Eligibility & Technical Details

Understanding Bankruptcy Eligibility

From time to time the circumstances of life – such as illness, loss of work, or divorce – can throw your financial situation into turmoil. When times are tough, people need help. Should you decide to pursue bankruptcy, we can help you understand your options: Chapter 7 or Chapter 13.

Bankruptcy Code: Chapter 7

Under this form of bankruptcy, your non-exempt assets (i.e. non-protected assets) will be liquidated and your debts forgiven. In many cases, it is possible to keep your home, automobiles and almost all of your belongings.

Not everyone qualifies to file for Chapter 7.  Your household income must be below the median income to automatically qualify for chapter 7.  As of January 1, 2022, the median income for a single person with no dependants in Minnesota is $65,514. 

Click here for current median income figures: Current Median Income Figures

If you have a household income above the median for Minnesota, you may be able to pass what is referred to as the “means test” and qualify for Chapter 7. The means test involves complicated calculations, based in part on the actual facts of the case and based in part on IRS and Census Bureau statistics. Please contact us to discuss this option.

Bankruptcy Code: Chapter 13

If your income is above the median income, you typically file a chapter 13 bankruptcy.  Under this form of bankruptcy, you undergo consumer debt consolidation in an attempt to start over. Chapter 13 can also help you to stop foreclosure proceedings on your home. You will have to make payments on your debts for a period of time, usually 3-5 years.

What To Do?

People try to avoid filing for bankruptcy out of a sense of pride. Deciding whether or not to file for bankruptcy is a very difficult decision, and you don't need to do it alone – let us help you determine whether bankruptcy is an appropriate option for you.

To learn more about bankruptcy options, please submit your contact information to our office, along with a good time to contact you. Evenings and weekends are okay. Contact us today to take the next step in moving forward.

Disclaimer: The information on this website is for informational purposes only and is subject to change at any time. It should not be construed as legal advice and should not be used as the sole factors in making your decisions. We encourage you to contact us for more information. If the information here differs from current laws and statutes, official laws and statutes prevail.

The content of this website is for informational purposes only, and should not be construed as legal advice, advertisement, or solicitation. Information exchanged via this website or electronic mail does not constitute an attorney-client relationship; such relationship is only established with an engagement letter signed by a licensed attorney of this firm. The Butwinick Law Office is a debt relief agency.

Jeffrey Butwinick Is Here for You

At Butwinick Law Office, I focus on Chapter 7, Chapter 13, Student Loan, Bankruptcy, and Student Loan Counseling and I am here to listen to you and help you navigate the legal system.

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Butwinick Law Office is committed to answering your questions about Chapter 7, Chapter 13, Student Loan, Bankruptcy, and Student Loan Counseling law issues in Minnesota.

I'll gladly discuss your case with you at your convenience. Contact me today to schedule an appointment.