October 2014 Archives

What is Chapter 7 bankruptcy, and who is eligible?

Minnesota residents who have large amounts of unsecured debt may look to filing for Chapter 7 bankruptcy. Unlike Chapter 13, which involves a reorganization of debt and a repayment plan, Chapter 7 does not require an individual to pay back creditors for debts that are eliminated. However, only unsecured debt can be discharged by this type of filing, and not all debts are eligible; for example, student loans usually cannot be discharged. Additionally, liens on a property are not eliminated.

What is the homestead exemption amount in Minnesota?

While a person is filing for bankruptcy in Minnesota, the debtor may claim their homestead as an exemption. This means that the house that is occupied by the debtor and the debtor's family and the land where the house is situated will be protected from seizure or sale.

Foreclosure counseling required in Minnesota

Minnesota residents who are behind on their mortgage payments often wonder how they'll know if the mortgage company is moving ahead with foreclosure. One good sign is if the mortgage company sends a letter with information about foreclosure prevention counseling. Foreclosure prevention counseling is usually offered by non-profit agencies who try to help homeowners resolve their mortgage delinquency. Minnesota requires mortgage lenders to notify homeowners of counseling options before moving forward with foreclosure.

What does a bankruptcy trustee do?

In all Chapter 7 bankruptcy cases filed in Minnesota, a trustee is appointed by the Office of the U.S. Trustee to administer the case. The exact role that the trustee will play varies on a case-to-case basis, depending on whether there are assets available for liquidation.

Regulations for debt collectors in Minnesota

If someone owes a creditor money, they may start receiving letters and phone calls from debt collectors. It is important to note that these collection agencies are required to abide by the Fair Debt Collection Practices Act, which limits what they can and cannot do in the course of their attempts to have an individual repay a debt. Collection agencies are allowed to contact people through a variety of means, including in person and by phone, but when and how frequently is limited.

Prescott Pearson & Tande, PA
443 Old Highway 8 Northwest, Suite 208
New Brighton, MN 55112

Toll Free: 888-366-0827
Phone: 651-968-8096
Fax: 651-633-7562
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