From the U.S. Courts Website: BankruptcyBasics 


We provide compassionate advocacy for debtors seeking to stop foreclosure, garnishment, and/or creditor harassment.

As an alternative to bankruptcy, we offer debt negotiation and debt settlement services for clients still on the fence over whether bankruptcy is right for their circumstances, working with the client to negotiate a sustainable payment plan or payoff with creditors.

We litigate “adversary proceedings” when disputes related to fraud, claimed exemptions, collections or disputed rights arise in bankruptcy proceedings.

What is Bankruptcy?

Bankruptcy is a legal process for people and businesses to get a fresh financial start through elimination of debt through a chapter 7 bankruptcy or help restructuring of debt through a chapter 11, 12 or 13 bankruptcy. Bankruptcy can be used to stop foreclosure, stop creditor harassment, stop collection, stop garnishment and stop bank levies. 


How do I pick the right attorney to help me file for bankruptcy?

Filing a bankruptcy is an extremely personal and sometimes emotional process. It is important that you find an attorney that is compassionate, as well as competent. You need to feel comfortable with with your attorney and confident your attorney cares about you and your financial problems.

Drewes Law, PLLC is a team of 4 attorneys and others staff that assist through bankruptcy. Our attorneys each focus their individual practices in different areas of law related to financial matters. We work as a team to provide our clients with well-rounded representation. This is important because bankruptcy cases often have elements of different areas of law.

Morgan Spah is the head of our office’s bankruptcy practice. She has assisted hundreds of people get a fresh start through the process of bankruptcy.  Morgan says “It is important for clients to feel supported and well informed.” Morgan offers bankruptcy assistance in a non-judgmental environment with attentiveness, competence and compassion. 


Should I be ashamed or embarrassed if I have to file for bankruptcy?

Absolutely not. First, you are not alone. Court records show that in the month of December 2010 alone 117,092 cases were filed seeking bankruptcy protection.  From the 117,092 cases that were filed nationally, 1,606 of them were filed by Minnesota residents--just in one month.

Good people file for bankruptcy everyday. Many of our clients find themselves in need of our help because of circumstances that they could not control like job loss, illness, divorce or failed business venture. Some of our clients need our help because they made some financial mistakes--which is easy to do.  Financial hardships and mistakes find their way into the lives of people of all ages, races, and income levels. Finding yourself faced with financial hardship or the repercussions of a mistake does not mean you are a bad or irresponsible person. Filing bankruptcy is often the most responsible action you can take for you and your family when you find yourself insolvent.


What is a chapter 7 bankruptcy?

Chapter 7 bankruptcy is the kind of bankruptcy that can be used to eliminate most types of debt without setting up any repayment plan. Chapter 7 bankruptcy is the most commonly filed form of bankruptcy and is the bankruptcy type most commonly discussed or referenced.  This form of bankruptcy is used for individuals and businesses with few or no assets that do not have money left over at the end of the month to make a payment plan with creditors. There are certain income qualifications you must meet to file a chapter 7 bankruptcy and we can help you determine qualification. 


Will I lose my property (assets) if I file for chapter 7 bankruptcy?

Generally no. Most chapter 7 bankruptcy cases are called “no asset  cases” which means that you have no assets to be distributed to creditors. In a great majority of cases we can use the law to protect, or “exempt,” all of your assets.  In the event that we cannot protect all of your assets we will talk about what the consequences are before we file your case so you understand your choices. If liquidation of assets is a significant concern after we complete our analysis, a different type of bankruptcy or other alternatives may be advisable. We help guide you through these decisions.


What is a chapter 13 bankruptcy?

Chapter 13 bankruptcy is a bankruptcy where we “reorganize” the repayment of your debts over several years. The repayment plan is called the “chapter 13 plan” and takes into consideration your monthly budget to determine an affordable monthly payment.  You make one payment each month based on your ability to pay, not based on the amount of debt you have. At the end of the plan term unsecured debts that have not been fully repaid through the chapter 13 plan will be eliminated.

Chapter 13 bankruptcy is used for people who can afford to pay their creditors something each month, even if it is not the full amount. This can be very important for individuals who have steady income but cannot cope with aggressive collection practices of a creditor.

Chapter 13 bankruptcy is also used for people who are behind on their mortgage payments or are facing foreclosure. Through the chapter 13 process we force lenders to allow you to catch-up on house payments over the term of the plan (over three to five years).


Can all types of debt be discharged?

No.  Not all debts are dischargeable through bankruptcy-but most are. Generally the following types of debt cannot be discharged: 

     Recent Tax Debt (some exceptions)
     Student loans (some exceptions)
     Debts you obtained through fraud or misrepresentation
     Child support, alimony, maintenance that is court ordered 
     Debts owed for willful and malicious injury to another person or their property 
     Court fines or penalties to governmental units 
     Debts for judgments in wrongful death or personal injury lawsuits your intoxication 
     Debts incurred after filing your case


Do I have to list all of my creditors even if I want to keep one of my credit cards?

Yes, bankruptcy statutes require that you list all of your creditors.  You must list every creditor.  


Do my bills need to be delinquent in order to file bankruptcy?

No. Some of our clients are current with their monthly payments but realize they are in an unsustainable position and not reducing their debt at all by paying the monthly payments. They opt to file bankruptcy to help them become debt-free, allowing that monthly payment to go towards more important matters, like retirement, insurance and regular family needs.


How long does a bankruptcy stay on my credit report?

Chapter 7 bankruptcies remain on credit reports for up to 10 years. Chapter 13 bankruptcies remain on credit reports for up to 10 years. This does not mean you will have bad credit for 10 years. We can offer you some generally tips to rebuilding your credit and refer you to someone that can help you with a credit rebuilding strategy. 


Can a creditor continue to contact me after I’ve filed for bankruptcy?

No. After you file bankruptcy you are shielded from creditor harassment. If a creditor attempts to collect a debt from you without getting court permission first--they are breaking the law.


Who notifies my creditors that I have filed for bankruptcy?

The court notifies your creditors (based on a list we provide to the court) you have filed for bankruptcy protection by mailing a notice within a day or two of the initial filing. When more urgency is required in a particular case, our office will directly notify a creditor to quickly stop a garnishment or foreclosure.


Do I have to appear in court?

About a month after we file your case, we go to an appointment together called “the meeting of creditors” or “341 meeting”.  At this “meeting” we will sit at a conference table with an appointed bankruptcy trustee who will ask you questions about the content and accuracy of your bankruptcy papers. The meeting usually takes just a few minutes.


Do creditors appear at “the meeting of creditors”? 

It is very unusual for any creditor to show up to this meeting. 


Who is the trustee and what do they do?

The bankruptcy trustee is a court appointed official that reviews your bankruptcy papers and acts, if necessary, to seize what money or property, if any, that will be distributed to your creditors.  Our office works with bankruptcy trustees to cooperatively administer the estate without conflict. If disagreement with the trustee cannot be resolved, we may argue in front of a Bankruptcy Judge with the trustee acting as opposing counsel. Bankruptcy trustees collect and sell non-exempt property, if any, (in a chapter 7 cases) or collect your monthly payments and pay out your money on a repayment plan (in chapter 13 cases). 


How long does it take to file bankruptcy?

Drewes Law, PLLC works to diligently prepare bankruptcy petitions and schedules as soon as possible in all cases. The speed of preparation largely depends on the complexity of the case and how quickly we can get the information we need to complete the bankruptcy papers from our client. Most cases can be filed about two weeks from initial consultation. We can file more quickly if necessary or sometimes it makes sense to wait to file your case for a few months. Approximately 30 days after we file your case we will attend a hearing together where you will answer a few questions. If you filed a chapter 7 case you generally should receive your discharge 60 days after we go to your hearing. If you filed a chapter 13 case you will begin making your monthly payments and receive a discharge at the end of your plan term.