Minneapolis Bankruptcy Attorney

If you are behind on mortgage or credit card payments, have suffered the loss of a small business, or simply feel overwhelmed by consumer debt, you may wonder if declaring bankruptcy is the right option for you. Filing for Chapter 7 or Chapter 13 bankruptcy can provide relief from garnishments, foreclosures, repossessions and creditor harassment.

My goal is to help you make the best decision given your particular financial situation. The decision to declare bankruptcy is never an easy one. If you do decide to proceed with bankruptcy, I will guide you through the process with respect and diligence.

Let us help today

Call us today to begin discussing your situation at (612) 730-1738.

What one of our clients had to say:

“I turned to Josh when I needed help in regards to whether or not to file bankruptcy. Josh explained all of the options clearly and was very empathetic to my situation. He worked very quickly and was always available for any questions I had about the process. He also went above and beyond by expediting my case to ensure that the bankruptcy went ahead prior to my wife and I getting married so that her credit score would not be affected as well. This was very helpful and allowed us to move forward and purchase a new home. Although it’s been almost five years since I filed (for bankruptcy), I still keep in touch with Josh for any legal matters I may need advice on. He is a great lawyer because he treats people with respect and is genuinely concerned about his clients’ well-being. Thank you so much, Josh, for all of your help and advice, it is greatly appreciated!”

Bankruptcy Client

Frequently Asked Questions

What is a Chapter 13 bankruptcy?

Chapter 13 may be a good option for a debtor with a regular source of income who is within certain debt limits, and for debtors who do not qualify for a Chapter 7 because their income is too high. In a Chapter 13, the debtor retains possession of his or her assets while making payments to creditors under a court-approved payment plan. Once the debtor completes a three- or five-year payment plan, he or she receives a discharge and retains all property, whether exempt or non-exempt. Chapter 13 allows a broader discharge and various options to save a house or a car when secured loans against those assets are in default.

My home is in foreclosure. How long can I live there after the Sheriff’s sale?

You can live in your home for six months after the Sheriff’s sale without making a mortgage payment. At the end of that period, you will likely have to move out.

Can I discharge a second or third mortgage loan against my home?

Second and third mortgages are dischargeable in a Chapter 7 bankruptcy, but the mortgagee retains its secured interest in your home after the bankruptcy.  This means that a debtor cannot be held personally responsible for a second or third mortgage, but that a mortgagee could still foreclose a second or third mortgage and exercise their lien on the home in order to recoup the unpaid loan.  Most mortgagees will not foreclose a second or third mortgage unless they are certain that the price they will receive at a Sheriff's Sale will be sufficient to satisfy any amounts due on the first mortgage.

Can I keep my home when I file a bankruptcy?

As long as you are current on your mortgage, and continue to make regular payments, a bankruptcy filing will not affect your ability to stay in your home, unless you have more equity than can be protected in bankruptcy.  A bankruptcy does affect some rights that you have under your original mortgage, especially with regard to any potential future foreclosure actions. 

If you have significant equity in your home, I can advise you about the best way to protect this asset through a bankruptcy proceeding.

If your home is in foreclosure when you file for bankruptcy, all foreclosure proceedings against you must cease during the pendency of the bankruptcy, due to the Automatic Stay in place during bankruptcy.  The mortgage company can, however, file a motion in federal court requesting special permission to continue foreclosure proceedings during the bankruptcy in certain cases.

Will I have to go to court?

Thirty days after you file your bankruptcy case, you will attend a hearing conducted by a trustee, a lawyer who administers the bankruptcy estate.

How long does a Chapter 7 bankruptcy take?

The entire process from filing to discharge generally takes about 90 days.

Creditors are calling and harassing me. Does bankruptcy stop this?

Once you have filed for Chapter 7 bankruptcy, an "Automatic Stay" in in place.  The Stay prohibits creditors from contacting you with regard to any debt for the duration of your Chapter 7 bankruptcy.

If your debt to a particular creditor is discharged in Chapter 7 bankruptcy, that creditor cannot attempt to collect the debt from you even after your bankruptcy is completed. If your debt to a particular creditor is not discharged in your bankruptcy (i.e. certain types of tax debts, student loans, child support, etc.) the creditor is permitted to resume collection activities once your bankruptcy case is closed.

What do I get to keep in a Chapter 7 bankruptcy?

Many people who do not have significant assets or substantial equity in their home can go through a Chapter 7 bankruptcy without having to give up anything they own. It is not possible to fully answer this question without reviewing your specific assets.

Can I still file bankruptcy if I make more than the median income listed above?

If you make more than the median income for Minnesota, you may still be able to file a Chapter 7 bankruptcy. To do so, you will have to pass the “Means Test”, which takes into account many of your household expenses. It is not possible to make this determination without reviewing your individual situation in detail. If you do not qualify for a Chapter 7 filing, you may be able to file bankruptcy under Chapter 13.

Can I file Chapter 7 Bankruptcy?

You are presumptively eligible for Chapter 7 bankruptcy if your household income is equal to or less than the median income for the state in which you reside. In some cases, you may be eligible for Chapter 7 bankruptcy even if your income is higher than the median income for your household size. The current median income figures for Minnesota are as follows:

Household Size 

Annual Median Income* 

One Person 
Two People
Three People
Four People ** 

* Figures effective for bankruptcy filing dates on or after April 1, 2016.

** For each additional person beyond 4, add $8,400 to annual median income.

Income is generally calculated by adding up the income of both you and your spouse for six months before the filing of the bankruptcy case. This includes all income received as wages, from the operation of a business, or as regular contributions to your household expenses.

What is Chapter 7 Bankruptcy?

Chapter 7 of Title 11 of the United States Code allows for the discharge of specific types of debt while permitting individuals to retain certain exempt property. Chapter 7 bankruptcies are often called “straight bankruptcies” or liquidations.