You know that it’s time to do something about the crushing debt that has seemingly taken over every aspect of your life. You’ve been thinking about talking to a Minnesota bankruptcy lawyer about your legal options. You are interested in the relief and fresh start that can be obtained through a Chapter 7 bankruptcy filing, but are you eligible for Chapter 7 relief? Learn how to find out!
General Chapter 7 Bankruptcy Eligibility in Minnesota Generally, there are two ways for individuals to qualify for Chapter 7 bankruptcy protection. First, an individual whose monthly income is below the state median income usually qualifies for Chapter 7 protection. For much of 2011, the Federal Bankruptcy Court listed $45,760 as the annual median income for an individual in Minnesota. For a family of two, the annual median income was $61,690, for a family of three the annual median income was $74,082 and for a family of four the annual median income was $85,146. $7,500 is added to the median for every individual in the family after four.
If your income is higher than the median amounts in the state, you may still qualify for Chapter 7 relief if your filing is found not be abusive. A bankruptcy filing may be abusive if your monthly income is higher than a certain amount or more than a certain percentage of your non-priority unsecured debt. The Court may listen to special circumstances you and your attorney raise in deciding whether or not a Chapter 7 filing should be allowed.
If a Chapter 7 bankruptcy filing is denied, then you may have relief under other chapters of the bankruptcy code. To find out more about your rights, please read our FREE book,What You Need to Know About Filing Bankruptcy in Minnesota.
Contact a Minnesota Bankruptcy Lawyer to Discuss Your Potential Eligibility While the guidelines provided above may give you a good idea of whether or not you may qualify for Chapter 7 in Minnesota, it is important to learn more about your specific rights from an experienced Minnesota bankruptcy attorney.
You can reach a lawyer today by contacting our Minnesota bankruptcy law firm via our online contact form or directly at 952.388.2942 or 800.619.8991.