Common Bankruptcy Concerns

Will I lose my home?

Probably not! In Minnesota, the exemptions for most types of property are very generous. The home equity exemption is no exception; just keep paying your mortgage and you will be in good shape.

If the bank has already started foreclosure proceedings, let me know. The sooner I file your case, the sooner the foreclosure stops in its tracks. Plus, there are legal options other than bankruptcy I can help you with.

Won’t I have to sell off my things?

Probably not, yet again! Few people actually have personal property worth more than the generous Minnesota personal property exemptions. You may have paid more for your stuff, but what actually matters is what it’s worth now. There is a per-item limit, but if you pay the trustee the difference between the limit and the value, you can hold on to even your most valuable things.

Bankruptcy will permanently ruin my credit, right?

No! For one thing, a bankruptcy is only on your credit report for ten years. For another, it’s a myth that you can’t get a loan with a bankruptcy affecting your score. It may be trickier, but I can help you work around the bankruptcy by creating good sources of credit and by working with local non-bank lenders, so you can buy a new car or get a home mortgage sooner than you might expect.

Isn’t it wrong to not pay my debts?

I don’t think so, if you didn’t borrow money without intending to pay it back. Article I of the US Constitution explicitly gives Congress the power to regulate bankruptcies. Not only is it legal, it’s a constitutional right. Read more of my thoughts on the subject here.

Can’t I file my own bankruptcy?

You absolutely have the right to represent yourself in bankruptcy, but I really don’t recommend it. It may seem like you just have to file a few forms and pay a filing fee and that’s that, but there are many potential pitfalls. My expertise can keep you from losing property and money worth a lot more than my fees, or even having your discharge denied.

Will I lose my car?

Again, probably not! Minnesota allows you to exempt a decent amount of equity in one car. In a worst-case scenario, you might end up paying the trustee, but most people end up keeping their rigs.

Can I be arrested for not paying my debts?

No! One thing the US has gotten mostly right since about the mid-1800s is that we don’t put people in jail just for owing money to a business.* If a debt collector tells you they will call the police and have you arrested, contact me right away. You might be able to have your debt reduced, or even collect damages.

*Some would argue that putting someone in jail for failing to post cash bail or pay criminal fines or for ignoring court orders to pay other people count as “imprisoning people for debts.” To them I say, “Yep.” It’s a slightly different problem, though, more related to criminal law and the court system than to bankruptcy and consumer law.

How can I afford to pay an attorney to file bankruptcy for me?

If you are considering filing a bankruptcy petition, odds are good that your finances are in a bit of trouble. You might think it will be difficult to scrape together the cash to hire me. Fortunately, the problem has several solutions. First, I won’t ask you to pay my full fee all at once; after an initial payment, we can space out the remainder as much as you need. Second, many people file around tax time, using their income tax refunds to pay their bankruptcy attorneys. Third, after you file the automatic stay goes into effect; almost all of your creditors are prohibited from collecting from you in any way. You can then use the money you would have paid toward your debts to pay me to get them discharged.

Can you help me with other legal issues?

Maybe! I have experience working on various types of civil and criminal cases as an advocate through my work at the Department of Corrections, and I handled many other types in my time as a judicial law clerk. Take a look at some of the other areas I have experience in and contact me if you would like me to handle something for you; if I don’t think I can take the case myself, I will do my best to recommend someone who can.