If you’re considering filing bankruptcy in Minnesota, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Filing for bankruptcy in Michigan, like in other states, is a legal process designed to provide financial relief to individuals and businesses facing overwhelming debt. However, not everyone is automatically qualified to file for bankruptcy. The eligibility criteria, processes, and options may vary depending on the specific type of bankruptcy you’re considering. In Michigan, individuals and businesses typically file for either Chapter 7 or Chapter 13 bankruptcy, and the qualifications for each differ.

1. Chapter 7 Bankruptcy:

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is designed to discharge most unsecured debts, such as credit card debt and medical bills. To qualify for Chapter 7 bankruptcy in Michigan, you must meet certain eligibility criteria:

a. Means Test: The means test is a crucial aspect of Chapter 7 eligibility. It evaluates your income, expenses, and family size to determine whether you have enough disposable income to repay your debts. If your income is below the median income for your household size in Michigan, you generally pass the means test automatically. If your income exceeds the median, you’ll need to complete a more detailed calculation to determine eligibility.

b. Credit Counseling: Before filing for Chapter 7 bankruptcy in Michigan, you are required to complete credit counseling from an approved agency within 180 days of filing. This counseling helps you explore alternative solutions to bankruptcy.

c. Previous Bankruptcy Discharge: If you’ve previously received a Chapter 7 bankruptcy discharge, you may have to wait eight years from the date of your previous filing to be eligible for another Chapter 7 discharge.

d. Chapter 7 vs. Chapter 13: If you don’t qualify for Chapter 7 bankruptcy based on the means test or other criteria, you may still be eligible to file for Chapter 13 bankruptcy, which involves a repayment plan over three to five years.

2. Chapter 13 Bankruptcy:

Chapter 13 bankruptcy, also known as “reorganization bankruptcy,” allows individuals with a regular income to create a plan to repay their debts over a specified period. To qualify for Chapter 13 bankruptcy in Michigan, you must meet the following requirements:

a. Regular Income: You must have a stable source of income to create a repayment plan and make regular payments to creditors.

b. Debt Limitations: There are limits to the amount of secured and unsecured debt you can have to qualify for Chapter 13. These limits may be adjusted periodically.

c. Priority Debts: Your plan must provide for the repayment of certain priority debts, such as tax obligations and child support arrears.

d. Good Faith: You must file for Chapter 13 bankruptcy in good faith, meaning that you are genuinely trying to repay your debts and not abusing the bankruptcy system.

It’s important to note that bankruptcy laws can change over time, so it’s essential to consult with an experienced bankruptcy attorney or legal expert in Michigan who can provide up-to-date guidance on the eligibility criteria and requirements.

Additionally, keep in mind that bankruptcy should be considered as a last resort when dealing with financial difficulties. Before filing for bankruptcy, explore other debt relief options, such as debt consolidation, negotiation with creditors, or credit counseling, as these alternatives may help you avoid the long-term consequences of bankruptcy on your credit and financial future.

RESOURCES:

Do You Need a Lawyer to File For Bankruptcy in Minnesota?

In Minnesota, like in many other states, individuals are not legally required to hire a lawyer to file for bankruptcy. You have the option to file for bankruptcy pro se, which means representing yourself in the bankruptcy proceedings. However, while it’s not mandatory to have an attorney, there are several reasons why seeking legal counsel is often advisable when considering bankruptcy.

1. Complex Legal Process: Bankruptcy law is complex, and the process can be daunting, especially if you are not familiar with the legal requirements, forms, and procedures. An experienced bankruptcy attorney can guide you through the process, ensuring that you meet all legal requirements and deadlines. They can help you avoid costly mistakes and potential legal issues that could arise from errors in your bankruptcy paperwork.
2. Maximizing Benefits: An attorney can help you explore all available bankruptcy options and determine which chapter (e.g., Chapter 7 or Chapter 13) is most suitable for your specific financial situation. They can assess your eligibility and help you structure your case to maximize the benefits and protections that bankruptcy can offer.
3. Protection of Assets: Depending on the type of bankruptcy you file, there are exemptions that protect certain assets from being liquidated or seized by creditors. An attorney can help you navigate these exemption rules to protect your property and assets to the fullest extent allowed by law.
4. Creditor Harassment: Once you file for bankruptcy, an automatic stay goes into effect, which prohibits creditors from continuing their collection efforts, including calls, letters, lawsuits, and wage garnishments. An attorney can help you enforce this stay and handle any issues that may arise with creditors who violate it.
5. Plan Formulation: If you are filing for Chapter 13 bankruptcy, you will need to create a repayment plan that outlines how you will pay off your debts over a specified period. An attorney can assist in drafting a feasible plan that aligns with your financial capabilities and is likely to be approved by the court.
6. Legal Representation in Court: If your case encounters any complications or challenges, having an attorney can be invaluable when appearing before the bankruptcy court. They can advocate on your behalf, present your case effectively, and address any objections or issues that may arise during the process.
7. Legal Advice: Bankruptcy can have significant long-term implications on your financial future and creditworthiness. An attorney can provide valuable advice on how to rebuild your credit and make informed financial decisions post-bankruptcy.
8. Customized Solutions: Every bankruptcy case is unique, and an experienced attorney can tailor their approach to your specific circumstances. They can provide personalized solutions to address your debts, income, and assets, helping you achieve the best possible outcome.

While hiring an attorney offers many advantages, it’s important to acknowledge that legal representation comes with associated costs. You’ll need to consider the attorney’s fees when evaluating whether to hire one. However, these fees may be a worthwhile investment considering the potential financial benefits and peace of mind that a skilled attorney can provide throughout the bankruptcy process.

Cost to File Chapter 7 Bankruptcy in Minnesota

The cost to file Chapter 7 bankruptcy in Minnesota includes several fees and expenses that you should be aware of before initiating the bankruptcy process. It’s important to note that these costs can vary depending on factors such as your location within Minnesota and the complexity of your case. Here are the primary expenses associated with filing Chapter 7 bankruptcy in Minnesota:

1. Filing Fee: The most significant cost associated with filing Chapter 7 bankruptcy is the filing fee paid to the U.S. Bankruptcy Court. The filing fee for Chapter 7 bankruptcy in Minnesota is $360. However, fee amounts may change over time, so it’s advisable to check the latest fee schedule on the official website of the U.S. Bankruptcy Court for the District of Minnesota or consult with a bankruptcy attorney for up-to-date information.
2. Credit Counseling Course: Before filing for bankruptcy, you are required to complete a credit counseling course from an approved agency. This course typically costs around $27 to $57 and can be taken online or in-person. Some agencies offer fee waivers or reduced fees for individuals with low income.
3. Legal Fees: While not required, many individuals choose to hire a bankruptcy attorney to navigate the complex bankruptcy process. Attorney fees can vary widely based on factors such as the attorney’s experience, location, and the complexity of your case. In Minnesota, attorneys’ fees for a Chapter 7 bankruptcy typically range from $1,200 to $2,700 or more. Some attorneys offer payment plans to help clients manage the cost.
4. Credit Report and Counseling Fees: You may incur additional fees for obtaining a copy of your credit report and receiving the credit counseling certificate required to file for bankruptcy. These fees can vary but are generally modest.
5. Miscellaneous Expenses: There may be other miscellaneous expenses associated with your bankruptcy, such as postage, notary fees, and document copying costs. While these expenses are relatively small, they can add up over the course of your bankruptcy proceedings.

Before initiating the Chapter 7 bankruptcy process in Minnesota, it’s advisable to consult with a qualified bankruptcy attorney or seek guidance from legal aid organizations to understand the specific costs and requirements applicable to your situation. They can provide you with a more accurate estimate of the expenses involved and help you make informed decisions about your financial future.

Cost to File Chapter 11 Bankruptcy in Minnesota

Filing for Chapter 11 bankruptcy in Minnesota can be a complex and costly process, especially for businesses and individuals with significant financial obligations. Chapter 11 bankruptcy is primarily used for business reorganization but can also be used by individuals with substantial assets and debts. The cost of filing for Chapter 11 bankruptcy in Minnesota includes various fees and expenses, and it’s crucial to be aware of these costs before proceeding. Here are the primary expenses associated with filing Chapter 11 bankruptcy in Minnesota:

1. Filing Fee: The initial filing fee for a Chapter 11 bankruptcy case in Minnesota can be substantial. Fee amounts may change over time, so it’s advisable to check the latest fee schedule on the official website of the U.S. Bankruptcy Court for the District of Minnesota or consult with a bankruptcy attorney for up-to-date information.
2. U.S. Trustee Fees: In addition to the filing fee, businesses that file for Chapter 11 bankruptcy must pay quarterly fees to the U.S. Trustee’s office. These fees are based on the company’s disbursements and can vary widely depending on the size and complexity of the case.
3. Attorney Fees: Given the complexity of Chapter 11 bankruptcy cases, many individuals and businesses choose to hire experienced bankruptcy attorneys. Attorney fees for Chapter 11 cases can vary significantly depending on the complexity of the case, the attorney’s experience, and other factors. It’s not uncommon for attorney fees to run into tens of thousands of dollars or more in complex cases.
4. Financial Advisor Fees: Businesses often hire financial advisors or turnaround consultants to help with the restructuring and financial planning aspects of a Chapter 11 case. These professionals typically charge fees based on their services and the scope of the work required.
5. Court-Appointed Professionals: In some cases, the court may appoint professionals, such as a Chapter 11 trustee, examiner, or attorney, to oversee or assist with the bankruptcy process. These professionals’ fees are typically paid from the debtor’s assets.
6. Administrative Expenses: Throughout the Chapter 11 process, various administrative expenses may accrue, such as court filing fees for motions and other documents, postage, copying, and notice costs.
7. Creditor Committees: In certain situations, creditor committees may form to represent the interests of creditors during the bankruptcy proceedings. The costs associated with creditor committee activities can also be significant.

If you are considering Chapter 11 bankruptcy in Minnesota, it’s highly advisable to consult with experienced bankruptcy attorneys who can provide a more accurate estimate of the costs associated with your specific case. They can also help you navigate the complexities of the Chapter 11 process, develop a feasible reorganization plan, and work toward achieving your financial goals. Understanding the costs and requirements involved is essential for making informed decisions about your financial future.

Cost to File Chapter 13 Bankruptcy in Minnesota

Filing for Chapter 13 bankruptcy in Minnesota involves several costs and fees that you should be aware of before initiating the bankruptcy process. Chapter 13 bankruptcy is designed to help individuals with a regular income create a manageable repayment plan to address their debts. Here are the primary expenses associated with filing Chapter 13 bankruptcy in Minnesota:

1. Filing Fee: The initial filing fee for a Chapter 13 bankruptcy case in Minnesota is determined by the U.S. Bankruptcy Court. Please verify the current fee schedule on the official website of the U.S. Bankruptcy Court for the District of Minnesota or consult with a bankruptcy attorney for up-to-date information.
2. Attorney Fees: Many individuals choose to hire a bankruptcy attorney to guide them through the Chapter 13 process. Attorney fees for Chapter 13 cases can vary depending on the complexity of your situation and the attorney’s experience. In Minnesota, attorney fees for a Chapter 13 case typically range from $3,270 to $4,820 or more. Some attorneys offer payment plans to help clients manage the cost.
3. Credit Counseling and Financial Management Courses: Before filing for Chapter 13 bankruptcy, you are required to complete a credit counseling course from an approved agency. After filing, you must also complete a financial management course. These courses typically cost around $25 to $60 each and can usually be taken online or in-person. Some agencies may offer fee waivers or reduced fees for individuals with low income.
4. Trustee Fees: In Chapter 13 bankruptcy, a bankruptcy trustee is appointed to oversee your case and ensure that your repayment plan is carried out. The trustee receives a fee for their services, which is typically a percentage of the payments made through the plan.
5. Court-Related Expenses: Throughout the Chapter 13 process, you may incur various court-related expenses, such as filing fees for motions and other documents, postage, copying, and notice costs.

If you cannot afford to pay the filing fee in full upfront, you may be eligible to request a waiver or installment payment plan from the court. However, you will need to demonstrate that your income falls below a certain threshold and that you are unable to pay the fee immediately.

Before initiating the Chapter 13 bankruptcy process in Minnesota, it’s advisable to consult with a qualified bankruptcy attorney to assess your financial situation and understand the specific costs and requirements applicable to your case. An attorney can help you navigate the complexities of Chapter 13, develop a feasible repayment plan, and work toward achieving your financial goals.

Reliable Bankruptcy Attorneys in Minnesota

Below is a list of reputable bankruptcy attorneys in Minnesota. They can help you with both personal and business bankruptcy information.

Walker & Walker Law Offices, PLLC
4356 Nicollet Ave, Minneapolis, MN 55409, United States

LifeBack Law Firm, P.A.
2124 Dupont Ave S Suite 103, Minneapolis, MN 55405, United States

Friedman Murray, PLLC
1400 Van Buren St NE #200, Minneapolis, MN 55413, United States

LifeBack Law Firm, P.A.
370 Selby Ave Suite 224, St Paul, MN 55102, United States

Solvent PLLC
2223 5th St E, St Paul, MN 55110, United States

Minnesota Zip Codes We Proudly Serve:

Saint Paul

55106, 55124, 55112, 55117, 55104, 55119, 55125, 55113, 55110, 55109, 55122, 55128, 55118, 55126, 55105, 55129, 55123, 55116, 55127, 55102, 55108, 55107, 55103, 55115, 55121, 55101, 55120, 55114, 55111, 55155

Minneapolis

55407, 55423, 55414, 55433, 55406, 55416, 55408, 55443, 55428, 55411, 55434, 55418, 55432, 55422, 55421, 55449, 55448, 55419, 55429, 55404, 55417, 55426, 55446, 55412, 55427, 55430, 55447, 55420, 55410, 55441, 55431, 55437, 55403, 55438, 55444, 55405, 55413, 55435, 55436, 55445, 55442, 55409, 55425, 55401, 55454, 55424, 55439, 55415, 55455, 55402, 55450

More Minnesota Zip Codes we serve:

56510, 55909, 56110, 55001, 56431, 56433, 56307, 56007, 56207, 55301, 55702, 56009, 56434, 56308, 56111, 55910, 56710, 56010, 55304, 56711, 55703, 55302, 55303, 56208, 56113, 56713, 55307, 56309, 55704, 56209, 56511, 55705, 55912, 56114, 56310, 55706, 56435, 56714, 56621, 56115, 56514, 55707, 56311, 56210, 56515, 56623, 56425, 55003, 56211, 55601, 56116, 55308, 56516, 56312, 56011, 56212, 56517, 56214, 56601, 56626, 56436, 56215, 56437, 55005, 56627, 55309, 56117, 56628, 56118, 56629, 55310, 55708,

56630, 56216, 55917, 56013, 56518, 56313, 56519, 55709, 56314, 56218, 55006, 56401, 56315, 56520, 56119, 56014, 55602, 55710, 55007, 56715, 55711, 56316, 56438, 56219, 55918, 55919, 55312, 55712, 55313, 55314, 55713, 55337, 55306, 56318, 56120, 55920, 55921, 56521, 55716, 55008, 56522, 56220, 55009, 55922, 55717, 56319, 55718, 55315, 56633, 55011, 55012, 56121, 55316, 56122, 55317, 55318, 55923, 55013, 55719, 56221, 55014, 56222, 55924, 56440, 56223, 56016, 55319, 56634, 55320, 56224, 56017, 56523,

56225, 56524, 56226, 55720, 55721, 55321, 56320, 55722, 56321, 55322, 56019, 56525, 56020, 55723, 56227, 56228, 55016, 55724, 56229, 56021, 55725, 55726, 56716, 56441, 56442, 56123, 56443, 56323, 55925, 55017, 56324, 56230, 56231, 56022, 55324, 55325, 56232, 55327, 56527, 56636, 56444, 55328, 56023, 55018, 56528, 56501, 55926, 56529, 55927, 56720, 56235, 55929, 56125, 55811, 55803, 55804, 55812, 55805, 55807, 55806, 55810, 55808, 55802, 55814, 56236, 55019, 56127, 56446, 56024, 56721, 56025, 56237,

55347, 55344, 55346, 55329, 56128, 56639, 55931, 56531, 55932, 56533, 55330, 55020, 55933, 56026, 56129, 56027, 56325, 55731, 56028, 55732, 56447, 56029, 56534, 56535, 55733, 56722, 56326, 55734, 55331, 55934, 55332, 56031, 55021, 55024, 56327, 56641, 56536, 56537, 56540, 56448, 55603, 55735, 56723, 56328, 56541, 55736, 56329, 55738, 55025, 56330, 56449, 56542, 55935, 56543, 55333, 56544, 56032, 56331, 55026, 56033, 56131, 56034, 56332, 56450, 56132, 56545, 56724, 55334, 56035, 56546, 56239, 55335,

55741, 55336, 56036, 56334, 56547, 56644, 56037, 55027, 55742, 56725, 56240, 56039, 55604, 55936, 55605, 55744, 55029, 56241, 55030, 55338, 56726, 56335, 56336, 56243, 56727, 56646, 56452, 56728, 56729, 56548, 55339, 55340, 55031, 56244, 56245, 55341, 56041, 56134, 55939, 55032, 56042, 55033, 56549, 55940, 56043, 55342, 56044, 56136, 56550, 56551, 55036, 56248, 56137, 56453, 55746, 55748, 56338, 56138, 55037, 56647, 56552, 56339, 55941, 56340, 56139, 56045, 56249, 55749, 56046, 55343, 55305, 55943,

55606, 55349, 55750, 55038, 56731, 56047, 55350, 56140, 56649, 55076, 55077, 56141, 55751, 56455, 55607, 55040, 56342, 56142, 56143, 55752, 56048, 56144, 56145, 56456, 55352, 56146, 56251, 56732, 56050, 55944, 55753, 56650, 55945, 56733, 56147, 56343, 56553, 55946, 56252, 55756, 55757, 56051, 56052, 55353, 55758, 55609, 55947, 56056, 56054, 56149, 56734, 55041, 56055, 55042, 56458, 56253, 56554, 56151, 56150, 55043, 55044, 56152, 56735, 55949, 55950, 56461, 56057, 55951, 56058, 56651, 56652, 56153,

55354, 55952, 56060, 55045, 56155, 55355, 56345, 56653, 56654, 55356, 56347, 56655, 55046, 55357, 56349, 56255, 55612, 56156, 55953, 56157, 55954, 56062, 56256, 56063, 56158, 56557, 55763, 56001, 56003, 55955, 55358, 55359, 56065, 55764, 56657, 56658, 56257, 55047, 56258, 56659, 55360, 56260, 55956, 56350, 55760, 56556, 55765, 55049, 56352, 55766, 56464, 55150, 56736, 56465, 56737, 56353, 56262, 55957, 56263, 56354, 56264, 55959, 56068, 55345, 56660, 56265, 56069, 55362, 55363, 56560, 55767, 55051,

56266, 56267, 55052, 56270, 56466, 55364, 55768, 56159, 56271, 56565, 55769, 56566, 56355, 55053, 55772, 56467, 55366, 55367, 56273, 55054, 56356, 56071, 56072, 56073, 56567, 56738, 55055, 56074, 56568, 56468, 56274, 55056, 55057, 56661, 56075, 55368, 56741, 56357, 56276, 56160, 56569, 56358, 56161, 56742, 56277, 56359, 56162, 55960, 55771, 56278, 56570, 56360, 56744, 55311, 55369, 55961, 56571, 56662, 55060, 56469, 56470, 56361, 56362, 56363, 56572, 56078, 55775, 56663, 56279, 56472, 56573, 56574,

55962, 56364, 56473, 55063, 55963, 56474, 56164, 55964, 55370, 56748, 56666, 56575, 56280, 55965, 55371, 56281, 55372, 56667, 55967, 56475, 55065, 56668, 56669, 56282, 56165, 55968, 56750, 55066, 56670, 56671, 56283, 56672, 56284, 56166, 56367, 56368, 56576, 56577, 56578, 55901, 55904, 55902, 55906, 55905, 55373, 56369, 55374, 55969, 56673, 56371, 55970, 56751, 55068, 56579, 56167, 56373, 55069, 55971, 56168, 56169, 56170, 56580, 56285, 55779, 56756, 56083, 55072, 55973, 56377, 56378, 56379, 55378,

55780, 55073, 55613, 56287, 56477, 55074, 55379, 56581, 56171, 56676, 55781, 55614, 55381, 56172, 56085, 56678, 55782, 55382, 55075, 56288, 55974, 56680, 55384, 55975, 56087, 56681, 55375, 55972, 56080, 56301, 56303, 56304, 55070, 56754, 56081, 56374, 56376, 55376, 55071, 56082, 56375, 56755, 55079, 55080, 56479, 56381, 56173, 56757, 55385, 55976, 55082, 56174, 56758, 56759, 55783, 56289, 55784, 56382, 55785, 55786, 56637, 55787, 55977, 56291, 55084, 56683, 56701, 56583, 55615, 55790, 56175, 56684,

56176, 56177, 56088, 56089, 56584, 55616, 56178, 56585, 56586, 56384, 55979, 56587, 55085, 56481, 56090, 56292, 55386, 56760, 56385, 56588, 55792, 55981, 56293, 55387, 56482, 56386, 56387, 56091, 56484, 56180, 55982, 55983, 56294, 56761, 55793, 56762, 56763, 55087, 56093, 56685, 55388, 56096, 55389, 56295, 56589, 55390, 55391, 55088, 55089, 56181, 56097, 56590, 55985, 56389, 56183, 56296, 56591, 55090, 56686, 56201, 55795, 56185, 56687, 56101, 56592, 56098, 55987, 55395, 55396, 56688, 56593, 56594, 56297, 56186, 56187, 55797, 55798, 55990, 55092, 55397, 55398, 55991, 55992

---