While bankruptcy is a process that anyone can use to recover from crippling debt, not everyone can just file for bankruptcy. In Minnesota, there are specific requirements that you must meet to file for bankruptcy. Otherwise, it is an option that is unavailable to you until your situation changes. This is what you need to know to answer the question, do I qualify for bankruptcy in MN, and determine if you’re eligible under current state guidelines.
The Means Test
Minnesota uses a system called the Means Test to determine if you qualify for bankruptcy. The means test measures if you have enough financial means to repay your debts. If you fail the test, that means that you have enough income, assets, or other means of generating money to pay back your debts without filing bankruptcy. In that case, you should talk to a credit counselor, debt specialist, or other financial specialist who focuses on debt management and repayment for more help.
Passing the test means that you do not have the means to repay your debts without filing for bankruptcy. The Minnesota bankruptcy eligibility standards can be complicated to navigate on your own, including the means test. Work with an experienced bankruptcy attorney to be sure that you can file for bankruptcy before starting the process.
Other Restrictions
There are other Minnesota bankruptcy eligibility restrictions besides the means test that you need to meet to qualify for bankruptcy in Minnesota. For example, you must be a resident of the state for at least three months prior to trying to file.
Alternatively, you cannot file for bankruptcy if you have already entered bankruptcy within a certain amount of time. The time period depends on which version of bankruptcy you were in and lasts from seven to ten years. However, this does not apply if you filed for one type of bankruptcy and were rejected. You can immediately switch to another form of bankruptcy and file. This often happens when someone fails to qualify for Chapter 7 bankruptcy and immediately files for Chapter 13 instead.
In Chapter 13 bankruptcy, there is a maximum limit that your debts cannot exceed. Your combined debts must be below $2,750,000, which makes sense considering many businesses file for Chapter 13 bankruptcy. A business can accumulate debts quickly, and having an upper limit stops people from accumulating too much debt on purpose and filing so that they don’t have to pay it back.
Even If You File, You Can Be Disqualified
It is important to remember that bankruptcy is a legal process with its own rules and regulations. Even if you do successfully file for and enter bankruptcy, you can be disqualified during the process for certain actions. In most cases, any attempt to circumvent the rules of bankruptcy, such as hiding assets, can lead to being disqualified.
Discuss Your Case with Minnesota Bankruptcy Attorneys
The best way to find out for sure if you meet the Minnesota bankruptcy eligibility standards is to discuss your case with a Minnesota bankruptcy attorney. We can take a more detailed look at your case and see what options are available to help you. If you’re wondering do I qualify for bankruptcy in MN, contact experienced bankruptcy attorneys in St. Cloud, Minnesota, Kain + Henehan by calling (612) 438-8006 or filling out the online form for a consultation about your bankruptcy and debt repayment options.
