Filing
Bankruptcy in Minnesota
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POPULAR ARTICLES:
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Keeping your House and Car
Retaining your home and vehicle -
Chapter 7 - Business or Personal
When and how the means test applies -
The Minnesota and Federal Exemptions
Assets the trustee can't touch, new domicile requirements -
Watch Dave Kelly on YouTube
Introductory comments about means testing, debts and exemptions
Kelly Law Office - 1013 Ford Rd. - Minnetonka, Minnesota 55305
Serving St. Louis Park, Golden Valley, Hopkins,
Plymouth, Wayzata, Minneapolis-St. Paul
A Message from Dave Kelly
At my Minnetonka, Minnesota office, I have been practicing law in the Twin Cities area for almost 33 years. I'm David Kelly. Most people call me Dave. Since the "new law" went into effect in late 2005, I have helped dozens of clients qualify to file either Chapter 7 or Chapter 13. While the paperwork has become a lot more complicated, I am finding that most people who need to are still able to file. I care about people who are in financial difficulty, and I get a lot of satisfaction from helping them.
I
know that filing a bankruptcy is the last thing you want to do.
You have probably been struggling for a long time to avoid
bankruptcy. You might already have refinanced your home in an
effort to get caught up, only to find that it wasn't enough - and
now your home equity is gone or seriously reduced. You might
be desperately using cash advances from one credit card to pay
another - robbing Peter to pay Paul - but certainly not getting
ahead by doing so. A point comes when bankruptcy becomes the
only viable choice. To their credit, most of my clients have
waited way past that point before calling me. If you are wondering
whether you file under the new standards, please call me.
As of February 1, 2008 the income limitations applicable to Minnesota as to who can file Chapter 7 without having to do a means test have be gone up. This means that a few more people than before will qualify for Chapter 7 without having to pass the means test. These income limits are shown in a table on my Chapter 7 page. About every two years the amounts allowable for asset exemptions under the federal exemptions go up. The most recent increase was April 1, 2007. These exemption amounts are under "federal exemptions" on my exemptions page.
The numbers in two of the nastier consumer debt provisions of the new law improved somewhat in the debtor's favor as of April 1, 2007. Even with the improved numbers, however, these are two items which every consumer debtor has to watch out for:
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Consumer debts incurred for luxury goods and services owed to a single creditor in excess of $550 incurred within 90 days of filing are presumed to be non-dischargeable; and if you have incurred $550 or more with a single creditor in that 90 day period before filing, it is presumed to be for luxury goods or services.
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Cash advances in excess of $825 made within 70 days of filing are presumed non-dischargeable. These provisions make it easier for a creditor to complain about debt run-up right before the debtor files a bankruptcy.
The means test only is required of those who are above the median income for the state in which they live. It also is not required in business Chapter 7 bankruptcies and not required in Chapter 13s. Those whose incomes are only a little above the median usually pass the means test. For a full outline of the filing process from start to finish, take a look at my bankruptcy filing process page.
Watch me on YouTube
Here's a link to an introductory video, "The Green Smiley Face," which I have posted at YouTube. When running my client's numbers on my bankruptcy software, the screen displays a green smile symbol as long as my client is passing the means test. This turns into an orange frown if my client starts to fail. Needless to say, I do my best to keep the face green and smiling.
Please ignore any advertising or additional links which may appear from YouTube after my video is over. Anything after the video is material from them, not from me, and I am not responsible for it.
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Kelly Law Office represents bankruptcy clients throughout the Twin Cities - Minneapolis, Minnesota area including Champlin, Crystal Bay, Dayton, Eden Prairie, Excelsior, Hamel, Hopkins, Howard Lake, Long Lake, Loretto, Maple Plain, Minneapolis, Minnetonka Beach, Minnetonka, Mound, Navarre, Osseo, Rogers, Saint Bonifacius, Saint Paul, Spring Park, Wayzata, Young America, Bloomington, Edina, St. Louis Park, Wayzata, Plymouth, Maple Grove, Brooklyn Park, Anoka, Shakopee, Hastings, Eagan, Burnsville, Buffalo, Waverly, Montrose, Hennepin County, Anoka County, Carver County, Scott County, Ramsey County, Dakota County, and Wright County.
The information you obtain at this site is for general information purposes on and is not legal advice. You should consult the attorney of your choice for individual advice regarding your own situation. The use of the Internet for communications with the firm will not establish an attorney-client relationship and messages containing confidential or time-sensitive information should not be sent.