Can I Keep My House If I File a Chapter 7 Bankruptcy?
Student loans and credit cards have fueled a spike in filing personal bankruptcy in Minnesota last year, with a 54 % increase from the previous year. For personal bankruptcy, most people file a Chapter 7 or Chapter 13. This article will focus on Chapter 7 and the exemptions Minnesota offers in terms of protecting your house. You can qualify for a Chapter 7 bankruptcy by passing the “means test.” The means test is a two-prong analysis of your household income. If you fall below it, you can file a Chapter 7 bankruptcy, meaning almost all of your debt would be wiped away with a... Read More
Are Retirement Accounts Protected in a Bankruptcy?
Since the Covid-19 pandemic-era relief programs are slowly expiring, bankruptcy cases are exponentially increasing in Minnesota. For bankruptcy cases, I often get asked, “will my retirement account(s) be exposed to the trustee? Are they protected?” The answer is almost always yes. Under both the state and federal exemptions an ERISA qualified plan is protected in full (barring some last-minute transfers). The plans are protected, not just because they are exempt, but because they never become property of the bankruptcy estate and do not need to be exempted. The language of the ERISA statute essentially creates a spendthrift trust. If you... Read More