Means Test

• Federal bankruptcy regulations require all Chapter 7 bankruptcy filers in Minnesota and other states across the country to pass a means test. This test determines if the income of bankruptcy filers is truly insufficient to pay off debts. According to legal information website Nolo, as of January 2011, the allowable monthly income for the previous six months before filing bankruptcy in Minnesota is $3,752. This figure is for a household of one; for households with more members the income limit is higher. If a filer's monthly income level is equal to or below the mark for her household size, she is eligible for Chapter 7 bankruptcy. If it exceeds this mark she may still be eligible for Chapter 13 bankruptcy.
  
  

Financial Counseling Sessions

• Bankruptcy law requires that you successfully complete financial counseling and debt management sessions administered by a financial counselor licensed to practice in Minnesota. This requirement is in place if you are filing for Chapter 7 bankruptcy. According to the Minnesota Bankruptcy Court, as of December 2010, you have 60 days from your first meeting with the creditors to complete the financial management course as required by the bankruptcy law. If the course is not successfully completed within this time span, your bankruptcy petition may be dismissed by the court.
  
  

List of Debt and Creditors

• A list of your creditors and all your secured and unsecured debts is required, whether you're filing for Chapter 7 bankruptcy or Chapter 13. Creditor information should include the total sum owed to the creditor, contact information, any history of payments made to the creditor and communication between you and the creditor regarding your debts. Unsecured debt is defined as debt that has no collateral for payment, such as credit cards or medical bills. Secured debt is attached to collateral, such as a home loan or car loan.
  
  

Chapter 13 Bankruptcy

• If you're filing for Chapter 13 bankruptcy, you're required to submit a debt repayment plan along with your other bankruptcy paperwork. This repayment plan is required to show how you plan to significantly pay down your debts over a three- to five-year period. All your financial obligations must be included in this repayment plan, including any tax payments to the federal or state government. Once approved, your repayment plan is supervised by a court-appointed bankruptcy trustee. This agent receives your payments in accordance with your debt repayment plan and distributes the money to your creditors.