Debt is a heavy burden to carry. When you cannot make your payments, you may feel like you are drowning. A Chapter 7 bankruptcy lets you discharge your debts, essentially wiping your slate clean.

Most people filing a Chapter 7 will be free of debt in four to six months. Debts are not repaid in a Chapter 7 bankruptcy. However, if you have assets with greater value than the Minnesota exemption amount, the court may repossess some of these assets to pay your creditors.

How do I start the Chapter 7 bankruptcy process?

If you are within the income limits for Chapter 7, you can start the process by filing the bankruptcy paperwork. In this filing, you will provide detailed information about your income, debts and assets. Once you sign and file the paperwork, all debt collection calls and attempts must stop.

What is a 341 meeting?

The court will appoint a trustee to review your information. You must attend a 341 meeting with the trustee and your creditors to verify everything is correct. Then, the trustee determines if they will repossess any property and how much of that repossession each creditor receives. Most people do not lose any assets.

When the trustee finishes this process, the judge will enter a discharge order, essentially erasing your debts.

While a Chapter 7 Bankruptcy may not eliminate all debts, such as student loans, tax debt and child support, it can help you start over if you are unable to pay credit cards, medical debt or auto loans.