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.

 

    Col Ovik

    Col Ovik
    Solving problems and helping people, that is what lawyers do, and I am so grateful that clients allow me the opportunity to help them.

    Recent Posts

    How Can Cross Collateralization Affect My Bankruptcy in MN? | LifeBack

    Posted by Col Ovik on November 10

    Banking and financing with one institution is convenient, but there could be unforeseen issues with letting one institution handle all your financing needs. Banking with one institution does seem to be stress-free. You can easily pay all of your loans online and transfer funds easily, and in theory, you are often dealing with the same individuals time after time. But, what you may not have realized is if you have secured loans and unsecured loans with the same institution, the lender may have collateralized your new loans to the same collateral.

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    Why Am I Asked About Receiving Inheritance During Bankruptcy in MN?

    Posted by Col Ovik on November 2

    During your bankruptcy you will be asked about the likelihood that you may inherit any property or money. Your attorney will likely ask you this question and the trustee will also let you know if you do inherit any funds during the bankruptcy you need to let the trustee’s office know. Why? Because the bankruptcy estate will have an interest in the inherited property.

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    Chapter 13 Bankruptcy and Setoffs in Minnesota | LifeBack Law Firm

    Posted by Col Ovik on October 29

    When a creditor is owed a debt by the bankruptcy filer and the bankruptcy filer is owed a debt from the creditor and consequently creating a mutual obligation, the creditor can setoff the mutual debt. This means, instead of the creditor paying their debt to the bankruptcy filer the creditor can setoff (subtract) that amount from the amount owed to them by the bankruptcy filer.

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    Beginning a Bankruptcy in Minnesota Can Be at Your Speed | LifeBack

    Posted by Col Ovik on October 24

    I have recently started running, actually, I have recently started running again. Running is one of those activities that I do not enjoy. But I make a point to do it because I work in an office and spend most of my day sitting.

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    Homeowners Associations and Automatic Stay Violations in MN | LifeBack

    Posted by Col Ovik on October 23

    Issues with your homeowners association can be stressful. Homeowners associations have the power to place a lien on your property or foreclose. When you get behind in your association fees you are putting your property at risk.

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    Why Do I Have to Disclose Asset Transfers During Bankruptcy in MN?

    Posted by Col Ovik on October 13

    When filing for bankruptcy you will have to disclose any transfers of assets you may have had in the last 2 years prior to filing. Assets include cash assets as well as other assets: vehicles, real estate, furniture, or retirement accounts. And you may be asked about assets transferred in the last six years, if the transfer involved a friend or family member.

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    Staying Positive During Your Bankruptcy in Minnesota | LifeBack Law

    Posted by Col Ovik on October 8

    Recently, I started watching a new television series call Ted Lasso and I was quite wonderfully surprised. This is a show about positivity, kindness, and thoughtfulness. Even faced with the ugliest of characters, Ted Lasso continues his crusade of positivity.

    This is a message we should all embrace. Many times I find myself passively watching some television show and the characters are awful to one another or some reality tv show that displays people at their absolute worst. At best, maybe I get a laugh from it, and at the worst, I walk away with a dampened outlook on human kind.

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    The Dangers of Repaying Family and Friends Before Filing Bankruptcy

    Posted by Col Ovik on September 30

    It is tempting to repay friends and family members, after all, these are the people that were there for you when you were in a bind. So naturally, when you find yourself in a position to finally repay a friend or family member that is exactly what you are going to do. While this seems like the right thing to do, during a bankruptcy, it can lead to a lot of complications.

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    Forgiven Debt and Tax Liabilities in Minnesota

    Posted by Col Ovik on September 25

    Under the Internal Revenue Code, the general rule is that the discharge of a debt is a form of gross income. The forgiveness of a debt does sound nice, but it does come with some consequences. For example, if a creditor forgives a debt of $20,000, you would have an additional $20,000 for taxable income. At a conservative tax rate of 15% you would owe an additional $3,000 in federal income taxes for that year.

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    My Home in Bankruptcy - The Minnesota Homestead Exemption

    Posted by Col Ovik on September 24

    Schedules A/B of the bankruptcy petition requires the debtor to list and describe all real estate that the debtor has an interest in. This includes: life estates, remainderman interests, interests in mineral rights, and partial interests in real estate.

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    The Minnesota Homestead Exception: Chapter 7 v. Chapter 13

    Posted by Col Ovik on September 19

    As a general matter, homestead exemptions are to be liberally construed in favor of the exemption. All presumptions are to be made in favor of preservation and retention of the homestead. This is good news for a bankruptcy filer who wishes to protect/exempt their homestead when filing bankruptcy.

    The effect of claiming an exemption is to technically exclude property from the bankruptcy estate.

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    Living With Positivity, Despite Adversity

    Posted by Col Ovik on September 13

    Recently, I started watching a new television series call Ted Lasso and I was quite wonderfully surprised. This is a show about positivity, kindness, and thoughtfulness. Even faced with the ugliest of characters, Ted Lasso continues his crusade of positivity. This is a message we should all embrace.

    Read More

    What Are Forgiven Debts and Taxes in Minnesota? | LifeBack Law Firm

    Posted by Col Ovik on September 5

    Under the Internal Revenue Code, the general rule is that the discharge of a debt is a form of gross income. The forgiveness of a debt does sound nice, but it does come with some consequences.

    For example, if a creditor forgives a debt of $20,000, you would have an additional $20,000 for taxable income. At a conservative tax rate of 15% you would owe an additional $3,000 in federal income taxes for that year.

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    Watch Out for Good Deeds When Helping a Friend in Bankruptcy

    Posted by Col Ovik on September 4

    Everyone knows the old adage, no good deed goes unpunished, and this is also true in bankruptcy. So, while it may be noble to help out a friend or family member, it can also complicate your bankruptcy. Expensive gifts, gifted while you are insolvent can be a point of contention in your bankruptcy, but what about other good deeds: lending money, co-signing on loans, or taking out loans for someone else?

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    Repayment of Loans Before Filing Bankruptcy in Minnesota

    Posted by Col Ovik on August 19

    It is tempting to repay friends and family members while before filing a bankruptcy. After all, these are the people that were there for you when you were in a bind. So naturally, when you find yourself in a position to finally repay a friend or family member that is exactly what you are going to do.

    Unfortunately, repayments of loans to family members and close friends are considered preferential payments.

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    What Chapter 13 Payments Will I Owe in Minnesota?

    Posted by Col Ovik on June 28

    When filing a Chapter 13 bankruptcy the number one question by potential clients is: what will be my monthly payment? There are many factors that are considered when determining a chapter 13 payment:

    • income,
    • necessary expenses,
    • non-exempt assets,
    • repayments to creditors in the 90 days prior to filing,
    • and repayments to friends and family members.
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