Chapter 7 Bankruptcy

Facing overwhelming debt can feel like you’re trapped with no way out. If you are struggling to pay your bills and creditors are constantly contacting you, Chapter 7 bankruptcy may offer the fresh start you need. At Sieling Law, PLLC, we help clients in Eden Prairie and the surrounding areas navigate the Chapter 7 bankruptcy process, giving them the opportunity to wipe out their debts and rebuild their financial future.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, sometimes called “liquidation bankruptcy,” is designed to help individuals who have limited income and are unable to repay their debts. This process allows you to discharge most of your unsecured debts, such as credit card debt, medical bills, and personal loans, providing relief from the financial burden. In most cases, you will not have to surrender all of your assets, as Minnesota bankruptcy exemptions can protect essential property like your home, car, and retirement accounts.

How Does Chapter 7 Bankruptcy Work?

The Chapter 7 process begins with filing a petition in bankruptcy court. Once your petition is filed, an automatic stay goes into effect, stopping most collection actions against you. This means that creditors can no longer harass you with phone calls, lawsuits, or wage garnishments.

After filing, a bankruptcy trustee will be assigned to your case. The trustee’s job is to review your assets and debts and determine if any of your non-exempt assets can be sold to pay your creditors. However, most Chapter 7 cases are “no-asset” cases, meaning that the person filing has no non-exempt assets to liquidate.

Qualifying for Chapter 7

Not everyone qualifies for Chapter 7 bankruptcy. To be eligible, you must pass the “means test,” which looks at your income and compares it to the median income for a household of your size in Minnesota. If your income is below the median, you automatically qualify. If it’s above the median, further analysis is required to determine if you can still file.

Debts Discharged in Chapter 7

Chapter 7 bankruptcy allows you to discharge most unsecured debts, including:

• Credit card debt
• Medical bills
• Personal loans
• Utility bills
• Some tax debts (in certain cases)

However, not all debts can be wiped out in Chapter 7. Obligations like child support, alimony, most student loans, and certain tax debts are generally non-dischargeable.

Why Choose Sieling Law, PLLC for Your Chapter 7 Bankruptcy?

Filing for bankruptcy can be a stressful and emotional decision, but you don’t have to go through it alone. At Sieling Law, PLLC, we understand the challenges you’re facing, and we’re here to help you every step of the way. Our experienced bankruptcy attorneys will guide you through the process, ensuring that your case is handled efficiently and that your rights are protected.

We offer personalized legal advice to help you determine if Chapter 7 bankruptcy is the right option for you, and we’ll be with you from the initial consultation through the discharge of your debts. With our expertise, we can help you regain control of your financial future and achieve the fresh start you deserve.

Contact Us for a Free Consultation

If you’re considering Chapter 7 bankruptcy and want to learn more about how it can help you eliminate your debts, contact Sieling Law, PLLC today. We offer free initial consultations to discuss your options and answer any questions you may have. Call us at [phone number] or fill out our online form to get started.