Legal Question in Bankruptcy in Minnesota

Re: Buried in debt - can we file Chap 7?

From the sound of your posting, you would benefit financially by filing for bankruptcy protection. Check out our web site at www.hoglundlaw.com for information regarding Chapter 7 and Chapter 13 bankruptcy. Feel free to contact our office at 651-628-9929 for a free consultation of your situation.

I look forward to hearing from you,

Jeff Bursell

Re: Buried in debt - can we file Chap 7?

Short answer --- Yes, please file. If will improve your emotional and financial situation.

PLEASE READ MY FIRM�S PHILOSOPHY! Everyone should be able to start over fresh and relieve themselves from this tremendous burden. You are essentially asking if you have enough debt to necessitate or qualify for a bankruptcy filing. The Bankruptcy Code does not require a minimum amount of debt and currently there are no limitations to the amount of monthly income you can receive. Many people have the impression that they must be destitute in order to "qualify" for bankruptcy. This is not the case. If your income is high enough that it exceeds your necessary monthly expense (not including payments on credit cards)substantially then you would probably need to file under Chapter 13 instead of Chapter 7 and repay a portion of your debts. In your particular situation I don't believe your monthly income is high enough to warrant a Chapter 13 filing. You would file for a complete "discharge" (a bankruptcy term which means wipeout or erase) under Chapter 7.

You would be entitled to keep most if not all of your property. Essentially, in Minnesota you are allowed to "exempt" certain property from the claims of creditors and this right is preserved in a bankruptcy proceeding. The easiest way to understand "exemptions" is to view the exemptions as the property a filer keeps in spite of filing for bankruptcy relief. For example, you are permitted to exempt a automobile not to exceed $2,775 in value. You are entitled to exempt a home not to exceed $200,000. Exemptions relate to the equity you have in a particular item of property. In a technical sense if you owe more money than the property is worth (this happens frequently in the case of cars, computers and furniture)then there is no equity to exempt. A good lawyer will guide you through the exemptions and request them for you in your bankruptcy case. The goal should be taking advantage of the strategy that will allow you to keep all or most of your property. You should know that the exemptions are available to each individual if both you and your spouse filed. (just double the amounts).

My office is in Minneapolis (Columbia Heights)and I would be happy to speak with you personally if you have more questions. ph. (612) 677-0161 or (800) 303-0720