At Kain & Scott, PA, you - the client - are our number one priority. Each client’s situation is different; therefore, we take the time to get to know your individual financial situation so that we can help you determine the best way to resolve your financial problem.

A Chapter 7 bankruptcy has many benefits and is not as difficult to file for as you might assume.  It is also a big decision that you should not make until you have all of the facts about filing under Chapter 7.  Below are some highlights from our blogs discussing Chapter 7. If you want to know more, click on the title to read the entire blog.

Are you considering filing bankruptcy to resolve your debt problems? Do you have questions about the bankruptcy process? The Minnesota bankruptcy attorneys at Kain & Scott want to help you find an affordable solution to your financial problems.  We offer a free bankruptcy consultation so that you can get the information you need to make an informed decision on the best way to get back on your feet financially. If you are having difficulty paying your debts, ask yourself these five questions.

The following story may sound similar because many American struggling with credit card debt did not incur that debt by purchasing luxury items, taking expensive vacations, or buying unnecessary personal items. In many cases, a person struggling to pay credit card debt incurred that debt because of a financial crisis.

Are you struggling to pay your debts each month? Do you feel hopeless when you think about your financial situation? Do you wish there was someone who could help you with debt management in Eagan, MN?  If so, you are not alone.  Many people are facing the same debt management problems that you are facing. They do not have the money each month to pay their living expenses, bills, and debts.  The stress and anxiety from dealing with their financial problems leaves them feeling hopeless and defeated.

The first month you are unable to pay your bills, you may feel a little stressed but you assume you will simply catch up next month. The second month you are short on money to pay bills you may feel worse, but it is only a couple of months so you will catch up.  Unfortunately, the more time that passes, the harder it is to catch up on past due bills. This scenario may occur for a number of reasons; a loss of income, even a temporary loss of income, can quickly create a financial crisis.  If you or a family member suddenly becomes ill, the medical bills and lost time from work quickly deplete your savings. What can you do to get out of debt?

We often have clients come into our office and ask, "Why do I need to include all of my debts in my bankruptcy?" Some people want to pay back some of their creditors while others want to avoid certain creditors from knowing about the bankruptcy. For example, a client comes into the office for a bankruptcy consultation. When we discuss the types of debts she owns, she tells us that she does not want to include all of her debts in the bankruptcy case because she owes her parents money and she must pay that money back.  She also does not want her parents to know that she is filing bankruptcy. 

As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), Congress made consumer credit counseling mandatory as part of the bankruptcy filing process. A debtor must file a certification that states the debtor completed consumer credit counseling within 180 days of the filing of the bankruptcy case unless the debtor is exempt from the requirement to take the course. Exemptions are extremely limited and only apply in a very small percentage of cases.

In Minnesota, owning a boat is a rite of passage. You have probably saved up for years to be able to buy a boat but now a recent financial crisis (i.e. job loss, medical bills, divorce, etc.) has made it difficult to keep up with your bills. You just do not have any money left over each month after paying your necessary living expenses to pay your debts. You are worried that if you file for bankruptcy, you will lose your unnecessary assets such as your boat. You do not need to worry. Many boat owners file for bankruptcy relief and keep their boats they’ve worked so hard for.

It is easier than you think to get into trouble with credit cards. You begin with one card and before you realize it, you have several credit cards with substantial balances. You may have several major credit cards in addition to store credit cards. Retailers entice customers to open an account by offering a discount on your first purchase. Of course, you only receive this discount if you charge the purchase on your new account. You open the account to “save money” with the intention to pay off the credit card next month. Unfortunately, many people find themselves making the minimum payments even though their intentions were to avoid them. By the time the balance is paid off, you have paid more money in interest than you saved on your first purchase.

What is Debt Consolidation?

If you are struggling with debt, you may have considered debt consolidation but are unsure if it is right for your situation. Furthermore, you may be confused by the various types of debt consolidation. In its basic form, debt consolidation  combines several debt accounts into one monthly payment. For some people, this may be an affordable solution to debt problems; however, you should only make this decision after discussing all of your options with an experienced attorney.

Congratulations!  You have completed your bankruptcy case. You have taken the first step in improving your financial well-being for you and for your family.  Most debtors feel an overwhelming sense of relief when they complete their bankruptcy case.  They are free from the fear of losing their property, the anxiety of dealing with creditors and debt collectors, and the sense of hopelessness of never being able to climb out of debt. While you may be a little nervous about spending money, it is also a wonderful feeling to know that you can now afford the necessities your family needs. You can now focus on your life after bankruptcy rather than worrying about how you will pay your debts.

Prior to the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), the bankruptcy Means Test did not exist.  The purpose of the Means Test was to help prevent bankruptcy fraud by preventing individuals with higher income levels from filing a Chapter 7 bankruptcy to discharge their unsecured debts.  Creditors lobbied congress to pass the Means Test as a way to require individuals who DO have disposable income to pay back some of their debts in a Chapter 13 case instead of filing for a Chapter 7. Requiring those with disposable income to pay back  a portion of their debts in a Chapter 13 case provides a safeguard for creditors and reduces bankruptcy fraud.

Almost  every person who comes into our office for a free bankruptcy consultation with one of our attorneys asks the same question, “Will I lose property if I file a bankruptcy?”  After our attorneys address this common bankruptcy question (most debtors keep all of their property), one of the next common follow up questions from the person is, “Is it difficult to buy a car after bankruptcy?”

Have you fallen behind on your mortgage payments and the mortgage company is threatening foreclosure?  Have you been served with a foreclosure complaint or is your home scheduled for a foreclosure sale?  If so, you are not alone. You are one of thousands of people in Minnesota who are facing losing their home through a foreclosure process.