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Coronavirus Impact and Assurance: Yes! We are still open for business!

As you are all aware, we are currently facing unique challenges due to the Coronavirus. While this is a serious crisis, it is important to keep it in perspective, and not allow it to prevent us from going about our business. We want to assure all of our clients that this office is prepared to serve your needs, regardless of what happens and how the virus affects Minnesota. In an effort to keep the office safe, we have stepped up prevention and sanitation measures in hopes to prevent disease transmission.

Because we are a paperless office, our entire staff is prepared to work from home if necessary. No matter what happens, we will continue to provide our clients with the highest quality legal services. For any clients who are not comfortable leaving their homes, we can handle any appointments remotely via phone, FaceTime, Skype, Zoom , and can transfer any documents to you electronically or by mail, if that is your preference.

Please rest assured, we will continue to take care of your legal needs in this challenging time, and your safety is our highest priority.

Please see our blog for more info on pandemic response.

Can I keep my house after Chapter 7?

| Oct 13, 2020 | Bankruptcy

If you are considering or going through bankruptcy, it is important to separate the truth from fiction. There are many rumors associated with bankruptcy, particularly Chapter 7 bankruptcy.

Chapter 7 bankruptcy is the most common variety of personal bankruptcy filed in the United States. Since Chapter 7 bankruptcy involves liquidating your assets, you may worry that you will lose your home if you file. However, according to FindLaw, in many cases you can keep your home after a Chapter 7 bankruptcy if your property has negative equity.

Why would creditors take my home as part of a Chapter 7 bankruptcy?

When it comes to personal bankruptcy, the most commonly filed Chapters are 7 and 13. Typically, if you have an income below a certain threshold, you will file for Chapter 7. Part of the process of a Chapter 7 bankruptcy involves going through your assets and seeing what you can sell off, or “liquidate,” to pay back your creditors as much as possible.

One of your biggest assets is your home. In certain circumstances, the courts may require you to liquidate your home to pay back your creditors. However, if your equity is negative the courts will find your home exempt from liquidation.

What is “negative equity?”

Equity is what you get when you take the current market value of a property and subtract the amount of the mortgage you have on the property. In the majority of cases, persons filing Chapter 7 bankruptcy have negative equity. This means that many people get to keep their homes.

However, in certain circumstances it may be beneficial for you to “walk away” from the mortgage, particularly if you cannot pay it. Filing bankruptcy is one of the few times you can do this with no further legal repercussions.