In a chapter 13 bankruptcy case, the debtor (the legal term for a person who files for bankruptcy) pays all of their disposable income, each month, towards their debts in a three to five year repayment plan.

A person who files a chapter 13 bankruptcy case is required to pay as much as they can afford towards their debts in a three-to-five year repayment plan. After successfully completing their plan, the person who filed for bankruptcy (aka the “debtor”) receives a discharge wiping out their remaining debts, with certain exceptions (e.g. student loans and child support).  There are a number of factors that determine exactly how much the debtor will have to pay, each month, in order for the bankruptcy court to “confirm,” or officially approve, their repayment plan and allow the debtor to receive a discharge. 

Filing for chapter 7 bankruptcy is a great option for many Minnesotans who are struggling to manage their debts.  People who earn less than the median income, based on their household size, are permitted to file a chapter 7 bankruptcy case. The beauty of a chapter 7 case is that the debtor (what you call a person who files for bankruptcy) is not required to make payments to their creditors like they do in a chapter 13 repayment plan. The catch is that in some case, the debtor may have to turn over certain property for the trustee to liquidate (sell to convert to cash) in order to pay their creditors.  

 When a person files a chapter 7 or chapter 13 bankruptcy case, they are asking the bankruptcy court for relief from their debts.  In a chapter 7 bankruptcy case, a person is completely relieved from most of types of debts by receiving a legal “discharge” of their debt, typically within 3 to 4 months after their case is filed, without the need for making any payments to their creditors. In most chapter 7 cases, the “debtor” (what you call a person who files for bankruptcy) is able to keep most, if not all, of their property in exchange for receiving their discharge. In a chapter 13 case, the debtor does not have to give up any property, but must make regular payments, each month, towards their debts, in a three to five year repayment plan, after which they receive a discharge of most, if not all, of their remaining debts. 

How do you start the process of choosing the best Minneapolis bankruptcy law firm? This is an excellent question. Whenever I have someone ask me if I happen to know a good bankruptcy lawyer in Denver, Colorado, I say no but I can help you choose an awesome lawyer. 

There a number of life circumstances that cause people to file bankruptcy in Minnesota. Among these reasons are job loss, reduction in income, serious illness, and other unforeseen circumstances that leave people in a financial situation wherein they are unable to pay their debts. Many Minnesotans struggle with an addictions such as gambling, drinking, substance abuse, and compulsive spending. Many of these same people would be tremendously benefited by filing for chapter 13 or chapter 7 bankruptcy but fail to do so due to fear or shame for having their addictions brought to light when they file their bankruptcy case. This should not be so. 

A chapter 13 bankruptcy is a great way for Minnesotans struggling with their finances to manage their debts. In a chapter 13 bankruptcy case the debtor (what you call a person who files for bankruptcy) pays as much as they can afford, each month, in a 3 to 5 year repayment plan, after which they receive a discharge of their remaining debts.

Filing for bankruptcy helps thousands of Minnesotans deal with, and eliminate, debt, each year. Many people contemplating filing for bankruptcy often wonder if they should be paying back their creditors and using their credit cards up until when their bankruptcy is filed. The short answer is, “no,” as using credit and paying back creditors does not benefit a person who will be filing for bankruptcy. In fact, doing this can actually cause issues in that person’s bankruptcy case. 

Bankruptcy is very often the very best way for an individual to deal with their debts and regain control of their financial circumstances. Both chapter 7 and chapter 13 bankruptcy cases often afford a great deal of relief to debtors (what you call people who file a bankruptcy case).  In both types of cases, the debtor is protected against most types of debt collection actions that could be taken by their creditors. This protection from creditors begins immediately from the very day a debtor’s chapter 13 or chapter 7 case is filed and typically lasts through their entire case, with certain limited exceptions. The automatic stay against creditors is one reason why filing for bankruptcy is usually the best tool a person can use to take care of their debt problem.

Unfortunately, I have witnessed the carnage that can occur when someone thinks it is a good idea to file Chapter 7 Bankruptcy on your own. I feel bad for people who do this. I feel worse for people when I see the looks on their face when they realize what deep trouble they are in because they thought they could save a few dollars bypassing a good bankruptcy law firm, and in the end, that desire costs them far more than a good bankruptcy lawyer. Oh sure, there are software programs out there and organizations that crow about filing bankruptcy yourself. Some of these organizations are even non-profit and I think mean well.

     You got the headline right. If you live in Minneapolis, MN and you are thinking about debt consolidation vs bankruptcy, forget debt consolidation right now. I feel bad for people suffering with debt. I know you want to pay the debt, we all do. But, debt consolidation is a waste of time, energy, and money. First, who do you trust to help you with this? Many of the “debt consolidation” companies are owned by the credit card companies so who do you think they are there to help?

     How do you file a Chapter 7 Bankruptcy in Minneapolis, MN by relaxing? Easy, you reach out to LifeBack Law Firm! At LifeBack Law Firm, we do most of the work while you relax. At LifeBack Law Firm, we pamper our clients who have suffered enough as it is. Here is the thing, at LifeBack, we have no bankruptcy worksheets to fill out. We pull asset and credit reports for you and gather much of the information that is needed to file Chapter 7 Bankruptcy in Minneapolis. 

Filing a chapter 13 bankruptcy is a great way for many Minnesotans to deal with their creditors and get rid of debt.  In a chapter 13 bankruptcy, the debtor (the legal term for a person who files a bankruptcy case) makes monthly payments to their creditors in a three to five year repayment plan, after which they receive a discharge of their remaining debt. 

When a person files a chapter 7 bankruptcy case in Minnesota, they can choose what to do with their secured debts such as home mortgages and car loans.

Boating could very well be considered the quintessential Minnesota pastime! With 10,000 lakes (well, 11,842 lakes to be exact) it’s no wonder Minnesotans love to go boating. For many Minnesotans, their boat is one of their most valuable pieces of property that they own. So, it is no surprise that many Minnesotans who are considering filing for bankruptcy wonder if they will be able to keep their boat after their case is filed.

     Over the years, I have seen some brave Minnesotans think it is a good idea to file bankruptcy themselves. Here is what they quickly discovered. For those I spoke with, they regretted filing bankruptcy themselves. Usually that regret surfaced after meeting with a Chapter 7 trustee and after listening to the trustee’s commentary and realized, they were in some trouble.

     What is a reaffirmation agreement in bankruptcy? First, it is important to note that a reaffirmation agreement is a subject discussed in Chapter 7 Bankruptcy, not Chapter 13 Bankruptcy. There is no such thing as a reaffirmation agreement in Chapter 13 Bankruptcy. In Chapter 13 Bankruptcy, collateral on a loan is either surrendered, paid on the plan, or paid outside the plan, with language on the plan that binds both debtor and creditor. 

     The prospect of filing Chapter 7 Bankruptcy can be daunting. For those of us with high anxiety, it can push you to the far edge of your comfort zone, and beyond. Even for those with lower anxiety, the thought of filing Chapter 7 Bankruptcy can be overwhelming. Unfortunately, there are ways to make a bad situation worse. These are two things you should watch out for when filing Chapter 7 Bankruptcy in Minneapolis, MN. 

     You live in Minneapolis, MN and you are contemplating hiring LifeBack Law Firm to file Chapter 7 Bankruptcy on your behalf. You know you are going to hire LifeBack Law Firm as your bankruptcy law firm because LifeBack Law Firm is Minnesota’s most kind and helpful bankruptcy law firm. But before you file, you want to know, what do Chapter 7 Bankruptcy trustee’s look for in a Chapter 7 Bankruptcy case. The first thing you need to understand is Chapter 7 trustee’s get paid a small fee to administer most Chapter 7 Bankruptcy cases. Most would not be a trustee if they were paid this small fee only. 

Filing for chapter 7 bankruptcy is a great way for individuals struggling with debt to find financial relief. Anyone who earns less than the median Minnesota State income, based on their household size, can file a chapter 7 bankruptcy case. When they do so, the court discharges their personal liability on all of their debts, with a few exceptions (i.e. past due child support, most taxes, criminal fines, etc.)

In a chapter 13 bankruptcy case, a person makes payments towards their debts in a three to five year repayment plan. In most cases, the debtor pays only a fraction of their total debt. After successfully completing their repayment plan at the end of three to five years, the debtor receives a discharge which relieves them from any further responsibility to pay their remaining debts, with limited exceptions.  Chapter 13 bankruptcy often affords a tremendous amount of financial relief for those who are struggling to pay their debts and make ends meet.  

Filing for bankruptcy brings a lot of relief to thousands of Minnesotans each year. When a person files a personal chapter 7 bankruptcy case, they are afforded a great deal of protection from their creditors and relief from their debts, most of which are completely wiped out forever when they receive their discharge. Up until when a person files a bankruptcy case, they often continue to attempt to pay their creditors as much as they can. Often, it is only when a person realizes that it is futile to continue to pay their debts, and simultaneously afford to pay their other necessary bills, that a person decides to file bankruptcy and stops paying their creditors.  

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s return to the not-often discussed intersection of philosophy and finance.

In a chapter 13 bankruptcy case, a person makes payments towards their debts in a three to five year repayment plan. Upon successful completion of the payment plan, that person (known as the “debtor”) receives a discharge of most of their remaining debts with a few exceptions. Although Minnesotans who earn more than the median income for their household size in the State of Minnesota must file a chapter 13 bankruptcy case, rather than a chapter 7 case, any individual with regular income can file a chapter 13 case. In addition to providing the benefit of allowing a person to receive a discharge of their debts, typically after only having to pay a small portion of total debt, a chapter 13 also is a good opportunity to help a person afford their vehicle payments. 

     Recently, I began writing about a topic that is of interest to me and impacts thousands of Minnesotans suffering with debt. When you run a Google search for “bankruptcy attorney near me in Minneapolis, MN” you assume the results Google pulls up are actually close to you. Unfortunately, that is not always true. 

The answer is yes! When I am asked this question, I often respond with another question: Can you get a home loan or vehicle loan now without a co-signor or paying high interest? You see, here is the thing, future lenders don’t care about you paying your current debts. What future lenders really care about is are you going to pay them? This is the game. This is why you see dealerships and other lenders advertise things like, “filed bankruptcy?” “No problems”.

A chapter 13 bankruptcy is an awesome tool that allows people to get rid of most types of debt by allowing a person to pay as much as they can afford in a 3 to 5 year payment plan, after which they receive a discharge of their remaining debts. In addition to wiping out debt with the discharge, a chapter 13 bankruptcy is also a great tool that can enable people to get caught up on past-due car and home payments.

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency.

Filing a chapter 7 bankruptcy case allows people who are struggling to pay their debts find financial relief. Anybody who is under the Minnesota State median income level for their household size can file a chapter 7 case. 

Chapter 13 bankruptcy can afford a great deal of financial relief for people who are struggling to pay their debts. In a chapter 13 bankruptcy case, the debtor (the name for a person who files for bankruptcy) agrees to pay as much as they can towards their debts in a three to five year repayment plan.

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency. This post will continue to merely skim the surface of current cryptocurrency issues, for what it is worth. Today, let’s discuss some other scams in the industry.

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency.

Filing a chapter 7 bankruptcy is a great way to provide needed financial relief for Minnesotans whom find themselves unable to manage their debts. In a chapter 7 bankruptcy case, the debtor (what you call a person whom files bankruptcy) receives a discharge within 3 to 4 months after filing their case, which eliminates the debtor’s legal liability to pay those debts forever. 

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s wrap up our discussion of cryptocurrency and non-fungible-tokens. 

 Whether a person files a person files a chapter 13 or chapter 7 bankruptcy case they are afforded a great deal of relief from their debts. When a person files a chapter 13 case, they agree to pay as much as they can towards their debts in a 3 to 5 year repayment plan, before getting their discharge.

     We all have fears. Some of us has have anxiety levels that are quite low and others quite high. Over the years, I have seen both sides. I tend to be on the higher anxiety side. But I have had people come in over the years needing to file bankruptcy and they could not care less they are filing Chapter 7 Bankruptcy. I find that amazing. I mean I am envious of someone who has so little anxiety like that. However, in my career, that is not the norm. Most people are terrified of filing Chapter 7 Bankruptcy.

    A chapter 7 bankruptcy is a great and powerful tool that allows people to get rid of huge amounts of debts that they can no longer financially afford to pay. Unlike, in a chapter 13, in which a person pays as much as they can towards their debts in a 3 to 5 year repayment before receiving a discharge of their remaining debts, a person in a chapter 7 bankruptcy case is not required to make payments towards their debts, and typically receives a discharge within 3 to 4 months after filing their case. Any person is allowed to file for chapter 7 bankruptcy so long as they qualify based on their income (the person must have an income that is below the State median income for their family size).  

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk about a more current topic: cryptocurrency. This post will merely skim the surface of current cryptocurrency issues, for what it is worth. 

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency. This post will continue to merely skim the surface of current cryptocurrency issues, for what it is worth. Today, let’s introduce the topic of non-fungible tokens, also known as NFTs.

     We have many people who reach out to LifeBack Law Firm concerned about these type of questions. And they are legitimate fears of course. But what we tell people is there really is two issues to dissect when it comes to this question.

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today let’s talk again about a more current topic: cryptocurrency. This post will continue to merely skim the surface of current cryptocurrency issues, for what it is worth. Today, let’s discuss a scam that occurs in the industry: pump and dump.

 I have pity for humans who try to avoid the “b” word because they want to pay their debt. We all want to pay our debt. The issue is this: who comes first, your family or your creditors? Your family has to come first.

Some people think a bankruptcy attorney is a bankruptcy attorney and they could not be more wrong. I have been in this business for 25 years and I can tell you I have seen some things that would make your blood boil.

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits in the 21^st century by turning to food assistance and benefits aimed at needy families and children.

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits in the 21st century. Finally, we finish off our round up of public benefits by discussing workers’ compensation and unemployment benefits.

When a person files a chapter 7 bankruptcy case, they must make a decision as to what they intend to do with their existing secured vehicle loans. Bankruptcy eliminates the debtor’s personal legal responsibility to repay a vehicle loan but does not eliminate the lender’s lien against the vehicle. Therefore, when a debtor files a chapter 7 case, they must choose whether to keep the vehicle and pay for it, or stop making payments, and surrender the vehicle back to the lender. 

    Saint Paul is one of the greatest cities in the world in which to live. I know I may be biased due to the fact that I was born here, and now live here again, but I strongly believe any objective out-of-towner who relocates here would agree! Just because the city Saint Paul itself is a great place to live doesn’t mean that one’s particular apartment here is the best place in which to live. Sometimes, people simply find themselves stuck in a bad lease they wish they could do anything to get out of. There is one solution to this problem. You can file for bankruptcy (never saw that one coming, huh?).

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits in the 21st century. Thus far, we have been picking and choosing public benefit programs to discuss based on whether they provide a true monetary benefit, but there are so many public benefit programs that offer funds or necessities. Now, we will discuss some public housing benefits.

    Once a creditor files a lawsuit and gets the court to enter a judgment against a person for they can then take action against that person to collect on the judgment. One of the ways a creditor can collect on their judgment is by garnishing the person’s wages. In Minnesota, a creditor may garnish up to 25% of a person’s net pay (the money they actually take home after deductions, like taxes, are taken out of their paycheck). This can cause a significant hardship to that person’s financial circumstances, especially if a person is already struggling to make ends meet and is living paycheck to paycheck. 

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we continue to discuss public benefits, specifically social security and other 20^th century public benefits. 

    It’s easy to fall behind on car or mortgage payments, especially with the challenging economic times we now find ourselves in.  Falling behind on these payments can lead to one’s car being repossessed or a foreclosure upon one’s home. Creditors are often not easy to deal with, and frequently, many people find themselves in a position where they are unable to negotiate with the creditor to avoid losing their home or car. However, these people are not helpless. There is a tool available to help them and it’s called bankruptcy. A chapter 13 bankruptcy, in particular, is designed to allow people who fall behind on car or home payments to get caught back up with a court-approved repayment plan.

     Thousands of Minneapolis, MN residents contemplate filing Chapter 7 Bankruptcy each year. The inevitable question that arises is how will filing a Chapter 7 Bankruptcy in Minneapolis, MN affect my credit score? It is a respectable question and one that I would want to know the answer to myself. So many people think if you file Chapter 7 Bankruptcy, your credit score is sort of doomed forever. Not true at all. In fact, in many instances, it is just the opposite. 

    Cars depreciate in value quickly. Your car may have been your pride and joy when you first drove it off of the dealership lot. However, after many miles of wear and tear, you may feel differently. It is not uncommon for people to find themselves in a position in which their vehicle is worth much less than what they still owe on their car loan. This is not surprising when you consider the amount of interest the car loan lenders make you pay (and don’t get me started on all those extra fees the dealerships like to throw in).  However, there is a solution to that expensive eyesore taking up space in your driveway. You guessed it! You can file a personal bankruptcy case.

Summer in Saint Paul is a thing of beauty. Everywhere you look, there’s trees, rich foliage, and lots of flowers.  The weather is typically sunny and warm, but not too hot. The city is full of people engaging in outdoor activities such as boating, swimming, jogging, and playing in the park. However, one of the best things about the summertime in St. Paul is the sports.  

LifeBack Law Firm is Minnesota’s most kind and helpful bankruptcy law firm. We recently opened up a new location right where you live in Minneapolis, MN! We are now located at 310 E 38 Street, Suite 111, Minneapolis, MN 55409. We are just south of downtown Minneapolis and located on a bus line with plenty of free parking. If you live in Minneapolis, and you are suffering from overwhelming debt, and you need to file bankruptcy and get your life back, look no further than LifeBack Law Firm. LifeBack has been protecting Minnesotans from their creditors since 1972, and we can protect you too. 

     It is the age-old question isn’t it? What effect does filing Chapter 7 Bankruptcy have on my credit? It’s not what you think and here is why. Suppose you say to me, I have 50k in credit card debt and I have fallen behind on my payments. The credit card companies have not sued me yet but I am in default on all my payments and I am starting to hear from collection agencies. We all know collection agencies are the last stop before you get sued and your wages garnished and accounts levied by creditors.

Welcome back to our series of blog posts on the history and philosophy of the economy, bankruptcy, and debt – today we discuss public benefits, which are today are generally couched as welfare. 

Bankruptcy law allows debtors to file a personal chapter 7 or 13 bankruptcy case either by themselves, individually, or jointly with their spouse. Typically, when both spouses have a substantial amount of debt, it makes good sense for them to file a joint case together. That way, both spouses can wipe out all of their debt, at the same time, without having to go through the additional time and cost of filing two separate cases (debtors don’t have to pay twice for attorney fees and court filing fees).

Over my last posts, we discussed the bankruptcy regimes in the United States up to the Chandler Act of 1938. It is worth taking a moment to plot the policy concerns over those periods.

Though we have been tracing the history of bankruptcy policy in America, this week, we will take a break from that discussion. We turn instead to Greek philosophers and discuss some of their ideas about debts and society so we can gain perspective on our modern situation.

Each year, thousands of Minnesotans reach out to LifeBack Law Firm to ask for help with debt. And we know exactly how you feel reading this blog right now. Our former clients felt the same way. But do you know what they found? They found LifeBack Law Firm is Minnesota’s most kind and helpful bankruptcy law firm in Minnesota. When you are suffering with debt and run out of options, that is when you need to feel kindness the most. At LifeBack Law, we excel in helping Minnesotans file bankruptcy while emphasizing kindness and helpfulness. 

    Many people who file for bankruptcy have “toys” that they use for recreational purposes. These can include motorcycles, boats, snowmobiles, ATVs, motorhomes, etc. Bankruptcy is a powerful tool that enables many people to become free from their crushing debt. Generally speaking, bankruptcy law is designed to allow a person who files a bankruptcy case (aka the “debtor”) to keep a modest amount of property that is necessary to prevent the debtor becoming completely impoverished, and allows them to “get back on their feet” after their debt is wiped out. The debtor’s homestead (primary place of residence), a modest vehicle, and basic personal property (i.e. clothes, personal effects, and basic furniture) are generally “exempt,” meaning legally protected from being taken or used to satisfy debts. Whether debtors are allowed to keep their recreational toys, which are often not exempt, nor considered necessary for the debtor to possess, depends upon the circumstances and type of bankruptcy that is filed. 

   I am excited to report that LifeBack Law Firm has moved our Roseville, MN location to St. Paul, MN! We are super thrilled to be at our new St. Paul location at 370 Selby Avenue, Suite 224, St. Paul, MN 55102. We are right where you live in the Capitol of Minnesota on Cathedral hill. Our St. Paul location is on the bus line and is surrounded by fantastic restaurants and coffee shops. 

Recently, I spoke to a gentleman who was desperate to file bankruptcy and thought he could do it on his own. He quickly realized bankruptcy is too complicated of a legal process to do it himself. So then, he reached out to an out-of-state company to help him file bankruptcy “on the cheap”. The company was quick to gain access to his checking account and deduct money from his account for their fees ($500 by the time he reached out to LifeBack Law Firm). Soon after hiring this out of state company he began to get a sinking feeling in his stomach that this company was not what it purported to be.

People who file a bankruptcy case in Minnesota have the option of choosing the exemptions specifically provided by the Federal Bankruptcy Code (commonly referred to as the “Federal exemptions”), or any other applicable Minnesota State or Federal laws (aka “State exemptions”), to protect their property from creditors.

   Welcome to St. Cloud, Minnesota nestled along the tranquil backwaters of the upper Mississippi River. The population of St. Cloud (according to the 2020 census) was 68,881 making it Minnesota’s 12 largest city. St. Cloud is famous for its granite quarries which have been worked since 1868. In fact, St. Cloud has been nicknamed the “granite city”. 

Many Minnesotans file bankruptcy due to the financial strain of being unemployed for a long period of time. During their period of unemployment, many people often receive unemployment compensation in order to afford to pay their bills. Unemployment benefits are completely “exempt” in bankruptcy. This means unemployment benefits cannot be taken, or used, for the purpose of satisfying a person’s debts when they file a personal chapter 7 or chapter 13 bankruptcy case. When a person files for bankruptcy in Minnesota, they are allowed to choose whether they use Federal or State law to exempt their property. Regardless of which law they choose, any money they receive for unemployment compensation will be exempt, and protected. 

Bankruptcy provides financial relief for many people who are struggling to pay their debts. A chapter 7 bankruptcy case is a powerful tool that allows people to completely wipe out most types of debts without having to make any payments to their creditors. In the vast majority of cases, people who file for bankruptcy lose little-to-no property in exchange for receiving their discharge. When considering filing a chapter 7 bankruptcy case, one should be very cautious about the financial transactions they engage in with close friends and family members prior to filing their case. Although one may be acting with the best of intentions, their actions may have an unintended negative impact upon their bankruptcy case and even upon their own close friends and family members.

Carrying on from our discussion putting past bankruptcy policies in context, we arrive at the 20^th century and the development of our modern bankruptcy regime. The Bankruptcy Act of 1898 was never repealed, lasting until the enactment of the Bankruptcy Act of 1938.  The Chandler Act, as it became known, was not revolutionary. It simply increased access to debtors and made voluntary bankruptcy more attractive for debtors. Technically, the Chandler Act merely amended the previous policy, so an incremental change to bankruptcy policy is not surprising. It is worth noting that modern case law occasionally looks back to these 20^th century policies for precedential decisions. 

  There are some law firms who game the system. They use software to generate and “gate” bad reviews so the reviews that display are typically stronger reviews. This is unethical and dishonest. At LifeBack Law Firm, we have never used software to generate any Google reviews. All of our reviews are left from people who came in contact with the firm in one form or another and were moved to leave a review. LifeBack Law Firm’s Google reviews are the most heartfelt reviews in the bankruptcy business. 

     I think the disease of loneliness is the biggest disease faced by Minnesotans. It is easy to feel alone when you are suffering with a problem like a debt problem. But you are not alone. LifeBack Law Firm has been protecting Minnesotans from their creditors since 1972 and we can protect you too. I know bankruptcy is scary and can make you feel alone and afraid. When you run out of options with your debt, and need to consider bankruptcy, that is when you need kindness the most. Thankfully, LifeBack Law Firm is the most kind and helpful bankruptcy law firm in Minnesota.

     When Minnesotans are suffering with debt, that is when you need to feel kindness the most. One Minnesota bankruptcy law firm excels at filing bankruptcy for Minnesotans while delivering the most kind and helpful bankruptcy service in the industry. The Minnesota bankruptcy law firm that delivers the most kind and helpful service by far and away is LifeBack Law Firm.  Just this morning we received one of the most heartfelt 5 star Google reviews I have ever read and it gives a shout out to numerous LifeBack Law team members involved in her case. I am always amazed at the willingness of people to file bankruptcy and then post their name publicly with a review. To me, it tells me these people were extremely moved by the kindness they felt while working with the LifeBack Law team.

In the last two posts we discussed the Bankruptcy Act of 1800 and the Bankruptcy Act of 1841 respectively so we, perhaps unsurprisingly, now turn to the next policy: the Bankruptcy Act of 1867. It is worth noting that this policy and the previous two were all responses to poor economic conditions and were unintentionally temporary. In the wake of the 1857 financial crisis and the Civil War, debtors and creditors alike were in need of options for remedy. This new incarnation signaled a change in reasoning in bankruptcy policy which was slightly more beneficial to debtors. 

     If you are like a lot of people who live in or around Eagan, MN, you may find yourself needing to file bankruptcy. As of the date I am writing this blog, June 18, 2022, the economy is starting to crack, inflation is skyrocketing, business is slowing, and lay-offs are beginning. Many good people will find themselves needing to file bankruptcy. The humility of being alive. However, do a little research before you choose a bankruptcy law firm because you don’t want to end up with a lawyer who is stuck in a closet in virtual space with no support staff.

     Minnesotans who reside in and around Minneapolis looking for a Chapter 7 Bankruptcy law firm near them want a team of professionals who are kind and helpful. How is it we know this to be true? They tell us this over and over. You see, if you are suffering with a debt problem, it was likely triggered by some awful event in your life: business failure, income drop, divorce or relationship break up, medical problems, or just bad financial decisions (we have all made them). But, the last thing you want is to deal with a lawyer or staff that are self-centered, mean, or act like you have to jump hurdles to get relief from your debts.

In the last post, we discussed The Bankruptcy Act of 1898 and its new focus on the wellbeing of debtors, rather than solely as a remedy for creditors. Previously, we had discussed the prior bankruptcy policies in America: the bankruptcy acts of 1800, 1841, 1867, and 1898. Let’s use this post to recap some of those policies and put them in context. 

 Filing bankruptcy takes courage. In fact, it takes a lot of courage. Once you have summoned the courage to reach out for help, the last thing you want to deal with is rude and self-centered lawyers and staff. You know the kind I am talking about—the kind that think they are self-important and tell you all their stories but don’t want to listen to your story. 

 It is not unusual for Minnesotans to fear filing Chapter 7 Bankruptcy. Prospective clients often come to LifeBack Law Firm feeling very afraid. We know how you feel. Most of our former clients felt the same way you do now. But do you know what they found? They found that LifeBack Law Firm has the most kind and helpful bankruptcy staff in Minnesota. LifeBack Law Firm clients get spoiled by the staff. We honor the courage it took for you to reach out for help with a debt problem.

One of the questions that we commonly hear is whether there are types of debt that cannot be discharged in bankruptcy. Unfortunately for many debtors, there are, indeed, types of common debts that cannot be discharged in bankruptcy, as well as some uncommon types. Over the course of the next several blog posts, we will discuss some of those debts. Note: this is not meant to be an all-inclusive list.

Many people wonder how filing for bankruptcy will impact their bank accounts. In many cases, people have checking and savings accounts with banks, and also have debts owed to the bank such as credit cards, personal loans, car loans, and home mortgage loans.

If a person does not have any debts with the bank, they can continue to maintain and use their bank accounts, as the bank is not a creditor impacted by the bankruptcy. However, if the “debtor” (person filing for bankruptcy) owes debt directly to the bank, the bank will be considered a creditor in the bankruptcy case, and whether the bank decides to close the debtor’s bank account or allow them to continue using the bank’s services depends on the amount of debt owed to the bank and the type of debt owed to the bank. 

A chapter 13 bankruptcy case is a three to five year repayment plan wherein the debtor makes monthly payments towards their debts. After successfully completing their repayment plan, the debtor’s remaining unsecured debts are discharged, with some exceptions (i.e. student loans). Once the bankruptcy court “confirms,” or officially approves, the debtor’s repayment plan (typically a few months after their case is filed), the debtor is bound to contribute all of their disposable income towards their monthly payments.

When a person files a chapter 7 bankruptcy case, they often have secured debts. These types of debts are secured to certain property, known as “collateral,” which can be taken to satisfy the debt if the debt is not repaid by the borrower.  Home mortgages and car loans are examples of secured debts as the lender retains a “lien” on the home or car (the collateral) and can foreclose on the home, or repossess the car, if the borrower defaults on their monthly payments on the debt. 

     If you are thinking about filing bankruptcy in Minnesota, think LifeBack Law Firm. Why think LifeBack Law Firm? LifeBack Law Firm has Minnesota’s most kind and helpful bankruptcy staff in Minnesota. How do we know this to be true? Just read the Google reviews left by your friends, neighbors, and family who has used LifeBack Law Firm to help them get their lives back. The last thing you want when you file bankruptcy is to be judged by bankruptcy lawyers and staff for filing bankruptcy.

Bankruptcy provides tremendous relief to people who become unable to pay back their debts. After the debtor receives their bankruptcy discharge, their creditors are forever legally prevented from undertaking further debt collection efforts against the debtor, with certain limited exceptions (i.e. generally student loan debt, domestic support obligations, and most income tax debt remain collectable).  

The law is very generous for allowing people who file for bankruptcy (aka “debtors) to keep and protect their retirement accounts.  Absent unusual circumstances, retirement accounts, such as IRAs, 401k accounts, and pension plans are generally fully exempt in bankruptcy, meaning that they cannot be taken to pay creditors.  One of the most common types of retirement accounts that people have is a 401k account.

A chapter 13 bankruptcy repayment plan is not designed to be easy but it is almost always worth the effort. This is due to the fact that a person who files a chapter 13 bankruptcy case (aka the debtor) gets to keep all of their property, is protected from the direct collection efforts of their creditors (absent limited circumstances), and usually pays back only a fraction of their debt before receiving a discharge of any remaining debt at the end of the plan.  

People occasionally tell me they feel bad about not paying their debts when considering bankruptcy. Sometimes, people are even downright distraught and try to apologize for being irresponsible. First things first: you do not have to apologize for taking a problem seriously and considering your options. But it also got me asking myself: is it morally wrong to not pay your debts?

   I like to think of LifeBack Law Firm as an oasis away from the cruelty of the world we live in. Too many people use cruelty and insecurity to hurt other people. It is really sad. When you have a debt problem the last thing you want is for law firm staff to be rude, condescending, or just mean. Unfortunately, we hear all the stories along these lines from clients who first went to another law firm to file bankruptcy only to find out, the lawyer and staff are rude.

Recently, I spoke to a woman who told me she is a client of LifeBack Law Firm. She said she came to us after she spoke to another person and ended up doing some work for the firm herself. She said when she came into one of our office locations she knew she would be ok asking for help with bankruptcy. She knew she was in a safe, non-judgmental place. As a lawyer myself, I find these words from someone like her to be precious. No one feels good about having to file bankruptcy. But what people really don’t want is to work with someone who is unprofessional and judgmental.

Why do Minnesotans prefer to file Chapter 7 and Chapter 13 Bankruptcy with LifeBack Law Firm? Just read our hundreds and hundreds of Google reviews and you will see why. Minnesotans favor LifeBack Law because LifeBack Law excels at helping Minnesotans get their lives back while treating clients and co-workers with kindness, helpfulness, professionalism, and exceptional customer service.

    Recently, I spoke to potential client who told me a story about a Minnesota bankruptcy lawyer who hung the phone up on him after the lawyer discovered the potential client wanted to retain LifeBack Law Firm instead of this other lawyer.

Have you ever wondered what life could be like without overwhelming debt? It is possible to get your life back by filing Chapter 7 or 13 Bankruptcy. When you have unwanted debt, your finances are sick, you are not. Your finances need to take a shot of medicine and become healthy again. Money is not your life. Debt is not your life. And yet, debt can have tragic effects on the quality of your life.

   If you find yourself knee deep in debt, you are not alone. Each, year, thousands and thousands of Minnesotans just like you and I end up with overwhelming debt and the need to file Chapter 7 Bankruptcy. Hitting the reset button on your financial life is not as hard as you think. Once you wrap your mind around the “b” word, the actual process of filing Chapter 7 Bankruptcy is no so difficult to tolerate.

   LifeBack Law Firm has roots dating back to 1972. Since 1972, LifeBack Law Firm has been protecting Minnesotans from their creditors, and we can protect you too. Don’t you think a law firm that is 50 years old has spent an enormous amount of time perfecting the process of filing bankruptcy so it is as comforting and soothing to the guests as possible? You would be correct. LifeBack Law Firm has been perfecting the process of filing bankruptcy for Minnesotans just like you. Trust me, not all bankruptcy law firms are the same.

  Recently, I came across a set of circumstances that left me baffled. LifeBack Law Firm chose to represent bankruptcy clients where the clients had an original attorney of record who refused to complete their representation in bankruptcy. LifeBack Law would never leave a client stranded and left to their own devices. And yet, this original attorney of record did exactly that. She left the clients dangling even the though she is and still is the client’s original attorney of record.

The word “bankrupt” come from the Italian words, “banca rotta”, which means “broken bench”. In Italy, money dealers worked from benches or tables. If a dealer ran out of money, his bench was broken in half and he was out of business.  

What is a Chapter 7 Bankruptcy anyway? Will I lose everything I own if I file bankruptcy? Will the bankruptcy law firms in my area treat me with the dignity I deserve? When you are suffering from debt, many things cross your mind. One of them is will I lose all my assets if I file Chapter 7 Bankruptcy? Chapter 7 Bankruptcy is referred to as a “fresh start” or “liquidation” bankruptcy where the focus is on the assets you own, wherever situated in the world, on the date you file bankruptcy.

Like any problem, the first step is admitting, I have a debt problem. I am not sick, my finances are sick. Once you get that far, you are well on your way to getting your life back. In St. Cloud, MN, we are a bankruptcy law firm right near where you live. If you are looking for a Chapter 7 Bankruptcy lawyer near you or a Chapter 13 Bankruptcy lawyer near you, LifeBack Law in St. Cloud is right in your back yard. We are locating at 13 7^th Avenue South, St. Cloud, MN 56301. We are located downtown St. Cloud on 7^th avenue south; right across the street from Capitol One Bank and a few doors down from Jets Pizza.

 I am not against any lawyer opening up a new law office or starting out from scratch. But, I am not a huge fan of having the lawyer start out on me, that’s all. There is something “unprofessional” about a bankruptcy lawyer answering his/her own phone with home noises in the background like dogs or cats or other household things. It just doesn’t feel professional at all. If I were the client, I would want a team of professionals helping me, not a lawyer answering his/her own phone.

It’s very common for people to be jointly liable for debt as co-signers. For example, students going to college often require their parents, or another adult, to be a co-signer in order to be approved for a student loan. People who do not have a great credit history may need someone to co-sign on other types of loans like home mortgages, car loans, or personal loans in order to be approved for financing. It’s also common for married couples to be jointly liable for other debts such as credit card and medical debt.

 In a chapter 13 bankruptcy case, the debtor must pay all of their disposable income towards their debts in a three to five year repayment plan before their remaining debts are discharged. Disposable income is the income remaining after paying the debtor’s normal monthly expenses. This differs from a chapter 7 bankruptcy case, in which the debtor is not required to make payments towards their debts before receiving a discharge a few months after their case is filed.

 Job loss is a common reason that people file for bankruptcy. In many cases, when an individual loses their job, they are entitled to certain benefits to help them while they seek new employment. While these types of unemployment benefits are generally “exempt,” meaning legally protected from creditors, there are some exceptions and nuances in the law. Debtors filing for bankruptcy in Minnesota may choose between Federal exemptions and State exemptions to exempt, and protect, their property.

When a person files for chapter 7 bankruptcy, they are asking the court to discharge, or completely wipe out, their debts without having to make any payments to their creditors. Usually, all their debts are discharged, except for certain types of debts (i.e. student loan debt, most tax debt, and debt owed as alimony or child support). In order to qualify for a chapter 7 bankruptcy discharge, the debtor must be unable to afford making payments to their creditors, as they would have to do in a chapter 13 repayment plan.

Unlike a chapter 13 bankruptcy case in which the debtor makes payments to creditors in a three to five year payment plan before receiving a discharge, a chapter 7 requires no payments to any creditors, and involves a discharge a mere few months after the case is filed. However, while the debtor gets to keep all their property in a chapter 13 case, this is not always so in a chapter 7 case. In the majority of chapter 7 cases, the debtor gets to keep all their property due to the fact it is “exempt”, or legally protected from being taken to pay creditors. However, in some chapter 7 cases, the debtor has certain nonexempt property that they must either surrender to the trustee to be liquidated (sold with proceeds going to pay creditors) or, alternatively, must be paid for by the debtor for their right to keep the nonexempt property. Any money paid by the debtor to keep nonexempt property likewise goes to pay creditors.

Right now, there are hundreds of people in Eagan, Minnesota wondering how much it costs to file Chapter 7 Bankruptcy. Why do they wonder this? Because they are saddled with crippling debt and are looking to get their lives back.

It is that time of year, again. Tax filing season is upon us. If you find yourself in a Chapter 13 Bankruptcy in Minnesota, you may be wondering if you are able to keep your tax refunds. The answer to this question is determined by what your specific plan calls for. If your Chapter 13 plan is silent as to tax refunds, presumably you are allowed to retain possession of 100% of your tax refunds. However, if your plan has specific provisions dealing with excess tax refunds, you must comply with them.

When a person files for chapter 7 bankruptcy, they are allowed to claim certain property as “exempt,” or legally protected from creditors up to a certain value. Property that is exempt cannot be taken by the chapter 7 trustee to be used to pay the debtor’s creditors, whereas “nonexempt” property can be taken for that purpose. Minnesota allows debtors to elect either “State exemptions” or “Federal exemptions” to exempt, and protect, their property. The Federal exemptions are those specifically provided in the Federal Bankruptcy Code. State exemptions include any Minnesota State law, or applicable Federal law, not provided for in the Bankruptcy Code. Deciding whether to use State or Federal exemptions is complicated and better elaborated upon in other blogs. However, it is imperative that the debtor select the correct exemptions to use, as it often drastically impacts how much property they will be able to exempt. This is why it is also a good idea to discuss one’s potential bankruptcy case with an experienced bankruptcy attorney before filing one’s bankruptcy case.

LifeBack Law is your neighbor! LifeBack Law is Eagan’s favorite bankruptcy law firm and we are located near you in Eagan, Minnesota at 4480 Erin Drive, Eagan, MN 55122. If you are looking for Minnesota’s HIGHEST GOOGLE reviewed bankruptcy law firm, look no further than LifeBack Law Firm right near where you live. When Eagan, MN residents are suffering from overwhelming debt, they want a law firm whose staff pampers them and takes care of them, not a law firm whose staff is self-centered and could care less about you.

Are you an estate planning lawyer in Minnesota? I am not. I am the managing partner at LifeBack Law Firm, Minnesota’s largest bankruptcy law firm. And I am writing this article to highlight some issues we bankruptcy lawyers see often; including pitfalls and how to avoid them. When you meet with your estate planning clients, I suspect the subject of bankruptcy does not come up often. In other words, how is what you are doing with the client, in terms of estate planning, impacting a non-client heir who needs to file bankruptcy? 

Life is so humbling. Your best plans can go awry, quickly. I mean, who among us hopes when you get married, your marriage will be a failure? Who among us wishes for our business venture to turn into a disaster? Who among us hopes for an extended illness that costs tens of thousands of dollars and leaves us off work without pay? Nobody does this. We humans make elaborate plans and dream big dreams, and we should. However, life does not always play out the way you had planned it. I have accepted this broken road.

Receiving a Summons and Complaint from a creditor, or being threatened with a judgment can be scary, but what does it really mean for you financially? This is a question that a lot of potential clients have when we first meet. Please read on to find out more!

One of the most common questions we field this time of year is whether personal income tax debt is dischargeable. So many people are under the impression that tax debt can never be discharged in a bankruptcy, but that is not always the case! As with many things in life, and bankruptcy, the answer is not a simple yes or no. Read more to find out if your tax debt might be discharged in a bankruptcy.

During tax season many of our clients and potential clients are asking that very question. Unfortunately, it is not always a black and white answer. Read more to find out if your refund would be protected.

     If you are looking for an affordable bankruptcy attorney near you in Eden Prairie, MN, look no further than LifeBack Law Firm. For what you get at LifeBack Law Firm, we are the cheapest bankruptcy attorneys in Minnesota. A lot of people will just want the price without asking what you get. If you want the cheapest bankruptcy attorney in Minnesota I can give you the phone number to who I believe is the cheapest bankruptcy attorney in Minnesota, but you won’t like my referral. For one, he files hardly no bankruptcy cases even though he touts being the cheapest bankruptcy attorney in Minnesota. The fact he boasts being the cheapest should tell you something about his practice and what you will get. I recall one person meeting with this lawyer in his “conference” room that had a picnic table in it. 

Many people depend on social security payments to be able to afford their basic needed living expenses. The Social Security Act of 1935, while originally intended to serve a financial safety net for those who needed temporary economic assistance, has become generally accepted as something that most seniors will depend upon after they retire.  This recognized dependence upon social security benefits by so many of our seniors is the reason why such benefits are given special protection under the law. 

    LifeBack Law Firm has been helping Eden Prairie, MN residents get their lives back since 1972, and we can help you too. LifeBack Law Firm is a Chapter 7 Bankruptcy attorney near me in Eden Prairie, MN. We have an office location right near you. We are located at 7525 Mitchell Road, Suite 208, Eden Prairie, MN 55344. When you are down and out and you are suffering from a debt problem, let the kind and helpful people at LifeBack Law Firm help you get rid of debt and help repair your credit using LifeBack Law Firm FREE 90-Day Credit Repair Program. 

Spouses are allowed to jointly file a single bankruptcy case together. This is often advantageous to both spouses when they both have a significant amount of debt, as they do not have to incur the additional time and expense of filing separate cases. However, it is not uncommon for only one spouse to file for bankruptcy, while the other does not. But what is the impact of the bankruptcy upon the spouse who is filing for bankruptcy, and upon the spouse who decides not to file?

Both the Bankruptcy Code and Minnesota State law prohibit certain types of transfers of money or property made by the debtor prior to the filing of their bankruptcy case. These prohibited transfers are “avoidable” by the bankruptcy trustee. This means that the chapter 7 trustee can avoid, or undo, the transfer by demanding return of the transferred property from the person or entity to whom the transfer was made, and the trustee can even bring a lawsuit against that person to enforce their legal right to the return of the property.

    Many people frequently make regular donations to charities and religious organizations. Our laws generally promote and encourage these types of donations due to the positive impact it has on our social institutions and other members of society.  For example, the IRS Tax Code allows for certain tax breaks for people and companies who make charitable donations. The Bankruptcy Code also specifically makes certain allowances for those who donate to religious organizations and charities. 

    From the very first day a debtor files their bankruptcy case, they receive protection from the “automatic stay,” which is a court order that prevents most creditors from taking any debt collection efforts against the debtor. This protection lasts through the debtor’s bankruptcy case, unless a creditor receives court permission to “lift the automatic stay” and pursue the debt. This is typically only allowed in special circumstances such as where the debtor is using, or possessing, valuable property used to secure a debt owed to the creditor for which the debtor is not fairly compensating the creditor, to the detriment of the creditor’s rights (i.e. driving a car around with a loan against it and not making payments).  

    I constantly tell people who live in Eden Prairie, Minnesota, that the first step to filing bankruptcy is wrapping your head around the word, bankruptcy. Yes, there are better words in the English dictionary than the word, bankruptcy. But, once you actually wrap your head around the word bankruptcy and the thought of filing bankruptcy, do know the actual process of filing bankruptcy and getting your life back is easier.

     At LifeBack Law Firm, we constantly honor the courage it takes for thousands of Minnesotans to reach out every year and ask for help with overwhelming debt. We honor that courage by having the most kind and helpful staff in Minnesota. Does this make a difference? You bet it does. If I am embarrassed about something I want a professional who is the most kind and helpful person ever. I mean it. I want my hand held the whole time.

     If you find yourself living in or near St. Cloud, MN there is only one bankruptcy law firm I would recommend, and that is LifeBack Law Firm. LifeBack Law Firm is not like other law firms. At LifeBack Law Firm we hire, reward, and discipline our employees based on how well they treat co-workers and clients. Is this unique for a law firm? Trust me when I tell you that most law firm cultures are pure snake pits where the focus is on money and not people. At LifeBack Law Firm, we don’t grade our employees or attorneys on how much revenue they bring in but on how well they treat their co-workers and clients.

     Northern Minnesota is a summer and winter paradise. Movie stars and locals flock to Northern, Minnesota each summer to enjoy Northern, Minnesota’s pristine beauty. Lake, rivers, and forests become playgrounds for locals and out of towners alike.

Can you even begin to imagine the courage Dr. King had? I cannot. I only wish I had a sliver of the courage Dr. King had to stand and speak the truth in the face of pure hate and division. Dr. King said any society that has hate and division is a sick society. How prophetic are Dr. King’s words today in the face of unspeakable hate and division? And yet, in the face of adversity, there are signs of brotherly love. We have witnessed forgiveness for unspeakable acts of hate and racism by the victims of racism and hate.

Many people who file bankruptcy rely upon the support of regular child support or alimony payments to meet their basic needs, and many are owed large amounts of past due child support or alimony from the other parent. Bankruptcy law generally protects a debtor’s right to receive these domestic support benefits but this right is not absolute. When a debtor in Minnesota files bankruptcy, they may choose to use either “Federal exemptions” (those provided in the Federal Bankruptcy Code) or “State exemptions” (those provided for under the Minnesota Statutes and other applicable Federal law) to “exempt,” or legally protect their property from being taken to pay creditors. This is important because debtors in a chapter 7 bankruptcy case may have to surrender money or property that is not exempt to the trustee to pay their creditors. It is also important in a chapter 13 case, as the more property that is not exempt, the higher their monthly payment, because they are required to pay to their unsecured creditors, at minimum, the value of the nonexempt property.

Many people are entitled receive tax refunds each year for overpayments to the IRS and Minnesota State Department of Revenue from taxes withheld from their paychecks. Sometimes, these refunds can be quite substantial. A debtor’s right to receive a future tax refund is considered property of the “bankruptcy estate.” In a chapter 7 bankruptcy case, property of the bankruptcy estate is all of the debtor’s money and property that is subject to being taken by the bankruptcy trustee to pay the debtor’s creditors. In many cases, most, if not all, the debtor’s money and property is “exempt,” or legally protected from being taken to pay their creditors.

In a legal “Trust,” money, or other property, that is owned by a “Beneficiary,” is controlled by a “Trustee” (not to be confused with a bankruptcy trustee), whose responsibility it is to distribute the property to the Beneficiary in accordance with the terms of a written “Trust Agreement.” The person who creates the legal trust, via the Trust Agreement, is called the “Settlor,” and there can be multiple Settlors, Trustees, and Beneficiaries.

     If you live in Minnesota, and you are struggling with a debt problem, you can solve your debt problem for good in 2 steps:

 LifeBack Law Firm is Minnesota’s bankruptcy law firm, since 1972. We have been protecting Minnesotans from their creditors since 1972 and we can protect you too. Our entire focus, from the time we come to work until the time we go home, is protecting Minnesotans just like you from their creditors. How successful are we at doing our job? Ask the people who left us over 1,400 Google reviews and they will tell you how they were treated and what getting their lives back meant to them. Each month, hundreds of Minnesotans just like you reach out to LifeBack Law Firm for help with a debt problem. We protect each and every one of these people who retain LifeBack Law from their creditors and we can protect you too.

     How can a person tell for sure if they should file Chapter 7 Bankruptcy? A tall tale sign is if you are thinking about Chapter 7 Bankruptcy, a lot. In fact, if you are reading this blog now you might be need to file Chapter 7 Bankruptcy. Why do I say this? Well, many people try to avoid the “b” word, so if you start looking for the “b” word that means you are seriously looking at filing Chapter 7 Bankruptcy. What is a great resource to research Minnesota bankruptcy? Go to Minnesota’s largest bankruptcy law firm’s website at www.lifebacklaw.com. You will be impressed with three levels of information about Chapter 7 Bankruptcy.

Filing for bankruptcy is very often the best option for someone who is in a financial position where they are unable to afford to pay their ongoing bills and expenses in addition to their debts. When this happens, a person should try their best to continue paying their necessary ongoing expenses and bills, such as their mortgage payment, car payment, utility bills, and groceries. These needed expenses are more important than paying on old debts, especially if a person is planning on filing for bankruptcy and getting rid of those old debts anyways.

     Recently, I have been reading about and materials belonging to some of the ancient Greek philosophers. Socrates left behind no works or books. What we gleam from Socrates and who he was comes from students of Socrates like Plato and others. One of the comments Socrates is known to have said is, “When the argument is lost, slander becomes the tool of the loser.” I absolutely love this statement made by Socrates because it is 100% truth. How often have you been in a debate with someone only to have the other person resort to name calling or worse? Socrates was himself punched, kicked, had his hair pulled, and ultimately killed for searching for the truth. And yet today, in 2021, slander is alive in well from those who try and conceal bad faith arguments or bad acts.

     Would you consider hiring a bankruptcy lawyer who was fired from their job filing bankruptcies? I would not. I would prefer my bankruptcy law not have been terminated from their former firm for any reason. If you were terminated from your job, I would naturally wonder why were you terminated from your previous job? I mean, do you struggle following boundaries, easy boundaries set by your former employer? How do I know you will follow simple boundaries with me as a client?

When a person files for bankruptcy, their property is considered either exempt, meaning protected from creditors under the law, or non-exempt, meaning not protected from creditors. In a chapter 7 bankruptcy case, the debtor is required to give any non-exempt property they have to the trustee to be used to pay creditors, or enter into an agreement with the trustee, wherein they agree to pay the trustee to keep the non-exempt property. In a chapter 13 case, in which the debtor makes payments towards their debts in a 3 to 5 repayment plan, the debtor gets to keep their nonexempt property but must pay to their unsecured creditors at least as much as the creditors would have received had the debtor hypothetically filed a chapter 7 case.

Chapter 7, or “liquidation” bankruptcy is the most straightforward path to bankruptcy relief for most of the people I talk to who are seeking bankruptcy relief (called “debtors”).

People file bankruptcy when they can no longer continue keeping up with paying their debts.  When faced with the decision of staying current on your rent or making payments upon your debts, it is always advisable to choose to make your rent payment rather than paying on the debts. Nobody wants to be evicted and most of your debts will be likely be wiped out by your bankruptcy discharge anyways (except for most types of tax debt, domestic support obligations, and student loan debt, etc.)

When a person files for chapter 7 bankruptcy, all of their existing rights to property, as of the date they file their case, is considered property of the “bankruptcy estate.”  This includes not only property that they actually own at the time of filing, but also, includes their right to receive property in the future.  An example of this would be money they have a right to receive as a consequence of a current or future lawsuit. If, at the time the bankruptcy case is filed, the debtor has an existing right to file a lawsuit for monetary damages, the debtor’s claim to the money is property of the bankruptcy estate, regardless of how far into the future the money is actually received (even if it’s years after the debtor files their case and gets their discharge).  

For example, if a debtor is injured in a car accident a month before filing bankruptcy due to the negligence of another driver, the debtor’s right to make a claim against the other driver to receive money damages from a future personal injury lawsuit is property of the bankruptcy estate. This is because their right to make a legal claim against the other driver exists at the time they filed their bankruptcy case and it does not matter whether they have even considered filing a lawsuit or haven taken any legal action to recover money for their injuries (i.e. consulted with, or hired, a personal injury lawyer).  

    Every single person I have ever met was a bit terrified of the “b” word. Some are more terrified than others. My heart hurts for those people who suffer far too long with a debt problem because they are terrified of the “b” word. Our former clients know how you feel. They all felt the same way you do now. But what they found is the “b” word was not only not terrifying, it became the key that unlocked their future and freed them from an incredible burden.

     What is the single biggest mistake I see people in Minnesota make when they are looking for bankruptcy representation? I see two common mistakes. First, too many people chose the first firm they talk with. Now if the first firm you talk with is LifeBack Law Firm, a quality Minnesota bankruptcy law firm, you have got something. But too often I hear the horror stories of people who select the first firm only to find out later that firm’s reviews are horrible. Just take a look at some of these law firms Google reviews and even Glassdoor reviews and you will see you may want to keep dialing the phone.

It is quite odd that in bankruptcy, there is no specific exemption to protect guns. Now this is a bit odd considering that there is a Second Amendment right to bear arms. However, just because something is a constitutional right does not necessarily mean it is exempt in bankruptcy and protected from your creditors. I am not telling you this is right, I am just telling you this is the reality of the Federal and Minnesota exemption schemes as it is right now

You are not alone. Each year, thousands of good Minnesotans find themselves suffering with overwhelming debt often through no fault of their own. Broken relationships, businesses that fail, medical problems that occur, incomes that drop, and yes, bad financial decisions that get made because we are human and not robots. But when you are suffering from debt, the last thing you ever want is to deal with a law firm full of cold and antiseptic people who simply don’t care about you at all and you can feel it. There is a better way.

In bankruptcy, a debtor sometimes has property that is nonexempt, meaning not legally protected from being taken to satisfy debts owed to creditors.  In a chapter 7 bankruptcy case, this means the debtor must surrender the nonexempt property to the trustee, or pay the trustee to keep it, which the trustee then uses to pay towards the debtor’s debts. In a chapter 13 case, the debtor is permitted to keep the nonexempt property but must pay, at minimum, the value of the nonexempt property to their unsecured creditors in their repayment plan.  

Chapter 13 Bankruptcy is a government sponsored debt consolidation plan with several favorable twists for debtors. 

Minnesota Bankruptcy and LifeBack Law Firm are one in the same. You cannot think about bankruptcy in Minnesota without thinking about LifeBack Law Firm. When people have debt they want to be treated really well. No other law firm in Minnesota honors a Minnesotan’s courage to reach out for help in solving a debt problem like LifeBack Law Firm. 

Recently, I have been thinking a lot about the idea of words vs. actions. If you listen to the world, it is a very noisy place. Words and conversations never seem to end. Yet, I am struck by what we say sometimes versus what we do. For example, at LifeBack Law, our values are kindness, helpfulness, professionalism, and exceptional customer service. Would it be kind or helpful to say, we would really like to help you get your life back and then say good day!? Of course not, words, to mean anything, must be followed by actions that are consistent with the words. It is not kind and helpful to say we will be kind and helpful and then hand you a pile of worksheets to fill out would it?

Recently, I have been thinking a lot about the idea of words vs. actions. If you listen to the world, it is a very noisy place. Words and conversations never seem to end. Yet, I am struck by what we say sometimes versus what we do. For example, at LifeBack Law, our values are kindness, helpfulness, professionalism, and exceptional customer service. Would it be kind or helpful to say, we would really like to help you get your life back and then say good day!? Of course not, words, to mean anything, must be followed by actions that are consistent with the words. It is not kind and helpful to say we will be kind and helpful and then hand you a pile of worksheets to fill out would it

Our name says what we do for our guests; we help you get your life back. People who are suffering with debt problems just want their life back again. Struggling with debt suppresses life in many ways. Debt occupies your mind and steals your time (life) away from what you should be really focused on: living! 

Chapter 7 Bankruptcy can be a scary set of words put together. What is a Chapter 7 Bankruptcy and how does it benefit those people who file one? 

You might be familiar with this slogan: it belongs to Minnesota bankruptcy law firm, LifeBack Law. This slogan is not just a slogan, it is our promise to our clients. We don’t, judge you, we HELP you get your life back! We have been protecting Minnesotans from their creditors since 1972 and we can protect you too. If you are looking for the best law firm customer service experience in Minnesota, well, you found it. At LifeBack Law, all lawyers and staff must treat co-workers and clients with kindness, helpfulness, professionalism, and exceptional customer service.

That is right; LifeBack Law’s sole mission is to HELP you get your life back. We do this in two simple steps: Step 1, we HELP you eliminate debt. No worksheets to fill out and zero money up front on our fees (requires the use of a third party promissory note signer).

You live in Duluth, MN or maybe on the outskirts of the city of Duluth and you are drowning in debt. Suffering with a debt problem is not fun. At LifeBack Law Firm we understand the stress debt can cause and we know the courage it takes to reach out for help.

LifeBack Law Firm has been protecting Minnesotans from their creditors since 1972, and we can protect you. LifeBack Law Firm is a Minnesota based bankruptcy law firm that caters to Minnesotans suffering from overwhelming debt. Chapter 7 and Chapter 13 Bankruptcy is not just what we do, it’s all we do.

Hi, Wes Scott from LifeBack Law Firm, one of the busiest bankruptcy law firms in Minnesota. LifeBack Law has been protecting Minnesotans from their creditors since 1972 and we can protect you too. The most kind, helpful, professional and exceptional customer service in the industry. Get your life back by calling today, you will be so glad you did.

As I wind down from the high from my own recent marriage, I am reminded of a common issue that comes up when I talk to married people: Who of a married couple should file for bankruptcy?

My answer is usually the same: Both if possible and if they both need bankruptcy relief.

Married couples can either file a joint bankruptcy or individual bankruptcies.

When you hire a bankruptcy attorney, they are supposed to protect your interests and assets not take a lien against your assets to see that the lawyer gets paid their fees. I witnessed this happen recently and it is shocking a lawyer would do this. It is a very unseemly practice that prioritizes lawyers being paid over clients getting relief.

What is the true impact on your credit after filing bankruptcy? Filing bankruptcy is nearly always a net positive for your credit profile and credit score. How can this be? Pretend I am a banker and you come to me wanting a loan.

Soon, bankruptcy filings will hit record levels in Minnesota. I know it does not look like that can be the case right now, but it will be and sooner than you think. How can I be so confident of that? Easy, Google global debt and you will get part of the picture. But that is only part of the picture. Global debt levels never went away even after the last recession, which started in 2007/2008. We are at a crossroads in our economy that has fundamentally transformed itself without anyone noticing much.

If you are suffering from debt, the last thing you want is to work with a group of “professionals” that are not very professional and who treat their clients like widgets on an assembly line. You don’t want to work with a law firm that would really ask their client to put up their clothing to secure the bankruptcy attorney’s fees. This is really happening.

Law firms are largely specialized these days. Many are what we call “boutiques” that cater to clients in one specific area of the law. For example, there are many personal injury law firm boutiques. Many law firms specialize in family law, criminal defense, or even more specific than that, one area of criminal defense like DWI law.

When you are looking for the best bankruptcy law firms in Minneapolis, you cannot go wrong with choosing any of these three Minneapolis bankruptcy law firms.

They will vary in prices and service offerings, but you will get experienced chapter 7 and chapter 13 bankruptcy counsel from any of them.

Why do Minnesotans refer their friends and family to LifeBack Law Firm, P.A. for bankruptcy? There are many reasons but the biggest reason is they used LifeBack Law to get their lives back and they really felt good about how they were treated.

After all, LifeBack Law is Minnesota’s highest Google reviewed bankruptcy law firm. If you care for your friends and family, refer them to LifeBack Law and we promise to use soft gloves and treat them exceptionally well.

As incredible as this may sound, there is a bankruptcy law firm that will actually ask you to put up your clothing as collateral for the attorney fees in a bankruptcy case.

LifeBack Law will never ask any of it’s’ clients to put up the clothing on their back as collateral for our fees. At LifeBack Law Firm, we accept payment in one of three ways for a Chapter 7 Bankruptcy.

I constantly remind Minnesotans, your finances are sick, you are not. If you need a metaphor to think about this, here is one; actors and actresses many times need to be told, you are not the same person as the actor or actress.

You are two different people. So when people criticize the actor/actress, they are not criticizing you, they are criticizing someone else. Same thing with debt. You are not your debt. You are you and your finances are separate and if your finances are sick we need to give medicine to your finances (bankruptcy) not you.

You are sitting at home, at your kitchen table, and you are working your way through a pile of bills that need to be paid. Some of these bills are past due. When you whip out the calculator and add all of the credit card debt, medical bills, and unsecured lines of credit, you get a total of $75,000.00 with monthly payments that total $3,250.00 to service just the minimum payments on all of the debts.

Is chapter 13 bankruptcy in Minnesota something you should start considering?

Unfortunately, in the bankruptcy world, there are some very unseemly practices. There are some companies who disguise themselves as law firms only to be referral agencies in reality. They take your phone call and have non-lawyers sign you up, and then refer you back to a Minnesota bankruptcy attorney. If you want crappy service, you should definitely do this.

We cannot either. Recently, we heard of one Minnesota law firm that seems so hard up for money they actually take their clients clothing, along with furnishings and appliances, as collateral for their fees. We cannot imagine anything more distasteful than this. Bankruptcy lawyers are supposed to protect their clients assets not expose them to creditors, and especially themselves. Instead, the lawyer seizes an opportunity to take their clients property as collateral? Ridiculous. At LifeBack Law Firm we would never engage in this kind of chicanery to get paid.

We wanted to create a name that was congruent with who we are. We wanted to create a name that answered what do we do and have it more relevant to our marketing ethos in Minnesota. So we kicked back and brain stormed different names. We were going from Kain & Scott, P.A. to what name would fit us the best? After muddling our way through close to 500 names, we chose LifeBack Law Firm, P.A.!

A lot of people who suffer with debt want to know how does bankruptcy affect my credit? There are all kinds of misconceptions about bankruptcy in the marketplace. I have had some people tell me they didn’t think they could get any credit after they filed a bankruptcy.

This is not true at all. Over the many decades, LifeBack Law Firm has helped literally tens of thousands of Minnesotans get their lives back and most of them go on to obtain credit. Most go on to purchase homes and vehicles and all sorts of other items.

Bankruptcy is a serious legal tool that shouldn't be entered into lightly. Fortunately, it can, in specific situations, help you move forward toward greater financial freedom.

Chapter 7 is a specific chapter in the federal bankruptcy laws that represents what is known as straight or liquidation bankruptcy and that can wipe your financial slate clean.

If you’re currently facing financial issues, it can color everything you do and can make your financial future seem bleak at best. If your financial situation seems insurmountable, help may be available in the form of a Chapter 13 bankruptcy. While bankruptcy is obviously not the answer for everyone in every financially dire situation and is a fairly drastic move, it can – in certain situations – give you the kind of financial reboot you need to move forward with renewed confidence and purpose.

Bankruptcy is a legal process that offers individuals and companies facing overwhelming debt with the opportunity of a fresh start. The bankruptcy process can eliminate debt and halt the efforts of your creditors. In the long run, it can also improve you credit score and ability to obtain a loan.

Filing for bankruptcy in Minnesota could be the first step on your path to a financial fresh start. However, the exact steps along that path will depend on a few factors including the type of bankruptcy proceeding you have selected.

When you receive your bankruptcy discharge, your liability on the debt is discharged, but your co-signors isn’t. What will happen to them after you file and whether their credit will be impacted by your filing are common questions.

A lot of Americans want to know, how does a Chapter 7 Bankruptcy really work? This article dissects a Chapter 7 Bankruptcy from the moment it becomes a thought in your head to when you actually get your life back after bankruptcy.

Kain & Scott has been protecting Minnesotans from their creditors since 1972. We have ironed out the process for filing bankruptcy in Minnesota to make it the smoothest possible for our guests. At Kain & Scott, we have no worksheets to fill out and our staff HELP you all the way. We don’t sign our guests up and say good luck to them. No, at Kain & Scott, from the very moment you reach out to us, we hold your hand through the whole process.

We know it took courage for you to reach out to us for help. We honor that courage by delivering the most kind, helpful, professional, and exceptional customer service of any bankruptcy law firm in Minnesota. How do we know this to be true? Kain & Scott is Minnesota’s HIGHEST Google reviewed bankruptcy law firm in Minnesota.

At Kain & Scott, we promise you, “we don’t judge you, we HELP you get your life back!” To us, getting your life back means eliminating debt and repairing your credit using Kain & Scott’s FREE 90-Day Credit Repair Program. So debt gone + repairing your credit = life back.

How do we eliminate unwanted debt? Easy, we turn to either Chapter 7 or Chapter 13 Bankruptcy to help eliminate unwanted debt. Following your discharge, we send you through Kain & Scott’s FREE 90-Day Credit Repair Program, valued at up to $3,250.00.

In today’s world, it can be easy to feel like you are alone. I actually think that “loneliness” is one of the biggest health challenges we face in the world today. Prior to the pandemic, we were already tail spinning our way into a world where we communicate virtually (think Facebook, Twitter, and a myriad of other ways). Once the pandemic hit, our tail spin has become a complete vertical drop into the virtual abyss. The farther away we get from human to human contact, the worse it becomes.

As a refresher, the 341 meeting is a 5-10 minute meeting with the bankruptcy trustee. During the meeting the trustee will ask you questions to verify the information in your case. Typically these meetings take place a month after your case has been filed.

What happens after the 341 meeting will depend on what type of case you have and whether you file a chapter 13 bankruptcy, a chapter 7, or have a no asset case or an asset case.

Not far down the road from Edina, there is a Kain & Scott fully staffed bankruptcy law office 40 hours per week just inside Eden Prairie, Minnesota. In fact, Kain & Scott has the most full time staffed offices in Minnesota than any other Minnesota bankruptcy law firm, all focused on helping you through your bankruptcy in Edina, MN.

One of the benefits of being an alumnus of Saint John’s University is having access to a daily reflection written by one of the monks at Saint John’s Abbey. Every morning at 1:00 a short reflection by Fr. Don Talafous drops into my email timeline.

Just down the road from you is St. Cloud, MN where you will find Kain & Scott, Minnesota’s HIGHEST Google reviewed bankruptcy law firm. We can meet you in person or we can meet with you via phone, Skype, or even Zoom. If you find yourself a resident of Foley, Minnesota, or the surrounding area, and you are suffering with debt, Kain & Scott is nearby, and we can help you get your life back!

Most people like to choose a bankruptcy professional that is not from their hometown for privacy reasons. I totally understand this as I like my privacy as well. Reaching out to Kain & Scott in nearby St. Cloud, Minnesota gives you the closeness you want, but yet the confidentiality you demand too. Over the years, Kain & Scott has helped numerous residents of Foley and the surrounding area get their lives back by smacking the reset button and moving on with your life.

At Kain & Scott, we understand the courage it takes to reach out for help, and we honor that courage by having the most kind, helpful, professional staff that deliver the best customer service of any other bankruptcy law firm in the state of Minnesota. Want proof? Just read our Google reviews and see for yourself what our clients and former clients have to say about our level of service to our guests. You will read words like friendly, kind, helpful, professional, etc.

By reading our Google reviews you don’t have to take our word for it, take the word from your own family and friends that have used Kain & Scott to get their lives back over the years too.

We live in a world where reviews matter. What people think of a business matters to those prospects who are looking at doing business with a merchant, law firm, or vendor. Unfortunately, there are law firms who insist on using software to game the reviews and make it appear as if the law firm has stronger Google and BBB reviews than they actually do. How is this done?

I received a phone call from someone who had recently filed a bankruptcy case by herself. She had read all of the information she could find regarding the bankruptcy process and filing bankruptcy without using a lawyer,

She had prepared the bankruptcy petition, schedules and statements to the best of her ability. She was calling me now after she had received a phone call from an assistant for the bankruptcy trustee who had been assigned to her case – and the questions the assistant asked her was making her nervous. She was looking for help.

A trust is an estate planning tool. Trusts can allow individuals to protect assets, avoid taxes, avoid probate and ensure that the grantor’s assets are distributed according to the grantor’s specifications.

Once a trust is created, it needs to funded. This means that the grantor, the person with the assets, needs to move assets into the trust. If the asset is real estate, the deed to the property needs to be re-deeded in the name of the trust, if the asset is a bank account, the funds need to be moved into an account titled in the name of the trust.

Kain & Scott has 9 office locations in Minnesota. 7 out of the 9 are staffed full time by real live Kain & Scott people. Rochester and Mankato are staffed by appointment only. In our St. Cloud, Minnesota office we have 3 Chapter 7 and 13 Bankruptcy lawyers and numerous staff that are waiting to help you get your life back now.

Kain & Scott has been protecting St. Cloud, Minnesota residents from their creditors since 1972, longer than any other Minnesota bankruptcy law firm. What have we learned about bankruptcy since 1972? We have learned that our guests love to get their lives back and never regret the decision to file Chapter 7 Bankruptcy.

Minnesota’s largest bankruptcy law firm has an office in Eden Prairie, MN that is staffed full time. This is not one of those pretend law office locations to trick Google into appearing on Google Maps “Law Offices”. This is a fully functional and staffed bankruptcy law firm right in Eden Prairie, MN, right where you live.

A bankruptcy consultation typically occurs when a person seems to have run out of options. Whether it’s medical debt, trying to catch up on bills, divorce, foreclosure, etc., we completely understand that it is a difficult decision to decide to give us a call. Let us be the advocate, the listener, the adviser when life has taken some unexpected turns.

Since this pandemic has begun, it has changed our day-to-day lives in major ways. It has also drastically affected the court buildings and court systems throughout the nation. As part of the Chapter 7 and Chapter 13 bankruptcy process, there is a hearing with a trustee, referred to as a 341 meeting of creditors. This is a hearing where creditors have an opportunity to ask questions on the record regarding the debtor—it is very common for creditors to not appear though.

Debt is a common threat that plagues businesses and individuals alike. Sometimes, the last resort is to consider bankruptcy. Do not worry, there are personal and business related bankruptcy options for you! But first, let’s discuss the basics of business entities and debtors.

In March of this year, Congress passed the CARES Act as a result of the Covid-19 outbreak. As you may already know, included in the CARES Act were stimulus checks to individuals and families that qualified based on certain income limitations. Qualified individuals received up to $1,200 each plus $500 per child. Many Kain & Scott clients worried that their creditors would be able to levy the stimulus checks before they received the money. Mostly, clients worried about the IRS or Minnesota Revenue taking the funds to pay for any tax debt they may have. The good news is that Congress made sure to protect the stimulus checks from most creditors, including all tax agencies. That means, not even the IRS could take a stimulus check from someone.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) includes a means test set forth primarily in subsection 707(b) of the Bankruptcy Code. The Code provides that a case may be dismissed if "the granting of relief would be an abuse of the provisions of this chapter." The formula for determining whether a presumption of abuse exists is called the means test. 

There is not a single law firm in Monticello, Minnesota that focuses 100% on Chapter 7 and Chapter 13 Bankruptcy. However, just miles to the west in St. Cloud, MN or miles to the east in Maple Grove, MN, you will find the same law firm that does 100% Chapter 7 and Chapter 13 Bankruptcy work. When looking for a bankruptcy attorney it is best to choose a law firm that dedicates 100% of their time to helping people in and around Monticello, MN get their lives back by 1) getting rid of unwanted debt and 2) using Kain & Scott’s unique and FREE 90-Day Credit Repair Program.

People suffering with debt search for a bankruptcy lawyer near me because they want their lawyer to be their rock during their difficult period of life. People who are suffering with debt want empathy and compassion, not coldness and rudeness. That is exactly why residents in and around Maple Grove who are suffering with debt search Google and other search engines for phrases like “bankruptcy lawyer near me in Maple Grove, MN”. 

I am not aware of a single bankruptcy law firm in Hutchinson, MN. What I am referring to is this: I don’t believe there is a single law firm in or around Hutchinson, MN who does 100% Chapter 7 and 13 Bankruptcy work. However, Kain & Scott is close enough in St. Cloud, MN where we have an office and numerous staff dedicated 100% to helping you get your life back. A lot of residents of Hutchinson and the surrounding area prefer to look out of town for a bankruptcy attorney for privacy reasons too. No problem—we understand. Yet with technology, we can easily meet with you easier than ever.

There are many lawyers in and around Brainerd, MN. However, there is only one law firm that is in Brainerd, MN and whose practice is dedicated 100% to the practice of Chapter 7 and 13 Bankruptcy. Why is that important to you? Let me ask you a question. Would you want an eye doctor to perform heart surgery on you? Of course not. Would you want a foot doctor to perform heart surgery on you? Of course not. Would you like a doctor who does heart, eye, and foot surgery on your heart? Of course not. You want a heart surgeon that does only heart surgery to do your heart surgery right? Of course.

Hi! I am Wes Scott, the managing partner at Kain & Scott. When you do a Google search, the title of this blog strikes at the intention of most searchers on Google. You may not be looking for a “bankruptcy attorney near me in Duluth, MN” but my point is how often have you added those words in a Google search, “near me”? A lot right? Well, if you are suffering with a debt problem in Duluth, MN, you have come to the right place. Kain & Scott is located in Duluth and we staff our Duluth office with real people during our stated hours on our Google Map listing.

Having debt is no fun. We all want to pay our bills as they become due. Yet, if you live in Rochester, Minnesota and you are suffering with not just debt, but crippling debt, bankruptcy offers a chance to get your life back sooner than later. At the end of the day, every one of us is the same. We all want to pay our bills; but, if you put me in a position where I am forced to choose between my family and my creditors, my family should and must win.

When I research a topic, I really get annoyed at reviewing a website that doesn’t give me thoughtful and meaningful information. When I land on a website that provides useful and actionable information, I am super happy! When you are researching a topic and become frustrated because the information you are coming across is trying to use a gimmick to get you to call the law firm, you should know that they are not really committed to helping you.

The Bankruptcy Means Test is a legislative attempt at a formula that measures the ability of debtors to repay unsecured creditors over a period of time. The means test is a backward-looking litmus test using mathematical computations to help the court determine if the debtor is abusing the system by filing a Chapter 7 bankruptcy. The objective of the bankruptcy means test was to remove judicial discretion from the process of determining if the abuse exists.

We’ve used a different name to protect her anonymity, but let’s call her Julie. Julie is a single woman who lives in Duluth, MN. She is highly successful and earns quite a bit of money. But like many of us, Julie suffers with short bouts of depression from time to time. When she goes through these bouts of depression her credit card use can get out of control. She gambles and buys things she often does not even need. In the end, her credit card debt simply got too high for her to manage by herself. That is when Julie called Kain & Scott, P.A.

If you're like me, when I am looking for information on a subject I am not looking for “gimmicky” websites or superficial information. I am looking for heartfelt good information on the subject I am researching. The same is true for bankruptcy information. If you are researching Chapter 7 or 13 Bankruptcy information in Eagan, Minnesota, you want great information on what is a Chapter 7 and Chapter 13 Bankruptcy, what is the bankruptcy process and what is it like, and what are the bankruptcy fees in one spot. If this is what you are looking for you will be happy to learn that www.kainscott.com is Eagan, MN’s largest bankruptcy website.

Many Eagan, Minnesota residents want to know, can I lose my car if I file Chapter 7 Bankruptcy? This question really is a two-part question. First, can you lose your car if you file Chapter 7 Bankruptcy when you are in an agreement with an auto lender? Second, can you lose your car in Chapter 7 Bankruptcy as a decision by your Chapter 7 trustee?

If you live in or around Eden Prairie, Minnesota there is an easy way to determine if you file bankruptcy, which Chapter you will end up in. For those of you who have the ability to make a payment back to your creditors, you must do so. For those of you who cannot make a payment back to your creditors you likely will not be doing so.

If you are looking for a bankruptcy lawyer, a Chapter 7 or Chapter 13 Bankruptcy law firm in Roseville, Minnesota, there are some things you need to be aware of. Before scheduling an appointment with a law firm, you should really take 5 minutes to research the law firm you're interested in. 5 minutes could save you a lot of head ache down the road. You don’t want to be like a client who says, “I only wish I would have read more reviews on the firm before scheduling an appointment.” We hear this all the time from clients who were dissatisfied with other law firms.

The single biggest complaint we receive from clients who used other law firms and had a bad experience with them, is this: “I wish I would have read more reviews BEFORE scheduling an appointment with the law firm.” In other words, had prospective clients simply taken a few more minutes to read, like binge read, the law firm’s Google reviews, the client would never have scheduled an appointment with the law firm to begin with and would have avoided a lot of pain. I feel bad for these clients.

Unfortunately, there are some law firms that lease a small space, stick a Google Map Listing on it, and call it a law office. In reality, these small spaces are occupied by someone from the law firm very sparingly. A prospective client looking at their advertisement and seeing their business hours may think the law firm has a formidable presence in Eden Prairie, when they do not. It is designed to be a mirage. A bait and switch if you will; to draw you into calling that law firm first and not someone else.

When you file a Chapter 7 Bankruptcy with the bankruptcy court, you are invoking the power of the court to put into place an immediate court order restricting your creditors from collecting from you on most pre-petition debts. It is an awesome power debtors have. The focus in a Chapter 7 Bankruptcy is primarily on debtor’s assets. Debtor(s) are required to fully disclose all their assets wherever located in the world. The purpose of this is to show a Chapter 7 trustee, and creditors, what debtor owns for assets and are those assets exempt or non-exempt?

One of the most common questions from our bankruptcy clients that we encounter daily is “Can I stop paying my bills?” The answer is an emphatic “YES!” In fact, not only CAN you stop paying your bills, but you SHOULD stop paying your bills!

I am high anxiety. I totally understand the anxiety of bankruptcy and the thought of filing bankruptcy. And yet, hundreds of thousands of Americans muscle their way through the bankruptcy process each year. In Minnesota, on an average year, over 13,000 Minnesotans file bankruptcy and get on with their lives. Right, now, as you read this blog there are thousands of Minnesotans just like you contemplating the thought of filing bankruptcy or who are actually in the process of filing bankruptcy and getting their lives back.

A lot of people who live in and around Eden Prairie, Minnesota want to know if they qualify to file a Chapter 7 Bankruptcy. To qualify for a Chapter 7 Bankruptcy you must not have filed a previous Chapter 7 Bankruptcy (where you received a discharge) in a case filed in the previous 8 years. You also do not qualify for a Chapter 7 Bankruptcy discharge if you filed a Chapter 13 Bankruptcy within the previous 6 years (and where you received a Chapter 13 discharge).

You might ask, why does this matter? Trust me, it matters a lot. People who file bankruptcy don’t tend to broadcast they have filed bankruptcy on social media. Would you? So for anyone who has filed bankruptcy to leave a Google review--- that is a big deal. Most people do not leave Google reviews unless very upset or very happy. You don’t see a lot of people feeling luke warm about a business willing to leave that business a review, right? I mean when is the last time you left a gas station a review, like great gas guys!? You just don’t right? Now, if the clerk at the gas station swore at you and threw a loaf of bread at you, you might write a nasty bad review right?

COVID 19 is the pin prick that will burst the economy and shatter what we consider to be a “normal” economy for a long time to come. The financial devastation can be seen all around you. Vacant store fronts, vacant factories, and millions of people out of work. We still have not fully dealt with the debt problems we were in in the last financial crisis of 2008. The, the Federal Reserve just stoked the fire by pumping trillions of dollars into the economy resulting in an enormous amount of debt lingering from the last financial storm. And now, well now the financial devastation caused by COVID 19 is creating even more debt problems with a Fed that is really out of most of its ammunition to help in any meaningful way.

Several years ago I met with a couple who had previously met with a lawyer about bankruptcy. They told me they had to meet him in a shed like building and it was totally weird. And then things got even weirder. It turns out the lawyer, in the middle of a consultation, actually fell asleep. Not wanting to disturb the sleeping lawyer, the couple quietly got up and walked out. Sometime later, the lawyer actually called this coupled and asked, “well, are you going to hire me to do your bankruptcy?”

First of all, congratulations on having the courage necessary to face debt head on. Each day, thousands of Minnesotans suffer needlessly with debt. Second, once you have decided to solve the debt crisis for good, next you have to pick St. Cloud, Minnesota’s best bankruptcy law firm. How do you make sure you have the best bankruptcy attorney in St. Cloud, Minnesota? You do research!

In a chapter 13 case with priority tax claims, the debtor must pay these claims in full if the chapter 13 plan is to be confirmed. When the priority tax claim arises under § 507(a)(8)(C), such tax claims are an exception to the discharge under the general rule of § 1328.

Preferential transfers to creditors may be avoided under Section 547(b) of the Bankruptcy Code, if the transfer was made on or within 90 days before the date of the filing of the petition. In a Chapter 7 case, the appointed trustee steps into the debtor’s shoes, taking control of the debtor’s assets and seeing that every effort is made to enhance the estate for full distribution to the creditors. The Chapter 7 trustee increases the assets of the estate by avoiding a preferential transfer.

If you live within a 50 miles radius of St. Cloud, Minnesota, do like most people do, and turn to Kain & Scott if you are contemplating bankruptcy. Since 1972, area residents have trusted Kain & Scott to deliver the most kind, helpful, professional, and exceptional customer service to our residents suffering from overwhelming debt. Each year, hundreds of area residents use Kain & Scott to get their lives back---you can too.

I know of a single way to determine if you should file bankruptcy. At Kain & Scott we have been around since 1972. We have seen all the reasons for people to file bankruptcy. Every single one of these people are good Minnesotans who simply fell on hard times. Over and over we see the same themes which propel good people into bankruptcy.

Kain & Scott is Minnesota’s nicest bankruptcy law firm guaranteed or 100% off your fees™*. What does this mean? You can find our complete guarantee on our website at www.kainscott.com. Basically, if you don’t think Kain & Scott is Minnesota’s nicest bankruptcy law firm (most kind and helpful) and you tell us within 30 days of filing the bankruptcy case, and we cannot rectify the problem to your complete satisfaction, we will not only refund 100% of the attorney fees you paid us thus far, but we will also pay for you to have another bankruptcy lawyer complete your bankruptcy for you. Now is that confidence or what? You don’t guarantee your service will be the most kind and helpful unless it really is the most kind and helpful.

There is no question about the financial devastation that is befalling American businesses all across the country due to Covid 19. Oh sure some businesses will actually do well due to Covid 19, but many businesses will stumble and fail from Covid 19. All you have to do is take a look at any businesses that has the public visit it in any way to see the carnage. Movie theatres, restaurants, concert venues, sporting arenas, airlines, and many more are literally sustaining drops in business as high as 80%. Even in the best of times most of these businesses will struggle to produce a profit. Now imagine your business revenue falling 20% in revenue much less 80%?

Don’t listen to the supposed “gurus” who tell you to avoid bankruptcy. Some of these supposed “gurus” filed bankruptcy themselves. And now, they tell you not to file bankruptcy. I sometimes wonder who is paying these people to say this. Is it big corporations or credit card companies? If bankruptcy was good for the guru why is it not good for you too? One even has to be careful with “debt consolidation” companies who are owned in whole or in part by big finance companies.

If I were a Minnesotan looking to file bankruptcy one of the things I would love to know is what do people think, who have already filed bankruptcy in Minnesota, after they filed the bankruptcy? Do these people regret the decision they made to file bankruptcy? Are they thankful they made the difficult decision to file bankruptcy? Would they file bankruptcy again knowing what they know now? These are all wonderful questions I would want to know before I stuck my toes in the bankruptcy waters. Thankfully, there is no need to wonder about these questions. You see, our former guests know exactly how you feel right now. The nerves, the apprehension, and the scared out of your mind feelings you have. Our former guests all felt the same way. But what our guests found is once they filed the bankruptcy and got their lives back, they never regretted the decision to file.

At Kain & Scott we authored the book on bankruptcy and attorneys, “Filing Bankruptcy Sucks, Your Lawyer Should Not”. Isn’t this a great title for a bankruptcy book? I love it! It speaks to exactly how one feels about bankruptcy and lawyers who help you through it. Just the thought of filing bankruptcy for some can send them into a full blown panic attack. I get this. The thought of filing bankruptcy can be daunting and very scary. At Kain & Scott, we honor the courage it takes for you to file bankruptcy. We honor that courage by having the most helpful and kind bankruptcy team of staff and lawyers in the state of Minnesota, period!

Minnesotans who file bankruptcy trust Kain & Scott. As Minnesota’s oldest, largest, and most Google reviewed bankruptcy law firm, our Google reviews speak for themselves. These reviews come from the heart of our clients, former clients, and people who know and love us. I am always humbled to read reviews left by people. They put such thought into their reviews and you can tell the reviews are left with much heart and meaning. You see, at Kain & Scott, we honor the courage it takes for our guests to reach out to us for help.

As stated in the previous blog, Congress has covered their donors by making student loans non-dischargeable in bankruptcy unless the student/debtor can prove undue hardship. Congress has placed the burden of proving undue hardship squarely on the backs of students/debtors and not big banks which is where the burden should be. After all, the big banks and schools profit immensely off students investing loans into educations, no degrees, and worthless degrees, knowing or should knowing these students had no business a) in college to begin with, b) where in the wrong program for them because there was no testing done to begin with to see what the student’s gifts and aptitude is, and c) these students/debtors were investing far more money into these classes than they could ever recoup in a job they were likely to get.

Student loans are an abomination. What we have done to our children is reckless and wanton destruction of their future. Yes, America has abolished slavery, but when you look at some of these people saddled with overwhelming student loan debt, and many with no accompanying degrees of any kind, it is little wonder the economy is sluggish. With all these Americans saddled with overwhelming student loan debt who has surplus money to spend on anything else?

Getting rid of debt in bankruptcy is a huge step toward getting your life back. But the second step is important too. Repairing your credit is an important step to getting your life back. For example, a lot of people find out after they file bankruptcy that bankruptcy itself doesn’t clear the public records of judgments entered against you pre-bankruptcy filing. People also find out their credit reports are wrong and need helping fixing them. We had a lot of people calling us and asking us who we recommend for auto and home financing and also can you give me some nuggets to rebuild our credit?

Some people are confused as to why they have to pay a trustee when they file a Chapter 7 bankruptcy. I get the confusion. Often, it can feel a little bit like being picked on when you are down and out. It is not meant to be that way though. You see, when you file bankruptcy, you must disclose the existence of all your assets. Upon filing the Chapter 7 Bankruptcy you technically do not own your assets anymore, a bankruptcy estate does.

 Jump for joy! Yes, this is exactly what you will do immediately after filing bankruptcy. I realize you have better things to do than file bankruptcy. Many things come to mind really. A walk in the park, playing with your children, playing the banjo, any number of things. But, if you have anxiety like I do, there is no better feeling than solving a problem that has plagued you for good. And such as it is with crippling debt. Crippling debt destroys your physical, mental, and financial life. It sucks the life out of you. And to have something that destructive out of your life for good is joyous!

What on earth is a motion for relief from the automatic stay in bankruptcy? In bankruptcy, like any other legal field there is legal jargon that is often hard to recognize unless you spend your days in the trenches like we bankruptcy lawyers do. When a petition for bankruptcy is filed with the bankruptcy court, debtor automatically invokes a court ordered injunction against all her/his creditors barring the creditor from doing all sorts of things to debtor to try and collect on a pre-petition debt. This court order is called the automatic stay. It is a powerful weapon against creditors who are abusive and threatening. The automatic stay legally prevents creditors from collecting from debtors. It is a time out if you will.

A lot of people get by, by borrowing items that they either do not want to purchase or they cannot purchase. 

Minnesotans who file bankruptcy trust Kain & Scott. As Minnesota’s oldest, largest, and most Google reviewed bankruptcy law firm, our Google reviews speak for themselves. These reviews come from the heart of our clients, former clients, and people who know and love us. I am always humbled to read reviews left by people. They put such thought into their reviews and you can tell the reviews are left with much heart and meaning. You see, at Kain & Scott, we honor the courage it takes for our guests to reach out to us for help.

If you are a business owner COVID 19 presents challenges regardless of which kind of business you own. But for some businesses, COVID 19 is altogether disastrous. Take the restaurant industry as one example. In Minnesota, restaurants were closed for a certain period of time. While the PPP loan stimulus kept many afloat short term, those funds are now long gone. The trouble is the business has not come back though and the funds are gone. Sure restaurants in Minnesota are allowed to be open under strict guidelines, but when you have a wary public of any kind public gatherings, the number of people actually go to restaurants to eat in side is far less.

I can only imagine the thoughts coming across your mind as you read this title. One of the policy considerations behind bankruptcy is the idea that bankruptcy is good for the economy. What? How can this be true? Let me ask you a simple question; do people who are suffering from enormous debt purchase things? No, they do not. They don’t purchase things because they cannot afford to purchase anything because most of their net income goes to service their debts.

Kain & Scott is Minnesota’s nicest bankruptcy law firm guaranteed or 100% off your fees™*. What does this mean? You can find our complete guarantee on our website at www.kainscott.com. Basically, if you don’t think Kain & Scott is Minnesota’s nicest bankruptcy law firm (most kind and helpful) and you tell us within 30 days of filing the bankruptcy case, and we cannot rectify the problem to your complete satisfaction, we will not only refund 100% of the attorney fees you paid us thus far, but we will also pay for you to have another bankruptcy lawyer complete your bankruptcy for you. Now is that confidence or what? You don’t guarantee your service will be the most kind and helpful unless it really is the most kind and helpful.

Don’t listen to the supposed “gurus” who tell you to avoid bankruptcy. Some of these supposed “gurus” filed bankruptcy themselves. And now, they tell you not to file bankruptcy. I sometimes wonder who is paying these people to say this. Is it big corporations or credit card companies? If bankruptcy was good for the guru why is it not good for you too? One even has to be careful with “debt consolidation” companies who are owned in whole or in part by big finance companies.

If I were a Minnesotan looking to file bankruptcy one of the things I would love to know is what do people think, who have already filed bankruptcy in Minnesota, after they filed the bankruptcy? Do these people regret the decision they made to file bankruptcy? Are they thankful they made the difficult decision to file bankruptcy? Would they file bankruptcy again knowing what they know now? These are all wonderful questions I would want to know before I stuck my toes in the bankruptcy waters. Thankfully, there is no need to wonder about these questions. You see, our former guests know exactly how you feel right now. The nerves, the apprehension, and the scared out of your mind feelings you have. Our former guests all felt the same way. But what our guests found is once they filed the bankruptcy and got their lives back, they never regretted the decision to file.

COVID 19 has changed a lot of things for a lot of people. If you have a Chapter 13 Bankruptcy plan that was confirmed prior to March 27, 2020, you may have the ability to extend your plan. Under the CARES ACT, Congress extended the maximum Chapter 13 plan to 84 months from 60 months. But this only applies to those people who already have Chapter 13 plans confirmed as of March 27, 2020. Also, there is a sunset provision in the Act. You must have a plan confirmed by March 27, 2021 to qualify for the extension. 

At Kain & Scott we authored the book on bankruptcy and attorneys, “Filing Bankruptcy Sucks, Your Lawyer Should Not”. Isn’t this a great title for a bankruptcy book? I love it! It speaks to exactly how one feels about bankruptcy and lawyers who help you through it. Just the thought of filing bankruptcy for some can send them into a full blown panic attack. I get this. The thought of filing bankruptcy can be daunting and very scary. At Kain & Scott, we honor the courage it takes for you to file bankruptcy. We honor that courage by having the most helpful and kind bankruptcy team of staff and lawyers in the state of Minnesota, period! 

There is a benefit to filing bankruptcy that so many people miss. And after they file the bankruptcy and get a discharge they are surprised to learn of this benefit. You see, so many people mistakenly believe that bankruptcy ruins your credit, and maybe forever. The truth is, just the opposite occurs. People are always surprised to learn that they are able to get credit after bankruptcy. I speak to numerous people who a year after bankruptcy are buying homes, cars, and get credit cards and other lines of credit. They should not be surprised by this at all. You see future lenders don’t care if you fail to pay your creditors, what they really care about is are you going to pay us back if we lend you money?

Many of your neighbors and friends have turned to Kain & Scott for help in resolving a debt problem in Minnesota. They trusted us to take care of them in their time of despair. When we crushed their debt burden and treated them well they left us glowing reviews. We do not take these reviews for granted at all. We cherish them all and are reverent to them all. You see, at Kain & Scott we are here to serve humans in their time of need and despair and convert them into feeling the most hope they have felt in years. It is a beautiful thing to take someone from a place of despair to sheer joy and hope again.

You may hear your attorney throw out quite a few terms in your bankruptcy case. What do they all mean?

In Legal Lingo in Bankruptcy, we discussed common terms you may hear in a bankruptcy. 

Be careful of any out of state companies who are trying to solicit you into filing bankruptcy through them, sort of. I say through them sort of because they really don’t handle your bankruptcy case. Instead, some of these companies or purported law firms refer your case back to a Minnesota licensed attorney. How the fees you pay are split between the out of state company and this Minnesota based lawyer is not clear. What is clear is that there is a fee split between the two entities. You don’t need an out of state company to refer you to a qualified Minnesota bankruptcy lawyer. In fact, some of these lawyers are definitely not the most qualified bankruptcy lawyers in Minnesota. 

In Minnesota, our clients want their lives back. They want the suffering from overwhelming debt to end and they want a new beginning. In my opinion, you don’t have your life back until 1) your debt is gone in bankruptcy and 2) your credit is repaired using Kain & Scott’s FREE 90 day credit repair program. Now, we can eliminate your debt in either a Chapter 7 or Chapter 13 Bankruptcy. Both bankruptcies have their pros and cons. Every person’s case is different and no two cases are the same. Sometimes people profile like one or the other except for that one fact that makes them the opposite case you would think. For example, suppose a person profiles like a Chapter 7 Bankruptcy except they are 5k behind on the house loan and they desperately want to keep the house? With that additional fact, they might be best suited to a Chapter 13 Bankruptcy where we can cure mortgage arrears over time and keep their home.  

Section 525 of the Bankruptcy Code does stipulate protections against discriminatory treatment for bankruptcy filers. The code provides that a, “governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise deny employment to, terminate employment of…” a bankruptcy debtor. 11 U.S.C. § 525. Additionally, no private employer may terminate employment or discriminate against a debtor solely because the debtor filed bankruptcy.

Creditors file a motion for relief, when they want relief from the automatic stay. Typically this is done if the creditor wants to take collection steps against the bankruptcy filer. For example, this could be proceeding with foreclosure, repossession, or other forms of collection.  

One of the biggest concerns when our clients file a bankruptcy is regarding what will happen to their home. The amount of equity a client has in their home, determines how we will proceed with protecting their assets using the bankruptcy code. If a single debtor has more than $25,000 of equity in their home, we will use Minnesota exemptions to protect it. Minnesota exemptions can protect upwards of $400,000 of equity in a home—and that exemption is referred to as the homestead exemption. With the protection in place, our clients need to be aware of exempt assets and non-exempt assets. What does that mean? Assets refer to the items you own, exempt means they are afforded protection and non-exempt means they do not fit under a protected category according to Minnesota bankruptcy law.

A mortgage and the intervening terminology involved can be difficult to understand. We wanted to highlight a few terms that tend to pop up when people are considering bankruptcy or are already in an active bankruptcy. Learn all you can about your mortgage lender and develop a mutual relationship so that if unforeseen circumstances do arise, they will graciously assist you.

What is a bankruptcy estate?

I find this a distasteful thing for lawyers to do. When you are down and out lawyers are sending you solicitations to file bankruptcy; and with them? I do not like this approach at all. I think it is super invasive in terms of privacy and very presumptuous on the part of bankruptcy law firms in Minnesota. You will never see a personal solicitation mailed to you from Kain & Scott—period. 

Filing bankruptcy in Minnesota has never been easier or smooth for a prospective bankruptcy client. During COVID 19, the bankruptcy courts and United States Department of Justice have relaxed a lot of guidelines as to the bankruptcy process. For example, you used to be required to attend what we refer to as a 341 meeting or a first meeting of creditors after you filed bankruptcy. Now, this meeting is conducted either telephonically or by zoom. 

Creditors and collection agencies can be a mixed bag. You never know if you will receive someone understanding and nice or someone who is less than understanding about your situation. 

When a bankruptcy case is filed, you state that you have listed all of your assets and creditors in the case. 

 Choosing the right Minnesota bankruptcy law firm is critical. All you have to do is read the Google reviews from different bankruptcy law firms to know there is a huge difference in the firm you choose. I feel bad for people who choose the wrong bankruptcy law firm. I think sometimes we feel like all professionals are the same, right? Trust me when I tell you that is far from the truth.

In Minnesota if you are in default (i.e. are not making your monthly payments) on your car loan, then the bank can take possession of your car even if they don’t have a court order to do so – as long as they don’t “breach the peace”. Minn. Stat. Section 336.9-609. Once the creditor has possession of your vehicle, the creditor can move forward with the sale of the vehicle. 

 For those of us with high anxiety having someone laugh at you can be devastating. Of Course, as you get older, those sort of things become less irritating to you. In fact, as you get older you become perfectly fine with someone laughing at you or you laughing at yourself. But, can filing bankruptcy be a laughing matter? Of course it can be. I tell my children all of the time, if you are going to get pissed off at everything that goes wrong in your life you will be pissed off a lot. 

We all have anxiety. We all worry about things. And in this day and age you can Google your worst fears and people often do. So it is with bankruptcy. Every single bankruptcy case I have ever handled was slightly different than others. No two bankruptcies were exact. So how can you Google your exact situation? You cannot. But that does not stop us from doing it right? We all have. But it is very dangerous to do so.

When you are down and out. When you are faced with overwhelming debt, you want a Minnesota bankruptcy law firm that understands your fear of filing bankruptcy. We are so confident that Kain & Scott is Minnesota’s nicest bankruptcy law firm we guarantee it! Now—you can see the details of our guarantee on our website. A firm that is willing to guarantee their service is the nicest (most kind and helpful) has confidence in the service you will receive. 

I know, everyone says they are the best right? But don’t take our word for it. Take the word of the hundreds of satisfied clients of Kain & Scott and you too will agree, Kain & Scott is St. Cloud, Minnesota’s best bankruptcy law firm hands down. I admire the clients who are willing to write and leave, on a public forum, Google reviews about bankruptcy. Trust me, you have to overwhelm clients with kindness, helpfulness, professionalism and exceptional customer service before they will agree to leave one. I think that is a good thing. Clients who feel luke warm about your service do not leave Google reviews.

Have you ever had the experience of having a creditor get a judgment against you only to have a bankruptcy lawyer send you a letter soliciting you to file bankruptcy? Don’t you think this personal solicitation is a little cheesy? I mean it is bad enough to have a creditor get a judgment against you but then you have lawyers swooping in to profit off your misery? This does not seem ethical or professional at all. At Kain & Scott we never will send you a letter asking that you file bankruptcy with us because a creditor got a judgment against you. 

 You might be reading this title and thinking, what does bankruptcy and term limits have to do with each other? Whether you identify as a republican, democrat, independent, or any other party have you ever wondered how it is that someone could be in Congress for 30 years? Our government was supposed to be a government by the people, of the people, for the people. In other words, our government was supposed to be a citizenry government. 

 If I had one suggestion to someone looking for a bankruptcy lawyer in Minnesota it is this; read a lot of Google reviews before you call to set up an appointment with the bankruptcy law firm. Don’t read just a few Google reviews, and ignore 5 star reviews with no comments, I don’t believe them. Instead, binge read Google reviews on the Minnesota bankruptcy law firm before setting up an appointment. Do you notice anything troubling? Do you see Google reviews that express the same frustration? If so, move on to the next Minnesota bankruptcy law firm.

You can always tell when a bankruptcy law firm places profits over people. Their employees are miserable and their clients are unhappy. Don’t believe me? Take a look at a bankruptcy law firm’s Glassdoor reviews and read it for yourself. Sometimes, you need to take these Glassdoor reviews with a grain of salt because, in some cases, there are rumors of employers incentivizing employees to leave rosy Glassdoor reviews. 

You don’t need to suffer from high anxiety to be emotionally drained from the thought of having to file bankruptcy. For most of us, the thought of bankruptcy is initially devastating. At Kain & Scott, we know exactly how you feel right now. How? All of our former clients felt the same way you do at this very moment. But do you know what our clients found? Once they got on the other side of bankruptcy, they a) never regretted filing the bankruptcy and b) they are happier than they were before they filed the bankruptcy. This is why the way you feel now will not last forever.

 We attorneys joke all the time with each other about being doctors. I mean, we really are doctors. If you are a lawyer you have a Juris Doctorate degree which mean you are a doctor. So when I am referring to Dr. Scott, I am referring to myself as a licensed attorney. Now let us get on with the subject at hand.

 A lot of prospective clients want to know, who will know that I filed bankruptcy? This is a good question and one that I would also like probed before I filed bankruptcy. Filing bankruptcy is public information. However, this is not state court it is federal court. You cannot go down to your local courthouse and look up your neighbor’s bankruptcy because it will not be there. Instead, there are federal data bases that hold information on who filed bankruptcy and when. These data bases are password protected and you have to pay or link a credit card to the data base to gain access to it. Who among us is going to go through the trouble of a) finding the data base, b) sign up for an account, and c) link your credit card to the account to gain access to check on whether someone did or did not file bankruptcy?

Duluth, Minnesota is a nostalgic place I have been visiting since I was a child. To see the city nestled on the banks sloping down to Lake Superior and the vast lake with the sounds of the waves and seagulls brings back memories.  Sometimes this tranquil setting can be the background to not too tranquil problems like debt. Having debt is not tranquil it is stressful and really painful. It can consume you with mental and physical stress. 

Minnesotans looking to file bankruptcy in Minnesota should be aware that many purported Google Map Business Listings are fraudulent. What do I mean by fraudulent? Google Maps are supposed to be accurate and give the consumer accurate information on which merchants are where and when they are open and staffed on Google Maps. The trouble is pernicious businesses dupe Google into believing that the business’s request for a local Google Map Listing is not false but is a real location staffed and open during its stated hours. For example, to obtain a local Google Map Listing for a law firm, the law firm must operate full time at that location (not by appointment only). So if the law firm represents they are open and staffed from 8:00 a.m. to 5:00 p.m. Monday through Friday that is what Google then believes and represents to the public on Google Maps even if it is false. Why would a law firm dupe Google into publishing false advertising? Because it is big business for the law firm.

There is no worse feeling than suffering from overwhelming debt. The weight of the debt burden crushes you like a rock. It is all you think about night and day. The stress of debt permeates everything from your own physical and mental health to your relationships with co-workers and your family. Even your children feel the stress you are under.

The question often arises, “where will my bankruptcy case take place?” I find that some are worried about filing in their hometown or attending a hearing in their county courthouse.

The filing of a chapter 13 bankruptcy is voluntary. In chapter 13 bankruptcies, debtors make monthly payments to the trustee’s office to pay off a portion of their debts. The length of the payment plan can range from 36 months to 60 months.

Out of all the questions we bankruptcy lawyers get, this is probably the #1 question asked most frequently. If you have high anxiety, like me, filing bankruptcy can conjure up some pretty bizarre images in your mind. I remember thinking before I was a bankruptcy lawyer that once you file bankruptcy the bankruptcy people would probably follow you in the grocery store and ask why are you buying steak? Ridiculous right? But it is not so ridiculous for those of us with high anxiety. These kind of crazy images come to our mind right off the bat.

      A Chapter 7 Bankruptcy is like smacking a re-set button on your life with debt. You hit the reset button and poof the debt is gone and your stress goes away. Tens of thousands of Americans each year smack that reset button and move on with their lives, you can too. The only regret you will have is not filing Chapter 7 Bankruptcy sooner. I am not joking.

A “preference payment” is when a debtor treats one or more creditors greater than all of the other creditors. The general idea behind a bankruptcy is that all creditors receive equal treatment, whether in a chapter 7 or chapter 13. Preference payments do not include paying your day-to-day bills and living expenses. The bankruptcy code denotes paying a creditor $600 or more in a 3-month period; however, it is very common that some bills and minimum payments will total $600 or more, such as a mortgage, car payment, credit card minimums, etc. The trustee is looking for disclosure of those payments in your petition and schedules and will likely inquire if you paid above the minimum required payments; getting more than what the regular payment normally is. Disclosure of these payments is required and honesty with your attorney is imperative.

I hate seeing this happen, I really do. If you receive a discharge in Chapter 7 Bankruptcy it is possible to lose the discharge. If you have not received your Chapter 7 discharge yet, it is possible to be denied it. What is the most common reason for losing or being denied a Chapter 7 discharge? Lying on the bankruptcy schedules or lying about your financial affairs under oath.

A fraudulent transfer occurs when an individual knowingly transfers property or ownership in property, in an attempt to reduce their assets and the amount of money a creditor can recover. It can also occur when property or assets are sold for less than fair market value. It is aptly termed because in the eyes of the bankruptcy code, transferring your property to someone else with the intent of keeping it from your creditors, is fraud. Not all transfers require intent to defraud your creditors though.

Once I have decided to file Chapter 7 Bankruptcy what on earth do I do? What is the first step I should take? Let me ask you a question—if you needed heart surgery would you call a foot doctor or heaven forbid do it yourself? Of course not. The very first thing you need to do is research local quality bankruptcy law firms. And be very careful of some law firms that claim to have a vast local presence when they do not. Now, when you are researching local MN bankruptcy law firms the one thing you must do is read a lot of Google Reviews. These Google Reviews are like gold whether they are positive or negative reviews.

Have you ever thought about this? Businesses file bankruptcy all the time. Some seek Chapter 11 Bankruptcy relief and some file Chapter 7 Bankruptcy relief. When these board members get together to discuss the corporation’s debts and assets they don’t invest a lot of emotional energy into the decision to file bankruptcy or not. Filing bankruptcy is either prudent for the corporation to do or not. It either makes good business sense or not.

  I have seen many unprofessional office spaces in my day. I have heard of clients meeting with Minnesota bankruptcy lawyers in many other very unprofessional spaces as well. But to get a feel for what these office spaces were like, I travelled to many of them myself. What did I find?

Debt consolidation is the process of taking out a new loan to pay off other liabilities and consumer debt, essentially extending the repayment terms. It does not erase the original debt, but transfers the consumer’s loans to a different lender or type of loan. Debt consolidation usually maximizes the likelihood of creditors collecting from a debtor. 

I like to think of a Chapter 13 Bankruptcy like a government sponsored debt consolidation program. In fact, if this is what a Chapter 13 Bankruptcy were called, far more Americans would turn to Chapter 13 Bankruptcy for relief as opposed to being stuck in an endless debt consolidation program through some company. The advantages of a Chapter 13 far outweigh any debt consolidation program out there.

In these unprecedented times, there is so much uncertainty in the world that many individuals with steady, good paying jobs, are hunkering down in survival mode for fear of what might happen next. That is a completely normal and healthy response to have in this situation, but if you need help with your finances, you should not let fear of the unknown stand in your way.

Debt is not just a financial problem. It is a physical and mental problem too. Overwhelming debt places an enormous stress on the mind and body that is not healthy for us. Kain & Scott has been around since 1972, we have seen a few things. And one of the things we have seen is the deterioration of health because of debt. Anxiety and depression are common among those people who suffer with overwhelming debt.

Some Minnesota Bankruptcy law firms invest little money in people and spaces and guess who suffers when they don’t? Yes, you do. You see an unhappy workforce results in unhappy clients. There is no other way around this. If an employer has unhappy employees guess what you are going to be? Unhappy! 

Assuming one meets the jurisdictional requirements to file Chapter 7 Bankruptcy, what are the basic requirements to qualify to file a Chapter 7 Bankruptcy? Good question. I have had people over the years who wanted to file a Chapter 7 Bankruptcy but could not. Why? Section 707(b) lays out the elements associated with what we call the “means test”. Basically, if your income is over the median income for your family size in your state, you must go through a “means test” which is a combination of real numbers and set numbers.

A law firm should honor the courage it takes for people to reach out for help in resolving a debt problem. Having a debt problem can be embarrassing for many Minnesotans. And instead of seeing Minnesotan’s courage to reach out honored by law firms I found the opposite was happening and it made me mad.

Sometimes, it is ok to hit the reset button in life and move on from an overwhelming problem.  I have never once had anyone regret the decision to dump debt and move on with their lives. The only regret that petered out eventually was the regret that they had not hit the reset button sooner. One of the biggest advantages of filing bankruptcy is not only the debt gone but it goes away tax free. Think about that for a moment. If you owed me 100k and I said forget about it I am going to write off on my taxes as a loss. Well, since I am going to write it off as a loss it has to be income to you.

 Everyone has the right to be heard. No bias, no judgment, just quiet resignation to being heard by someone who really cares. At Kain & Scott we listen a lot. This is a painful journey for most of our clients and we would be remiss if we didn’t sit back and listen to our guests as they tell their story of what happened to them and overwhelming debt. 

It seems that almost everyone in this country has one thing in common-student loans.  You receive this extensive training, only to find out there are no jobs available in that field, and the skills are non-transferable.  

Chapter 7 Bankruptcy is a bankruptcy where you do not make payments back to your creditors. Instead, your liability on the debt id “discharged” in bankruptcy. Once discharged in bankruptcy, you are no longer liable on the debt, tax free, forever. So while the creditor will write off the debt as a loss on their tax returns, the debt forgiven is not taxable to you under the IRS Code. The IRS Code basically says whatever debt is forgiven as a result of a Title 11 Bankruptcy, which Chapter 7 Bankruptcy is, is not taxable to you. The tax form you should file with your tax return is IRS Form 983.

If you file a Chapter 7 Bankruptcy, what debts are discharged? This is an excellent question I was just asked a few days ago. This person had some unemployment overpayments, child support, and student loan debt plus about 65k in credit card debt.

If you are like me and have high anxiety, having debt would cause you to raise this question. If I file Chapter 7 Bankruptcy in Minnesota, can I keep my home? When you file Chapter 7 Bankruptcy in Minnesota, you are able to keep your home. The reason you are able to keep you home is this; there are state of federal exemptions you can use which allow you to keep your home. If you have a lot of equity in your home, you likely will need to use the Minnesota exemptions. If you don’t have a lot of equity in your home, you will likely use the federal exemptions. Do not worry about which set you should use as a quality Minnesota bankruptcy firm will help you with this.

I know this headline seems a little silly. But if you have anxiety, this headline is spot on. Yes, people not only survive bankruptcy, they thrive after bankruptcy. Just a few weeks ago I had a former client call me. He said he was in our neighborhood, driving by one of our buildings, and he was reflecting about his own story. He said he remembers being terrified about the prospect of filing bankruptcy. But, he said, after he filed the bankruptcy and got his life back, he never once has regretted the decision to file.

 At Kain & Scott, we never have potential or current clients receive legal advice from a paralegal. Any legal advice dispensed is always dispensed to you by a licensed Minnesota bankruptcy lawyer. Trouble is, not everyone thinks that it is illegal and unethical for paralegals to give legal advice to Minnesotans suffering from overwhelming debt. 

 A Chapter 13 Bankruptcy is a government sponsored debt consolidation plan. It is government sponsored because our legislators enacted Chapter 13 Bankruptcy into law under Title 11 of the U.S. Code. 

The Bankruptcy Code lays out the parameters for who can file a Chapter 7 Bankruptcy. Many of these requirements can be found in Section 109 of the Bankruptcy Code, “Who may be a debtor”. As to who qualifies for a Chapter 7 discharge one needs to look at Section 707 and Section 727 of the Bankruptcy Code. When you put these provisions all together you get a better picture of who can file a Chapter 7 Bankruptcy and who can receive a Chapter 7 Bankruptcy discharge. These two things are quite different.

When you first realize the boulder coming down the hill is going to run you over. I cannot tell you how many times I have heard clients say, “I just wished I had not waited so long to file.” Personally, I think human beings are far too rough on themselves. We wait far too long before we reach out for help. I think our pride and our vanity gets in the way of taking medicine we often need to take to cure the illness faster. After all, when your finances are sick, isn’t that what you are supposed to do? Find the medicine to cure the ailment and take it? That way, you can move on faster with your life.

The other day, I had a caller ask me is there such a thing as a COVID 19 bankruptcy? I said that is interesting question and the answer is yes and no. No, there is no specific bankruptcy called COVID 19 bankruptcy but yes there are plenty of bankruptcies that are the direct result of COVID 19. It is the same thing as when someone asked about whether there is a bankruptcy dedicated to just medical bills, you know, like a medical bankruptcy. The answer is the same. No, there is no such thing as a medical bankruptcy but medical bills cause a lot of bankruptcies.

Bankruptcy requires extensive financial disclosure. All debts are listed in your bankruptcy and as well as all of your assets. Even the debts on secured property and the non-dischargeable debts are listed in your bankruptcy. 

It is natural to want to know how much a Chapter 7 Bankruptcy costs. What are the attorney’s fees and court costs? It can feel a little bit like getting smacked when you are already down. But let’s walk through a typical scenario. Let’s assume you have 50k in unsecured debt that is causing you an enormous headache. You decide to file Chapter 7 Bankruptcy and get your life back which is a smart move. Let’s assume further that your payments on the 50k in debt was $2400.00 per month. Finally, let’s assume you have 3 judgments that have already been entered against you.

There are limits on how often you can receive a discharge in a bankruptcy.  The discharge is where the debtor is released from the liability on their unsecured debts.  

This is an excellent question. There are misconceptions out there about what a Chapter 13 Bankruptcy is and how it works. Many people mistakenly think that when you file a Chapter 13 Bankruptcy, and make payments back to your creditors, you are paying all your debt in full. In the vast majority of cases this is not true.

 A Chapter 13 Bankruptcy is a government sponsored debt consolidation program. It is government sponsored debt consolidation program because it is contained under Title 11 of the United States Bankruptcy Code. Built into federal law is a government sponsored debt consolidation program that can be used by many Americans as a tool to get a handle on their debt problem.

 Chapter 7 and Chapter 13 Bankruptcy are like different sides of a coin. They are as different as night and day. When most people think about bankruptcy they think about Chapter 7 Bankruptcy. And a lot of people are confused about what a Chapter 13 Bankruptcy is, and is not.

A Chapter 7 Bankruptcy is a bankruptcy where you do not make payments back to your creditors. Your liability for your debt goes away and you don’t make any payments back to your creditors. You say, well what’s the catch because this sounds too good to be true? There really isn’t a catch but the focus in a Chapter 7 Bankruptcy is on your assets. If your assets are all “exempt” that means they cannot be taken by a Chapter 7 trustee and used to satisfy your debts. At the end of a 4 month process, whatever debts don’t get paid off, get wiped out, tax free. The vast majority of Chapter 7 Bankruptcies work just like stated.

A Chapter 7 Bankruptcy is a bankruptcy where your liability on your debts goes away and you do not make payments back to your creditors. Instead, the focus is on your assets not your income. With assets, the question is, are all your assets protected or are some of them not protected and you will lose. Most people who file bankruptcy in St. Cloud, Minnesota have no assets to lose. In other words, all the assets they own they get to keep.

Once you made the decision to file Chapter 7 Bankruptcy, you want to know how long does this process of filing Chapter 7 Bankruptcy take. The answer is approximately 4 months from the time you file the Chapter 7 Bankruptcy until the time you receive your Chapter 7 Bankruptcy discharge. But that is the 2000 foot view of the overall process.

You have decided that it is time to end the nightmare staring at you in the form of debt. You summoned the courage and now you want to plow forward. What do you do now? How do you actually file a Chapter 7 Bankruptcy? This is a great question and one has to use a lot of caution here.

A Chapter 7 Bankruptcy has often been referred to as a “fresh start” bankruptcy or like hitting a “reset” button. The reason for this is in Chapter 7 bankruptcy you do not make payments back to your creditors. Instead, your liability on those debts gets “discharged” and the creditor can no longer collect on those debts, forever.

At Kain & Scott, we pride ourselves on being able to file a bankruptcy case as quick as any other firm in the country, but the reality is that for many situations, you do not have to rush to file for bankruptcy relief. The decision of “when should you file bankruptcy” can be as important as the question “should I file for bankruptcy” in the first place. This is why it helps to go over your most-important concerns the first time you speak with an attorney to set a timeline.

This question is very simple, yet infinitely complicated, and where the law is grey a bankruptcy judge or jury will decide if any of your debts will survive a bankruptcy filing. It is 11 U.S.C. § 523 (see https://kainscott.com/us-bankruptcy-code/chapter-v/ss-ii/code-523) which states which debts will be excepted from discharge, but unfortunately there is a lot of misinformation out there on the internet about what debts you may get rid of (ie discharge) in a bankruptcy filing. The term is called “excepted” because the default rule is everything gets discharged unless there is an exception.

Filing bankruptcy creates a public record of your request for relief, but it does not mean the general public can search and look-up all the information in your bankruptcy filing. In order to look up the information in a bankruptcy, you need an account in the government’s PACER system, and you are charged for searching through this database. So, while technically most of the information in the bankruptcy filing is public, your coworkers and employer often do not have to know about the bankruptcy filing.

Secured debt can sound like a foreign term for a lot of people, but it is in fact quite a simple concept. A secured debt simply means your loan or line of credit is attached to some form of property or asset. Secured debts are commonly used for your home (ie mortgage or home equity line of credit), car and equipment loans, or there are even secured credit cards, where the line of credit is attached to funds already deposited.

What exactly does filing a bankruptcy involve? Well that largely depends on if you choose to have an experienced bankruptcy lawyer do the work for you or not. What the law requires is stated in 11 U.S.C. § 521. (See https://kainscott.com/us-bankruptcy-code/chapter-v/ss-ii/code-521). These are strict requirements which can result in you being denied a discharge in your bankruptcy, and your debt not being eliminated if you do not comply with the requirements.

When a bankruptcy case is filed you are saying to the Court, I have listed everything I own or have an interest in.

I  like to create lists when I am thinking about the positives and negatives of doing something. It could be buying a vehicle or hiring a professional etc. If you are contemplating filing bankruptcy, I would want to know what are the pros and cons of filing bankruptcy.

At Kain & Scott, we know how much courage it takes to reach out to us for help. We know because all of our former clients felt the same way you do now. And yet, what our clients found is that life on the other side of debt is beautiful. Just yesterday, I had a former client of mine call me and thank me. It was touching to hear his story. He told me I was his attorney 4 years ago in a Chapter 7 Bankruptcy. He said he was driving by our office and wanted to call me and thank me again for helping him and his wife get their lives back. He said he and his wife bought a house, bought new vehicles, and their credit scores are great! He said filing bankruptcy was the best thing he ever did and he was so thankful for help in the process.

In my last post, I wrote about issues involving IRAs in bankruptcy cases.  IRAs are a common retirement savings product and Congress and the Bankruptcy Courts have been consistent in giving retirement accounts protection from creditors in bankruptcy cases.

 Chapter 7 Bankruptcy: What is a Chapter 7 Bankruptcy? A Chapter 7 Bankruptcy is frequently referred to as a “fresh start” bankruptcy. The focus in a Chapter 7 Bankruptcy is on your assets. The vast majority of Minnesotans do not lose any assets in Chapter 7 Bankruptcy. Most assets are what we call “exempt” and are not lost to a Chapter 7 trustee. Some assets can be “non-exempt” and those assets get turned over to the estate and liquidated and the proceeds used to pay down your debt. Whatever debt that doesn’t get paid off gets wiped out, tax free, forever. These debts are typically in the nature of credit card debt, unsecured loans, personal guarantees, trade payables etc.

I recently read one of our Google reviews. It was a review that was describing how thankful our client was that we do all the work. He was also thankful for us doing things behind the scenes he was not aware needed to be done--- because we do them without saying anything to the client.

Perhaps the most common and important question I get from people: “is my home protected in a bankruptcy or do I have to give it up?” The short answer to the question is a qualified YES.

Which is better, a Chapter 13 Bankruptcy or a Chapter 7 Bankruptcy? Honestly, the answer is it depends! Sometimes, you don’t have much of a choice in the matter. As a general rule, if you have the ability to pay back some of your debt you are expected to do so. That means a Chapter 13 Bankruptcy. If you don’t have the ability to pay back your creditors, than maybe we think about a Chapter 7 Bankruptcy. I wish the world was always that simple. Unfortunately, it is not.

Financial trouble brings with it a boatload of negative emotions.  People dealing with money problems experience stress, depression, anxiety and desperation.  Being in a tough spot financially can lead to a feeling of isolation – it’s embarrassing to talk with someone about these troubles, whether that someone be a friend or relative or a stranger.

In my last post I wrote about the rules regarding inheritances as property of the bankruptcy estate – and my focus was on the rules that apply to people in chapter 7 cases. But there’s another chapter that the attorneys at Kain & Scott practice – chapter 13. And inheritances in chapter 13 cases are handled a little differently.

As a society we are perpetually telling children to try new things, experience life, fail, grow, and learn. But it seems as we age, we are more reluctant to do any of those things. We like the status quo.  We never want to venture outside of our comfort zone.  But why? Are those not the things that make life worth living-that make you become a more interesting person?  Lately, I have really been trying to push myself to learning new skills.

While the clear majority of bankruptcy cases filed in Minnesota are Chapter 7 (liquidation) bankruptcies. You would be surprised how often people making $50K, $80K, $100K, or even $200K+ need to file for bankruptcy relief. While it is easy to say, “if I made that much money, I could definitely afford my bills and live a normal life.” The problem is, that unexpected events occur (which should now be more obvious than ever), which can cause people earning a high income to no longer afford their bills.

I’ve posted two recent blogs regarding the concept of property in bankruptcy cases, focusing on property that an individual may not have at the time a bankruptcy case is filed, but which the Bankruptcy Code identifies as property of the bankruptcy estate. I wrote about some common examples of this type of property – earned but unpaid wages, tax refunds, insurance residual payments and real estate commissions. The key point in these examples is that all of these not-yet-received payments were owed to the bankruptcy debtor at the time the bankruptcy case was filed – any wages, refunds, residuals or commissions earned after the filing date belong to the debtor, not the bankruptcy estate.

As attorneys that specialize only in bankruptcy law, Kain & Scott stays on top of all changes to bankruptcy law as they happen through-out the year. Whether this is related to new acts of Congress, such as under the CARES Act which provides specific relief to bankrupt debtors, or Minnesota state law, it is important your bankruptcy attorney stays on top on all changes to the law.

This has to be the most common concern expressed amongst visitors to our website and questions asked during appointments. It is not what you think. What you think will happen does not. People are always surprised to learn that your credit score and overall credit profile typically dramatically improve. Shut the front door right? How can this be true? Sometimes, the images your mind can create are pretty far-fetched. I remember thinking before I did bankruptcy work, I wonder if the “bankruptcy people” like follow you in a grocery store and inventory what you are buying. No! They certainly do not.

I totally get this feeling. I have high anxiety myself and the thought of having to file bankruptcy would be a hurdle that would not be easy for me to jump. How many of us wind up on broken roads we did not expect? If you are honest with yourself you would say every single one of us. Your intentions are wonderful but things don’t always work out the way you hoped. Consider the person who opened a business and hoped to be a millionaire. Don’t we all want this?

55% of all the people who are employed in the United States participate in some sort of retirement savings plan – whether that is a pension, a 401(k) or an Individual Retirement Account (IRA).  Congress has been clear in exempting almost all retirement accounts from administration by bankruptcy trustees.  So as a general rule, if you are thinking about the possibility of filing a bankruptcy case you do not have to worry about losing your retirement savings – 401(k)’s and pensions are not part of an individual’s bankruptcy estate and IRA’s are exempt up to more than one million dollars.  So it seems pretty clear that Congress, in passing bankruptcy laws, intended to protect people’s retirement savings from their creditors.

If you are saddled with debt, you are already stressed out beyond belief. You may also be embarrassed by your situation. At Kain & Scott, we tell you why you should never feel embarrassed about having debt and why there is definitely hope. We have helped people from all walks of life get rid of a debt problem permanently. No one likes to have debt. It sucks. But if you are suffering from a debt problem you do not have to suffer alone.

Unfortunately, there are people in Minnesota who are bent on spamming Google maps and distorting their hours of services or whether they are even actually at a location at all. I recently came across a scenario where the law firm had not been in their purported office location in almost 4 years! This is despite a live Google Map listing showing the law firm had an office at a physical location and the law firm was open like 75 hours per week. In reality, this was not their office and not only was their purported office not open 75 hours a week, they had not been there for almost 4 years.

In some situations, a debt can be discharged through a bankruptcy, but a debtor may wish to pay that particular debt. The most common example is a vehicle. Bankruptcy does not prevent a debtor from voluntarily paying a debt that would otherwise be dischargeable. The lender is protected by the security interest attached to the collateral and if the debtor cannot repay the debt, the lender may possess the right to take away the collateral.  A reaffirmed debt is treated as if the debtor never filed for bankruptcy.

A reaffirmation agreement reinstates that you agree to pay a loan under the same terms and conditions of its original contract. After you have signed a reaffirmation agreement, you are legally bound to that loan and the debt. If something physically happens to your home, you fall behind on payments, or some other breach of contract occurs, you are bound to pay the debt owed after insurance or a foreclosure sale.

There is an effort under way to clean up Google Map Business Listings that are complete crap. The effort is called “stop crap on the maps”.  I recently came across 7 Google Map Listings from a single lawyer who claims to have 7 offices and they are all staffed fulltime. How can this be true? How can one lawyer be at all locations, full time? The answer is the lawyer cannot.

It occurs to me that this is a common question that is asked every day in Minnesota by hundreds of people. In practice, the amount of debt that is “enough” to file a Chapter 7 Bankruptcy will be different for everyone if you think about it. For example, if your income is limited to $675.00 per month in Social Security Disability and you have $5,000.00 in credit card debt, that $5,000.00 may not seem like a lot to you but it is for the person who is making $675.00 per month in Social Security Disability. Plus, what happens if this creditor gets a judgment against this person and threatens to freeze this individual’s bank account?

Now is a pivotal time for most of us, full of uncertainty, and the decisions you make to deal with the coronavirus and related shut-down can have a huge impact on the rest of your life and business.

Bankruptcy is not something where you pick and choose what goes away and what does not. It takes a snapshot of all your assets and all your liabilities at a particular point in time (ie the date you file bankruptcy), and removes your personal liability for nearly all of them. The question is not what do I get to keep, but what survives a bankruptcy filing? That is: loans attached to vehicles and property (secured debt), debt from a divorce, child/spousal support, criminal court ordered fines, student loans, and most taxes.

I’ve written a couple posts about property ownership and what owning property means in bankruptcy law.  Determining whether an asset is property of a bankruptcy estate, and thus subject to administration by a chapter 7 bankruptcy trustee is a critical part of a debtor’s attorney’s job.  And as I wrote earlier, one of the tricky issues is that property of the bankruptcy estate can include property that a debtor does not yet control or possess. 

The federal bankruptcy system is grounded on the grant of power contained in the United States Constitution.  This gave Congress the power to create “uniform laws on the subject of bankruptcies.”