MinNesoTasBankruptcyLawyer.com
There are three main types of bankruptcy filing in the state of Minnesota - chapter 7, chapter 11, and chapter 13. The definitions for each type vary from state to state and you and your Minnesota bankruptcy attorney will need to work together to determine which type of filing is best for your personal financial situation.
The chapter 7 bankruptcy is the most common type of filing. In the state of Minnesota, a chapter 7 filing allows individuals to discharge (or completely eliminate) all of their debts. A chapter 7 filing is most often used by individuals who have significant amounts of credit card and mortgage debt. While it is not impossible for a person to file for chapter 7 bankruptcy on his own it is not recommended that one try to do so. The legal maze can become very complicated and one mistake can result in your case being thrown out of court for months or even years.
A chapter 11 bankruptcy filing in Minnesota is usually used by businesses who need to find a way to reorganize their debts. Chapter 11 bankruptcy cases can be very complicated but are great for debtors who want to remain in control of their businesses during the course of the filing. The Debtor in Possession, otherwise known as the DIP, will have to open new bank accounts, submit monthly reports to the US Trustee's office, and gain approval from the courts before paying any non-secured debts. A business looking to file chapter 11 bankruptcy must seek the advice of a Minnesota bankruptcy lawyer in order to protect his business and assets during the filing process.
The chapter 13 bankruptcy is appropriate for individuals who have a nominal amount of disposable income leftover at the end of each month. Individuals who choose to file a chapter 13 bankruptcy petition will have the opportunity to create a plan that will allow them to repay parts of their debts over a period of time. The total amount paid will depend on the financial situation of the debtor at the time the petition is filed.
Bankruptcy law can be confusing and scary but if you find yourself facing bankruptcy it is important to remember that you are not alone. Seek the advice of a qualified Minnesota bankruptcy attorney before taking any action.