In recent years, more and more people who never thought they’d be in debt find themselves in just that position due to loss of a job, a health crisis, or divorce. For people who have worked hard all their lives and always paid their bills, facing the prospect of bankruptcy is daunting. Most people avoid contacting a bankruptcy attorney until they can see no other option, but the sooner you call us, the more effectively we can help.
Although our Minneapolis Chapter 7 bankruptcy attorneys have handled hundreds of cases, we never forget that for each client going through the process, it’s a brand new, and often stressful, experience. We don’t believe in one-size fits all solutions; because every client is unique, we want to understand their goals and help craft a solution that meets their needs. That includes personalized attention from attorneys throughout the bankruptcy process, not just when a hearing is scheduled.
Chapter 7 is designed for debtors who are unable to pay their existing debts. Chapter 7 is not available to everyone; there is a “means test” to determine if a debtor is eligible for chapter 7.
To file for bankruptcy protection, including through Chapter 7, your attorney will need to file a number of documents, called “schedules,” with the U.S. Bankruptcy Court. These schedules document your income, your assets, your debts, your expenses, and other information about your financial situation, including property you’ve sold or given away during the two years prior to filing.
Each case filed is assigned to a Chapter 7 bankruptcy trustee. The trustee is authorized to liquidate non-exempt property to pay your debtors. However, many Chapter 7 cases have no non-exempt property for the trustee to take. Typically, in a Chapter 7, you will need to appear before the trustee only once. Your attorney will prepare you for this brief hearing, and will be at your side throughout.
A successful Chapter 7 bankruptcy discharges your existing debts (with the exception of certain types of debt, including domestic support obligations, student loans, and others). As a result, Chapter 7 is often known as “fresh start” bankruptcy.
If you are interested in learning more about Chapter 7 bankruptcy, or other options for bringing your financial situation under control, contact the Running Law Firm for a consultation at 612-279-2660. Our Minneapolis bankruptcy attorneys look forward to working with you.