Getting a Fresh Start Through Chapter 7 Bankruptcy

If you haven't filed a Chapter 7 within the last eight years, can pass the Chapter 7 "means test," and your budget only allows for you to pay your monthly living expenses — you may be able to discharge most of your unsecured debt, including credit card bills, hospital bills and older tax debts.

Filing for Chapter 7 bankruptcy protection can also put an immediate stop to creditor harassment and wage garnishments — and put at least a temporary stop to home foreclosure proceedings or car repossession (but you usually need to become current on your payments if you want to keep these assets in a Chapter 7).

At Prescott Pearson & Tande, PA, our attorneys have focused solely on helping Minnesota families and small businesses get a fresh start through the bankruptcy process since 1975. We're confident that we can help you, too. Even if it turns out that bankruptcy isn't the right solution for your needs, we have valuable advice to offer distressed creditors. Call or contact us today for a free consultation regarding any aspect of Chapter 7 bankruptcy:

Bankruptcy fact: Most people who would have been eligible for Chapter 7 bankruptcy relief under the old laws (before October of 2005) will still qualify today.

What Won't a Chapter 7 Bankruptcy Do?

Chapter 7 bankruptcy does not allow you to discharge every type of debt. Debts that you can't erase include student loan debts, recent taxes, child support obligations and past-due mortgage and car payments.

Another important fact to be aware of is that filing a Chapter 7 will not protect co-debtors. In other words, if someone else co-signed on a loan for you or took out a loan with you — those people will be on the hook for the full amount of the debt. That includes joint holders on your credit card accounts.

You should also know that Chapter 7 bankruptcy may not protect all of your assets. For instance, if you own a cabin and have a lot of equity in it, it will probably be sold by the trustee in order to pay your creditors. In these situations, a Chapter 13 payment plan might be a better option for you — especially if you have unprotected assets that you want to keep.

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Contact Us to Schedule a Free Initial Consultation

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

For answers to any other questions about bankruptcy in general, or about your specific situation and concerns — don't hesitate to call or email our lawyers in the Twin Cities area for a free consultation.

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