Chapter 7 questions

[mortgageguy]

What is the name of your state?What is the name of your state?What is the name of your state? Minnesota

1. I owe $40k in credit cards, $30k unsecured sba loan from former business,$20k to a friend, and $50k to family. I have about $20k equity in my home. My questions are, if I file chapter 7 can I choose not to include my friend and family debt, or is it better for them for tax reasons to include them and then pay them later as I get back on my feet after chapter 7? Is there a period of scrutiny after a chapter 7 as to how you spend your money or who you pay? If I get a home equity loan and pay one of my debts to my freind now, how will that affect my filing in a month or so?

2. Assets: I have $30k owed to me that I will probably will never collect or have difficulty collecting, and a $10k lawsuit that is pending. How is this handled in chapter 7.

I am on comission and make only enough to pay my living expenses.

Kind Regards for your help!

 

[ihatearizona]

You have to include all assets and debts when you file. You do not get to pick and choose. The money that is owed to you would likely become property of the court to be collected by the Trustee for distribution to your creditors.

Here's what I was able to find in the way of MN Bankruptcy Exemptions:

State or Federal Exemptions Available

NOTE: § 550.37(4)(a) requires that certain exemptions be adjusted for inflation on July 1 of even-numbered years. The below exemptions include changes through 7/1/94. For additional information, contact the Minnesota Department of Commerce.

HOMESTEAD EXEMPTIONS:

Real property, mobile home or manufactured home to $200,000 or, if the homestead is used primarily for agricultural purposes, $500,000; cannot exceed ½ acre in city or 160 acres elsewhere (Minnesota Exemption Code) 510.01, 510.02,; 550.37 subd. 12



PERSONAL PROPERTY EXEMPTIONS:

Appliances, furniture, radio, phonographs & TV to $7200 value (Minnesota Exemption Code) 550.37 subd. (4)(b)

Bible, books & musical instruments (Minnesota Exemption Code) 550.37 subd. 2
Burial plot; church pew or seat (Minnesota Exemption Code) 550.37 subd. 3
Clothing (includes watch), food & utensils (Minnesota Exemption Code) 550.37 subd. 4(a)
Motor vehicle to $3200 (up to $32,000 if vehicle has been modified for disability) (Minnesota Exemption Code) 550.37 subd. 12(a)
Personal injury recoveries (Minnesota Exemption Code) 550.37 subd. 22
Proceeds for damaged exempt property (Minnesota Exemption Code) 550.37 subds. 9, 16
Wrongful death recoveries (Minnesota Exemption Code) 550.37 subd. 22



INSURANCE EXEMPTIONS:

Accident or disability proceeds (Minnesota Exemption Code) 550.39

Fraternal benefit society benefits (Minnesota Exemption Code) 64B.18
Life insurance proceeds if beneficiary is spouse or child of insured to $32,000, plus $8000 per dependent (Minnesota Exemption Code) 550.37 subd. 10
Police, fire or beneficiary association benefits (Minnesota Exemption Code) 550.37 subd. 11
Unmatured life insurance contract dividends, interest or loan value to $6400 if insured is debtor or someone debtor depends on (Minnesota Exemption Code) 550.37 subd. 23



PENSION EXEMPTIONS:

ERISA-qualified benefits needed for support, which do not exceed $48,000 in present value (Minnesota Exemption Code) 550.37 subd. 24

IRAs needed for support, which do not exceed $48,000 in present value (Minnesota Exemption Code) 550. 37 subd. 24
Private retirement benefits (only benefits building up) (Minnesota Exemption Code) 181B.16
Public employees (Minnesota Exemption Code) 353.15
State employees (Minnesota Exemption Code) 352.96

State troopers (Minnesota Exemption Code) 352B.071



PUBLIC BENEFIT EXEMPTIONS:

AFDC, supplemental assistance, general assistance, SSI/SSA (Minnesota Exemption Code) 550.37 subd. 14

Crime victims compensation (Minnesota Exemption Code) 611A.60
Unemployment compensation (Minnesota Exemption Code) 268.17 subd. 2
Veterans’ benefits (Minnesota Exemption Code) 550.38
Workers’ compensation (Minnesota Exemption Code) 176.175



MISCELLANEOUS EXEMPTIONS:
Earnings of minor child (Minnesota Exemption Code) 550.37 subd. 15

Property of business partnership (Minnesota Exemption Code) 323.24



TOOLS OF THE TRADE EXEMPTIONS:
Farm machines, implements, livestock, farm produce & crops of farmers to $13,000 total (Minnesota Exemption Code) 550.37 subd. 5
Teaching materials (including books, chemical apparatus) of public school teacher (Minnesota Exemption Code) 550.37 subd. 8
Tools implements, machines, instruments, furniture, stock in trade & library to $8000 total (Minnesota Exemption Code) 550.37 subd. 6



NO WAGES EXEMPTIONS
Earned but unpaid wages, paid within 6 months of returning to work if debtor received welfare in the past (Minnesota Exemption Code) 550.37 subd. 5
Minimum 75% of earned but unpaid wages (Minnesota Exemption Code) 571.922
Wages deposited into bank accounts for 20 days after depositing (Minnesota Exemption Code) 550.37 subd. 13
Wages of released inmates paid within 6 months of release (Minnesota Exemption Code) 550.37 subd. 14
All Earnings not subject to garnishment restrictions (Minnesota Exemption Code) 550.37 subd. 13



NO WILD CARD EXEMPTIONS

 

[mortgageguy]

Thanks for the information!!