Minnesota Bankruptcy Laws should be known by every resident of the state of Minnesota. For most Minnesota citizens on the brink of being sued for not paying their bills and mortgages, the only option they can think of is the right to avail of a Chapter 7 or Chapter 13 bankruptcy protection program. Bankruptcy programs in the past have been invoked by a lot of citizens who want to have a fresh start. Minnesota bankruptcy laws allow each citizen to apply for this program.
Prior to filing for bankruptcy, there are two basic things you should do. One is to take a credit counseling program as one of the state’s requirement during bankruptcy filing. This is a court-mandated order to instill to the debtors that there are other ways of dealing with staggering debts than just bankruptcy. At least after the counseling the debtor can make an informed decision of whether to pursue this action or not.
In 2005 a new law was put into motion, setting up the intricate web of paperwork and processes of bankruptcy qualifications. This can be daunting on the debtor’s part, and hiring a lawyer would ease the stress the debtor is experiencing, at the same time ensuring that the chances of filing the petition appropriately is dramatically increased.
For debtors who want to pursue bankruptcy, you should know enough about the bankruptcy laws of the federal government and of the state to help you in the speedy processing of application. The first decision you have to make is choose between the two most common programs you can avail. A Chapter 7 bankruptcy protection program may be the easiest and most advantageous for the debtor because it offers a fresh start, but it can also be deceiving. The qualifications and requirements are not as lenient as before. You are at the mercy of the court’s trustee who will evaluate your application and administer the bankruptcy proceedings. Upon filing, all your properties have to be declared and a list of all your debts should also be included. The debtor’s petition should be filed with accuracy and all the necessary paperwork should be filled out with care to ensure that no errors occur in the documentation. After all these have been done, the fate of your application now lies in the hands of the trustee and the bankruptcy court.
Another type of bankruptcy protection you can invoke in dire times is Chapter 13. While this protection program may not offer you a fresh start, it gives every debtor the chance to prove in court that he can pay all the creditors he owe by realigning the terms of his debts. Should the court grant this request the debtor must present a repayment plan outlining the terms at which he should pay all his debts within 3 to 5 years with the supervision of the court’s trustee. The same amount of paperwork is required of this bankruptcy petition and a credit matrix should be provided listing the names, addresses, amounts owed, and every pertinent information about the creditors.
Minnesota bankruptcy laws have made provisions for citizens whose assets are in danger of being liquidated because of debt payments. The state offers exemptions to give debtors the chance to bring these possessions when starting anew. Below is a list of some of the exemptions of the state:
• The house you live in for up to $300,000 or a farm amounting to $750,000;
• A single vehicle worth $4,200 or $42,000 for modifications made to accommodate a disabled person;
• Household properties amounting to $9,450 that includes watches, food, furniture, clothing, and more; and
• Other personal benefits.
Once accepted for the bankruptcy program, the bankruptcy declaration will greatly affect your credit rating and will stay on your record.