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.