Do You Qualify for Bankruptcy in Minnesota?

One of the most common questions clients come to Prescott Pearson & Tande, PA with is, "How do I qualify for bankruptcy in Minnesota?" Qualifying for bankruptcy can be complicated, especially if you are seeking Chapter 7 bankruptcy. Your medium income level and real budget compilation are the two major points that will be examined. It is important to have an experienced bankruptcy attorney review your finances for you, help you through the bankruptcy process and ensure that you are completing all the necessary steps.

There are "online" bankruptcy means tests, but these are not always accurate. That is why it can be helpful to have a professional on your side who thoroughly understands bankruptcy and who has decades of experience representing individuals and families across Minnesota.

The seasoned bankruptcy lawyers at Prescott Pearson & Tande, PA can help you. Take control of your financial circumstance today.

Minneapolis Bankruptcy Law Firm

Under bankruptcy reform legislation of 2005 you need to pass two tests to qualify to file for bankruptcy:

  1. Bankruptcy means test: If you are over the median income based on your past six months of wages and earnings, you are required to qualify to file under the means test, which is an IRS budget. If you fail the means test, you do have another option: you can file a Chapter 13 repayment plan paying all or a portion of your debt off over a 60-month period.
  2. Real budget compilation: If you are under the medium income or pass the means test, you then need to have a real budget compiled to determine if you have any extra money in your budget to repay all or a portion of your debt. If you do not have those extra funds, you qualify to file a Chapter 7. If you have extra money in your budget, you would qualify to file a Chapter 13 repayment plan paying all or a portion of your debt in a three- to five-year period.

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  • Minneapolis-St. Paul Area: 651-968-8096
  • Minnesota Toll Free: 888-366-0827

Please call us at one of the numbers above or contact us online to schedule a consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.