Minnesota Bankruptcy

Bankruptcy is a legal process that eliminates an individual's or a business's debt or arranges a means to pay off the debts at a reduced amount. Bankruptcy proceedings are governed by the Federal Bankruptcy Code of the United States.

Bankruptcy process is a federal proceeding, but Minnesota allows its filers to choose either the state’s exemptions or the federal exemption list. This choice, together with Minnesota’s periodically adjusted dollar amounts, drives what you can keep and how a case is structured.

Minnesota exemption amounts are indexed for inflation and typically adjust on July 1 of even-numbered years, so always verify the live figures.

How to File Bankruptcy in Minnesota.

In Minnesota, a concise and practical knowledge of bankruptcy filing procedures will keep your filing on track from counseling to discharge or plan completion. It is vital to complete credit counseling (from approved credit counseling agencies) within 180 days before filing any case. Gather all required documents, including two years of tax returns, six months of income records, bank statements, complete asset and debt lists, deeds/titles, and any lawsuit papers.

You should choose a chapter and decide on your choice of the exemption scheme: Minnesota or federal exemptions.File your petition under the District of Minnesota’s clerk guidance. You may file through an attorney or pro se.You must pay the filing fee or request relief. Remember to attend the 341 meeting with creditors, present your ID, and respond to all trustee requests.

Finally, you must monitor court notices until discharge or plan confirmation.

Minnesota Bankruptcy Types: Chapter 7, Chapter 11, Chapter 12, & Chapter 13

For you to achieve your goal, it is vital to understand the chapter dynamics and filing requirements in Minnesota.

Chapter 7 (liquidation)

You may file as an individual for this chapter and allow a trustee to sell non-exempt assets to repay your creditors. Minnesota’s homestead and personal-property caps may affect which assets you keep. There are also filing requirements for companies or businesses.

Chapter 11 (reorganization)

This is available to businesses or complex individual cases. The chapter, with its filing requirements, allows operations of the business while proposing and confirming a plan in the District of Minnesota.

Chapter 12 (adjustment)

This chapter is mainly for the adjustment of debts of a ‘family farmer”, or a “family fisherman”. It has strict filing requirements for either individuals or non-individuals.

Chapter 13 (repayment)

Any individual with a regular income may restructure their debts in a repayment plan between a three- and 5-year plan. However, your plan must pay unsecured creditors at least the value of non-exempt equity under the exemption system you selected.

Step In Filing For Bankruptcy in Minnesota

For quick access to filing bankruptcy procedures in Minnesota, check the following statements.

• Complete a credit-counseling course
• Gather necessary documents, such as income, tax, asset, and debt records
• Choose a chapter and select the state or federal exemptions
• File your petition with the court
• Pay the filing fee or request installments/waiver
• Do not attach payment receipts, certificates of credit counseling, applications to the petition, and schedules together. You must file these documents separately.
• Attend the 341 meeting of creditors.
• Complete a debtor-education course.
• Track the trustee or court communications until discharge or plan approval

Minnesota Bankruptcy Court & Access to Records

Knowing where to file your bankruptcy cases and how to view dockets will save you time and trips.

Court Locations

The District of Minnesota: The court is located in Minnesota with additional divisions in St. Paul, Duluth, and Fergus Falls. The court offers Bankruptcy Advice Clinics to residents in St. Paul, Minneapolis, and Duluth. Contact the United States Bankruptcy Court for the District of Minnesota for additional information at:

Record Access

Cases filed with the U.S. Bankruptcy Court for the District of Minnesota in 1999 and thereafter are maintained electronically and available through the Public Access to Court Electronic Records (PACER) service. To access these records, you must register for a Pacer account. While there is no charge to register for PACER, there is a $.10 per page charge for access to court documents.

You may access electronic court records without charges from the public terminals in the Clerk's Offices in Duluth, Minneapolis, and St. Paul. However, there is a $.50 per page charge for printing any document. Cases filed before 1999 (created and maintained in paper format only) and certified records are available at the clerk’s office on weekdays from 8:00 a.m. to 4:30 p.m.

An individual may also access bankruptcy case files from a standard touch-tone telephone by calling McVCIS at 1-866-222-8029 for free. You may retrieve limited case information, including name, chapter, trustee, 341 date, status, and other information.