How To File Bankruptcy for Free in Minnesota

Collect Your Minnesota Bankruptcy Documents

A large and important part of preparing to file bankruptcy is collecting the necessary financial documents. All of these documents will help you fill out your bankruptcy forms, and you’ll be required to submit some documents to the court with your filing. These include:

• Your last two years of tax returns, 

• Your last 60 days of paystubs, and 

• Any bank statement that covers your filing date. 

Other documents are helpful to have but you don’t need to submit them when you file your case. These include creditor statements, bills, letters from collection agencies or debt collectors, and bank statements from the last six to 12 months. The bank statements will help you determine your usual monthly living expenses. 

You have to list the names and addresses of everyone you owe on your bankruptcy schedules. You’ll also need to indicate the amount you owe. You’ll need to list all your debts. This includes:

• Secured debts, like mortgages and car loans.

• Unsecured debts, like credit cards, medical bills, and student loans. 

• Priority unsecured debts, like alimony, child support, and tax debts.

If you don’t have all your creditor information handy, you should get a copy of your credit report. You can get a free report from each of the three consumer credit reporting agencies every 12 months. Upsolve pulls a credit report for anyone who uses our filing tool.

Take Credit Counseling Course

It’s very important that you complete a credit counseling course within 180 days before you file your case. The course is commonly done online or by phone. The credit counseling provider must be approved in the state of Minnesota.

The fee for the course is usually under $50. If you can't afford the course fee, you can apply for an income-based waiver when you sign up for the course. When you finish the course, you’ll get a certificate of completion. You have to submit that certificate when you file your bankruptcy petition. If you don’t, the court will dismiss your case.

Complete the Bankruptcy Forms

The main forms needed in a bankruptcy filing are federal, so they’re the same across the country. They’re available as fillable and printable PDFs online for free from USCOURTS.gov. 

People who hire a bankruptcy attorney usually just fill out a questionnaire from the attorney. Then, either the attorney or their staff completes the forms. Upsolve users complete an online questionnaire, and then Upsolve’s software completes the forms based on the user’s input.

Get Your Filing Fee

There’s a filing fee of $338 to file a Chapter 7 bankruptcy. If your income is less than 150% of the poverty guidelines in Minnesota (see the table for Minnesota Fee Waiver Eligibility below), you can apply for a complete fee waiver. If the court denies your waiver request, you’ll still be able to pay the fee in installments.

In Minnesota, anyone can request to pay the fee in two equal installments. This can be helpful if you need to file quickly to avoid collection measures like wage garnishment, but you can’t afford to pay the full fee at once. You’ll get protection from the automatic stay, which stops most collections actions, as soon as you file.

Keep in mind that the court can dismiss your bankruptcy case if you miss a payment, and you won’t get a refund. That’s why if you don’t have to file quickly, it’s usually best to wait until you’re able to pay the full fee so you don’t risk the court dismissing your case for nonpayment

Print Your Bankruptcy Forms

You’ll need to print your completed bankruptcy forms in black ink on white letter-size paper. Print only on one side because the court won’t accept double-sided pages. Be careful to print out every required form. If you’re printing in sections, double-check that you haven’t missed any form, and then sign every signature space.

If you file with an attorney, the attorney will likely ask you to sign hard copies of the forms. Your attorney will then file your case and pay the court’s fee electronically. Upsolve users get all their forms in a downloadable packet with markers indicating where they need to sign.

File Your Forms With the Minnesota Bankruptcy Court

Only lawyers can file bankruptcies electronically in Minnesota. If you’re filing pro se, you can mail your documents or file them in person at the clerk’s office. If the court changes delivery options because of COVID-19, this information will be posted on the court’s website. As a COVID-19 precaution, the court isn’t currently accepting cash payments. Before you submit your paperwork, you should check the court’s website or call the clerk to confirm available delivery and payment methods.

Mail Documents to Your Trustee

After you file your bankruptcy papers, the court will assign a Chapter 7 bankruptcy trustee to your case and schedule your meeting of creditors (also called the 341 meeting). Bankruptcy law requires that you send your trustee certain documents at least seven days before the 341 meeting. Even though many trustees send out a letter describing the documents you need to submit, it’s a good idea to contact your trustee right after you file to avoid problems.

A Minnesota trustee will likely ask you to provide:

• Your paystubs from the 60 days before filing, 

• Two months of statements for all your bank accounts,

• Copies of your two most recent tax returns,

• Certificates of title, and other such ownership records. 

Make sure that your bank statements cover the date you filed for bankruptcy. If the trustee asks you to provide other documents, you have to comply if it’s a reasonable request.

Take a Debtor Education Course

After you file your bankruptcy case but before your debts are discharged, you have to complete a financial management course from an approved provider. This course teaches skills to budget and manage your finances after bankruptcy. You can take the course any time after you file your case, but you must submit a certificate of completion to the court within 60 days after your 341 meeting. If you don’t, your debts won’t be discharged.

Attend Your 341 Meeting

The 341 meeting is also called the meeting of creditors. It’s called that because your creditors can attend, but they usually don’t. Most often, this meeting is just with your trustee. The trustee will confirm who you are, review your bankruptcy papers, and ask you questions. Because of COVID-19, all 341 meetings in Minnesota are currently held by phone. This practice hasn’t been adopted permanently, though. 

You’ll need to bring your photo identification, proof of Social Security number, pay stubs from the 60 days before filing, and all financial statements covering your filing date to the meeting. If the trustee needs more information from you, or if something is missing from your paperwork, they can reschedule your 341 meeting to a later date. But in most simple Chapter 7 cases, the trustee will simply thank you at the end of the meeting and tell you that you’re done.

Dealing with Your Car

In many cases, you can keep your car even if you file bankruptcy. Your options will vary based on whether you own the car outright, you have an auto loan, or you’re leasing your car.

if you own your car outright, you’ll need to cover its entire value with an exemption. The Minnesota motor vehicle exemption is $4,000. That means up to $4,000 of your equity is protected. (More on exemptions below.)

If you have a car loan, you have to be current on the loan payments to keep it during a Chapter 7 bankruptcy. You may need to sign a reaffirmation agreement for the lender, which keeps you on the hook for the loan even after your discharge. If you can’t afford your loan payments and just want to get rid of the car, you can surrender it to the lender during bankruptcy. Surrendering a car during bankruptcy isn’t as bad as it sounds because it releases you from the loan even if the balance is more than the car’s value. That frees you up to buy a more affordable vehicle after your bankruptcy.

If you want to keep your financed car but you’re behind on your car payments, you should speak to a bankruptcy attorney about filing a Chapter 13 bankruptcy. Chapter 13 is a type of bankruptcy that allows the filer to pay back debt in a structured repayment plan controlled by the court. Chapter 13 can be particularly helpful if you’re facing the possibility of home foreclosure or vehicle repossession. 

Leased cars are listed differently in your bankruptcy paperwork, but your options for dealing with a lease are similar to options for dealing with a loan. If you want to keep the lease and you’re current on your payments, you can “assume” the lease and keep things the same. If you want to get out of the lease, you can return the car and “reject” the lease.