Answers to the 18 most common questions from Minneapolis residents considering bankruptcy.
Chapter 7 filing fee is $338 and Chapter 13 is $313. Attorney fees typically range from $1,000-$2,000 for Chapter 7 and $3,000-$4,500 for Chapter 13. Credit counseling costs about $25-50. Full cost breakdown.
The means test determines whether you qualify for Chapter 7. It compares your household income to the Minnesota median. If below, you qualify automatically.
Yes, but there are time limits. After Chapter 7, wait 8 years for another Chapter 7 or 4 years for Chapter 13. After Chapter 13, wait 6 years for Chapter 7 or 2 years for another Chapter 13. Use the 1328(f) screener to check.
In Minnesota, your homestead exemption protects $450,000. In Chapter 13, you can keep your home and catch up on missed payments. See all exemptions.
Minnesota protects $5,000 in vehicle equity. In Chapter 13, you can keep your car and catch up on payments. Exemption details.
You keep your bank account, but the balance on filing date must be disclosed. If you owe money to that bank, consider switching before filing.
In Chapter 7, your tax refund may be considered an asset. In Chapter 13, it may need to be turned over to the trustee. Timing matters -- discuss with your attorney.
Chapter 7 takes 3-4 months. Chapter 13 requires 3-5 years. The 341 meeting happens about 30 days after filing. Full timeline.
A brief hearing about 30 days after filing. The trustee asks questions under oath. Bring photo ID and Social Security proof. Most last 5-10 minutes. Full guide.
The automatic stay takes effect immediately when you file. It stops lawsuits, garnishments, foreclosures, repossessions, and collection calls.
Yes. The automatic stay stops garnishments immediately. However, garnishments for child support and certain tax debts may continue. Learn more.
Yes. Medical bills are fully dischargeable in both chapters. Medical debt is one of the most common reasons people file.
Generally no. Student loans require proving undue hardship in a separate proceeding. Learn more.
No. The automatic stay prohibits all collection activity. Report violations to your attorney.
Chapter 7 stays on your report for 10 years; Chapter 13 for 7 years. Many filers see recovery within 1-2 years. Rebuilding after bankruptcy.
Chapter 7 is faster but requires a means test. Chapter 13 lets you keep property and catch up on payments. Compare them.
Yes. File individually or jointly. If individually, your spouse's separate property and credit are generally not affected.
Use the free 1328(f) screener to check whether a prior discharge affects your eligibility for a new discharge.
Free Discharge Screener