Written by GuestPoster on January 27, 2012 – 4:24 pm
Minnesota bankruptcy cases can last from a few months to several years depending on the complexity of the case and the Chapter under which the bankruptcy is filed. Most bankruptcy cases are filed under Chapter 7 or 13.
Chapter 7 bankruptcy cases are filed by individuals or jointly by married couples. Assets under this chapter are liquidated, with the proceeds being paid to the creditors in the case. In Minnesota, some assets are listed as exempt from liquidation, including homesteads under $200,000, burial plots, certain household and personal items, tools of a trade and earnings of minor children, to list a few. Cases in which the debtor has no assets to liquidate are the quickest cases to finalize. They take around four months from start to finish.
Chapter 13 filings are for individuals and married couples who don’t meet the means test to file under Chapter 7. Under this chapter, a payment plan is developed by the debtor and approved by the court to pay all or part of the debts owed over a period of up to five years. At the end of the five years, as long as all requirements of the plan have been met, the debtor will receive a discharge. Chapter 13 cases are more complicated than Chapter 7 cases and will last a minimum of five years.
The basic procedure is the same whether filing Chapter 7 or Chapter 13.
- Prebankruptcy credit counseling must be taken prior to filing the bankruptcy petition. The bankruptcy court provides a list of approved courses, which can be taken in person, over the phone, or online. The cost for the course can range from $25 to $75 depending on the provider.
- The petition, which listed all of the assets and debts of the debtor, is filed within six months of taking the prebankruptcy credit-counseling course. Any of the qualified Minneapolis bankruptcy lawyers can prepare and file the petition. Filing the petition begins the bankruptcy process through the courts and a trustee will be assigned to oversee the process.
- A Section 341 meeting of creditors will be scheduled approximately six weeks after the petition has been filed. This allows the court enough time to notify creditors of the meeting. At the meeting of creditors, the trustee will go through the petition with the debtor and accept any objections by the creditors. Shortly after this meeting, the Trustee will file a report with the court outlining assets, if any, the court should seize.
- After the Section 341 meeting is held, a post bankruptcy filing credit counseling course is required. This course can be taken with the same provider as the prebankruptcy course was taken. Some companies will charge one fee to take both courses.
- In a Chapter 7 bankruptcy, ninety days from the Section 341 meeting, if no objections have been raised and no assets for the court to take, the court will issue a discharge of all debts. The case will then be closed and the bankruptcy finalized. In Chapter 13, the discharge will be issued after the debtor has completed all aspects of the plan.
Whether the case lasts four months or five years, a qualified attorney help you determine what chapter to file under and guide you through the process from start to finish.
