The Right Article-Formatnewsletter-Format Article for Newsletter

You Are Here: Home Page » Formatnewsletter » Format Article for Newsletter

Newsletter Article

Here is Understanding Minnesota Bankruptcy Laws formatted for a newsletter with 65 characters per line.

Return to Understanding Minnesota Bankruptcy Laws

Understanding Minnesota Bankruptcy Laws

by Gabriel_Adams

Although the two forms of bankruptcy � Chapter 7 and Chapter 13 -
are similar, there are many differences that the consumer needs
to be aware of before deciding which form of bankruptcy to
pursue.

With Chapter 7 bankruptcy, the consumer liquidates all of his or
her non-exempt assets. The money gained is then used to pay back
both secured and unsecured debts. In this way, the consumer is
able to receive a discharge of all of the debt he or she had
prior to filing the bankruptcy petition. In addition, the
consumer may keep certain exempt property, though there is a
limit to the value of the items kept. Items that may be eligible
include:

Family Home
Car
Household Possessions

By filing a Chapter 7 bankruptcy, the consumer can prevent
creditors from calling or from making contact in any way.

With a Chapter 13 bankruptcy, which is sometimes referred to as
a �wage earners� petition, the consumer actually repays the debts
that were created prior to filing bankruptcy. By using the money
he or she earns after the bankruptcy, the consumer generally
develops a repayment plan for the next three to five years. After
completing all of the scheduled payments, the consumer is granted
a discharge. As with a Chapter 7 bankruptcy, a Chapter 13
bankruptcy puts an end to phone calls from creditors. In
addition, they creditors may not take any legal action against
the consumer.

Just as there are two forms of bankruptcy an individual may
file, businesses also have two choices: Chapter 7 or Chapter 11.
A good lawyer will work closely with each of their clients in
order to help them determine which form of bankruptcy is best for
the future of their business. In addition, a lawyer should never
never push a business to file for bankruptcy if there is a
possibility the business can work with its creditors to
restructure its loan agreements. Of course, if bankruptcy is the
best option, a lawyer will file the appropriate paperwork on the
client�s behalf.

With a Chapter 7 bankruptcy, the company liquidates all of its
non-exempt assets so it can pay its creditors. With a Chapter 11
bankruptcy, on the other hand, the business reorganizes its debt
and the bankruptcy court supervises the estate. Unlike some other
states, there is no trustee appointed to the state when Chapter
11 if filed in Minnesota. A Chapter 11 bankruptcy must be
approved by the bankruptcy court during a confirmation hearing
and the business is responsible for paying all administrative
expenses. In addition, the business is still expected to repay
its secured creditors.

Getting Creditors Fair Treatment During a Minnesota Bankruptcy

Services a lawyer can provide to creditors include:

Proof of Claim
Reaffirmation Agreements
Attending 341 Meetings
Filing Motions for Relief From Automatic Stay in both US
Bankruptcy Courts and in the District of Minnesota

Your lawyer can also provide creditors with representation when
involved in a contested bankruptcy litigation. This includes:

Preferences
Fraudulent Transfers
Adversary Proceedings falling within Bankruptcy Rules 7001-7087

If you think that you may need to declare bankruptcy, it is
essential that you contact your lawyer right away to start the
proceedings.

Read up on <a
href="http://thelawway.com/legal-topics/bankruptcy-law/minnesota-chapter-11-bankruptcy-information.saw">Minnesota
Chapter 11 Bankruptcy</a> and <a
href="http://thelawway.com/legal-topics/bankruptcy-law/minnesota-chapter-13-bankruptcy-information.saw">Minnesota
Chapter 13 Bankruptcy</a> and <a
href="http://thelawway.com/legal-topics/bankruptcy-law/minnesota-chapter-7-bankruptcy-information.saw">Minnesota
Chapter 7 Bankruptcy</a>.

Syndicated by The Right Article - www.therightarticle.com