Minnesota Bankruptcy Lawyers and Attorneys of Loraas & Loraas are Bankruptcy and Consumer Law Advocates.

Minnesota Chapter 7 Bankruptcy


The Minneapolis, MN law firm of Loraas & Loraas is a debt relief agency. In addition to other legal services we offer, we help people file for bankruptcy relief under the U.S. Bankruptcy Code.

Persons considering the option to file for Chapter 7 Bankruptcy in Minnesota should speak with a dedicated bankruptcy lawyer.  Consumer bankruptcy is the most common form of bankruptcy in the United States. We help individuals and married couples seeking protection under the current Federal Bankruptcy Laws. This type of individual bankruptcy provides a ‘fresh start’ for people who have accumulated excessively high amounts of debt owed to creditors.
 

Filing for Chapter 7 bankruptcy can legally put a stop to these issues:

·         Creditor Harassment from credit card companies

·         Repossessions

·         Wage Garnishments

·         IRS Tax Collection

·         Utility Service Shutoffs

·         Foreclosure

 “Automatic Stay” is a term coined for one of the most beneficial actions that filing Chapter 7 bankruptcy allows the debtor. Automatic stay will prevent creditors from making annoying & threatening calls or sending letters in the mail. This form of bankruptcy will also stop all wage garnishments.
 

What Types of Debts are dischargeable when filing Chapter 7 Bankruptcy?

  • Credit cards
  • Personal loans
  • Repossession deficiencies
  • Medical bills
  • Judgments & other legal claims
  • Lease Obligations
     

What Types Of Debts Cannot Be Discharged Through Chapter 7?

  • Student Loans
  • Child Support payments
  • Spousal maintenance
     

What Will Happen To My Credit Score?

A common fear with filing bankruptcy is the effect on the person’s credit score. While a bankruptcy is a negative reflection upon your credit, there are other factors lenders will consider when making a lending decision. In fact, many debtors are surprised when they learn it is possible to actually obtain a higher credit score within two years after filing Chapter 7 bankruptcy. While the bankruptcy discharge will remain on a credit report for 10 years, people have qualified for loans or home mortgages only a few years after filing.
 

Who Is Eligible For Chapter 7 Bankruptcy in Minnesota?

If a person makes more than the median income level in their state they are eligible but must pass a ‘means test formula’ which determines if the debtor has less than $100 a month of disposable income. Consulting with a Minnesota bankruptcy lawyer is an essential step prior to having this test done.

When you decide to file for Chapter 7 bankruptcy, it is recommended that you hire an attorney to file the petition. This petition will outline your current income, assets, and debts. After a petition is filed with the courts, a 341 (creditors) meeting occurs where the petition is analyzed. If no objection is filed by the creditor(s), then the chapter 7 bankruptcy discharge is granted by the courts.

 

How Do I Get Started?

Contact the bankruptcy attorneys at Loraas & Loraas to speak with an experienced and skilled bankruptcy lawyer who can quickly provide guidance and assistance with your bankruptcy filing. Call us today to schedule a free consultation at (952) 890-5324.