Liz represents debtors in bankruptcy cases. She understands that in the current economy, bankruptcy is often the only way for people to get a fresh start and end the sleepless nights caused by worries about unpaid debt and bills. Liz will talk with you during your initial consultation to help you decide whether bankruptcy is the best choice for you and your family.
- Chapter 7 Bankruptcy. Chapter 7 bankruptcy is the most common type of bankruptcy. In Minnesota, a Chapter 7 bankruptcy will discharge an individual from most debt, including credit cards, medical bills, and other unsecured debt.
- Chapter 13 Bankruptcy. Chapter 13 bankruptcy allows an individual to repay some of their debt through a 3 to 5-year plan.
- Means Test. Depending on your income, you may have to pass the “means test” in order to file for Chapter 7 bankruptcy. If you do not pass the means test, you will be limited to filing for Chapter 13 bankruptcy.
- Non-dischargeable debt. Bankruptcy does not discharge all debts. The following debts are non-dischargeable:
- Alimony (spousal maintenance)
- Child support
- Back taxes (except in certain cases)
- Recent purchases of luxury goods bought within 90 days of filing
- Fines or penalties of government agencies
- Fraudulent debts
- Cash advances above a certain dollar amount within 70 days of filing
- Student loans (unless an undue hardship discharge is granted)
Elizabeth Rosar Chermack, Attorney at Law, is a designated debt relief agency by an Act of Congress and the President of the United States. She assists consumers seeking relief under the U.S. Bankruptcy Code.