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When you face debt that you cannot repay in Minneapolis or St. Paul, our Twin Cities Chapter 7 lawyers provide legal support that protects your rights and future. Chapter 7, also called liquidation bankruptcy, represents the most common form of personal bankruptcy in Minnesota. The process erases unsecured debts and gives you a new foundation.
With knowledge of federal bankruptcy law and local court procedures, the attorneys at Kain + Henehan can evaluate your circumstances and determine whether Chapter 7 offers the right solution for you.
Chapter 7 bankruptcy gives Twin Cities residents an opportunity to eliminate unmanageable debt while protecting essential property. It discharges most unsecured obligations, freeing you from creditor pressure and constant collection calls.
The Minnesota bankruptcy exemption laws protect your core assets, including household goods, retirement accounts, and the equity in your primary residence. Our attorneys design strategies that make full use of these protections. Our Twin Cities Chapter 7 lawyers prepare paperwork that meets court standards so your case moves forward without delay or conflict.
Federal law restricts Chapter 7 eligibility to people who prove financial hardship. You must pass the means test, which compares your household income to Minnesota’s median income for families of your size. If you fall below the median, you qualify without further review. If you exceed it, the test calculates disposable income after subtracting approved expenses. Our lawyers analyze these numbers with care to confirm eligibility before we file your case.
Beyond the means test, other requirements apply. You must complete credit counseling from an approved provider within 180 days before filing. You also cannot receive a Chapter 7 bankruptcy discharge if you obtained one within the past eight years. If you previously completed a Chapter 13 bankruptcy, at least six years must pass before you may file under Chapter 7.
We run your case through a clear sequence:
The means test requires precision. First, it measures your average income during the six months before filing. Income includes wages, business revenue, rental income, investment returns, and regular contributions from others. That figure is compared to Minnesota’s median income for your household size. If you fall under the threshold, the process ends there and you qualify.
If your income exceeds the median, the test continues to a second stage. This stage subtracts expenses based on IRS allowances and actual costs for housing, healthcare, and other basic needs. Secured debt payments, such as mortgages or car loans, also factor into the calculation. If the result shows little or no disposable income, you still qualify. Because the calculation requires accurate figures, our Twin Cities bankruptcy attorneys guide you through each step to avoid errors that could jeopardize your case.
Chapter 7 bankruptcy discharges unsecured debts and gives you relief from financial stress. Credit card balances, medical bills, payday loans, and most personal loans disappear through this process. After discharge, creditors lose the right to pursue you. In most cases, the court issues a discharge order within four months of filing. This result gives you the chance to rebuild your finances without constant creditor interference.
The process follows a set timeline:
A 341 meeting is when the trustee reviews your case under oath. Creditors rarely attend, and the meeting often lasts less than ten minutes. If you have no non-exempt assets, the court may classify your case as a “no-asset” case, which allows you to keep your property.
The Chapter 7 case in the Twin Cities begins with pre-filing credit counseling. After that, our attorneys prepare your petition, schedules, and statements that disclose assets, debts, income, and expenses. Accuracy matters because bankruptcy filings occur under penalty of perjury.
After filing, the trustee conducts the 341 meeting. You answer questions about your finances, debts, and property. The process typically concludes in less than fifteen minutes. Following this meeting, you must complete a second course in financial management. If no objections arise, the court issues the discharge order sixty to ninety days later. That discharge releases you from legal liability for qualifying debts. Our lawyers handle the filings, deadlines, and interactions with the trustee so your case proceeds smoothly.
Chapter 7 discharges unsecured debts that lack collateral. Credit card debt usually represents the largest category. Medical bills also fall into this group, along with utility bills, cell phone contracts, payday loans, and deficiency balances from repossessions or foreclosures. Old tax obligations may qualify as well if they meet certain age and filing criteria.
Civil judgments, unless based on fraud or intentional harm, also discharge through Chapter 7. Even personal loans from friends or relatives qualify if listed properly in your petition. Our Twin Cities attorneys review every debt to confirm which ones discharge and which survive. That clarity ensures you know what results to expect.
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 law separates debts into two categories: priority and non-priority. Priority debts include recent income taxes, child support, alimony, and certain government fines. You must continue to pay these even after bankruptcy. If you have non-exempt assets, priority creditors receive payment first.
Non-priority debts include most consumer obligations, such as credit cards, utilities, and medical bills. These debts discharge completely in most cases. However, certain non-priority debts survive, such as student loans, homeowner association dues, and debts from fraud. Our attorneys in Minneapolis and St. Paul explain these categories so you understand which debts will remain after your case concludes.
When you file Chapter 7 in Minnesota, your property enters the bankruptcy estate. Your trustee reviews it to determine whether liquidation can provide owed funds to your creditors.
Most cases in the Twin Cities qualify as “no-asset” cases where exemptions cover all property. If you own property beyond exemption limits, you may negotiate with the trustee to buy back the non-exempt portion. Our attorneys evaluate your asset portfolio before filing to minimize the risk of liquidation. We also advise whether federal exemptions or Minnesota exemptions provide stronger protection for your specific circumstances.
Exemption planning represents one of the most important aspects of Chapter 7. Minnesota exemptions allow you to keep your primary residence, vehicles with up to $5,000 in equity, and tools of your trade up to $13,000. You may also protect health aids, life insurance policies, and retirement accounts. If you choose federal exemptions instead, you may gain stronger protection for vehicles and wildcard categories.
Our Twin Cities Chapter 7 lawyers evaluate your property and help you select the exemption system that preserves the most value. By applying exemptions strategically, we protect your home, vehicles, and personal property so you maintain stability throughout the bankruptcy process.
Filing for Chapter 7 bankruptcy protections will halt repossessions, foreclosures, and wage garnishments with an automatic stay. If your car faces repossession, filing for bankruptcy stops the creditors from repossessing it. You may then choose to surrender the vehicle, redeem it, or reaffirm the loan.
For homes in foreclosure, Chapter 7 pauses the process but does not erase missed payments. Without a plan to handle arrears, lenders may continue foreclosure once the stay ends.
Wage garnishments stop once you file. That protection restores income and relieves financial stress. Garnished wages taken before filing often remain with the creditor, but all future garnishment stops.
Bill Kain and Margaret Henehan have over 60 years of combined bankruptcy experience and have helped hundreds of Minnesotans get back on their feet after getting weighed down by debt.
At Kain + Henehan, we love people. We never view your story as a source of shame or embarrassment. We truly care about our clients and want to help them live their best lives.
Bill and Margaret are respected among their peers and colleagues. Their positive relationships within the bankruptcy court system leads to positive outcomes for their clients.
The automatic stay represents one of the most valuable features of Chapter 7. As soon as your case begins, creditors must stop all collection efforts. Harassing phone calls, lawsuits, wage garnishments, and repossession attempts end immediately. This bankruptcy protection allows you to focus on the bankruptcy process without constant creditor pressure.
After discharge, creditors lose the right to pursue debts permanently. Any attempt to collect discharged obligations violates federal law. If a creditor contacts you after discharge, our attorneys take action to enforce your rights. With this permanent protection, you can rebuild your finances free from harassment.
Certain debts survive Chapter 7 discharge. Student loans rarely discharge unless you prove undue hardship. Recent tax debts, tax liens, and debts from fraud remain enforceable. Domestic support obligations such as child support and alimony also survive.
Court fines, criminal restitution, and debts from intentional injury do not discharge. Debts not listed in your schedules may survive as well.
Chapter 7 does not eliminate liens on property. Even if your mortgage or car loan discharges, the lender retains the right to foreclose or repossess unless you make payments. Judgment liens and tax liens may also remain attached to property. Bankruptcy also does not affect future debts, ongoing leases, or new contracts.
Before filing Chapter 7, you may explore alternatives. Debt management plans through counseling agencies may reduce interest rates. Debt settlement allows you to negotiate lump-sum payments for less than the full balance. Mortgage refinancing or home equity loans may consolidate debts if you own property with significant equity.
Pre-filing considerations matter. Timing may protect tax refunds or avoid preference claims on payments to family members. You must also understand the effect on co-signers, who remain liable for joint debts. Bankruptcy appears on your credit report for ten years, so weighing long-term consequences matters. Our Twin Cities Chapter 7 lawyers review all options during consultation so you can make an informed choice.
Debt pressure creates stress that affects every part of life. Chapter 7 offers relief, but success requires experienced legal guidance. Our Twin Cities Chapter 7 lawyers bring decades of experience with Minnesota bankruptcy courts. We handle eligibility review, exemption planning, and trustee negotiations while protecting your assets.
Do not attempt bankruptcy without legal help. Mistakes can lead to dismissal, loss of property, or denial of discharge. Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form to discuss your case during a free consultation.