Our people
Karl Johnson
Bankruptcy, restructuring & bankruptcy litigation
Karl Johnson is one of only three attorneys in Minnesota certified as a Business Bankruptcy Specialist by the American Board of Certification. He represents businesses, individuals, creditors and trustees in financial distress, reorganization and contested bankruptcy proceedings, including agricultural bankruptcies.
A practice devoted to bankruptcy
Karl has appeared as attorney of record in thousands of bankruptcy cases involving debtors, creditors, trustees and other parties under Chapters 7, 11, 12 and 13.
From a business owner preserving operations to a bank protecting collateral or a trustee investigating a transfer, each party brings a different set of priorities. Karl’s experience across those roles informs his approach to restructuring and litigation.
Agricultural bankruptcy & Chapter 12
Karl handles agricultural bankruptcies, including Chapter 12 matters for family farmers and the creditor disputes that can accompany a farm restructuring. He evaluates the farm’s debt, collateral and operating needs alongside the requirements of the applicable bankruptcy chapter.
His teaching includes “Effectively Utilizing Chapter 12 Bankruptcy as a Tool in Agricultural Workouts” for Independent Community Bankers of Minnesota in 2017, an agricultural law and bankruptcy case-law update for the State Bar Association of North Dakota in 2020, and “Hot Topics in Chapter 12 Bankruptcy” for the Minnesota State Bar Association in 2025.
Karl works alongside Matthew Bialick when agricultural litigation and insolvency issues intersect. Explore agricultural litigation and bankruptcy. For an introduction to eligibility, operations and secured debt, see Chapter 12 and farm bankruptcy in Minnesota.
Court experience & legal scholarship
Karl clerked for U.S. Bankruptcy Judge Gregory F. Kishel from 2010 to 2012. He is the author of the “Real Estate in Bankruptcy” chapter in the Minnesota Practice Series and served as coeditor in chief of the Minnesota State Bar Association’s Bankruptcy Bulletin from 2017 to 2022.
He writes and speaks on bankruptcy topics, including asset sales, commercial leases, Subchapter V, Chapter 12 and contested proceedings. His experience includes bankruptcy appeals and issues of first impression concerning student loans and business expenses in Chapter 13.
Representative experience
The following examples illustrate the range of Karl’s work. Results depend on the facts and circumstances of each matter and do not predict an outcome in another case.
- Prevailed on a question of first impression concerning the treatment of student loans in Chapter 13: In re Jordahl, 539 B.R. 567 (8th Cir. BAP 2015).
- Prevailed on a question of first impression concerning business expenses in Chapter 13: In re Hoffman, 511 B.R. 128 (Bankr. D. Minn. 2014).
- Represented the debtor in the first confirmed Subchapter V plan in the Eighth Circuit; also represented debtors in a Chapter 11 restaurant-chain case involving locations in more than a dozen states.
- Negotiated adequate protection resulting in larger plan payments for a bank client.
Additional representative matters
- Represented a client in a bankruptcy adversary proceeding in which state court sanctions were excepted from discharge.
- Defended an adversary proceeding based on fraud allegations, resulting in dismissal of the complaint.
- Settled a seven-figure fraudulent transfer action for less than 8% of the amount in controversy.
- Successfully argued that a nonprofit organization could not be classified as a small business debtor in a Chapter 11 case or subjected to the accompanying procedural requirements.
- Negotiated settlement of a $1.5 million preference claim for $170,000.
A privacy litigation result
Karl also served as defense counsel with Matthew Bialick in Kalil v. Kalil. On September 17, 2026, MJB Law secured dismissal with prejudice and on the merits of all claims against Haley Kalil in the Minnesota federal privacy and social-media case. Read the case result.
Publications & presentations
Selected publications
- Author, Real Estate in Bankruptcy, 25 MINNESOTA PRACTICE—REAL ESTATE LAW, Ch.7 (Wertheim ed., 2019-2021 eds.)
- Co-Author, "Sale of Assets," Bankruptcy Practice in Minnesota Deskbook (Larison, Running and Stewart eds., 1st ed., 2016 update; 2nd ed., 2018 and 2020 update)
- Co-Author, "Bankruptcy Basics," Representing the Ongoing Business Deskbook, (Willeke edition, 2nd edition, 2017 and 2018 update)
- Co-Author, "Vesting With or Without Agreement: Implications for Due Process," National Association of Chapter Thirteen Trustees Quarterly, Vol. 8, No. 3, at 21 (2nd Qtr. 2016)
Presentation archive · 17 programs
- CLE presentation: Hot Topics in Chapter 12 Bankruptcy, MSBA Bankruptcy Section, January 21, 2025.
- “Commercial Leases in Bankruptcy,” Minnesota CLE, May 23, 2023
- “Asset Sales and Liquidating Plans in Sub V,” Nat’l Assoc. of Bankr. Trustees Annual Conference, Chicago, Aug. 27, 2021
- “7 Things Every Real Estate Attorney Needs to Know About Leases and Bankruptcy Right Now,” Minnesota CLE, July 21, 2021
- “An Update on Subchapter V—Was it Worth It?” William J. O’Neill Great Lakes Regional Bankr. Institute, Cleveland, Ohio, May 21, 2021
- Small Business Reorganization Act of 2019, Mitchell Hamline Law School, November 13, 2020
- Case Law Update, Minnesota Bankruptcy Institute, October 8, 2020
- Case Law Update, Agricultural Law & Bankruptcy Law Virtual Seminar, State Bar Association of North Dakota, June 3, 2020
- Case Law Update, Minnesota Bankruptcy Institute, October 3, 2019
- “Contracts in Bankruptcy,” Minnesota CLE, August 27, 2019
- “I Take Exception to Your Discharge: Current Developments in Dischargeability Actions,” Minnesota State Bar Association, July 16, 2019
- Bankruptcy Case Law Update Webinar, May 31, 2019
- Case Law Update, Minnesota Bankruptcy Institute, October 4, 2018
- "Business Bankruptcy Roundtable," Minnesota Bankruptcy Institute, October 24, 2017
- "New Law & Significant Issues in Bankruptcy: Asset Sales," Minnesota CLE, July 26, 2017
- "Effectively Utilizing Chapter 12 Bankruptcy as a Tool in Agricultural Workouts," Independent Community Bankers of Minnesota Webinar, March 8, 2017
- "What Can You Do With Property Nobody Wants? Vest: Opportunities for Debtors and Pitfalls for Secured Creditors," Minnesota State Bar Association Bankruptcy Section, February 21, 2017
His publications address real estate, asset sales, ongoing businesses and the treatment of property in bankruptcy. His teaching includes national conferences, bar programs and continuing legal education.
Recognition & public service
- Fellow, American Bar Foundation.
- 2018 Raeder Larson Public Service Award, recognizing pro bono service.
- Minnesota Monthly, Top Lawyers — Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, 2022.
- Best Lawyers “Ones to Watch” — Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, 2021 and 2022.
Karl has held leadership positions with Volunteer Lawyers Network: Secretary (2020–2021), Treasurer/Vice Chair (2021–2022) and Chair (2022–2023). He represents pro bono clients and has volunteered with Credit Abuse Resistance Education.
Professional service
- Minnesota Asian Pacific American Bar Association — Secretary, 2022–2023.
- Minnesota State Bar Association, Bankruptcy Section — Education Chair, 2020–2022; Treasurer, 2021–2022; Secretary, 2022–2023; pro bono committee service.
- Minnesota State Bar Association, Bankruptcy Bulletin — coeditor in chief, 2017–2022.
- Professional affiliations have included the Hennepin County Bar Association, American Bankruptcy Institute, Risk Management Association, Korean American Bar Association of Minnesota, Minnesota State Bar Association and Turnaround Management Association.
- Service on the District Ethics Committee for Minnesota’s Fourth Judicial District.
Education & admissions
- University of Minnesota Law School — J.D., 2010.
- University of Michigan — M.A., 2002.
- Sarah Lawrence College — B.A., 1996.
- Minnesota state courts.
- U.S. District Courts: District of Minnesota, Central District of Illinois, Western District of Wisconsin and Northern District of Texas.
- U.S. Court of Appeals for the Eighth Circuit.