Minnesota Bankruptcy FAQs

What do I need to begin my Minnesota bankruptcy case? Have a detailed list of past and current debts as well as a list of assets and liabilities. Additionally, you will need tax returns for the past two years, documentation of income, recent bank account and retirement statements, proof of expenses, and identification. You will also have to complete a credit counseling course before bankruptcy can be filed.

Can a co-signer be responsible for a debt if bankruptcy is filed? Yes. The lender can demand that the co-signer make payments once the principle borrower on a loan has declared bankruptcy. However, it is possible to protect the co-signer by continuing to pay the debt after the bankruptcy case is filed.

When should I stop using my credit cards if I'm planning to file for bankruptcy? The moment you anticipate filing, stop using your credit cards because some of your purchases could be deemed fraudulent. If cash advances or certain purchases are made within 90 days of filing, the debt could possibly be excluded from your bankruptcy discharge.

Does my divorce decree protect me from creditors if my former spouse files for bankruptcy? Unfortunately, no. If you co-signed on any debt while married, creditors can demand payment from you. This is true even if the debt was assigned to your ex in the divorce decree. However, your divorce decree may dictate repercussions against your former spouse should they default on loan obligations.

Can I have my bankruptcy removed from my credit report? No. A bankruptcy will automatically fall off of your credit report within 7 to 10 years. You can request that accounts that were reported inaccurately be updated and corrected.

Do I have to include all of my accounts when I file for bankruptcy? All debts must be included in your petition and schedules. Some debts can be kept by "reaffirming" or simply continuing to pay that specific debt.

Contact Minnesota Bankruptcy Attorney Gregory Wald at 952-921-5802 for more information on these frequently asked questions.

Speak With A Bankruptcy Attorney About A Hardship Discharge

Filing for Chapter 13 gives people with a source of income the choice of devising a plan to repay some of their debt when they're experiencing a financial hardship. This is why Chapter 13 is also known as the "wage earner's plan."

In the instance that you've already filed for Chapter 13 bankruptcy, yet you are still experiencing a financial hardship, there are options. If you find yourself in this predicament do not simply stop making payments to your trustee. Once you do that you can expect your bankruptcy case to be dismissed without discharge.

Don't ignore your problem. Speak with your bankruptcy attorney about a Hardship Discharge. This type of discharge will clear debts and give you a fresh start, even though your repayment plan has not been completed.

This option is available to you if:

• The failure to complete your repayment plan was due to circumstances beyond your control. 
• Your creditors received at least what they would have gotten out of a Chapter 7 liquidation case. 
• Modification of your plan isn't possible. For example, you sustained an injury or illness that prevents adequate employment that would finance a modified plan. 

Hardship Discharges do not apply to any debts that are non-dischargeable, so it's much more limiting than a Chapter 13 bankruptcy. There are many facets to a Hardship Discharge which is why it is important to speak to your bankruptcy attorney.

Do not feel trapped by your finances. You do have options for dealing with your debt. Contact Minnesota bankruptcy attorney Gregory Wald at 952-921-5802. He will go over your Chapter 13 case and give you all the best options specific to your situation.