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Chapter 7 & 13 | Consumer Bankruptcy

Chapter 7

New Bankruptcy Court Ruling on Minnesota Health Care Savings Accounts

Minnesotans who file for chapter 7 bankruptcy need to take care that their health care savings accounts are not lost to the bankruptcy trustee, due to a recent decision of the federal Bankruptcy Appellate Panel. In this case, Leitch v. Christians, No. 13-6009 (8th Cir. BAP July 16, 2013), the appeals court upheld a ruling by Minnesota…

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Minnesota’s Bankruptcy Judges Enact Rule Governing Chapter 13 Lien Stripping

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Just seven months after the federal appeals courts upheld the right of chapter 13 debtors to strip off a completely unsecured second mortgage on homestead real estate (in a case litigated by Craig Andresen), Minnesota’s four bankruptcy court judges enacted Local Rule 3012-1, which sets forth the procedure for lien stripping.  This action demonstrates the…

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