Minnesota Bankruptcy Lawyer
Bankruptcy is a legal tool designed to eliminate or reorganize debt. It is not evidence of financial failure or moral weakness. We’ve helped hundreds of Minnesotans file bankruptcy, almost always for a reason beyond their control, whether it be job loss, medical problems, and divorce.
If you are overwhelmed by debt, facing aggressive collection activity, or unsure how to regain financial control, the first step is understanding how bankruptcy works in Minnesota and whether it makes sense for your situation.
This page explains:
When bankruptcy is appropriate
The difference between Chapter 7 and Chapter 13
What happens during a Minnesota bankruptcy case
What it costs
How bankruptcy affects collection lawsuits, judgments, and garnishments
When Does Bankruptcy Make Sense?
Put simply, bankruptcy makes sense for people who have more debt than they can realistically pay back.
Most of our clients choose bankruptcy when they have multiple debts are default, when wage garnishments or bank levies are happening, or when lawsuits and judgments are beginning to accumulate.
Bankruptcy is less likely to be the right solution when a single, manageable debt is the issue or when a viable legal defense exists in pending litigation. The decision should be based on your full financial picture, not just one creditor’s actions.
Chapter 7 Bankruptcy in Minnesota
Chapter 7 is the most common form of bankruptcy. It eliminates qualifying unsecured debts such as credit cards, medical bills, personal loans, and most judgments. A typical Minnesota Chapter 7 case lasts about four months from start to finish.
Once a Chapter 7 case is filed, the automatic stay stops all collection activity immediately, including garnishments. levies, foreclosures, and repossessions. You will attend a meeting of creditors conducted under oath, and if no significant issues arise, qualifying debts are discharged. In most cases, there is no courtroom appearance before a judge.
Not everyone qualifies for Chapter 7. Income, assets, and prior bankruptcy filings can affect eligibility and strategy. Chapter 7 tends to work best when unsecured debt is the primary problem and a repayment plan is not financially realistic.
Chapter 13 Bankruptcy in Minnesota
Chapter 13 is a structured repayment plan that typically lasts three to five years. It is often used when someone needs time to catch up on mortgage payments, is behind on a vehicle loan, has income that is too high to qualify for Chapter 7, or has special debts that must be addressed through a repayment plan (like most back taxes).
Chapter 13 can stop foreclosure and repossession while allowing you to reorganize debt under court supervision. It is not quick relief. It is long-term restructuring designed to create stability and a workable plan for paying what must be paid while protecting your most of your assets.
What Happens in a Minnesota Bankruptcy Case?
Over the years, we’ve found that when our clients understand what to expect during the bankruptcy process, they feel less anxiety and make better financial decisions.
A typical bankruptcy case in Minnesota involves these basic steps:
Preparation and filing of the required bankruptcy papers
Once filed, all collection activity must stop due to the automatic stay
The case is reviewed by a bankruptcy trustee
You and your attorney have a short meeting with the bankruptcy trustee
Resolution of any objections or issues raised by the trustee
Entry of discharge
In most cases, there is no courtroom appearance before a judge. The trustee meeting is typicially conducted by Zoom or telephone.
How We Are Different From High-Volume Bankruptcy Firms
Some bankruptcy firms operate on a high-volume model. Clients may have limited contact with the attorney responsible for the case, and fee structures can be confusing.
At Friedman Murray, you’ll work directly with your lawyer and your strategy will be tailored narrowly to your specific financial situation. We don’t treat bankruptcy clients as commodities and we understand that careful preparation matters.
Understanding “$0 Down” Chapter 7 Arrangements
Some firms advertise “$0 down” Chapter 7 filings. These arrangements often involve bifurcated fee agreements, where representation is split into pre-filing and post-filing services.
The U.S. Bankruptcy Trustee Program has scrutinized certain versions of these arrangements because they can create conflicts or confusion about representation and total cost. What appears inexpensive at the outset may result in higher total fees or limited scope representation.
At Friedman Murray, our fees are fully disclosed and structured to provide complete representation throughout your case.
Transparent Flat Fees
We recognize that clients prefer knowing the total cost upfront. It allows for realistic planning. For most cases, we use straightforward flat fees:
Chapter 7 cases are typically $2,500
Chapter 13 cases are typically $4,000
Preparing and filing the case, attending the trustee meeting, and guiding you through the process are always included.
In rare situations where unusual issues arise after filing, additional flat fees may apply. When that happens, we explain the scope and cost clearly in writing before moving forward.
Beyond Bankruptcy: Protecting Your Fresh Start
Bankruptcy should bring peace of mind, but in our experience, some creditors don’t follow the rules. We pride ourselves on ensuring that your rights are enforced during and after bankruptcy:
Debt Collector Harassment (FDCPA) – If collectors chase you for discharged debts, we hold them accountable.
Credit Report Errors (FCRA) – If your credit report is wrong after bankruptcy, we fight to fix it.
Your fresh start deserves protection long after your case is over.
Bankruptcy Resources for Minnesotans
In Minnesota and ready to talk to a lawyer about bankruptcy?
Schedule a free consult with bankruptcy lawyer Todd Murray.
Since 2009, Todd has helped hundreds of Minnesotans get out of debt. His work has saved his clients millions of dollars (and many sleepless nights) in the process. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.
Some ways we’ve helped previous clients
SAVING A HOME FROM FORECLOSURE
A client came to us a week before a foreclosure sale with more than $40,000 in mortgage arrears. They could afford to catch up over time, but couldn’t come up with the lump sum needed to stop the foreclosure. We filed Chapter 13, stopped the sale and forced the mortgage company to accept catch-up payments over five years.
CONSUMER CLAIMS IN BANKRUPTCY
Our client filed Chapter 13 to deal with high credit card debt and collections from debt buying companies. During the case, we found three separate violations of federal law and were able to go after the creditors for legal damages and attorneys fees, and put money back in our client’s pockets.
DEALING WITH TAX DEBT
A Minnesota couple had tax debt from six different years of being self-employed. We were able to wipe out three years of debt, reduce the amount of a tax lien, and pay the remaining debt over a five year period. After five years, our client got out of Chapter 13 bankruptcy debt-free and ready to make a fresh start.