Bankruptcy Law

In Minnesota, bankruptcy legislation allows people who are overloaded with debt to erase a large part of their burden and make a new start. The form of bankruptcy known as "Chapter 7" is a legal mechanism that can help individuals sort out a financial crisis arising from unemployment, overwhelming medical expenses, severely overextended credit, divorce, or any financial crisis. Once bankruptcy is filed, creditors cannot pursue lawsuits against the debtor in question, garnish their wages, or harass them with phone calls or letters. The debtor must still make as many sacrifices as possible in an effort to satisfy their debt, but the end result of bankruptcy is an essentially clean slate.

Not all forms of debt can be erased by bankruptcy, and a bankruptcy will be recorded on a debtor's credit report for 10 years. Chapter 7 bankruptcy can only be used once every eight years; however, a successful bankruptcy can often improve your credit situation, and the impact of a bankruptcy on a debtor's creditworthiness decreases over time. 

Another option for consumer debtors is to file a Chapter 13 wage earner's reorganization. This form of bankruptcy allows you to cure defaults on your home mortgage or vehicle so that debtors do not lose them to foreclosure and repossession.  Chapter 13 bankruptcy can also be used if you have nonexempt assets or your income exceeds your monthly living expenses so that you can afford to repay some of your debts over three to five years.

Bankruptcy Law is a very complicated legal topic, and recent changes are having wide-ranging impacts on debtors. Having an experienced bankruptcy attorney assist you with the process is very important to achieving the best results. We will be able to help you maximize the amount of your assets that are protected under bankruptcy exemptions, preserve or avoid secured debt and be relieved from most unsecured debts.

Perry A. Berg has over 20 years of experience in helping both debtors and creditors in bankruptcy and other financial matters, and we are happy to place this experience and the rest of our resources at our bankruptcy client's disposal. If you are facing a financial crisis and believe that bankruptcy may be an option for debt relief, contact us using our online intake form, or call our Waseca, Minnesota office at 507-835-5240, our Owatonna, Minnesota office at 507-451-9000, our Janesville office at 507-234-5106, or toll-free at 1-888-835-5244.