Best Bankruptcy Attorneys in Minneapolis

Frequently Asked Questions

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

  The U.S. District and Bankruptcy Courts in Minneapolis are in the Diana E. Murphy US Courthouse at 300 S. Fourth St., Minneapolis, MN 55415.

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

  Local and national bankruptcy forms in Minneapolis are at https://www.mnb.uscourts.gov/local-forms and https://www.mnb.uscourts.gov/national-forms, respectively.

• Is the incidence of bankruptcy increasing or not in Minneapolis?

  In Minneapolis, the frequency of bankruptcy filings has generally been going down over the immediate nine-year period. However, in 2019, there was a 2.73% increase over the previous year. Also, as of the latest data in 2023, there appears to be a dramatic upswing in cases of 22.49% over the same time in the previous year.

• How involved do judges get in Minneapolis bankruptcy cases?

  In bankruptcy cases filed in Minneapolis, the judge's involvement is minimal. It is not uncommon for the petitioner to never see the magistrate in chapter 7 cases and to course business through a delegate called the trustee. In chapter 13 cases, the plaintiff only formally appears during the plan confirmation hearing.

• When should a debtor in Minneapolis consider bankruptcy?

  A debtor in Minneapolis should consider bankruptcy when there is a debt-to-annual income ratio of 40 to 50 percent or worse. This shows difficulties in controlling spending, even if the petitioner has consulted a credit counselor yet still can't lower expenses. Insolvency is also an option if attempts to make a debt repayment scheme cannot produce results.

• Is bankruptcy a solution in Minneapolis for child support payments that have spiraled out of control?

  No, bankruptcy is not a solution for child support payments in Minneapolis that have spiraled out of control. These obligations are akin to student loans and are not obliterated by insolvency proceedings. A better solution is to go to family court and seek a modification of existing child support orders.

• In Minneapolis, Is it advisable to preserve assets in bankruptcy by transferring them to a trusted relative or friend?

  No, it is not advisable in Minneapolis to preserve assets in bankruptcy by transferring these to a trusted relative or friend. The court can view these conveyances as fraudulent. Once discovered, the transactions may be undone for a period of up to six years following state laws on the bad faith passing on of properties.