Minneapolis Bankruptcy Law Blog

Will people know if you filed for bankruptcy?

Filing for bankruptcy does not carry the same connotation it did decades ago. Now it is so common that most people know at least a few friends who have gone through the process. According to the United States Bankruptcy Court in the State of Minnesota, 5,868 people have already filed for bankruptcy in 2019 alone, so chances are good that well over 10,000 people will file before the end of the year. 

Plenty of people require bankruptcy to take care of medical or credit card debt. Although it is common in today's world, many people still feel a level of shame in having to go through it. You may fear that your friends, coworkers and family members will find out. While it is possible that they may eventually learn about it, you do not have to worry. 

Key bankruptcy exemption facts

As people begin to recognize bankruptcy as a financial tool, more people begin to utilize it. However, there is still some confusion about the bankruptcy process

Particularly in regards to exemptions in bankruptcy, many people subscribe to certain misconceptions. To avoid falling into that category, understand a few key facts about bankruptcy exemptions.

Make a Chapter 7 bankruptcy work for your business

In the past, many people viewed bankruptcy as a taboo topic; however, it is now growing in popularity. The bankruptcy process can prove to be quite beneficial for various people.

In particular, the Chapter 7 bankruptcy process can be helpful to certain business owners. To take full advantage of the benefits of this option, it is important to understand key aspects of a Chapter 7 bankruptcy.

Retirement funds are not always exempt in bankruptcy

After your divorce, your portion of the marital debt, along with the new strain of living on a single income, may have you feeling overwhelmed. Perhaps you have considered using your half of your spouse's 401(k) you received in the divorce to pay off the debt. However, your employer does not offer retirement, and you need that money for your future.

There are federal laws that protect 401(k) plans and other employer-sponsored retirement accounts from creditors. Before you breathe a sigh of relief, you should know there are exceptions, and your retirement award may not have the same protections as your spouse's plan.

5 common causes of business bankruptcy

Running a business is not easy or straightforward. You constantly need to adapt to changes and figure out how to grow. Unfortunately, not all companies succeed. You may find yourself among the many businesses that go bankrupt.

According to Business Insider, business bankruptcies are on the rise. There are so many reasons why you may find yourself considering bankruptcy for your company. Here are some top factors that lead to businesses declaring bankruptcy.

What kind of property can you exempt in a bankruptcy?

You no doubt have certain assets you wish to protect from creditors when you file for bankruptcy; property such as your home, your car or certain household goods.

There are many more possibilities for bankruptcy exemptions. There is no Wild Card option in Minnesota, but you can choose to use either federal or state exemptions.

How to talk to your partner about bankruptcy

Debt can feel overwhelming. If you are sitting on piles of consumer, medical or other types of debt, you may feel anxiety, sadness or shame. You should not, however, let your feelings about your financial situation derail you from making important decisions.   

Bankruptcy protection may allow you to discharge some or all of your debt. Still, choosing to file for bankruptcy is not always an easy decision to make. If you have a romantic partner, though, you may be able to rely on him or her for emotional support. First, you must talk about your debt and bankruptcy with your significant other. Here are some tips for doing so: 

The alarming rise in gray bankruptcy

Minnesota seniors have not been immune to the rising costs of health care and the financial hardships it causes. Many senior households have already depleted their lifetime savings accounts and may well be using their credit cards to cover their monthly bills because their Social Security check(s) simply do not stretch far enough.

All this has led to a new American phenomenon: gray bankruptcy. The term refers to those aged 65 and over who have been forced to declare bankruptcy as the only way out of their crushing debt. Sadly, their percentages have gone from only 2.1% of all bankruptcies filed in 1991 to 12.2% today.

Will you lose your home if you file for bankruptcy?

When your medical, credit card or other bills become so overwhelming that you can no longer keep up with them, you may need some assistance getting back on your feet financially. Often, people in your shoes look into whether filing for bankruptcy may help them get a better handle on their financial affairs, but many of them have questions about the process and what they could potentially lose, should they file.

More specifically, one of the most common questions today’s prospective bankruptcy filers have is whether they will be able to keep their homes, should they decide to move forward with the process. While, unfortunately, there is no single, simple answer to this question, whether you will ultimately lose your home when you file for bankruptcy depends on the type of filing you pursue, among other considerations.

What can bankruptcy’s automatic stay protect you against?

As someone thinking about filing for bankruptcy, you may consider doing so because you want to put a stop to the constant barrage of phone calls and communications you receive from creditors. You may, too, be thinking about doing so because you have concerns about losing your car, your home, your paycheck and so on, and you may have heard that bankruptcy’s automatic stay may protect you in these areas.

Just what is bankruptcy’s automatic stay, and how can it potentially protect you once you begin the bankruptcy process? In essence, bankruptcy’s automatic stay refers to the period immediately following your bankruptcy filing, which is a period in which creditors have no right to contact you to attempt to collect your debts. While the automatic stay does not necessarily protect you against all creditors, it does protect you against:

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