Welcome To The MN Bankruptcy Blog

Inside you will find over 500 helpful articles discussing the Chapter 7 & 13 Bankruptcy Process and other solutions for difficult financial situations.

 

    Wesley Scott

    Wesley Scott
    I love being a Minnesota bankruptcy attorney because it allows me to give people hope that, together, we can get their lives back. People call us because of business failure (many businesses fail, that is a fact of life), income drop (bad economy or otherwise), divorce (happens to many), medical problems (how can you help that?), and bad financial decisions (we have all made them!). I understand the financial pressures my clients face because I experienced many of these same pressures growing up. I know that most of my clients end up in debt through no fault of their own. I became a bankruptcy attorney to give these people the help and support they need in this time of trouble.
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    Recent Posts

    (Video) Do You Have To Include All Debt In Chapter 7?

    Posted by Wesley Scott on July 19

    You don’t make payments back to your creditors in a Chapter 7 Bankruptcy. This is the opposite of a Chapter 13 Bankruptcy where you make regular monthly payments back to your creditors through a Chapter 13 Bankruptcy trustee.

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    (Video) Do Creditors Get Paid In Chapter 7?

    Posted by Wesley Scott on July 18

    You don’t make payments back to your creditors in a Chapter 7 Bankruptcy. This is the opposite of a Chapter 13 Bankruptcy where you make regular monthly payments back to your creditors through a Chapter 13 Bankruptcy trustee.

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    (Video) Why Is Chapter 7 Referred to as a "Fresh Start" Bankruptcy?

    Posted by Wesley Scott on July 17

    You have heard this before right? A Chapter 7 Bankruptcy is sometimes referred to as a “Fresh Start” bankruptcy? But what does this mean? It means this- it means that in a Chapter 7 Bankruptcy, you do not make payments back to your creditors. At the end of about a 4 month process your liability on your debts is wiped out (discharged), forever, tax free! Now, that sure seems like a “Fresh Start” to me, how about you?

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    (Video) What Is A Chapter 7 Bankruptcy Discharge?

    Posted by Wesley Scott on July 17

    Not sure why, but when I think of the word “discharged” I think you have been discharged from duty in the military sense. Obviously, that is not what discharge means in the Chapter 7 Bankruptcy sense. When we say you have been “discharged” in the Chapter 7 Bankruptcy sense, we are referring to what happens with respect your personal liability on your debts. A discharge is granted under Section 727 of the Bankruptcy Code.

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    (Video) What Does It Mean To Liquidate Assets In A Bankruptcy?

    Posted by Wesley Scott on July 17

    The language of bankruptcy attorneys can seem like Greek to the non-attorney. What does it mean for a Chapter 7 trustee to “liquidate” assets? When would the trustee do such a thing anyway? When we say, a Chapter 7 trustee will “liquidate” assets, we mean the Chapter 7 trustee will sell the assets and reduce the physical assets to money. You can’t take physical assets and distribute those assets to creditors. Instead, you sell the assets, reduce the assets to money, and disburse those proceeds to creditors pro rata and based on a set of priorities.

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    (Video) What is a Chapter 7 “No-Asset” Case?

    Posted by Wesley Scott on July 17

    So you are reading up on Chapter 7 Bankruptcies and you come across the term “no-asset case” and you wonder what that means. The vast majority of Chapter 7 cases filed in the United States are what we lawyers refer to as “no-asset cases”.

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    (Video) Are Debts Discharge In Chapter 7 Taxable?

    Posted by Wesley Scott on July 16

    This is a great question to ask. Normally, debts that are forgiven are taxable income to you. For example, if you had 100k in debt and your creditors all said- forget about it and wiped it out that is fantastic, except, you now will have to pay taxes on the 100k. Why? Anytime an entity writes off a loss on their taxes it is income to someone else. Make sense?  Now, let’s be clear, paying taxes on 100k is better than paying 100k. If your tax bill is 35k you just saved 65k.

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    If I File Bankruptcy in Minnesota How Much Cash Can I Keep?

    Posted by Wesley Scott on July 15

    Over a third of Minnesotans have more than $1,000 which they keep for financial emergencies. Credit card payments and medical bills usually do not qualify as such. So, many Minnesota bankruptcy filers have at least a few hundred extra dollars in the bank. Sometimes, this money is not even an emergency fund. They simply need it to pay bills.

    The bad news is that, in a Chapter 7 bankruptcy, the trustee liquidates as many nonexempt assets as possible to pay the debtors’ medical bills, credit cards, and other unsecured debts. The good news is that cash is often an exempt asset in Minnesota. Even if that’s not the case, at Kain & Scott, we know how to use legal loopholes in your favor.

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    Can Chapter 13 Save My Minnesota House?

    Posted by Wesley Scott on July 14

    Most banks have very little patience when it comes to missed mortgage payments. In fact, many lenders begin pre-foreclosure proceedings after just two missed payments. So, distressed Minnesota homeowners have very little safety cushion.

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    What Really Happens When You File Bankruptcy?

    Posted by Wesley Scott on July 13

    So you decided to file bankruptcy, and get your life back. You have resolved yourself to the fact that of all the options available to you, filing for bankruptcy, getting a fresh start, makes the most sense. I am really proud of you and honor your courage and anxiety! There is a lot of fear about filing bankruptcy. You wonder what people will think of you, what will they ask you and if you have to go to court?

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    Buying a House After Bankruptcy

    Posted by Wesley Scott on July 12

    For many people, the thought of buying a house after bankruptcy is one of the reasons why they want to avoid filing for relief from their debts. They assume that once they file bankruptcy they will not be able to obtain any type of credit, including a mortgage, because of the bankruptcy.  Unfortunately, this fear keeps some people from filing a bankruptcy case or delays the decision to file bankruptcy until matters are much worse.  The bankruptcy myth that a debtor will never qualify to buy a house after bankruptcy is simply that — a myth.  

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    WHAT TO DO WHEN YOUR CHAPTER 13 PLAN DOESN’T “WORK” ANYMORE - PART 5

    Posted by Wesley Scott on July 11

    In the last few blogs, I’ve written about the choices people who are in a chapter 13 bankruptcy case have when, for whatever reason, the chapter 13 plan payments have become difficult to afford.  I wrote about simply catching up on past-due payments, or setting up a structured repayment plan, called a cure order, when the financial problem facing a chapter 13 debtor is temporary.  In my last blog, I looked at plan modification, a restructuring of the chapter 13 plan, in cases where post-bankruptcy-filing financial problems are more permanent and profound.

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    (Video) WHAT YOU NEED TO KNOW ABOUT DECLARING BANKRUPTCY

    Posted by Wesley Scott on July 10

    I am a proponent of erring on the side of filing bankruptcy. Why? Because hitting the reset button is good for you mentally and physically. Who among us wants to live with overwhelming debt that results in stress and worry that sometimes doesn’t end for years? Not me. I have high anxiety. I don’t necessarily mind problems, but I cannot have no solutions. I also don’t want solutions that delay getting relief. For, me delayed relief from a problem, is no relief.

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    (Video) Filing Chapter 7 Bankruptcy in Minnesota

    Posted by Wesley Scott on July 9

    If you live and work around Woodbury, Minnesota, and you are contemplating filing a Chapter 7 Bankruptcy, there are some things you should know. Sometimes things are not how they appear at first sight. Have you ever had the experience of thinking in your mind something was going to be really scary and then you did it, and found out it wasn’t as scary as you thought. Heck- you might have even enjoyed yourself a little!?

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    Tips for Designing a Successful Chapter 13 Repayment Plan

    Posted by Wesley Scott on July 8

    Individuals who desire to reorganize their debts under Chapter 13 of the United States Bankruptcy Code must file a proposed Chapter 13 repayment plan. As part of the Chapter 13 repayment plan, you will propose to the court and your creditors how you intend to repay your debts (often times unsecured debts only get paid pennies on the dollar-and the balance owed gets discharge, i.e. wiped out, tax free). In order to be eligible to file a Chapter 13 case, you must have a regular source of monthly income, such as wages from employment or income from self-employment, social security, pension or other reliable source that can be verified by the court. Some debtors may be able to demonstrate regular assistance from family members to satisfy the income requirements to file for Chapter 13 relief.

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    How to Reach Short Term Financial Goals After Bankruptcy

    Posted by Wesley Scott on July 7

    If you have filed bankruptcy, you have taken the first step toward recovering and rebuilding your finances. Bankruptcy gives you a fresh start, and one of the best ways to regain strong financial health is to set short term financial goals.

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