07 Aug Minnesota Chapter 7 Bankruptcy: An Important Overview
How Chapter 7 bankruptcy works?
Minnesota Chapter 7 Bankruptcy is mainly sometimes called “liquidation” or “straight” bankruptcy — it cancels your debts.
Chapter 7 Bankruptcy Costs in Time and Money
The whole Chapter 7 bankruptcy process always takes 90 days and costs $335 in filing fees. The cost of each case is flat fee, meaning you are not billed per hour and are instead charged one fee prior to the filing. The fee depends on the complexity of the bankruptcy filing. After the free initial consultation we will tell you the exact cost to file.
To file for Chapter 7 bankruptcy, you fill out a information sheet and provide the following applicable documents which will be used to draft the petition:
- Bank Statements
- Wage Statements
- Tax Returns
- Auto Loan Statements
- Mortgage Payoff Statement
Bankruptcy’s Magic Wand — The Automatic Stay
Filing Chapter 7 bankruptcy always puts into effect an “Order for Relief” — known informally as the “automatic stay.” The automatic stay immediately stops creditors from trying to collect. Essentially creditors are stopped from calling, mailing, suing, garnishing or collecting in any way.
Your Assets during Bankruptcy.
In most cases you will not surrender any assets in the filing of bankruptcy. By filing for Chapter 7 bankruptcy, you are seeking court ordered relief of your debts. Prior to and during the filing you should not sell or give away or transfer any of your property. Immediately after the case is concluded or without your attorney’s consent. You are also required to disclose all assets on the petition. Failure to disclose assets is a reason for denial of discharge.
How Your Secured Debts Are Treated?
Items such as houses and cars which are secured can be kept or surrendered. The lien on the property is not stripped by the bankruptcy. If you do choose to keep the secured item you will be required to keep payments current. If you surrender the item you will not be required to continue to make payments. Bankruptcy puts you in charge of whether of the secured asset.
Minneapolis Chapter 7 Bankruptcy Discharge
At the end of the bankruptcy process, all of your debts are wiped out (discharged) by the court, except:
- Debts that automatically survive bankruptcy, such as child support, some tax debts, and student loans, and;
- Debts that the court has declared not dischargeable because of fraud or abuse.
Most cases involve the discharge of all debts and the discharge are granted in the 90 days after the filing of the bankruptcy. After the discharge you can move on with your life, you can re-establish credit, you can purchase houses and cars and will be granted new credit.