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Debt can create serious stress, but Twin Cities bankruptcy lawyers help clients work through the legal and financial issues that come with it. If you’re exploring Chapter 7 or Chapter 13 bankruptcy, having a clear understanding of your options makes it easier to move forward. This guide explains the most common types of bankruptcy, what the process involves, and how a local attorney can help.
Bankruptcy attorneys in the Twin Cities walk clients through the process of evaluating debt, income, and asset details to determine the right legal approach. Chapter 7 bankruptcy wipes out many unsecured debts but may require the liquidation of certain assets.
Chapter 13 sets up a repayment plan, helping clients pay back what they owe over time while keeping their property. An attorney will help you determine which approach best fits your circumstances.
Chapter 7 bankruptcy allows you to discharge unsecured debts such as credit cards, medical bills, and personal loans. If you qualify, a trustee may sell some of your non-exempt assets to repay creditors. However, many people who file for Chapter 7 keep most or all of their property due to exemptions. A Twin Cities bankruptcy lawyer will review your assets and identify what’s protected.
This option works best for individuals with limited income and few assets. It offers a fast path to debt relief, often wrapping up within a few months. A lawyer will ensure that paperwork is filed correctly and deadlines are met.
Chapter 13 bankruptcy helps individuals who earn a steady income but need time to repay their debts. This plan allows you to keep your home, car, and other important assets while catching up on missed payments through a three-to-five-year repayment plan.
To file, you’ll need to show that your income supports the proposed monthly payments. Your lawyer will help draft a repayment plan and submit it for court approval. Once approved, you’ll make regular payments to a trustee who then pays your creditors. Chapter 13 can stop foreclosure, repossession, and collection efforts.
Chapter 11 bankruptcy is usually used by businesses and certain individuals with large debts. It allows companies to keep operating while they restructure what they owe. With a court-approved plan, a business can reduce debt, renegotiate contracts, and move forward.
Twin Cities attorneys familiar with Chapter 11 cases help business owners understand their options, manage creditor communications, and keep operations going during the bankruptcy process.
Before filing for bankruptcy, Minnesota residents must complete a credit counseling course from an approved provider. This session, often online or by phone, must be completed within 180 days of filing.
Eligibility for Chapter 7 depends on your income and whether you pass the means test. If you earn more than the state median income, Chapter 13 may be your only option. Chapter 13 has its own debt limits for secured and unsecured debt. Your attorney will help confirm your eligibility and ensure all legal steps are followed.
Once you’ve decided to file, your lawyer will gather documents related to your income, expenses, debts, and assets. You’ll review and sign bankruptcy forms that your lawyer submits to the court. Filing triggers an automatic stay, which immediately stops collection efforts, wage garnishments, and foreclosure actions.
A few weeks after filing, you’ll attend a meeting of creditors (also called a 341 meeting). You’ll answer basic questions about your financial situation under oath. Most cases move forward without issues at this stage, especially when a lawyer has prepared everything thoroughly.
Bankruptcy affects debts differently. Unsecured debts (like credit cards and medical bills) can often be discharged.
Secured debts (like mortgages or car loans) may require continued payment or surrendering the asset. Student loans, child support, and most tax debts usually remain after bankruptcy.
Minnesota’s bankruptcy exemptions may allow you to keep your home, car, retirement accounts, and personal property. A bankruptcy attorney will walk you through what’s protected and help minimize losses.
Farming operations and small businesses may qualify for Chapter 11 or other bankruptcy relief options. Attorneys who understand the unique challenges of agricultural and small business finance can help craft realistic debt restructuring plans that allow continued operations.
Bankruptcy provides immediate protection from collections. Once you file, creditors must stop calling, sending letters, or taking legal action. This relief can provide much-needed space to reorganize your finances.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.
Bankruptcy can give you a second chance—but getting there takes knowledge, planning, and support. If you’re considering filing in Minnesota, contact a Twin Cities bankruptcy lawyer to learn what relief looks like in your situation.
Our team helps individuals, families, and businesses protect what matters most and move toward financial freedom. Schedule a consultation by contacting Kain + Henehan at (612) 438-8006 or filling out the online form to find out if bankruptcy is the right solution for you.