Minneapolis Bankruptcy Law Blog

How declaring bankruptcy affects your financial future

Overwhelming debt is a very common fact for many people today. Living in a consumer culture encourages spending beyond the ability to pay, credit cards with large limits are easy to come by and the fluctuating economy means job stability is not always a given. If you are stuck in a difficult debt situation and considering bankruptcy, you are not alone.

One of the main factors that may hold many people back from declaring bankruptcy is fear for their post-bankruptcy financial future. It is important to understand the facts in your particular situation so you can decide whether bankruptcy is the best option for you. Consulting with a qualified bankruptcy lawyer could be your first step in gaining more information. Here are some things you may want to research further as you consider your options.

Will I lose my home if I file for bankruptcy?

Many people who are considering filing for bankruptcy are afraid of losing any of their assets, but there is perhaps no greater fear than the fear of losing your house. If you have owned your home for a significant amount of time, it may be a greater emotional fear than losing other assets, as the memories you create in your home are intertwined with the property itself.

Fortunately, this fear can be assuaged in most cases. Individuals filing bankruptcy in Minnesota can protecting certain assets by utilizing either federal or state system of exemptions.

Both the federal and state exemption systems offer protections for equity in a homestead. Minnesota lists homestead real estate among its bankruptcy exemptions, up to $390,000 in equity. The federal exemptions are smaller. The exact amount of protection available will depend on the number of individuals filing bankruptcy and how the home is titled.

While your circumstances may vary, there are many things a bankruptcy can do to help you with your home. Talk to a qualified bankruptcy attorney about your concern and find out if bankruptcy is right for you.

Filing a chapter 7 bankruptcy for small business

If you are considering bankruptcy, it is important that you select the right type of plan. Different types of bankruptcy filings produce very different outcomes. For small businesses, Chapter 7 bankruptcy can sometimes be beneficial.

Depending on your particular situation and needs, this type of plan may be right for you. Take some time to learn about Chapter 7 bankruptcy and how it may benefit a small business.

Are you dealing with creditor harassment?

If you are struggling to pay your bills on time and dealing with mounting debt in Minnesota, your phone may seem like it always ringing with unknown numbers from creditors. You may also notice that your mailbox is full of bills and past due notices. This persistent harassment from creditors may be causing you to feel unsettled and overwhelmed by your situation. 

You do not need to change your phone number or get a post office box. There are ways for you to get control of your debts to put an end to creditor harassment. Take some time to review the following tactics to get some peace of mind. 

Will I lose my 401(k) in bankruptcy?

Many people are on the fence about filing bankruptcy because they fear losing assets such as their house and car. They may also believe 401(k) accounts are at risk.

The good news: Many who file for bankruptcy keep their house, car and 401(k). In fact, even if you give up your house and/or car, perhaps because you choose not to reaffirm that debt, your 401(k) should still be yours.

Common college student financial mistakes

College is a time of learning and growth. For many students, it is the first time they are on their own and faced with the responsibility of making major decisions. Youth, inexperience and stress can all combine to create a perfect storm for financial folly. College itself is a major expense that will likely lead to debt, but some students might be incurring additional debts that are excessive and unnecessary.

If you are a student or have a child who is in college, the following are some common mistakes that you should be aware of. Debt can accumulate easily, and it is imperative that young people avoid the problems that it can later cause.

Why you should hire a bankruptcy attorney

It is not uncommon to wonder if a bankruptcy attorney is necessary for them. It is important to understand that a bankruptcy attorney offers many services in addition to helping you choose between Chapter 7 and Chapter 13 bankruptcy and filing the paperwork. 

A bankruptcy attorney is here to protect your interests and to help you avoid costly mistakes. Unfortunately, many people who file their own bankruptcies discover too late that they misunderstood the laws. The consequences could be costly. 

Read on to learn what a bankruptcy attorney can do for you.

Does bankruptcy forgive payday loans?

There are many problems associated with payday loans, and often, they outweigh the positives, such as no credit check. For example, the finance charges can be hefty, even if the loan is only for a few weeks.

Plus, the loans can be difficult to pay back when they are due, leading consumers to bounce checks, rack up fees and take out even more loans. The good news is that if you are considering bankruptcy, your payday loans are likely to be discharged in Chapter 7.

Are you a candidate for debt reaffirmation?

Millions of Americans are struggling financially, and if you are one of them, you might be wondering what the best solution to your debt is. Many people consider bankruptcy to get them out from under smothering debt, but you may be thwarted by the fear that you will be forced to liquidate your property and worries about your credit.

You should be comforted to know that bankruptcy exemptions available to filers in Minnesota are often more than enought to protect personal property. While it is true that bankruptcy can impact your credit score, you can start rebuilding your credit score by reaffirming on certain debts such as home mortgages and car loans.

To determine whether reaffirmation is right for you, you should consult with a knowledgeable bankruptcy attorney. Read on to learn more about the reaffirmation process.

Should you take advantage of zero percent credit card offers?

There is a constant stream of advertisements touting the benefits of financial products and programs, and one of the most frequently featured items are credit cards. If you were to take advertisers at their word, it would seem that every credit card is a risk-free asset that will boost your financial security. As a conscientious consumer, however, you know otherwise. If you are wondering about zero percent interest credit cards, you may be wondering whether or not to take the plunge. These tips should help you make the decision.

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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