Practice Areas and Legal Definitions

Bankruptcy Laws:
Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization. Under a liquidation bankruptcy (Chapter 7), a debtor files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapter 13), a debtor files a plan with the bankruptcy court proposing how to repay creditors. Under a small business Chapter 11 reorganization, a debtor files a plan with the bankruptcy court to reorganize the business in order to repay creditors.

In 2005, the requirements under which a debtor could file Chapter 7 bankruptcy changed with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act.  Debtors are now required to seek budget and credit counseling within six months before filing, and to take a financial management class after filing.  Financial “testing” is required to determine the debtor’s capacity for debt repayment, Chapter 7 cannot be filed if the household income is greater than the median household income as deemed by the state, and state exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors who were eligible to file under Chapter 7 may now have to file under Chapter 13 bankruptcy instead.  In Chapter 13 individuals and creditors agree to a court-imposed plan that requires some or all debts be repaid over five years, with an appointed trustee assigned to monitor the repayment process. Bankruptcy filings will continue to be recorded on an individual’s credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7.

Chapter 7:
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code.

Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. The debtor has three options: 1. return the property and end their responsibility; 2. keep the property, as long they are current on the loan payments, and continue to pay off the original loan amount after signing a reaffirmation document; or 3. redeem the property with the mortgage holder for the current market value. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.

Chapter 13:
A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income.  It is not available to corporations or partnerships. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.

Foreclosure:
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien".

A Foreclosure by Sale ends in the posting of a sign advertising the auction of your home on the sale date. The typical ways to stop a foreclosure are full payment of the arrearage, or the filing of a Chapter 13 bankruptcy. Full Payment: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage. Most people lack the money to make full payment. The Chapter 13 process stops the foreclosure and allows you to repay your arrearage over a one year period. The arrearage is paid through a court-appointed official, while you resume your regular monthly payments to the bank in order to keep your home. A Chapter 13 can be filed at any time prior to the law day or sale date, and it is often the only avenue to save your home.

Debt Consolidation:
Contrary to popular belief, debt consolidation is not a loan. Debt consolidation is a process in which debt is restructured into one low monthly payment. It further enables a consumer to reduce the amount owed and thereby eliminate interest. Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, you are probably in too much debt:

• You have begun charging to your credit card essential expenses like food and daily expenditures
• You are making only the minimum payments on your credit cards each month
• You are near the limit of your credit cards
• You have too many credit cards
• You are unsure how much money you owe creditors

Small Business Reorganization Chapter 11:
Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision of the Bankruptcy Court and its appointees.

If you or someone you know needs the skilled legal representation of experienced Northen Minnesota bankruptcy attorneys, call Robert Woodke and Bruce Meyer at Brouse Woodke & Meyer today at 218-206-6345, or complete the contact form provided on this site to arrange for your initial consultation.

Professional Profile

If you or someone you know in Northern Minnesota or throughout Minnesota needs the assistance of experienced bankruptcy attorneys, call Robert Woodke and Bruce Meyer at Brouse Woodke & Meyer P.L.L.P. today at 218-206-6345, or complete the contact form provided on this site to schedule your consultation.

ADDRESS OF THE FIRM:
Brouse Woodke & Meyer P.L.L.P.
312 America Ave. NW
Bemidji, MN 56619-1273
Phone: 218-206-6345
Hours: M-F, 8:00AM-5:00PM

MEMBERS OF THE FIRM:

Attorney Robert Woodke

Robert Woodke represents individuals and small businesses throughout northern Minnesota. He concentrates his law practice in civil litigation, bankruptcy and business matters. Related fields include real estate, probate and transactional matters.

Robert is a member of the GP Solo and Small Firm Section of the Minnesota State Bar Association and currently serves on its’ governing council as the Vice Chair. He was the founding co-editor in chief of the ABA publication Legal Technology and Practice Guide. He was a contributing author to Flying Solo, A Survival Guide for Solo Lawyers 1st ed. and 2d 3ed. as well as to the first and second editions of Trial Practice ABA Publishing.

He also co-authored The Personal Injury Manual by James Publishing. He has authored many articles relating to managing a law practice, trial practice and family law. He is a frequent lecturer for continuing legal education seminars on the topics of technology and practice management issues and has spoken on legal ethics and trial practice and trial presentation skills. Program sponsors include Minnesota Continuing Education, the Minnesota State Bar Association, The Iowa Bar Association, The Connecticut Bar Association, The Indiana Bar Association as well as the General Practice Solo and Small Firm Section of the American Bar Association.  Robert may be most often reached at the Bemidji office.

Attorney Bruce Meyer

Bruce L. Meyer received an Associate of Arts degree from Rochester Community College, a Bachelor of Arts degree and a Master of Business Administration degree from Winona State University, and his Juris Doctor degree from William Mitchell College of Law where he was a staff member of the William Mitchell Law Review.

He is licensed to practice in both federal and state courts in Minnesota. Mr. Meyer has been a member of the Minnesota State Bar Association since 1986 and has twice served as president of the Beltrami County Bar Association. He has also served as an adjunct professor at Bemidji State University where he taught business law.

Bruce conducts a general practice, with concentration in the areas of bankruptcy, real estate, probate, corporate and business law and social security disability.  Bruce may be most often reached at the Bemidji office.