You file a Chapter 7 or Chapter 13 Bankruptcy and you receive your bankruptcy discharge. You think, treats for everyone right? You say, could life get any better? And then, you get a letter from the IRS stating you failed to report debt that was forgiven from one of your creditors. You start to panic. What the hell is going on right? Well, remember that your creditors who sustain a loss will always deduct that loss on their business tax returns. When they report those losses it generates a 1099 to you. Normally, 1099 income from debt forgiveness is taxable to you. You start to really panic now. You are like—wait a minute, I filed bankruptcy on over 100k in debt!

There are numerous reasons to file bankruptcy in St Cloud, MN.  But, if I had to limit my top 4 reasons to file either Chapter 7 or Chapter 13 Bankruptcy in St. Cloud, MN, here they are!

One of the questions that does arise from time to time is can one spouse file bankruptcy and the other one not? Yes, one spouse can file bankruptcy and the other one not. There is no requirement that both husband and wife must file a joint bankruptcy. Quite often, there are good reasons why a spouse does not file. Perhaps this is a new marriage and one spouse has no debt and the other spouse came into the marriage with debt wreckage from the previous marriage.

It might be logistically simple to make contact with a lawyer’s office to make an appointment to discuss the possibility of filing a bankruptcy case.  But it certainly is not easy to do this emotionally.  Many people feel embarrassed to be in a tough financial position, and these people worry that talking openly about these problems will result in a lawyer judging them as somehow not very smart or that they are financial failures.

I have high anxiety. If I can find comfort in resolving a problem without a lot of stress, well that is what I am going to do. If I was struggling with overwhelming debt, and if I had access to some interactive tool I could use to help me decide if I should a) contemplate filing bankruptcy and b) which chapter I should consider filing, I would do it in a heartbeat!

If you are drowning in debt and you are thinking about filing bankruptcy, there is one bankruptcy site you want to visit. If you are looking for a simple to use website to that will tell you what is bankruptcy, what is the process of filing bankruptcy in Minnesota, and what does it cost, you only need to go to one bankruptcy website in Minnesota. It is the largest bankruptcy website in Minnesota. The website is designed for two people. The first person who simply wants basic information and they want to set up a free strategy session to solve an overwhelming debt problem. The second person wants to dig deep and read as much as they can about bankruptcy in Minnesota.

Wouldn’t it be great if there was one website you could go to and learn about what is Chapter 7 Bankruptcy? What is the process of bankruptcy in Minnesota? What are the bankruptcy fees? Wouldn’t it be great if this information was on one website? Wouldn’t it be great if I could read and understand the information on a basic human level? Surprise! There is a website that has easy to understand information on what is Chapter 7 Bankruptcy in St Cloud, MN and what is the process and fees? Go now to www.kainscott.com and you will see just how easy it is to get your questions answered quickly.

After the creditor recovers a money judgement (usually by default), the creditor will seek to execute this judgement.  Wage garnishments are common way for creditors to enforce the judgement.  Since wage garnishments threaten your ability to survive, there are exemption statues at both the state and federal level exempting from garnishment a portion of your earnings.  The Federal Wage Garnishment Law applies throughout the United States and provides two limits: (1) a floor preventing any wage garnishment for low income workers; and (2) a maximum percentage that may be garnished for high income workers. The garnishment floor is 30 times federal minimum wage per week.  If you make less than 30 times the federal minimum wage per week, all your wages would be exempt. If you earn over 30 times the minimum wage per week a creditor could garnish the excess up to 25% of your disposable earnings. (“Disposable” wages are the earnings that remain after deducting all withholdings required by law)

In a Chapter 7 Bankruptcy if you are leasing a vehicle, it is not potential property of the bankruptcy estate and cannot be liquidated. If you own your car or are loaning the vehicle, we determine the amount of equity you have in it. Once determined, we use the applicable exemptions to protect $4,000 (federal) or $4,800 (Minnesota) of equity. If there is more equity than can be protected, an arrangement may need to be made with the trustee to avoid liquidation of the asset; such as a payment plan.

Have you ever wondered how creditors react when you file for bankruptcy? What emotions do they experience? Do they feel angry, betrayed, or perhaps indifferent? The truth is that most creditors, especially large institutions, have a surprisingly unemotional response to bankruptcy filings. Let's delve into the reasons behind this and address some common concerns about creditor reactions.

This the name of a book published by Minnesota’s LARGEST bankruptcy law firm—Kain & Scott. We think the title of the book says it all. We know how much courage it takes to face an overwhelming debt problem for good. And when you summon that courage, the professionals you reach out to for help should honor your courage with kindness, helpfulness, professionalism, and exceptional customer service.

People who are deciding if they should file a bankruptcy case often are concerned about whether they will be able to retain property that they own as they make their way through a bankruptcy case. It’s an understandable concern. Bankruptcy law sets out a list of property that is “exempt” - that is, the property can be retained by the debtor without the property being administered by the bankruptcy trustee. In chapter 7 cases, debtors have to either turn over to the chapter 7 trustee property that is not exempt or repurchase the property from the trustee. 

Never, and I mean never, call an out of state company to file bankruptcy in Rochester, MN. There are some out of state companies that solicit Rochester, MN residents to file bankruptcy with them. When you see their ad and call the number you end up in a different state. Don’t fall for it. Hang the phone up and call a Rochester, MN based bankruptcy law firm.

Meet Jamie (Fake name). Jamie called us in desperate need of help. You see, his wages were being garnished and Jamie and his significant other just had a baby. Jamie needed all of his wages to keep the roof over his family’s head and to feed his family. Having his wages garnished meant that Jamie was facing a situation where he couldn’t pay rent and pay his bills and keep food on the table.

Bankruptcy carries with it a stigma.  It is seen as a refuge for the “deadbeat” - an easy way for someone who knowingly and voluntarily entered into a credit agreement to shed a legal obligation to pay a debt.  So many of the people I meet with to discuss their financial situation express to me that meeting to talk about filing bankruptcy is really their financial last resort - that they have gone to great (and sometimes financial painful) steps to avoid having to make the appointment to start a bankruptcy filing.

 First of all, congratulations on filing bankruptcy and getting your life back! That is wonderful. If you file a Chapter 7 Bankruptcy, the timeline from when you file Chapter 7 Bankruptcy until you get your discharge is about 4 months. However, that does not mean that your case is over.