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The credit card companies have put many millions of dollars not only into steering legislation in their favor, but also to shaping Americans’ attitudes towards going bankrupt. Many feel that being bankrupt is immoral because one is “stiffing” their creditors.

Bankruptcy can stop the judicial process, because bankruptcy is federal law, and federal law preempts state law. All collection lawsuits are governed by state law.

Both chapter 7 and chapter 13 bankruptcies discharge your debts. Under a chapter 13 however, you propose a payment plan to the court to pay a portion of your debt. There is no required percentage of the debt that you must pay, instead the payment plan is based on your budget.

The answer is yes and no. You do not have to have a certain amount of debt in order to qualify for bankruptcy. In bankruptcy court, the laws are not set up to consider the debt as part of your bankruptcy case.

This bankruptcy form Notice of Objecton to Proof of Claim and Notice of Hearing and Objection to Claim can be used in Chapter 13 bankruptcy by a debtor’s attorney to object to the proof of claim of a creditor who has overstated the amount due.

Bankruptcy is a difficult decision—the culmination of a sequence of bad luck, bad timing, and sometimes, bad decisions. However, despite the black mark that filing for bankruptcy leaves on your credit, there are times that it is preferable to the alternative.

Summary of the Chapter 7 process from the free consultation, case filing, discharge, and fresh start.

Many people think that they automatically will lose their house, their car and most of their possessions when they file for bankruptcy. That is not the case.

Bankruptcy is not a process to be entered into lightly, but when you have debts and obligations that you absolutely cannot meet, it is a lifesaver. As freeing as bankruptcy can be, however, bankruptcy laws in this country can seem quite complex to the uninitiated.

Filing for bankruptcy is an important decision, so those considering seeking protection should thoroughly understand how it works. Here are some common questions Minnesota residents have about Chapter 7 bankruptcy.