, the creditors and your MN bankruptcy attorney about one to two weeks after you have filed for bankruptcy. The letter will explain the information about your filing including a case number, a description of the automatic stay and the important dates and deadlines for anything pertaining to the bankruptcy case. It will also include the date set for the meeting of creditors.

Meeting of Creditors – the meeting of creditors is the term given to your bankruptcy meeting where you will meet with the bankruptcy trustee to look over your assets and liabilities. The meeting of creditors is also open to the creditors; however, in most instances, the creditors do not show up and instead the trustee will ask the questions. This meeting is mandatory and your Minneapolis bankruptcy attorney will attend the meeting with you. You will be put under oath and need to confirm the details of your bankruptcy filing. This meeting will usually take place within 30 to 60 days after you have filed for bankruptcy, and, in most instances, is quite brief.

Notice of Discharge – after attending the meeting of creditors and if there are no objections to your discharge, then you will receive a notice of discharge. This is a written notice that is usually sent out within a week or two after the expiration for the deadline for filing complaints. Once you have received this notice, your dischargeable debts will be discharged and you are completely free to move on.

MN Bankruptcy Attorney Advice

During the process you may come across even more confusion and problems with your bankruptcy filing. This is common and most of us who file for bankruptcy will be unsure on a few of the different legal proceedings. This is why it’s important to choose a Minnesota bankruptcy lawyer that you feel comfortable and confident with. You should ask as many questions as you need and do not hesitate to stand up and speak your mind. It’s important that you understand all the details of your case. This will help you understand what went wrong and how to ensure it does not happen in the future.

Look for a Minnesota bankruptcy lawyer who offers friendly service and years of experience in the field of bankruptcy; after all, the more your attorney knows, the more you will benefit in the end.

One of the harsh realities that have come from the global economic recession is that foreclosures in Minnesota are at an all time high. More and more people are struggling to make the payments and are losing their homes to their lending companies. There are several ways you can avoid foreclosure; however, many people look past the option of bankruptcy as one of these ways. In reality, filing for Chapter 13 bankruptcy will give you the time to play catch up on your mortgage payments and keep your home in the process.

Foreclosure and Chapter 13 Bankruptcy

When you file for Chapter 13 bankruptcy, you are not liquidating your assets. Instead, you are reorganizing your debts into a payment plan that will work for you. This allows you to play catch up on your payments without having to succumb to foreclosure, wage garnishment and repossession. Furthermore, it will stop the creditors from hounding you and the lending companies from threatening to take your home. Chapter 13 bankruptcy is a great alternative to anyone who is worried about their debts and outstanding payments but do not want to go with the more drastic option of filing for Chapter 7 bankruptcy.

Chapter 13 bankruptcy will put you on a payment plan to catch up on your accumulated debts for three to five years. Once your time is up, the remaining debts will be discharged. However, this does not mean your mortgage payment. You will still need to continue with your mortgage payments; filing for Chapter 13 bankruptcy will simply provide you with some time and structure as you get your life back on track.

Your Foreclosure Situation

Even if your home has been scheduled for a foreclosure, you can still file for Chapter 13 bankruptcy and prevent this from happening. You will need to make regularly scheduled future mortgage payments through your bankruptcy payment plan which will be automatically accepted by the lending company. This means that even if your mortgage payments are lower than what you and your lending company agreed to, you will still be able to keep your home. Furthermore, as long as you continue to make the monthly mortgage payments and the monthly trustee payments, your lender cannot foreclose your home. You are safe.

But what happens if you are unsure if you can make the payments? Many people are struggling with unemployment and thus are unsure of what the future holds. All they know is that right now they cannot make the payments and thus their home may be foreclosed. Even if you are unsure of what will happen in the future, you can still buy some time by filing for Chapter 13 bankruptcy. In most instances, contacting a Minnesota bankruptcy attorney and filing for Chapter 13 bankruptcy will give you twelve more months to remain in your home and find a solution that works for you. In twelve months you may discover that you have found an excellent paying job and that, finally, things are looking up.

How a MN Chapter 13 Bankruptcy Attorney Can Help

If your home is in jeopardy of being foreclosed, it’s important to contact a Minnesota bankruptcy lawyer immediately. He will advise you on the next plan of action and determine if Chapter 13 bankruptcy is the best option for you.

If you have recently filed for bankruptcy you may be wondering what happens next? Sure, your debts are discharged but what about your credit? In general, a bankruptcy filing will remain on your credit report for seven to ten years after the date it was filed. However, this does not mean you need to wait this long to obtain credit. Those debtors who are interested in re-establishing credit after bankruptcy should obtain their credit reports from the various credit bureaus. You will need to make sure your balances have been zeroed out. Once this has been done, you can work towards re-establishing credit.

Bankruptcy and Your Credit

There is no rule when it comes to your credit after filing for bankruptcy and thus every single case is handled differently. Most people who have a steady job find that they are able to apply for credit after bankruptcy without any problems. However, this will depend on your personal situation. Speak to your MN bankruptcy attorney to see if they can shed some light on your personal bankruptcy situation.

Under the federal law, bankruptcy will not affect your eligibility for student loans and will not affect you eligibility for a home mortgage once the bankruptcy is eighteen months old. This means that you are still able to work towards owning a home, even if you had trouble with debt in the past.

Re-Establishing Your Credit after Bankruptcy

One of the ways you can re-establish your credit is to apply for a secured credit card. Unlike an unsecured credit card, a secured credit card works with your savings account which is used as collateral for the card. You will be able to use your secured credit card like a normal credit card but only if you have money in the account. That way you can re-establish your credit without worrying about accumulating debt again.

Next, stay on track of all your income and expenses. Once the debt has been discharged, you will feel a huge weight off your shoulder. To avoid making the same mistakes, you need to keep a firm record of what is coming in and going out. Make a spreadsheet, post it on the fridge and do not spend beyond your means.

Take the first couple of years after you have filed for bankruptcy to save up again. Start a savings account and work towards a down payment on a home or any additional items you need. You have been given a fresh start and the best way to work towards a brighter future is to save, save and save some more!

And, finally, stay away from unsecured credit. Most people who file for bankruptcy will still receive offers for pre-approved credit cards in the mail within that same year. Do not take this as a sign that your credit is back on track.

Minnesota Bankruptcy Lawyer and Attorney Advice

If you are concerned about your credit report after filing for bankruptcy, discuss your options with a MN bankruptcy attorney. They can help you understand what will happen after the fact and how this can impact your ability to obtain loans in the future.