No one’s bucket list includes filing for Chapter 7 bankruptcy in Minnesota. However, it may be the most responsible thing to do for you or your family. The economy these days may not be what it was when you started working. Things have changed. Businesses are financially floundering. Online sales and services are cutting into business profits. And here you are. The debts are piling up and you may soon have to choose between groceries and trying to pay off what you owe. The only solution may be bankruptcy. Believe us, it is more common than you might think.
We know that bankruptcy can seem like a pretty daunting process. It isn’t that bad. In Minnesota, you can file the paperwork online and follow the steps required.
10 Steps Required for Filing Under Chapter 7 in Minnesota
- Collect Your Minnesota Bankruptcy Documents
A complete list of addresses for all of your creditors; bills or collection letters you have received in the last 90 days; a recent credit report; paycheck stubs (last 6 months).
- Take Credit Counseling
Complete the course online or over the phone. A certificate of completion will be issued.
- Complete the Bankruptcy Forms
You will still need to answer all of the required questions to complete your forms. Hiring a lawyer familiar with the instructions is recommended.
- Get Your Filing Fee
The filing fee for a Chapter 7 bankruptcy in Minnesota is $338. If your household income is less than 150% of the federal poverty guidelines, you can apply for a fee waiver.
- Print Your Bankruptcy Forms
If you are working with a lawyer, they will do this for you.
- Go to Court to File Your Forms
The county where you reside determines to which of the divisions your case will be assigned: St. Paul, Minneapolis or Duluth.
- Mail Documents to Your Trustee
A trustee assigned by the court will make sure all provisions are met. As part of their due diligence, the trustee reviews your most recent federal income tax return to affirm that all of the information on the forms matches that provided to the IRS. You must submit your tax papers 7 days before your 341 meeting (to be explained).
- Take Bankruptcy Course 2
After filing your case, you must take a financial management class or risk not receiving your discharge. The course, offered through a company that works with the state, must be taken within a reasonable time frame before the bankruptcy is approved.
- Attend Your 341 Meeting
Better known as “a meeting of creditors,” the meeting offers an opportunity for the trustee to clarify any questions they may have. It generally takes less than 10 minutes.
- Deal with Your Car
While you can’t simply return your car to the creditor to get out of your car loan outside of bankruptcy, you can surrender the vehicle and have your responsibility on the loan discharged.
If you are considering bankruptcy and have questions about your rights, one of our specialists at Hoverson Law would be happy to speak with you. Call now at (612) 349-2728.