Frequently Asked Questions
Maybe. If you want to keep your house and can afford to make regular monthly mortgage payments after filing for bankruptcy, then YES, you can keep the house. Remember, you must continue to pay taxes, insurance, utilities, upkeep, etc. Be sure to factor all of this into your monthly costs.
Sometimes people also own additional homes or properties such as a cabin, hunting land, timeshare, retirement home, burial plots, etc. If your name is listed as the owner of more than one property, you will need to carefully examine your bankruptcy options with an experienced attorney.
Maybe. If you want to keep your car and can afford to make the regular monthly car loan payments after you file for bankruptcy, then YES, you can keep your car.
Sometimes people own additional vehicles or collector cars — either fully owned or still requiring loan payments. Protecting these assets requires careful consultation with an experienced bankruptcy attorney.
It depends. If you are financially engaged with a person, then yes they will know that you are filing for bankruptcy. Otherwise, not necessarily. A not-named person in the filing would have to scour the legal notices in specific county newspapers that publish the notices. Or, they would need to have access to the bankruptcy court’s online filing system. It is rare for anyone other than an attorney to have access to the online system.
If you do owe money to your neighbors, family members, or others, they will need to be listed on your bankruptcy filing and notified.
If you are a co-debtor with a business partner, family member, or other people, they will need to be listed on your bankruptcy filing and notified.
If you do co-own property with someone, they will need to be listed on your bankruptcy filing and notified.
MLG Legal can file your bankruptcy case rapidly. We move at the speed of our clients and their situation. Some people need a fast bankruptcy filing due to pressing court dates, lurking debt collectors, upcoming sheriff’s sales, etc. Others want to take time to explore debt relief options. Both situations are understandable, acceptable and workable.
The cost of your bankruptcy depends on three factors.
- Do you own a business?
- Do you own “extra” assets that may not be protected in the bankruptcy?
- What type of bankruptcy are you filing?
The easiest way to learn how much it will cost you to file is by contacting our Edina bankruptcy law firm and discussing these details.
Chapter 7 bankruptcy is what most people prefer to file. It is the most affordable option and also the fastest. However, not everyone qualifies for a chapter 7. There are two main hurdles you have to get over. First, there is an income limit to qualify. Second, there is also a limit on the value of your assets. Exceeding either will require you to file for a chapter 13 bankruptcy.
Chapter 13 bankruptcy is for people who exceed the income or assets limits of a chapter 7 filing, or for those who want to save a specific asset such as a home, car, or something else.
Chapter 7 and chapter 13 bankruptcy filings follow similar paths. MLG Legal discusses your options, collects documents from you, files with the court, and attends a mandatory court appearance about one month after the filing.
From this point, the paths change.
With a chapter 7 bankruptcy, you wait about two months after the court appearance to receive the court order that clears away your debt.
With a chapter 13 bankruptcy, in the first month, you begin making regular monthly payments toward your debt. The length of these repayments takes between three to five years depending on your situation.
Yes, you will get credit cards again. Most clients are surprised to receive dozens of credit card offers right after they file for bankruptcy. These companies want you to sign up for their cards because you have already filed for bankruptcy and therefore can’t file again for several years. This means any debt you acquire with a new card cannot be removed for multiple years. Also, you technically have no other debt because the majority of it was cleared away in bankruptcy.
Be warned, these cards typically offer horrible interest rates and high fees. Ideally, you should wait to apply for a credit card until better offers arrive — typically about two to three months.
In terms of vehicle loans, most clients qualify for decent terms about nine months to one year after filing.
In terms of home loans, most clients qualify for standard home financing about three years after filing for bankruptcy.
Perhaps. If you intend to begin a new business down the road, you should address this with an experienced bankruptcy attorney before you begin to file.
Initially after filing for bankruptcy, your credit score will go down, but then it will go up. The amount your credit score goes down can vary, but most people see a drop of 75–100 points. Down the road, people commonly see an increase in their credit score. This is due to the fact that they can’t file for bankruptcy again for a number of years and are, therefore, obligated to pay off new debts.
Working directly with an experienced bankruptcy attorney is the best way to plan for and move forward with a bankruptcy filing. Your attorney will require documents such as pay stubs, vehicle title(s), tax returns, and others. You will also need to take an online credit counseling course. Reach out now and MLG Legal will get you started.