Filing Chapter 7 Bankruptcy in Minnesota

Before we get into how Chapter 7 bankruptcy will help you keep your property and pay pennies on the dollar for your debt, you’ll want to know if you’re eligible to file for this chapter of bankruptcy protection. If not, there’s always Chapter 13, but most debtors will file Chapter 7.

To qualify for Chapter 7 bankruptcy in Minnesota, you’ll need to pass what’s called the means test. You must be below the median income for Minnesota at the time you file for Chapter 7, and your disposable income must not exceed certain thresholds. For cases filed Nov. 1, 2017, and later, the median income for a single-earner household in Minnesota is $53,474; for a family of two, it’s $72,734.

The test is based on your income in the past six months, so the timing of your case is important. For example, if you file for bankruptcy in February after just receiving a Christmas bonus six weeks prior, that will skew your income for the means test and make it look like you earn that amount the other six months of the year.

You’ll want to speak with a qualified Minnesota bankruptcy attorney who can help you determine your eligibility for Chapter 7 bankruptcy as well as other avenues to debt relief if you don’t qualify. This persona also will help guide you through the complex bankruptcy process; you won’t want to file bankruptcy alone.

Cost to file chapter 7 in Minnesota

The chapter 7 filing fees in Minnesota are $338, but that doesn’t tell the whole story of the real cost to file bankruptcy. Bankruptcy lawyers usually charge between $1,000 and $2,000 to file a chapter 7 case, in addition to the filing fee.

Where are the Minnesota bankruptcy courts located?

Minnesota bankruptcies are filed with the District of Minnesota, United States Bankruptcy Court. There are four court locations where you may present your bankruptcy case for filing. Your section 341(a) meeting of creditors could be in various locations.

St. Paul: 200 Warren E. Burger Federal Building and United States Courthouse, 316 N. Robert St., St. Paul, MN 55101, (651) 848-1000

Minneapolis: 301 U.S. Courthouse, 300 S. Fourth St., Minneapolis, MN 55415, (612) 664-5200

Duluth: 404 Gerald W. Heaney Federal Building and United States Courthouse and Customhouse, 515 W. First St., Duluth, MN 55802, (218) 529-3600

Fergus Falls: 204 Edward J. Devitt United States Courthouse and Federal Building, 118 S. Mill St., Fergus Falls, MN 56537

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