At LifeBack Law Firm, we see this time and time again. People who don’t spend enough time vetting their bankruptcy attorney only to regret the one they chose in haste. We have seen firms, which use software to obtain and try to prevent bad Google Reviews from even showing. It is a slimy tactic engaged in by some because their underlying business model sucks. I have also seen firms engage in geographic origin fraud. Claiming to be at locations, they have not been at in many years. One firm engaged in this took down over 200 false and fake Google Map listings!

Filing for bankruptcy can be an intimidating process. There are many misconceptions and myths surrounding bankruptcy. These myths may be preventing you from seeking help. Here are some common myths surrounding bankruptcy and why they aren’t true. 

One of the main benefits of filing for bankruptcy is that it can provide relief from the stress of debt. Dealing with relentless calls, text, emails and letters from creditors can be overwhelming while you are trying to meet your financial obligations. Bankruptcy gives you room to breathe. When you file for bankruptcy the automatic stay goes into effect immediately. The automatic stay requires creditors to stop their collection efforts. You may be wondering who long it will take for creditors to stop contacting you? 

Life happens, sometimes you fall behind on bills and debts pile up. You may have fallen behind on your child support payments. Bankruptcy offers a chance to eliminate your debt and start over. You may be wondering if you past due child support can be discharged or wiped out by a bankruptcy. While bankruptcy can provide a fresh start, not all debts can be discharged. 

A frequently asked question by people dealing with unmanageable debt who might be either moving to or from Minnesota is - where should I file?  You might also wonder whether the timing of a filing is relevant in such a situation, or whether it might be more advantageous to file in one state versus another.  Herein we shall answer this questions and analyze how the process of selecting a venue for filing bankruptcy functions.  

Legally you do not need a bankruptcy attorney to file bankruptcy. With all of the information available online you may be wondering if you actually need to hire a bankruptcy attorney. However, the process can be complex and overwhelming for those unfamiliar with bankruptcy law. Your best option to avoid any complications and pitfalls is to hire an experienced bankruptcy attorney. 

In recent years, it has become increasingly common for individuals to add the name of a friend or a relative to the title, or deed, of an asset.  This primarily occurs due to a desire to either prepare for the asset to be passed on to that person after the eventual death of the original owner, or as is often the case with bank accounts, to allow the person whose name has been added to assist in managing and monitoring the asset.  For anyone who is contemplating bankruptcy, such a circumstance might well lead them to question the extent to which the inclusion of their name on a title or deed could be relevant in bankruptcy, and if so, how?       

One common myth about bankruptcy is that you can pick and choose which debts to list. People often have a credit card or particular debt that they want to keep. People often ask, do I really have to list every debt? The answer is yes. In a Chapter 7 or Chapter 13 bankruptcy you are required to list all of your debts. The bankruptcy code says that all creditors must be treated equally. 

When facing overwhelming or unmanageable debt, people will frequently find themselves weighing the possible options available to them to address the situation.  One of these options is, of course, bankruptcy.  Another that is frequently promoted or advertised is a process known as “debt relief”.  Thus, you might naturally wonder, how do these processes differ from each other, and which one is better?  Herein, we shall answer both of these questions and delve into the implications of each of these processes.

With a Chapter 7 bankruptcy, your debt typically isn’t repaid. It is often times referred to as a fresh start bankruptcy. In a Chapter 7 bankruptcy any non-exempt assets are liquidated by the Trustee and the proceeds are used to pay towards your debts. To the extent your debts are not paid off, they get wiped out or discharged. The vast majority of Chapter 7 cases are no assets cases, meaning there are no proceeds to disburse to creditors.

Something that many people wonder when filing bankruptcy is the extent to which it can assist them in addressing any existing judgements that they might currently have related to collections actions.  Judgements are frequently pursued by creditors during the collections process because they allow the creditor to do things like access wages or bank accounts to collect from the person who the judgement is held against.  Thus, when considering bankruptcy it is very common for anyone who is going through the process to wonder how the bankruptcy filing can assist them with any judgments that might currently exist.  

Filing for bankruptcy can be confusing for those who aren’t familiar with the process. You may be wondering if there is anything you shouldn’t do before filing for bankruptcy. Certain things are normally innocent, but if done before bankruptcy, can cause problems. Below are things to avoid before filing for bankruptcy. 

In virtually any bankruptcy proceeding, one of the first things that will always take place when preparing to file is that your attorney will sit down with you to discuss the assets that you own and the values that they hold.  This is done because in any bankruptcy, the person filing must disclose their assets to the court as a part of the bankruptcy process.  One of the primary reasons that this occurs is so that your attorney can assist you in informing the court (and your creditors) of the protections, known as exemptions, that exist to safeguard the things that you own as you navigate bankruptcy.  

If you are considering filing for bankruptcy you may be concerned about whether you’ll be able to find housing. The good news is that you can rent an apartment after filing for bankruptcy.  Even though a bankruptcy will remain on your credit report for seven to ten years, you will still be able to rent a home. Fortunately, there are other factors landlords take into account when considering renting to you. 

Receiving a motion to dismiss while in a bankruptcy can be a scary or anxiety-inducing situation.  A motion to dismiss (often abbreviated as an MTD) could result in your bankruptcy being dismissed prior to the discharge taking place, which is rarely ever an outcome that you would like to see occur.  Thus, when you receive notice of a motion to dismiss, you may often wonder whether avoiding dismissal is possible and what steps you must take to ensure that dismissal does not occur.

When you can’t pay your debts, your creditors can take legal action against you to recover the money you owe. Your creditors will often file a lawsuit against you. If your creditor obtains a judgment against you they will be able to take action to enforce that judgment. This can include wage garnishments or seizing money from bank accounts.