If you are considering filing for bankruptcy, you obviously have some questions. We all do. Below you will find the answers to some of the most common questions surrounding bankruptcy. Keep in mind that, although these questions will offer some insight into the option of bankruptcy, it’s best that you speak to an experience Minnesota bankruptcy attorney regarding your particular situation.
What is needed from me in a bankruptcy case? – There are six main items you will need when it comes to your bankruptcy case:
1) Seven months worth of pay slips
2) A certificate of credit counseling
3) Most recent tax file return
4) A filed out client worksheet which will include your information and the information of your creditors
5) A list of your expenses, assets, liabilities and property
6) A form of identification such as a driver’s license or a passport
How will filing for bankruptcy affect my credit? – This is one of the most common questions involving bankruptcy cases. The truth is there is no set law that will determine how bankruptcy will impact your credit rating. However, bankruptcy will not affect your eligibility for student loans, and, after 18 months, bankruptcy will not impact your eligibility for a home mortgage. Most people who have filed for bankruptcy report that future creditors are not too concerned with their past bankruptcy record as long as they have a stable income now.
Can I keep my home and car? – in most bankruptcy cases in Minnesota, the debtor will be able to keep their car and home under the exemption laws that are put in place at both the state and federal level. However, you will need to discuss your personal situation with a MN bankruptcy lawyer.
What are my bankruptcy options? – an individual has three different options when it comes to bankruptcy – Chapter 7, or liquidation bankruptcy; Chapter 13, or re-organization bankruptcy; or Chapter 11, or reorganization bankruptcy for those with unsecured debts higher than $330,000. Businesses will have two options for bankruptcy – Chapter 7 bankruptcy; or Chapter 11 bankruptcy. It’s best to discuss these options with your Minneapolis bankruptcy lawyer to determine which the right option for you is.
What debts will be discharged? – In most Chapter 7 and Chapter 13 bankruptcy cases, any unsecured debt will be discharged. This typically includes credit card debts, medical bills, utility bills and some bank loans. However, student loans, spousal and child support will not be discharged and, in most instances, your secured debts will also remain your responsibility.
How long will the process take? – The process of bankruptcy will generally take a few months. However, as soon as you file for bankruptcy and put in the documentation, the bankruptcy court will issue the creditors to stop harassing you. In this way, the process will start to take effect immediately. You can expect to attend the meeting of creditors 30-60 days after filing for bankruptcy and you will receive a notice of discharge within 90 days. A MN bankruptcy lawyer can help you determine the exact time frame on your bankruptcy case.
How long will Bankruptcy remain on my credit report? – Bankruptcy will remain on your credit report for seven to ten years.