Chapter 7
For over 20 years, the Minnesota law firm of Ross & Associates, P.A. has helped overburdened consumers obtain debt relief by filing for Chapter 7 Bankruptcy. Chapter 7, also known as liquidation, is often the best choice for consumers facing excessive debts they cannot repay even with a reduction in payments or extended repayment period. By utilizing the protections Chapter 7 offers, we help give debtors the relief they need to obtain the "new beginning" they deserve.
Chapter 7 Liquidation
Chapter 7 is a court-supervised procedure where a trustee liquidates the debtor's non-exempt assets and distributes the proceeds to creditors. Under Chapter 7, debtors are allowed to keep property classified as exempt, such as a home of up to 160 acres that is valued at up to $300,000 or less or $750,000 or less if it is used as agricultural land.
Discharge of Debts
Once the court has distributed your non-exempt assets to creditors, most of your remaining unsecured debts should be discharged. Some debts, such as school loans and child support payments, are non-dischargeable. Discharge releases you from personal liability and prohibits creditors from taking collection actions on those debts, including contacting you via telephone, e-mail, or mail.
Chapter 7 Bankruptcy Eligibility
Not all individual debtors are eligible for Chapter 7 Bankruptcy protection. In general, if your income is below the Minnesota state median you should qualify for Chapter 7. If your income is above the state median you are subject to the "means test," which is meant to determine whether or not you have the financial means to pay your debts. However, even if you don't pass the means test, or most of your debt is credit card debt, this does not necessarily mean you are without options. You may be eligible for Chapter 13 Bankruptcy, which can help you to reorganize your debts and make reduced payments over time.
The Bankruptcy Process
Our firm will guide you through all of the necessary steps to help you obtain the relief you need, including:
- Gathering information about your debts and assets.
- Filing the bankruptcy petition with the bankruptcy court, including filing your schedule of assets and liabilities, current income and expenses, statement of financial affairs, tax returns for the most recent tax year, certificate of credit counseling, any debt repayment plans developed through credit counseling, and other required documentation. Filing the bankruptcy petition will "automatically stay," or stop, most collection actions made against you or your property. This will allow you some immediate relief while we help you through the remainder of your bankruptcy proceedings.
- Representing you at the first meeting of creditors, where you will be questioned under oath about the accuracy of the assets and debts you have reported. About two months after this meeting, you should receive an order from the bankruptcy discharging your remaining debts.
Seek Debt Relief
Attorney Paul Elliot Ross has over two decades of experience helping consumers file for Chapter 7 Bankruptcy to obtain relief from the burden of mounting debt. If you and your family are facing overwhelming debt, contact Ross & Associates, P.A. for a free initial consultation.
We are a debt relief agency pursuant to Federal Law §524 of Title 11 of the U.S. Code. We provide legal assistance and help people file for bankruptcy relief under the Bankruptcy Code.
