Welcome To The MN Bankruptcy Blog

Inside you will find over 500 helpful articles discussing the Chapter 7 & 13 Bankruptcy Process and other solutions for difficult financial situations.

 

How Long Will My Chapter 13 Bankruptcy Case Last in MN? | LifeBack Law

Posted by Tim Tonga on November 6

Chapter 7 bankruptcy cases typically last three to four months and do not require that the debtor make any payments to their creditors. On the other hand, chapter 13 cases last three to five years and do require that the debtor make monthly payments to their creditors before receiving a discharge of their remaining debt once their case is finished.

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What Is a Chapter 13 Cram Down in Minnesota?

Posted by Charles Nguyen on September 20

As you may know, a chapter 13 bankruptcy is a reorganization bankruptcy where you establish a repayment plan that usually lasts 5 years. Typically, the repayment plan is based on a budget that is created by looking at your net income and then your expenses.  One of the many benefits of a chapter 13 bankruptcy is the availability to lower or “cram down” a debt from the current loan balance to the value of that debt.

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What Is a Chapter 13 Plan Modification in MN and Do I Need One?

Posted by Amanda Scharber on June 15

During the three to five years of a chapter 13 bankruptcy your life will likely change. Whether it is because of finances, relationships, property, or your health. That is why chapter 13 bankruptcy plans can ebb and flow with you.

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What Happens to My Bank Account During Bankruptcy in Minnesota?

Posted by Tim Tonga on March 23

Both the Federal Bankruptcy Code and Minnesota State law contains a number of provisions that protect the funds in a debtor’s bank account, along with other property from being taken to pay creditors. Property protected, under law, from creditors is considered “exempt.” In a chapter 13 bankruptcy.

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Who Comes Up With the Chapter 13 Payment Amount in Minnesota?

Posted by Margaret Henehan on March 20

A chapter 13 bankruptcy is similar to a debt consolidation plan. All of your unsecured debt will receive a percentage of what is owed. Normally that percentage is not 100%, or in other words, paying back the debt in full, but instead paying a small portion of it. A common question I hear is, who comes up with what amount is paid back, the creditors, the trustee, a judge?

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Your Minnesota Bankruptcy Chapter 13 Payment Plan

Posted by William Kain on March 17

Chapter 13 payment plans can solve a lot of financial problems: mortgage arrears can be cured, expensive car loans can be restructured, and assets that would have to be surrendered to a chapter 7 trustee can be retained. This is accomplished through a chapter 13 plan where a debtor pays a specified amount of money to the chapter 13 trustee over a defined period of time.

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Have Your Chapter 13 Payments Become Unaffordable in Minnesota? Let Us Know!

Posted by William Kain on February 17

One of the great features of Chapter 13 bankruptcy is that the monthly payment the debtor makes is based on the debtor’s budget. In theory, the Chapter 13 payment is always affordable for debtors. Unfortunately, because your circumstances may change, your Chapter 13 payments may become unaffordable. We can help.

Chapter 13 bankruptcy cases are repayment plans that can be an effective tool to use to resolve financial problems in a variety of scenarios. Chapter 13 gives people a way to restructure their finances while being able to retain their home, their car, and other assets that would otherwise have to be turned over to creditors.

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Minnesota Chapter 13 Bankruptcy Explained in Simple Terms

Posted by Amanda Scharber on February 13

Maybe chapter 13 has been mentioned to you or maybe you googled it. You know that a chapter 13 is different than a chapter 7, but how does it really work?

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What Happens to My Taxes in a Chapter 13 Bankruptcy in Minnesota?

Posted by Kelsey Quarberg on February 2

One of the best reasons to file for Chapter 13 bankruptcy in Minnesota is to help with tax debt. Typically, tax debt that you incurred in the last few years or from a late filed return is not dischargeable in bankruptcy.

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Why Does my Attorney Want me to File a Chapter 13 Bankruptcy?

Posted by Wesley Scott on September 18

Most who file for bankruptcy want to file a Chapter 7. By filing Chapter 7, everything is said and done within three to six months and the slate is wiped clean. So when potential filers learn that they are only eligible to file a Chapter 13 or their attorney recommends a Chapter 13 over a Chapter 7, they panic. Three to five years in bankruptcy with monthly payments throughout the duration of that time? Why would someone file a Chapter 13 and drag the process out when Chapter 7 gets you out of debt faster with no payment plan?

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Getting Financing After Chapter 7 Bankruptcy

Posted by William Kain on March 31

Many of our clients find themselves filing for Chapter 7 bankruptcy because they are out of options. And while bankruptcy is supposed to give you a fresh start, we understand that it often feels more like a defeat. Many clients worry if they will ever be able to qualify for a loan after their bankruptcy case. While you may have to pay a higher interest rate and meet other requirements, the good news is that getting financing after your Chapter 7 bankruptcy is easier than you might think. An experienced Minnesota bankruptcy attorney can help you develop a plan and identify your options.

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Will Bankruptcy Affect My Small Business?

Posted by William Kain on March 26

Deciding to file for bankruptcy is a big step, especially if you own and operate a business. You need to get out from under your debts, some which were directly related to your business, while other debts were strictly personal. Business owners worry about how the bankruptcy will affect their business, with good reason - the idea of closing down your business and the loss of income can be quite worrisome. The good news is that the point of bankruptcy is to help you make a fresh start, not make your life more difficult.

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Can I Save My Home by Filing for Chapter 13 Bankruptcy?

Posted by William Kain on March 5

Your home is probably your most important asset and its value goes beyond just dollars and cents. The first question many of our clients ask us is whether the bankruptcy court will force them to sell or otherwise surrender their home. While this is a very real possibility, we do everything in our power to help you keep your home. Chapter 13 bankruptcy is often the best way to get out from under your creditors and keep your home. That said, you will probably need a Minnesota bankruptcy attorney to help you successfully navigate the process.

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General Timeline of a Chapter 13 Bankruptcy

Posted by William Kain on February 28

Chapter 13 bankruptcy is often a good choice for people who want to keep their home or other significant assets. In a Chapter 13 bankruptcy, you repay your debts through a payment plan that is administered by a bankruptcy trustee and that is overseen by the bankruptcy court. Your Chapter 13 payment plan can take up to five years. On the one hand, five years helps you repay your debts in reasonable and affordable monthly payments. On the other hand, five years is a long time and can be intimidating for a lot of people.

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An Overview of United States Bankruptcy Laws

Posted by William Kain on February 26

In 1978, Congress enacted the United States Bankruptcy Code, allowing consumers to file for bankruptcy protection. Since that time, millions of Americans have filed for bankruptcy, all across the country and across all walks of life. Despite how common filing a bankruptcy case has become, many people don’t really understand what bankruptcy is, how it works, or what it can achieve. The following is some brief information about bankruptcy laws. To discuss your specific circumstances, call our Minnesota bankruptcy attorneys today.

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How to Decide if Bankruptcy is Right for You

Posted by William Kain on February 25

Financial stress can be overwhelming and leave you feeling like you have nowhere to turn. Bill collectors are calling, you can’t keep up with your bills, and you don’t see your situation improving anytime soon. While bankruptcy may seem like the obvious choice, this is a big decision and should be made only after careful consideration. If you feel like you’re out of options and are considering filing for bankruptcy, a Minnesota bankruptcy attorney can help you decide whether bankruptcy really is right for you.

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Divorce and Bankruptcy

Posted by William Kain on February 18

Financial trouble is probably one of the leading causes of divorce, and as a result, divorce and bankruptcy often go hand-in-hand. As stressful as it is to face both a possible bankruptcy and the break-up of your marriage, rushing into either decision can create a lot of problems. Fortunately, some careful planning can help minimize the impact so that you can move on with your life and in a better position than you are in now.

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When Chapter 7 is Not the Best Choice for You

Posted by William Kain on January 29

Deciding to file for bankruptcy is a big step - so big that it can perhaps feel like stepping off a cliff. However, you may be surprised to feel a sense of relief once you decide to move forward. After all, bankruptcy offers the opportunity to make a fresh start. Most people think of bankruptcy as a legal mechanism that wipes out your debt. In legal jargon, this is referred to as “Chapter 7” bankruptcy or “complete liquidation.” If you’re having difficulty paying your bills and have creditors aggressively seeking payment, the opportunity to make it all go away begins to sound very attractive. However, there are situations in which Chapter 7 bankruptcy may not be your best option.

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Priority, Secured, and Unsecured Debts in Chapter 13

Posted by William Kain on January 21

When you file for Chapter 13 bankruptcy, you enter into a payment plan to pay off your debts. However, not all debts are treated equally by the bankruptcy code. Some debts must be paid first, other debts must be paid in full, and other debts may be able to be reduced (and substantially so). In this post, we’ll discuss which debts are which and how it impacts your Chapter 13 payment plan.

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Modifying a Chapter 13 Payment Plan

Posted by William Kain on January 10

Chapter 13 bankruptcy is an attractive option for people who just need to reorganize and better manage their debt. In order to accomplish this, Chapter 13 requires people to enter into a repayment plan that is approved by the court and managed by the trustee. Your creditors have to halt any collection efforts and are required to make a good-faith effort to work with you on repayment terms that you can afford. The payment plan can take up to five years to repay your debts.

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Should I pull asset and credit reports before filing Chapter 13 Bankruptcy?

Posted by Wesley Scott on December 24

So, you are preparing to file Chapter 13 Bankruptcy. You have hired a licensed and local Chapter 13 Bankruptcy attorney in your state. You have not called any out of state companies and you have dismissed any law firm that would have you meet with a paralegal.

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What happens to my co-debtors in a Chapter 13 Bankruptcy?

Posted by Wesley Scott on December 23

Many debtors have co-debtors on the debts they owe. For example, debtor may have had a relative or friend co-sign their vehicle loan. If debtor does not pay on the loan, bank will look to co-signor for payment. Co-debtor or a co-signer is a person who pledges their liability on the loan should debtor refuse to or not be able to pay on the loan. Banks routinely ask for co-signers as a way of protecting the loan and making sure the bank is repaid. Co-signing is a form of collateral for the bank, protection against the loan going unpaid if you will.

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What Happens After A Chapter 13, 341 Meeting, Motion For Relief?

Posted by Wesley Scott on December 21

After a Chapter 13 341 meeting, what happens next? There are a variety of things that can happen after a Chapter 13 341 meeting. One of those events that could happen is a creditor may bring what we call a motion for relief from the automatic stay.

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What Happens After A Chapter 13 Hearing? Adversary Proceedings

Posted by Wesley Scott on December 20

People often want to know what happens after a Chapter 13 Bankruptcy hearing. The next step is a confirmation hearing where the bankruptcy court approves or “confirms” the Chapter 13 Bankruptcy plan. But, prior to the confirmation hearing, creditors also have a chance to object to debtor discharging debts with creditor for certain reasons identified in Section 523 of the Bankruptcy Code.

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What Happens and Who Attends A Chapter 13 Meeting Of Creditors?

Posted by Wesley Scott on December 19

Section 341 of the Bankruptcy Code requires debtor(s) to submit to an examination, under oath, by the Chapter 13 trustee, or a representative of the trustee. The general purpose of the meeting is for the trustee to examine the debtor and debtor’s schedules to make sure all debtor(s) assets and debts are listed on the schedules and that debtor has listed all of her income and expenses as well. Part of the function of a Chapter 13 trustee is to determine whether debtor(s) schedules and proposed plan comply with federal bankruptcy law.

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What Are The Chapter 13 Bankruptcy Trustee's Duties?

Posted by Wesley Scott on December 17

I have often described Chapter 13 Bankruptcy like a “government sponsored debt consolidation plan”, because that is what it is. In simple terms, the function of a Chapter 13 trustee is to collect funds from debtor(s) and disburse those funds to debtor(s)’s creditors based on an approved plan. Now, the trustee must examine the schedules, and the plan, to make sure the proposed plan complies with all legal requirements under the law. If the plan does not, the Chapter 13 trustee’s job is to object to debtor’s plan until it does.

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What Happens And Who Attends The Chapter 13 Meeting Of Creditors?

Posted by Wesley Scott on December 16

Section 341 of the Bankruptcy Code requires debtor(s) to submit to an examination, under oath, by the Chapter 13 trustee, or a representative of the trustee. The general purpose of the meeting is for the trustee to examine the debtor and debtor’s schedules to make sure all debtor(s) assets and debts are listed on the schedules and that debtor has listed all of her income and expenses as well. Part of the function of a Chapter 13 trustee is to determine whether debtor(s) schedules and proposed plan comply with federal bankruptcy law.

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New Year’s Resolution: Taking Control of Your Debt

Posted by William Kain on December 13

Many people make New Year’s resolutions to exercise more, eat healthier, or be kinder to others. But what about resolving to address your financial situation? A lot of people facing financial stress and debt tend to sweep it under the rug. It may feel so overwhelming that they think there is nothing that can be done about it. This is not the case, however, as our experienced bankruptcy attorneys have helped many people overcome even the most serious financial situations. The following are only some debt-related resolutions that can make for a happier 2019.

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Common Information Needed To File Chapter 13 Bankruptcy

Posted by Wesley Scott on December 12

Once the decision to file Chapter 13 Bankruptcy has been made, there are documents that you should gather to make the process of filing bankruptcy easier. We already know that credit reports and asset reports should be pulled as part of the process. But, there is more information that is needed by your attorney. If you would like to be your attorney’s hero, starting gathering these documents now.

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What Are My Duties If I File Chapter 13 Bankruptcy?

Posted by Wesley Scott on December 11

When you invoke the power of the bankruptcy court, seeking protection from your creditors, you also have duties as well. Section 521 of the Bankruptcy Code outlines many of these duties. Chapter 13 debtors must file a host of schedules with the bankruptcy court and these schedules are verified under penalty of perjury. As such, these schedules must be complete and accurate. Filing inaccurate or incomplete schedules with the bankruptcy court may result in debtor being denied confirmation of the Chapter 13 plan, and worse, a denial of discharge or being charged with bankruptcy fraud.

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What Happens To Fraudulent Transfers In Chapter 13 Bankruptcy

Posted by Wesley Scott on December 8

If you were to file a Chapter 7 Bankruptcy and you had transferred an asset to anyone within two years prior to the time you filed the Chapter 7 Bankruptcy, you are going to run into Section 548 of the Bankruptcy Code and you will not like it.

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What Does A Chapter 13 Trustee Do With A Preference?

Posted by Wesley Scott on December 7

We have discussed what the two most common types of preferences are previously. In consumer debtor cases, a preference is typically a payment of $600 or more to a general unsecured creditor made within 90 days prior to filing the Chapter 13 Bankruptcy. It is also considered a preference to pay a family member or business associate $600 or more within the previous one year period prior to filing a Chapter 13 Bankruptcy.

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What Is A Preference In Chapter 13 Bankruptcy And How It Works

Posted by Wesley Scott on December 5

Section 547 of the Bankruptcy Code covers preferences. Think of a preference like this- on the eve of filing bankruptcy, you preferred one creditor over another by paying one creditor and not the others. There are, generally speaking, two types of preferences.

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Facing Foreclosure: Chapter 13 Bankruptcy Can Help

Posted by William Kain on November 29

No one likes to think about losing their home to foreclosure. It’s a scary time - not only are you looking at the possibility of losing your home and having your family displaced, but foreclosure can also be financially disastrous. Aside from the damage to your credit, it also wipes out any value you have paid into the house such as your down payment and monthly mortgage payments. If you’re facing foreclosure, filing for Chapter 13 bankruptcy can help you avoid foreclosure and maybe even keep your home.

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How Bankruptcy Can Help after a Serious Illness

Posted by William Kain on November 15

It’s widely known that overwhelming medical debt pushes many Americans into bankruptcy, even if the specific percentage of bankruptcy cases is hotly debated. If you’re recovering from a major illness, the overall numbers don’t matter - the important fact is that you’re drowning in medical debt. Maybe you’ve lost income, or maybe you’re now partially or totally disabled as a result of your medical condition. Whatever your situation, you’re probably extremely anxious about your future and understandably so.

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Repayment Plans in Chapter 13 Cases

Posted by William Kain on November 8

Instead of liquidating assets, Chapter 13 bankruptcy requires you to make monthly payments for three to five years before you can receive a discharge. The court will want to make sure you have enough regular income to make reasonable payments toward your debts. If you don’t have enough income, you may have to file for Chapter 7 bankruptcy instead of Chapter 13. The following is some additional information about how repayment plans work in a Chapter 13 case.

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WHAT HAPPENS WHEN YOUR INCOME CHANGES WHILE YOU ARE IN A CHAPTER 13? PART TWO

Posted by William Kain on November 8

In an earlier post, I started writing about a common issue in chapter 13 bankruptcy cases: a change in income experienced by the debtor while the chapter 13 plan is open.  The last post looked at why this is an issue - namely, the 2005 revision of the bankruptcy law that required chapter 13 bankruptcy debtors to annually send the chapter 13 trustee copies of filed state and federal income tax returns.  It’s from that tax information that a chapter 13 trustee can ask individuals already in confirmed chapter 13 plans to adjust their income and expense schedules to more accurately reflect the debtor’s month-to-month financial situation.

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WHAT HAPPENS WHEN YOUR INCOME CHANGES WHILE YOU ARE IN A CHAPTER 13?

Posted by William Kain on November 5

A chapter 13 bankruptcy is a very helpful tool for many people who are encountering overwhelming financial problems.  For individuals dealing with a potential mortgage foreclosure, chapter 13 offers a structured, affordable way to keep families in their homes.  For a person who has a car payment that has unexpectedly become too expensive, chapter 13 offers a way to restructure the car loan to make the payment more affordable.  For the person who is dealing with child support arrears, or back income taxes, chapter 13 provides a structure to pay these important obligations. 

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(Video) STATE RESIDENCY REQUIREMENTS TO FILE CHAPTER 13 BANKRUPTCY

Posted by Wesley Scott on October 29

While Section 109(a) describes who can file a Chapter 13 Bankruptcy, we want to know now where can the bankruptcy be filed?

It is not possible to move from one state to another and file Chapter 13 Bankruptcy the next day. 28 U.S. Code Section 1408 states that debtor may file a bankruptcy in the bankruptcy court of the federal judicial district in which the person filing bankruptcy has his/her principal residence, place of business, or principal assets. The domicile has to be where you were domiciled the greater part of the last 6 months and so, where you have been domiciled the last 91 days.

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(Video) CAN I CONVERT MY CHAPTER 7 BANKRUPTCY TO A CHAPTER 13 PRIOR TO DISCHARGE?

Posted by Wesley Scott on October 18

Sometimes, when a debtor files Chapter 7 Bankruptcy, there is a desire to convert to a Chapter 13 Bankruptcy. Maybe, it is because debtor’s income has risen or the US Trustee’s Office has a brought a motion to dismiss debtor’s Chapter 7 Bankruptcy for abuse. What does that mean? In English, it means the US Trustee’s Office believes debtor has the ability to pay back creditors something over a 3-5 year Chapter 13 plan.

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Should I file bankruptcy for my Deceased Family Member’s Debt in Bemidji

Posted by Wesley Scott on August 8

Sometimes the unexpected happens.  Sometimes the expected happens with unexpected consequences.  When a loved one passes away and he or she had debt, what happens?  Are you responsible for the debt?  Can you get rid of that debt by filing bankruptcy?  Ah, the worlds of probate and bankruptcy collide at the worst time and your head is spinning. 

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What Are My Bankruptcy Filing Options in Minnesota?

Posted by Wesley Scott on August 3

After about a decade of steady decline, bankruptcy filing rates have leveled off since about 2015. Many observers take that to mean the filing rates will start going back up, which has not happened since a spike in filings following the 2005 bankruptcy reforms.

The filing rates are usually higher in non-judicial foreclosure states like Minnesota. Other than bankruptcy, homeowners in these states have few options once the mortgage company begins foreclosure proceedings.

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Can Chapter 13 Save My Minnesota House?

Posted by Wesley Scott on July 14

Most banks have very little patience when it comes to missed mortgage payments. In fact, many lenders begin pre-foreclosure proceedings after just two missed payments. So, distressed Minnesota homeowners have very little safety cushion.

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WHAT TO DO WHEN YOUR CHAPTER 13 PLAN DOESN’T “WORK” ANYMORE - PART 5

Posted by Wesley Scott on July 11

In the last few blogs, I’ve written about the choices people who are in a chapter 13 bankruptcy case have when, for whatever reason, the chapter 13 plan payments have become difficult to afford.  I wrote about simply catching up on past-due payments, or setting up a structured repayment plan, called a cure order, when the financial problem facing a chapter 13 debtor is temporary.  In my last blog, I looked at plan modification, a restructuring of the chapter 13 plan, in cases where post-bankruptcy-filing financial problems are more permanent and profound.

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(Video) Chapter Bankruptcy 13 Facts

Posted by Wesley Scott on July 2

What is a Chapter 13 Bankruptcy? How does it work? How does it look on my credit? These are all wonderful questions with straight forward answers. Here are some Chapter 13 facts you will find useful.

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(Video) WHAT YOU NEED TO KNOW ABOUT FILING A CHAPTER 13 BANKRUPTCY

Posted by Wesley Scott on June 20

From the oldest bankruptcy law firm in Minnesota, since 1972, comes Kain & Scott to explain what you need to know about filing Chapter 13 Bankruptcy. Very few people realize the government actually has a government sponsored debt consolidation plan. It’s called a Chapter 13 Bankruptcy. And if you knew how it works, no one would do traditional debt consolidation.

Here is what you need to know about filing a Chapter 13 Bankruptcy:

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WHAT TO DO WHEN YOUR CHAPTER 13 PLAN DOESN’T “WORK” ANYMORE PART 3

Posted by William Kain on June 17

In my last two blogs I’ve written about a common problem with chapter 13: a client’s financial situation has changed during the time the chapter 13 case is pending, and making a monthly chapter 13 payment to the trustee, which once was affordable, is no longer affordable.

In this blog, I’ll write about the options that chapter 13 debtors have when a chapter 13 case no longer “works.” I’ll write about short-term solutions first.

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The Chapter 13 Bankruptcy Process in Minnesota

Posted by Wesley Scott on June 16

In many ways, federal and state laws outside bankruptcy are very pro-creditor. For example, a moneylender in Minnesota may begin the auto repossession process after just one late payment. Most creditors will try to work something out with the borrower before they resort to repossession. But, there are no guarantees. The same thing applies to late mortgage or rent payments.

In these situations, Minneapolis families basically have two options. First, they can hope that the moneylender shows some degree of patience and mercy. Second, they can take control of their finances and begin the Chapter 13 bankruptcy process in Minnesota.

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WHAT TO DO WHEN YOUR CHAPTER 13 PLAN DOESN’T “WORK” ANYMORE - PART 4

Posted by William Kain on June 14

Some clients at Kain & Scott run into problems making their chapter 13 plan payments because of a short-term, temporary financial problem.  For people in a temporary bind, the difficulty in making a chapter 13 payment doesn’t have to spell doom for the chapter 13 case.  Last week I wrote about fixes for short-term problems - catching up on back payments or agreeing to enter into a cure order - to catch up on chapter 13 payments and continue down the financial road to an eventual chapter 13 discharge of debt.

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(Video) CHAPTER 7 VS. CHAPTER 13 BANKRUPTCY

Posted by Wesley Scott on June 5

What are the main differences between a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy?  Sometimes, it helps to peel the onion back, layer by layer, and go back to the basics. What are the primary differences between a Chapter 7 and Chapter 13 Bankruptcy? We will leave the question of which one you should file for a different day.

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Debt Relief Available in a Chapter 7 vs. Chapter 13 Bankruptcy

Posted by Wesley Scott on May 22

Supreme Court Justice James Clark McReynolds was one of the first Justices to set out the purpose of bankruptcy laws. In 1915, he wrote that bankruptcy is designed to “relieve the honest debtor from the weight of oppressive indebtedness and permit him to start afresh free from obligations and responsibilities consequent upon business misfortunes.” So, most Minnesota bankruptcy debtors are entitled to debt relief.

The nature of this fresh start largely depends on the type of bankruptcy the debtor files. It also depends on a concept called reaffirmation, especially in certain kinds of bankruptcy.

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Everything You Need To Know About Chapter 13 Bankruptcy

Posted by Margaret Henehan on May 18

Most Minnesota families live hand to mouth. Almost half of the households in America cannot cover a $400 emergency expense. Most secured debt payments, like rent, mortgage, or auto loans, are three or four times that amount. In other words, just one missed installment can mean a world of hurt. Most people lack the means to make catchup payments.

Most moneylenders begin adverse action, including the dreaded acceleration notice, after just two or three missed payments. An acceleration notice demands the entire loan balance immediately; the lender will no longer accept partial payments. In situations like this, a federally-guaranteed debt repayment plan is probably your best option. Almost everything you need to know about a Chapter 13 bankruptcy is described below.

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4 Good Reasons To File Chapter 13 Vs. Chapter 7 Bankruptcy

Posted by Wesley Scott on March 9

As a Bankruptcy Attorney in Maple Grove, I hear it all the time- I want to file a Chapter 7 Bankruptcy, not anything else. Chapter 7 Bankruptcy, referred to as a “liquidation bankruptcy” or a “fresh start bankruptcy” is a four-month process where at the end of the process most unsecured debt is discharged, wiped out, tax free! Of course, there are many clients who do fit squarely within the parameters of a chapter 7.

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HOW LONG DOES IT TAKE TO FILE A CHAPTER 13 BANKRUPTCY - PART 2

Posted by William Kain on March 5

Last week I wrote about why being able to file a chapter 13 bankruptcy case quickly is advantageous to debtors. Chapter 13 is often the “emergency” bankruptcy - in many cases that end up being filed as chapter 13s, a mortgage foreclosure is days away, or the repossession agent has been out looking for a client’s car to repossess.  Or in some cases, the repossession has already taken place and the owner has a short period of time in which to redeem the vehicle prior to the vehicle being sold at an auction.  So there are numerous situations in which time matters, and the time is short.  Being able to file quickly is an advantage - and at Kain & Scott we can file a case quickly and professionally.  So the question is, what is there about the Kain & Scott law firm that enables the firm to file a case quickly?

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HOW LONG DOES IT TAKE TO FILE A CHAPTER 13 BANKRUPTCY?

Posted by William Kain on February 26

It is so common in my practice to meet with clients who have been experiencing financial distress for a long time. The clients have been fighting to keep their financial heads above water for, it seems to them, forever.  I’ve told many people I meet in conference that my best clients are the people who have fought hard to stay out of a bankruptcy and resolve their financial issues informally with their creditors.

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(Video) CHAPTER 13 BANKRUPTCY - THE GOVERNMENT SPONSORED DEBT CONSOLIDATION PLAN

Posted by Wesley Scott on February 15

I am amazed at the number of Americans that don’t know the government actually has a government sponsored debt consolidation plan for you! It’s called a Chapter 13 Bankruptcy and it is amazing! The number of benefits of being in a government sponsored debt consolidation plan cannot be understated.

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Getting the Most Out of Your Minnesota Bankruptcy

Posted by Kelsey Quarberg on February 10

If you’re one of the thousands of Minnesota residents who is considering filing for either Chapter 7 or Chapter 13 bankruptcy, follow these simple tips to help you get the most out of your Minnesota bankruptcy.

 

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Can You Use Your Credit Cards in Brainerd Before Filing Bankruptcy?

Posted by Jesse Horoshak on February 2

You have had a good paying job and also using your credit cards for purchases like any other person would when the unthinkable happens: you either lose your job or for some reason your income decreases.  The dam is about to break and there is no relief in sight because you now have these credit card bills that you previously had been able to pay and had every intent to pay back.  Bankruptcy seems like the best option to get your life back, but you have heard that your creditors will cry “FRAUD!” because you have been using your credit cards recently and you fear you need to wait 90 days before you can file bankruptcy.  Your worry is that you simply cannot wait any longer.  You do not want to be accused of fraud, but you also do not think you can wait 90 days before filing for bankruptcy.  You need relief sooner rather than later.  What can you do?  What SHOULD you do?

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How Minnesota Bankruptcy Works (and Works for You!)

Posted by Jesse Horoshak on January 24

Don’t have any idea how bankruptcy works or what it can do for you? You’re not alone – many of our clients tell us during their free initial consultation that all they know about bankruptcy is that it is a way to get rid of debt, but are unsure how bankruptcy works and how it will affect their lives.

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How Does Bankruptcy “Work” - Part 2

Posted by William Kain on January 24

Last week, I wrote about the nuts and bolts of bankruptcy - how bankruptcy “works.” In doing so, I concentrated on the paperwork any bankruptcy debtor has to file with the court: the bankruptcy petition, schedules and statements.  And I wrote about those documents through the lens of the two goals of bankruptcy: to treat a debtor’s creditors fairly, and to allow the debtor to live with dignity.  This week, I want to take a deeper look at how bankruptcy law attempts to satisfy those two goals.

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Commonly-Asked Questions: Chapter 13 and Chapter 7 Differences

Posted by William Kain on December 21

For the past five weeks, I’ve written about the differences between chapter 7 and chapter 13 bankruptcy cases.  It’s taken a lot of words to go through the differences between the two chapters.  For the client considering filing a bankruptcy, the choices can be somewhat daunting, so it’s important for our clients at Kain & Scott to know as much as possible about the differing approaches to debts that are present in chapter 7 and chapter 13.  Only when clients have a full understanding of the operation of both chapters, and the outcomes with respect to various types of debt can the client make an informed choice regarding which chapter is best for them.

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Will my Neighbors in Brainerd Find out About my Bankruptcy?

Posted by Misty Myers on December 1

I am a fairly private person.  I think it is natural for people to want to keep certain pieces of their lives private and this includes their financial affairs, whether they are having financial problems or not.  However, when people are having financial issues, they are probably a little more concerned with keeping it private.  It is a humbling thing to go through and people tend to not want to advertise it.  It is tough to be vulnerable and it is tough for us, as humans, to admit we are going through tough times.  I understand that.  It is interesting the stigma that is put on individuals who may be feeling some financial stress, yet look at the companies and banks that have been bailed out by the government.  I highly doubt those entities are losing sleep over being given a second chance; at being able to access a tool to help them out of their financial troubles.  You should not lose sleep over being given a second chance either.  But I know that before someone files bankruptcy, sometimes they are concerned with people finding out about their second chance.

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Commonly Asked Questions About Your Credit & Chapter 13 Bankruptcy

Posted by William Kain on November 30

When the lawyers at Kain & Scott meet with potential bankruptcy clients, we always make it a point to ask what questions or concerns the client has during our first appointment.  Almost everyone we meet with has worries about filing a bankruptcy case, and many of the questions that spring from that worry are the same from client to client.  Let’s look at some of the commonly-asked questions we get from our clients - and get some answers.

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How Long Does Chapter 13 Bankruptcy Stay On Your Credit Report In Monticello, MN?

Posted by Wesley Scott on November 29

It is a question we get a lot. How long will a Chapter 13 Bankruptcy stay on my credit report? The answer is 10 years- and that is a certainty. However, that does not mean that you will not get credit for 10 years. Quite the contrary. You see eliminating debt is always a good thing for your credit profile. Getting rid of debt, tax free, and going through Kain & Scott’s FREE 90-Day credit Repair Program improves our guest’s credit profiles to a point much better than before they did either.

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The #1 Commonly Asked Question About Chapter 7 vs Chapter 13 Bankruptcy

Posted by William Kain on November 24

Last week I tried to answer some of the questions that are commonly asked by clients who are thinking about filing a bankruptcy case.  We talked about the impact of bankruptcy on credit scores, the removal of debts discharged in a bankruptcy case from a credit report and the amount of time needed for a client of Kain & Scott to file a chapter 13 bankruptcy case.  This week, I will do my best to answer other questions that commonly come up with potential clients.  And let’s start with a basic question.

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How to File Chapter 13 Bankruptcy in St. Cloud, Minnesota

Posted by Margaret Henehan on November 1

When you visit St. Cloud, Minnesota’s official website, there is a staggering amount of “how to” information for residents: if you want to report graffiti, apply for a dog license, or volunteer for a great cause, all the necessary information is laid out in easy-to-follow steps. If you want to file Chapter 13 bankruptcy in St. Cloud, however, an experienced Chapter 13 bankruptcy law firm that provides excellence in bankruptcy representation to St. Cloud residents is your best source for information and guidance.

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(Video) How does a Chapter 13 Bankruptcy work?

Posted by Kelsey Quarberg on October 30

A Chapter 13 bankruptcy is what we refer to as a “Government Sponsored Debt Repayment Plan.” Instead of using a debt consolidation company or tackling your overwhelming debt on your own, a Chapter 13 bankruptcy can be a great option. The main difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy is the Chapter 13 Plan. When you file a Chapter 13 bankruptcy, you include a 3 to 5 year repayment plan. The repayment plan amount is based on your disposable income. Basically, you take your average income in a month and subtract your average living expenses. The amount left over is considered your “disposable income” which you can contribute to your Chapter 13 plan. Your Chapter 13 payments are then distributed to your creditors.

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Why You Shouldn't Fear Filing for Bankruptcy in Minnesota

Posted by Erick Bohm on September 22

Fear of the unknown is one of the most difficult emotions to grapple with. When it comes to bankruptcy, most people are fearful because they don’t know what the future has in store. Let me be the first to tell you, everything is going to be ok. People are fearful of bankruptcy because of what they’ve heard from others. There’s a good chance, however, these people don’t know what they’re talking about. Bankruptcy is a great option for individuals who are overwhelmed with debt. If you’re tired of the overwhelming pressure debt has caused in your life, we can help.

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What is Chapter 13 Bankruptcy?

Posted by Wesley Scott on September 11

When you file for bankruptcy in Minnesota, it’s important to know which type of bankruptcy is right for you. Each type of bankruptcy has its advantages and can help your family get back on track, but chances are, one type is more suitable for your family than others. While an experienced bankruptcy lawyer can best help you decide which type of bankruptcy is appropriate for your unique situation, below we explore the reasons why Chapter 13 bankruptcy is popular among debtors and may be the debt solution you need to regain control over your finances.

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What Happens If You Transfer Money Prior To Filing Bankruptcy?

Posted by William Kain on September 8

Last week I wrote about a common concern that people who are thinking about filing a bankruptcy case have: the entanglement of family members in the potential client’s financial affairs. I wrote about the effect a bankruptcy has on a non-filing spouse and the issues in bankruptcy that come up when a relative has co-signed on a financial obligation with a bankruptcy debtor.

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High Interest Breaking Your Bank? Here’s How Chapter 13 Bankruptcy Can Help

Posted by Erick Bohm on July 5

Have you recently bought a new car for a good deal then got bogged down by a high interest rate? If so, you’re not alone. Many of our clients come to us with incredibly high interest rates on vehicles. This is because lenders know everyone needs a vehicle and in most places, especially outside of major metropolitan areas, public transportation is very sparse. So, regardless of credit they'll still give you a loan, but if you've got bad credit they'll take you to the cleaners in interest. When this happens, it usually doesn’t matter how good of a deal you got, here's why:

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Getting Access To Credit After Chapter 13 Bankruptcy

Posted by Wesley Scott on June 19

Over the last three weeks I wrote about the ability of Chapter 7 debtors to access credit after receiving a bankruptcy discharge. Now, let’s look at the ability of Chapter 13 debtors to access credit - and because of the length of time Chapter 13 debtors are “in” their bankruptcy, I’ll deviate a little from the title of this blog and look at the ability to access credit during the time a Chapter 13 debtor is “in” her bankruptcy, as well as access to credit after the Chapter 13 discharge is entered.

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3 Of The Most Common Bankruptcy Misconceptions in Minnesota

Posted by Wesley Scott on June 10

Filing for bankruptcy can give you a chance to start over financially. Knowing the correct information about this process and its potential results is absolutely necessary when considering whether or not to file. Bankruptcy is a legal proceeding, which means it is surrounded by legal jargon. This can make sorting through the massive amounts of bankruptcy related information complicated.

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What Are The Requirements To File Chapter 13 Bankruptcy?

Posted by William Kain on May 26

For the past three weeks, I’ve written about the requirements that are needed to file a chapter 7 bankruptcy case, and what is required to receive a chapter 7 discharge. Chapter 7 Bankruptcy is the most common chapter that consumer debtors use when they file a bankruptcy case. Chapter 7 is a relatively quick, cost-effective way to discharge debt for people who are being overwhelmed by their financial situation. Chapter 7 uses a “liquidation” approach to financial problems - a chapter 7 debtor does not repay her creditors in whole, or in part, and a chapter 7 trustee is appointed to liquidate any non-exempt property owned by the debtor.

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Top 6 Chapter 7 Bankruptcy Questions Asked In Monticello, MN (PART 1)

Posted by Wesley Scott on April 24

So, you live in Monticello, Minnesota and you are contemplating getting your life back by filing Chapter 7 Bankruptcy, right? Wouldn’t you like to know the commonly asked bankruptcy questions and the answers to them before you file Chapter 7 Bankruptcy too? I would!

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The Values Behind Kain & Scott - Minnesota's Oldest Bankruptcy Law Firm

Posted by Wesley Scott on April 6

Have you ever wondered about which law firm is Minnesota oldest bankruptcy law firm? Ok, probably not! But, if you are looking to file Chapter 7 or Chapter 13 bankruptcy in Minnesota, age matters. Why? There is a reason why they call it the “practice” of law right? Will a law firm that started in 1995 have more experience or a law firm that started in 1972?

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The Differences in 2016 Between Chapter 7 & 13 Bankruptcy

Posted by William Kain on March 16

Today, most of the Bankruptcies filed in Minnesota are either a Chapter 7 or Chapter 13. Determining which chapter is right for you will depend on your specific financial status including your debts, assets and income. A lot of people have the option to choose between the two but if you have higher than median income for a household your size, you might only be allowed to file a Chapter 13. No matter the case both are excellent options for resolving unsecured debt. However, they are unique in their own way and offer a variety of different advantages. If you have the option to choose between the two it will be important to know the differences so that you can make the most attractive decision for you and your family.

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