Best Bankruptcy Lawyers in Duluth, MN

FAQs

• Where do I file for bankruptcy in Duluth, Minnesota?

  To file for bankruptcy in Duluth, contact 218-529-3600 or visit the U.S. Bankruptcy Court at 404 Gerald W. Heaney Federal Building and United States Courthouse and Customhouse 515 West First Street Duluth, MN 55802.

• Where can I get bankruptcy forms in Duluth, Minnesota?

  Bankruptcy forms in Duluth are available from the Clerk's Office of the Bankruptcy Court for the District of Minnesota. To access these forms, visit: https://www.mnb.uscourts.gov/local-forms

• Can all debts be eliminated in bankruptcy cases in Duluth?

  No, not all debts can be discharged in Duluth bankruptcy. These debts include credit card bills totaling more than $1,150 paid within 60 days of filing, alimony and child support, and penalties for breaking the law, such as criminal charges and traffic tickets. Student loans cannot be discharged in bankruptcy unless payment is an undue hardship. Additionally, debts incurred as a result of a breach of trust and those omitted from the list in bankruptcy papers may not be forgiven in Duluth.

• How much is the cost of filing Chapter 13 bankruptcy in Duluth?

  In Duluth, filing for Chapter 13 bankruptcy costs $313, while credit reports and credit counseling courses cost $47. The Chapter 13 bankruptcy attorneys' fee, on the other hand, is $3,000 for filers earning less than the Minnesota median income and $3,500 for those earning more. However, Duluth bankruptcy attorneys typically charge by the hour and are paid when debtors make payments to their Chapter 13 plan.

• What are the alternatives for a dismissed bankruptcy case in Duluth?

  Debt consolidation loans are an alternative for a dismissed bankruptcy case in Duluth, allowing debtors to look for a loan to pay their creditors and lower their credit bills. Debtors will make monthly payments to the debt consolidation company; however, these loans will require their homes as collateral. A credit counseling plan, which allows debtors to pay their creditors based on a payment schedule devised by the counselor, is another option instead of bankruptcy in Duluth.

• Is it possible to file for multiple bankruptcy in Duluth?

  Yes, multiple bankruptcy cases can be filed in Duluth; however, there is a waiting period before debtors can file again. Those who have previously filed for Chapter 7 bankruptcy must wait eight years to file for the same case again, and those who have previously filed for Chapter 13 bankruptcy must wait four years. Individuals in Duluth with a Chapter 13 bankruptcy discharge, on the other hand, have six years before filing for Chapter 7 and two years before filing for the same case.

• Why do debtors need help from a bankruptcy attorney in Duluth?

  Bankruptcy lawyers in Duluth can help debtors through the entire bankruptcy process, which includes gathering credit reports, applying for state and federal exemptions, and negotiating payment plans that can reduce monthly payments. They can defend filers' rights against collection agencies and assist them in avoiding harassment and stress. Bankruptcy lawyers in Duluth can also represent clients in credit disputes and lawsuits in court.

• What does a bankruptcy attorney do?

  Bankruptcy attorneys help clients understand whether they qualify for bankruptcy and what their best options are. They also prepare and file petitions, answer questions during the proceedings, and educate clients about potential best steps for a positive bankruptcy outcome. Bankruptcy attorneys might also file motions or paperwork if creditors dispute the bankruptcy, or to stop creditors from taking collections actions forbidden by the bankruptcy.

• What happens when you file bankruptcy?

  Bankruptcy is a formal process that individuals, married couples, or businesses can enact when they are no longer able to pay creditors. In a bankruptcy proceeding, filers are allowed to reduce debt to more manageable levels to best pay off money owed.

  Once the bankruptcy process is initiated, debt collectors can no longer seek repayments outside of the arrangements detailed in the bankruptcy settlement. Some forms of bankruptcy result in the liquidation of assets to pay back debts, while others allow filers to retain most of their possessions and investments. Many types of unsecured debt can be managed with bankruptcy filings, but not all.

• Can you file bankruptcy on student loans?

  Under most circumstances, student loans aren't dischargeable and aren't included in bankruptcy proceedings. In rare cases, it may be possible to eliminate student loans through bankruptcy, but only if the courts determine that continuing to pay the loans would impose an undue hardship. Meeting the criteria for undue hardship is challenging, and most bankruptcy filers don't qualify.

• What is bankruptcy fraud?

  Bankruptcy fraud is a blanket term that refers to any kind of dishonest bankruptcy proceeding, which can include:

  • Hiding assets by transferring them to another person or entity
  • Intentionally omitting assets when reporting to the court
  • Destroying or withholding required documents
  • Knowingly making false statements to bankruptcy trustees or creditors

• How long is bankruptcy on public record?

  How long bankruptcy stays on public record depends on the kind of bankruptcy filing in question. Chapter 7 bankruptcy remains on the record for 10 years as there isn't necessarily a repayment component. Chapter 13 bankruptcy remains on the record for seven years as some obligations are repaid following filing based on the terms of a discharge settlement.

• Does bankruptcy clear tax debt?

  Bankruptcy can clear tax debt, depending on the circumstances. Taxes are dischargeable under Chapter 7 bankruptcy, not Chapter 13, and only if the tax debt is:

  • Federal income tax debt related to current properly filed tax returns
  • Honestly incurred with no fraud or evasion
  • At least three years old
  • Assessed at least 240 days before bankruptcy filings

  Existing liens are not eliminated with bankruptcy.

  
  

• Can they take my car in Chapter 7 bankruptcy?

  In many cases, it's possible to keep a vehicle following Chapter 7 bankruptcy. The Chapter 7 Motor Vehicle Exemption allows filers who own their vehicles outright or who are up to date with payments to keep their cars. However, those behind on making car payments are required to arrange a repayment plan. Otherwise, the vehicle may be repossessed as a part of the proceedings.

• How bad is it to file bankruptcy twice?

  Although possible, due to the damaging nature of bankruptcy, filing bankruptcy more than once isn't recommended. Filing multiple times puts a serious burden on one's credit report, making it harder to get a loan, buy a house, buy a car, or even open credit cards.

  Note that filing for bankruptcy isn't something that can be done at a filer's leisure. There are time limits following bankruptcy cases that dictate when it's permissible to file again. For example, after Chapter 7 bankruptcy, filers must wait at least eight years before filing Chapter 7 again or four years before filing Chapter 13.

• Can anyone file bankruptcy?

  Anyone can file bankruptcy, but there are limitations regarding which form of bankruptcy is permissible. Qualifying for Chapter 7 requires a means test that evaluates income, debt levels, and income left over each month after paying basic obligations. Income over the median set by the court and monthly income that allows meaningful payments toward unsecured debt can disqualify filers from Chapter 7, which is generally the preferred form of bankruptcy due to the possibility of a full discharge. Anyone can file Chapter 13 bankruptcy, but the terms are less favorable. In most cases, some debts must be repaid following a successful filing. Chapter 13 is also more likely to result in asset forfeiture.

• How will bankruptcy affect my credit score?

  Bankruptcies are noted on credit reports. How much a bankruptcy might drop a person's credit score depends on how high the score was to begin with, but generally speaking, the hit can be as much as 100 to 200 points. Often scores are already dropping because people filing for bankruptcy may have already missed payments on debts. Chapter 13 bankruptcies are listed on credit reports for seven years from the filing date, while Chapter 7 bankruptcies are listed for 10 years from the filing date. This is because Chapter 13 bankruptcies require at least partial payment of debts owed.

• What are the benefits of filing for bankruptcy?

  Filing a bankruptcy petition causes an automatic stay. This legally stops creditors from taking further action to collect debt, including garnishing wages or foreclosing on property. Going through a bankruptcy successfully means that debts included in the bankruptcy are discharged and don't have to be paid back, except as provided in a Chapter 13 repayment plan. Bankruptcy can help someone recover from financial duress so they can make better decisions and improve financial situations in the future. Disadvantages can include temporary lower credit scores and limitations on spending and financing.

• What's the difference between debt settlement and bankruptcy?

  Debt settlement occurs when people negotiate with individual creditors. The creditor agrees to take a payment that's lower than what someone owes and call the debt “paid in full.” Bankruptcy is a legal process that causes debts to be dismissed after someone proves they don't currently have the means to pay their debts as owed. Typically, someone can't enter into bankruptcy and also settle some debts, because the court would see that as favoring one creditor over another.