Asset Disclosure in a St. Paul Bankruptcy Case

Asset disclosure in a St. Paul bankruptcy case can be tedious, but it does not have to be stressful. The experienced bankruptcy attorneys at Walker & Walker Law Offices, PLLC can guide you through the process and ensure your filing is accurate. Contact us today to schedule your consultation and learn how we can support you.

What Form of Bankruptcy Can You File?

Chapter 7 and Chapter 13 bankruptcy are available to individuals, married couples, and sole proprietors. The value of your assets and debts determines which process is available to you.

Chapter 7 allows you to wipe out your debts and start fresh. To qualify, your average monthly income over the past six months must be below the median income in Minnesota for a family of your size. If it is above the median, our St. Paul bankruptcy attorneys can analyze your family’s expenses to determine whether you are otherwise eligible.

Chapter 13 reorganizes your debts and ends collection efforts while you catch up on your payments. After either three or five years, the court will discharge most or all of your remaining debt. However, the court cannot discharge child support and certain back taxes, and student loan debt requires an additional process. When it comes to deciding which form of bankruptcy is right for you, our asset disclosure attorneys in St. Paul can help.

Protecting Exempt Assets

When you file Chapter 7, a bankruptcy trustee could sell some of your assets to pay down your debts. This is not true for Chapter 13, as the value of your assets determines how much of your debt you must repay.

However, the law exempts certain assets that cannot be sold under Chapter 7 and will not impact your repayment obligations under Chapter 13. Minnesota Statutes § 550.37 lists exempt assets, which include:

• Equity of up to $450,000 in a primary residence
• Equity of up to $1,125,000 if your primary residence is part of a farm
• One motor vehicle for a single person or two vehicles when a married couple files jointly
• Retirement funds, such as pensions, IRAs, and 401(k)s
• Household goods, furnishings, and farm equipment
• Tools of the trade and items used in your business
• Jewelry and wedding rings
• Sacred objects, musical instruments, pets, church pews, and burial plots

The law protects some of these assets up to a specific value, which changes periodically. Minnesota’s generous exemption statute means that most people can keep all their property, regardless of whether they file under Chapter 7 or Chapter 13. Our St. Paul attorneys will work with you to take full advantage of the exempt asset protection laws when filing for bankruptcy.

Completing the Asset Disclosure Documents

Your disclosure must include everything you own, including exempt property, a list of creditors, and the amount of each debt. An omission can delay the proceedings, and if you discover an omission too late, you could lose the debt discharge benefits of bankruptcy.

If you sold or transferred assets in the preceding two years, you must disclose details of the transaction, regardless of whether you transferred to a family member or in an arms-length transaction.

You must include pay stubs, bank statements, tax returns, and similar supporting documents in your disclosure. Our experienced bankruptcy attorneys in St Paul work with asset disclosure statements every day. We can guide you in compiling the necessary documentation and ensure your disclosure is accurate and complete before you file, so you can move forward with peace of mind.

Contact Us Today for Help Completing an Asset Disclosure Statement for Your St. Paul Bankruptcy Case

Like many others, you may be seeking bankruptcy protection to eliminate debt and regain financial stability. However, a mistake on your asset disclosure in a St. Paul bankruptcy case could thwart your goals.

At Walker & Walker Law Offices, PLLC, we offer wise guidance and ensure there are no errors in your bankruptcy petition. Contact us today to schedule a free consultation to discuss your situation.