Ron Lundquist: a Bankruptcy Lawyer with Foreclosure Services
Home foreclosure is a serious concern that adds unnecessary stress to a family. You’ve worked hard to provide that roof and build your comfortable household. The thought of losing it can be emotional and detrimental to your future plans.
If you are facing a Minneapolis foreclosure, bankruptcy is the strongest and most effective tool to save your home. As soon as your case is filed, the law forbids your mortgage company from proceeding with foreclosure. They can’t kick you out of the home you’ve loved, and they can’t sell your home out from underneath you.
Chapter 13 bankruptcy gives you a chance for a fresh start with your mortgage company. With a Chapter 13 bankruptcy, the law allows you to repay your past due payments over a certain number of months at a feasible rate instead of going through a home foreclosure.
This kind of monthly payment plan is designed during the bankruptcy process to fit your budget, based on your income and your expenses. When your case is filed, you will know the monthly payment amount and expectations that come along with it.
It is important to note that you must act BEFORE there has been a sheriff sale in order to stop the foreclosure of your home. If the sheriff sale has been held, it is too late for a Chapter 13 bankruptcy case to help you save the home. That’s why you should pursue bankruptcy sooner rather than later.
Worried about putting your other assets in jeopardy by filing bankruptcy to save your home from foreclosure? Don’t be!
While almost 100% of my clients lose no property when they file Chapter 7 bankruptcy, I have never had a client lose any asset in a Chapter 13 case. This is because you have a fundamental right to retain property up to a certain dollar amount established by law. These protected property laws are called “exemptions.”
According to the Minnesota State Constitution, Article I, Section 12: “A reasonable amount of property shall be exempt from seizure or sale for the payment of any debt or liability. The amount of such exemption shall be determined by law.”
You can choose either the Federal Exemptions or the Minnesota Exemptions. Each have their advantages. I will work with you to determine which set of exemptions works best in your specific case so that you don’t lose anything. These exemptions will be discussed during the initial consultation so that your fears and worries are laid to rest.
Minnesota is a generous state when it comes to exemptions, allowing a wide selection of what can be protected. There are exemption categories for almost any property you could possibly own, including a homestead, automobiles, household goods and furnishings, retirement plans, tools of the trade, and cash value life insurance.
In very rare cases, a client may have an asset at risk. However, as long as you work with me and tell me everything you own, I can give you the best chance to keep it all. Selling or giving away an asset before filing bankruptcy can be problematic, so I advise every client to give me full disclosure. That way, I can assess the situation, give you sound advice, and help you avoid any bankruptcy pitfalls.
If you are concerned about a home foreclosure or losing invaluable assets, give me a call to set up an initial bankruptcy consultation at 651-454-0007. I am recognized as a debt relief agency, and provide bankruptcy relief using the laws of the State or Minnesota and the United States Bankruptcy Code.
Together, we will discuss your Chapter 7 and Chapter 13 bankruptcy options and how to put you back in control of your finances.