Easy Questions  
Free Legal Documents

Frequently Asked Questions about Personal Bankruptcy in Alberta, MN

Frequently Asked Questions about Personal Bankruptcy in Alberta, MN


Bankruptcy represents a longstanding commitment in this country to helping people get a fresh start.
 
- Tim Johnson


Bankruptcy is a legal procedure that allows an individual or company to eliminate debt and stop their creditors from harassing them.

What does "Chapter 7" and "Chapter 13" bankruptcy mean?

There are different types of bankruptcy, referred to as "chapters" because of their chapter location in the bankruptcy laws. For example, Chapter 7 refers to the seventh chapter in the Bankruptcy Codes. Bankruptcy Chapter 11 is for business reorganization, while Chapters 7, 12, and 13 can apply to families and individuals.

What is the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy?

Chapter 7 bankruptcy is known as a "fresh start "or "liquidation bankruptcy." It is used to sell off assets in an attempt to satisfy the outstanding debts. On the other hand, Chapter 13 bankruptcy does not require assets to be sold. Instead, the filer follows a payment plan which typically gives them several years to pay off a percentage of their debts based on their income.


What are the advantages and disadvantages of choosing to file Chapter 7 rather than Chapter 13 bankruptcy?

  • Under Chapter 7 bankruptcy, the basic principle is to sell off the majority of your assets and properties so that creditors can reclaim part of the money that is owed to them. Certain assets, such as a primary residence or a vehicle, can be declared exempt and may be retained even after Chapter 7 bankruptcy has been filed. Certain debts, such as taxes and student loans, may not be eliminated under Chapter 7 bankruptcy. By contrast, under Chapter 13 bankruptcy you may be able to keep all of your assets, and are only required to pay off a percentage of the debt over time.
  • You only qualify for Chapter 13 bankruptcy if you have a regular source of income and your debt is below a certain amount. This ensures that a restructured payment plan is workable. If you don't have the means to pay off your debt over time, then Chapter 7 bankruptcy may be the only option for you.

  • How does filing for bankruptcy help me deal with creditors?

    After you have filed your paperwork, the court clerk will inform all of your creditors that they may no longer contact you in pursuit of payment.

    What happens to my assets during Chapter 7 and Chapter 13 bankruptcy?

    If you file for Chapter 7 bankruptcy, you are required to make a complete list of all of your assets and properties. There are a limited number of assets that you may keep, depending on the laws of your state. If you file for Chapter 13 bankruptcy, you are able to keep all of your assets.


    Can I keep any of my current or old credit cards once I have filed for Chapter 7 or Chapter 13 bankruptcy?

    Your credit card company will decide if you can keep your credit cards after you file for bankruptcy.

    Can I apply for new credit cards after filing for bankruptcy?

    Credit card companies may perceive you to be a greater credit risk once you have filed for bankruptcy. This may cause them to offer you lower credit limits, higher interest rates, and additional fees and penalties. As an alternative, some companies may offer you a secured credit card (or prepaid card) in which you are required to pay a specific amount of money up front. That money acts as the credit limit for your credit card.

    Do I have to file for bankruptcy if I am in debt?

    If your debts are significantly higher than the value of your assets and income, then you might consider filing for bankruptcy.

    Do I have to disclose all of my assets and property when I file for bankruptcy?

    Yes. Full disclosure of all of your assets is required by the bankruptcy law. In fact, it is a felony to fail to list all of your assets or to transfer them to another party in an attempt to hide them.


    Does filing for bankruptcy require that I go to court?

    If you are able to resolve all issues between you and your creditors, it is not necessary to go to court.

    Will everybody know about my bankruptcy?

    Bankruptcy filings are public, but personal information is withheld. Your creditors and co-debtors will be given direct notice of your bankruptcy. If you have an ex-spouse who receives child support from you, he or she will receive a letter regarding your bankruptcy and what to do if child support cannot continue.

    If I am married, does my spouse have to file for bankruptcy too?

    If you and your spouse have co-signed debts together, then you can file for a joint-bankruptcy petition and eliminate or restructure the debt for both spouses. If the debts are only in your name, then you can file for bankruptcy individually.

     
    Personalize & Print a Free MN Last Will Download this Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Page 9
    Page 10
     
    Personalize & Print a Free MN Living Will Download this Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Related Legal Services near Alberta, MN
    Perkkio Arlene N
    1 Water St W # 275
    Saint Paul, MN 55107
    (651) 292-9802
    Attorneys, Legal Service Plans
    Eric A. Rice
    155 S. Wabasha St., Ste. 100
    Saint Paul, MN 55107
    (651) 998-9660
    Criminal Law Attorneys, DUI & DWI Attorneys, General Practice Attorneys
    Hughes Patrick
    245 Stevens St W
    Saint Paul, MN 55107
    (651) 225-9316
    Attorneys, Legal Service Plans
    Erickson Stephen R
    136 W Main St
    Albert Lea, MN 56007
    (507) 373-8292
    Attorneys,  Criminal Law Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
    Smits Law Office, LLC
    155 Wabasha St S Suite 125
    Saint Paul, MN 55107
    (651) 237-7699
    Divorce Attorneys,  Adoption Law Attorneys,  Child Custody Attorneys,  Attorneys,  Family Law Attorn
    Bogut Linda L
    3300 17th Ave S
    Minneapolis, MN 55407
    (612) 721-7601
    General Practice Attorneys, Attorneys
    Kyllo Jamie A Atty
    401 Lakeview Blvd
    Albert Lea, MN 56007
    (507) 373-6983
    Attorneys, General Practice Attorneys
    Peterson Douglas R
    211 S Newton Ave
    Albert Lea, MN 56007
    (507) 373-6491
    General Practice Attorneys, Attorneys, Legal Service Plans
    Benda Matthew L
    211 S Newton Ave
    Albert Lea, MN 56007
    (507) 373-6491
    Attorneys
    Bullock Law Office
    155 Wabasha St S # 100
    Saint Paul, MN 55107
    (651) 270-6484
    Attorneys, Criminal Law Attorneys, Landlord & Tenant Attorneys, Civil Litigation & Trial Law Attorne
    Reule Gabrielle
    155 Wabasha St S # 100
    Saint Paul, MN 55107
    (952) 484-6433
    Attorneys
    Stromgren David A
    403 N 57th Ave W
    Duluth, MN 55807
    (218) 624-5766
    General Practice Attorneys, Attorneys, Legal Service Plans
    Arneson Ross R
    302 W Main St
    Arlington, MN 55307
    (507) 964-5753
    Attorneys, Legal Service Plans
    Nelson Criminal Law
    155 Wabasha St S # 100
    Saint Paul, MN 55107
    (651) 289-5577
    Attorneys
    Stj Llp
    22396 435th Ln
    Arlington, MN 55307
    (507) 964-5564
    Attorneys
    Zellmann Donald A
    40872 226th St
    Arlington, MN 55307
    (507) 964-5379
    Attorneys
    Kauffman Law Firm
    300 E 3rd St
    Albert Lea, MN 56007
    (877) 285-5350
    General Practice Attorneys, Attorneys, Legal Service Plans
    Neil Thompson Attorney
    2249 East 38th Street
    Minneapolis, MN 55407
    (612) 246-4788
    Attorneys,  Wills, Trusts & Estate Planning Attorneys,  General Practice Attorneys,  Bankruptcy Law
    Ampe Paul A
    321 Railroad Ave
    Albany, MN 56307
    (320) 845-4765
    Attorneys, Real Estate Attorneys, Legal Service Plans
    Kyllo Jamie A
    202 W Clark St
    Albert Lea, MN 56007
    (507) 373-4680
    Accident & Property Damage Attorneys,  Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
    Denton Law Office
    326 N Central Ave
    Duluth, MN 55807
    (218) 628-4022
    General Practice Attorneys, Attorneys, Legal Service Plans
    Goddard Kathleen
    2249 E 38th St
    Minneapolis, MN 55407
    (612) 721-3362
    Attorneys
    Tina Sabby, Attorney
    155 Wabasha Street South
    Saint Paul, MN 55107
    (651) 592-3350
    Criminal Law Attorneys, DUI & DWI Attorneys, Traffic Law Attorneys, Attorneys
    Jacobson & Johnson
    1 Water St W Ste 285
    Saint Paul, MN 55107
    (651) 317-3159
    Patent, Trademark & Copyright Law Attorneys,  Attorneys,  General Practice Attorneys,  Legal Servic
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US