These are words we hear all the time from residents of St. Paul, Minnesota who file bankruptcy, get rid of their debt and go through Kain & Scott’s FREE 90-Day Credit Repair Program! You would think people would regret filing bankruptcy right? You would be 100% wrong! People not only don’t regret filing bankruptcy, they really regret waiting so long to file bankruptcy!

People who have never had the burden of overwhelming debt love to spout clichés like “money can’t buy happiness” in an attempt to “comfort” their friends and family who are going through financial hardships.

It is uncommon but not unheard of –being denied a bankruptcy discharge. Most clients will never have to worry about discharge denial. A more everyday problem for filers tends to be worrying about non-dischargeable debts which is an altogether different beast.

A very real concern of our clients and of debtors in general is the possibility of a wage garnishment. This is when a creditor begins collections on a judgment against a debtor by withholding up to (but never more than) 25% of the debtor’s paycheck to pay off their debt.

Some of the most important documents that you will get from us will be the sign-up packet received after your initial consultation. If one of our attorney’s recommends bankruptcy for your situation, they will provide you with all of the documents you will need to 1) retain our services and 2) prepare for your second meeting with us: the review & sign.

Not many people know about a government sponsored debt consolidation plan available to most Americans. If people who are now laboring through traditional debt consolidation plans knew about this government sponsored debt consolidation plan, they would cry tears of joy and here is why.

How does filing Chapter 7 Bankruptcy affect my future credit? This is the number #1 concern people have filing bankruptcy in St. Paul, MN and across the state of Minnesota. The myth—you file Chapter 7 Bankruptcy and you ruin your credit for life and beyond. Why is this a myth? Well because it is not true and because what you think happens does not. In fact, it is just the opposite.

Some clients feel uncomfortable or embarrassed talking to Kain & Scott team members other than their attorney. We understand this hesitation. This process is a stressful time and speaking directly with your attorney can help to alleviate some of that tension. But we want you to know that our whole team can help to offer that reassurance as well!

Chances are if you have a secured debt listed on your bankruptcy (i.e. vehicle, second or third mortgage) you will be sent what is called a reaffirmation agreement from the lender. What this is, essentially, is a way for creditors to protect themselves from a total loss. Theoretically, you could simply stop making payments, surrender the collateral, and then have that debt discharged through your bankruptcy –a definite hit to the creditor.

Don’t get me wrong, filing Chapter 7 Bankruptcy is going to be the best thing you have ever done. Solving a debt problem for good feels amazing. So what is the thing you need to look out for? Unfortunately, there are people who prey on people who are in debt. They play on your fears and tug at your heart strings.

Knowing just what to expect can go a long way towards easing any nerves that come with meeting a bankruptcy attorney. If you have never filed for bankruptcy before, you may not have a single clue as to what a consultation will entail.

The answer is yes! Life can hit you in unexpected ways and sometimes the hits keep coming. A number of our clients have filed for bankruptcy multiple times –and filed with our law firm multiple times.

When my cousin was lamenting over his finances at our last family get together, I made the (apparent) mistake of asking why he doesn’t consider talking to a bankruptcy attorney. He was aghast –eyes like saucers, jaw practically on the floor, “Oh no, no, no.” And, since the holiday had been dull so far –I challenged him. “Why not?”

One of the most important terms and concepts for debtors during bankruptcy is “automatic stay.” The automatic stay is a big old stop sign between you and your creditors. For either a Chapter 7 or a Chapter 13, from the time of filing to the time of discharge the automatic stay stops creditors from collecting on your debts with them.

 A mandatory step during a bankruptcy filing is the completion of a U.S. Trustee certified credit counseling course. Many people worry about this –is it a test? A class they must attend? I have even had one client ask if the credit counseling is a punishment!

We’ve all seen or heard commercials advertising debt consolidation as the ideal way to escape financial difficulty. Have trouble paying your bills? Call us to fix all your problems! But while the actors in these commercials are overjoyed after one call, debt consolidation often is not a long term solution.