“Timing is everything.” We have all heard the old adage. We have agreed with it at some point in our lives and rolled our eyes at it during others. Regardless of how one feels about the phrase, it certainly rings true when deciding at what point one should take the plunge and file for bankruptcy. By filing at the wrong time you may be taking needless risks with your money and assets by filing too late or not gaining all the benefits you could be by filing too early.

Change is healthy (and inevitable) fact of life. It can be welcome or not, it can be wonderful or it can be terrible. The bottom line is that we are all going to experience it in our lives –a lot!

When I need professional help of any kind, I turn to professionals. I always use a three prong approach for choosing a professional. Number 1—I want a professional who is experienced and really is the authority on the subject. Number 2—I want a professional who has awesome communication skills. I don’t baby sit professionals and neither should you. Number 3—I expect the professional to be kind to me, always—even if I am under stress and ask numerous questions, which I will.

Section 547 of the Bankruptcy Code lays out Preferences and what they are. In lay man’s terms, a bankruptcy Preference is simply when you “prefer” one creditor over another creditor. I think an example is in order. Say you paid 10k to MasterCard 30 days before filing Chapter 7 Bankruptcy. Now let’s assume during that same time frame you paid your other unsecured creditors nothing. The creditors who receive nothing say, wait a minute, because of MasterCard’s aggressive collection activities, MasterCard received 10k and the rest of us creditors received nothing and that is not fair.

For this article, we only focus on what is a fraudulent transfer under Section 548 of the Bankruptcy Code? There are other state based fraudulent transfer and conveyance statutes but that discussion is for a different blog article.

Student loan debt is what we have done to our children. The promise to the children is this: go to school, get a degree, and make more money and have a better life right? The price tag for this promise? Crippling student loan debt that can survive your death even. Like a gimmicky infomercial that promises some get-rich-quick scheme, colleges are infomercials on steroids. The price tag for an infomercial product or service may be 2-10k. The price tag for a college degree can easily exceed 100k. And who gets duped in the end and left holding the bag for this empty promise? You!

I can remember in law school the professors pounding into our heads that if you, even as a lawyer, try to represent yourself in a legal matter you have a fool for a client. This is especially true for non-lawyers who try to represent themselves in Chapter 7 or Chapter 13 Bankruptcy proceeding in Minnesota. Why? Bankruptcy is a complicated area of the law—one that takes years for a lawyer to master. 

I had a client of ours the other day comment on how she loved our website and she said something that really stuck with me. She said that are marketing presence was not “gimmicky”. That word “gimmicky” resonates with me because that is the opposite of what Kain & Scott is striving to do. We are striving to be the opposite of “gimmicky”. What did she mean by this?

When you are thinking strongly about filing a Chapter 7 Bankruptcy in Rochester, MN, you will be tempted to do one thing you definitely should NOT do before filing the bankruptcy. You will be tempted to pay family and friends on debts you owe them. We understand this temptation. But if you pay family and friends money before you file bankruptcy, so you can avoid listing them as a creditor on the bankruptcy or just because you want them to get paid back even though others creditors are not getting paid any money, that may be considered a “preference” and the trustee may be able to avoid that preference.

I was driving into work today, and as I was driving, I was reflecting on what it is exactly that we do at Kain & Scott. It was like a light bulb going off in my head. What we do at Kain & Scott is restore human dignity. We humans have imperfect brains. If we didn’t have imperfect brains life would be very dull and we would all be the same; we would all be perfect. That would really suck.

The bankruptcy process, like any other legal proceeding, is tricky, intricate, and absolutely covered in red tape and fine print. Thinking about tackling a bankruptcy filing on your own can be absolutely overwhelming. Not to mention having to battle through the shame and stigma of filing for bankruptcy. Where does a Minnesotan even begin?

It should not be surprising to be treated with common decency. One would think that it would be obvious that guests and clients are respected when they enter an establishment. It should be, but in many cases, it is not. We may forgive this at the grocery store or other retail establishments where interactions are few and fleeting. But we often hear our clients have been treated poorly at other bankruptcy law firms and we find this absolutely unacceptable. 

Those who struggle with overwhelming debt often make many sacrifices. They work overtime. They take a second job. They pick up extra shifts. They miss out on spending time with family and with friends. Life’s enjoyments are replaced with constant anxiety and worry. Debt is stressful and never takes a day off. So how can anyone expect those who are already overwhelmed by bills, creditors, and notices to call out from work to meet with a bankruptcy attorney? It is ridiculous and unrealistic to expect anyone who is already under such pressure to simply be able to take time off whenever the mood strikes!

When you are suffering from overwhelming debt, the ring of a phone or the opening of your mailbox can turn your stomach. Any phone call or letter could be from a creditor, a creditor’s collection agency, their attorney, or even all three! Any notice could be a summons or judgment. Our clients have lived in fear of creditor harassment –never knowing what lengths creditors may go to in order to try to collect. 

Many clients dread their 341 meetings (also known as the ‘Meeting of Creditors’). The thought of a court appearance sends some people into a panic. But take a deep breath, when you choose to work with Kain & Scott, we make sure you are well prepared!

You will leave your Review & Sign appointment with Kain & Scott with three things: 1) relief because you are now on the fast track to getting your life back, 2) an expected date of filing for your case, and 3) a list of documents and information (if any) that is missing and still needed before your attorney can file your case.