Last week, I wrote about some of the reasons a bankruptcy debtor can be denied a general discharge, or can lose a discharge after the court has entered it. The loss of a debtor’s discharge is a serious matter, and it usually can only happen when there has been active misconduct of a criminal, or at the very least quasi-criminal nature by the debtor relating to the bankruptcy proceedings, or the debtor’s assets. Since the reason people file bankruptcy cases is to receive a discharge of their debt, debtors need to know what kind of behavior leads to revocation of discharge so debtors do not put their discharge at risk.

Bankruptcy is our core – it’s not just what we do, it’s all we do. We believe it is a tool that should be used to help people get their lives back. Most clients come into our office feeling hopeless, helpless and defeated, but leave feeling invigorated and free. Bankruptcy allows debtors to recover and rebuild after a financial crisis, or in other words, get their lives back. However, our commitment to our clients does not stop at the filing of their bankruptcy case.

You made up your mind that you are going to going to start 2017 debt free. Smart decision! You live in Minneapolis and you have 40k in unsecured debt, your credit is shot, and you already have 2 judgments against you and the phone is ringing off the hook! To top if off, you are really worried that the creditor is going to find out where you work now because you are finally making decent money and you don’t want your wages being garnished. Of course, you don’t want the creditor calling your new employer either. That is embarrassing and could potentially cost you your job. What do you do? 

There is a moment in many client conferences I have where the prospective client asks the question: “what if this bankruptcy doesn’t go through?" What if we can’t get this relief that we need financially?” It’s a common anxiety and I try to be reassuring to clients. If we (and by we I mean both our clients and our office) do our jobs properly, they don’t have to worry about “losing” a bankruptcy case. The case is filed properly, the client participates in the process appropriately and at the end of the process, whether in a chapter 7 or chapter 13 bankruptcy case, the client receives the benefit of a bankruptcy discharge.

One of the concerns we address with almost every client is the fear of losing assets in bankruptcy. The belief that you will lose your property when you file bankruptcy is a myth perpetuated by creditors and others to instill fear so you will not consider bankruptcy as a solution to your debt. However, here is the truth: your assets can be protected during personal bankruptcy.

In fact, filing a bankruptcy case can even SAVE your assets from being seized and sold by creditors. Individuals who may potentially face foreclosure or repossession can file bankruptcy to keep their house, vehicles and personal property. When you file a bankruptcy case, the automatic stay prevents creditors from continuing or starting actions to foreclose or repossess your property.

Bankruptcy and divorce are two concepts that most people never entertain as they are beginning their adult life. As we step out into the adult world to begin building our life, we never dream that one day we may be facing overwhelming debts that we cannot pay and a failing marriage. Bankruptcy and divorce can crush your dreams, your spirit and life as you know it.

I have high anxiety. I get the anxiety and courage it takes to even think or say the word bankruptcy. While it is easier for me to think or say that word, one, I do bankruptcy work for a living and two, I am not now facing a bankruptcy. I respect those two very important distinctions between us. Many Minnesotans facing overwhelming debt are on the fence about whether they should think about bankruptcy as an option. Often times, some sort of debt consolidation wins out instead so we can say we are avoiding bankruptcy. While that is true, in the short term, long term many of those people end up filing bankruptcy anyway. Here are some of the factors we think you should consider before going down an alternative path instead of choosing bankruptcy first. 

Over the years, we have had many Minnesotans contemplate bankruptcy but what they really want to know is, if I do this, how will bankruptcy really impact my credit? If we let our home go back can we get financing to buy another one soon so we are not on the street? Can we buy a car if I need another one- I have to get to work? I completely understand these concerns our guests have and if I were in your shoes I would share the same concerns. We all have them- we need to live, a place to stay and we need vehicles to get around!

Kain & Scott’s motto and slogan is “We don’t judge you, we HELP you get your life back.” Life shouldn’t hurt and when your engulfed with overwhelming debt you deserve to get your life back! Let's face it: Life with overwhelming debt is painful and life without debt is beautiful. This is the reason we are not concerned with why you reach out to us, but most importantly how we can help you solve your debt problems once and for all. 

In my last two blogs, I looked at debts that aren’t discharged in a bankruptcy case. Two weeks ago I looked at debts that are never discharged - student loans, most income tax debt, obligations to pay child support or spousal maintenance, to name a few. These debts are presumed to be non-dischargeable in a bankruptcy case. That means that the creditor does not have to bring an action in bankruptcy court to determine that these kinds of debts are not subject to a bankruptcy debtor’s general discharge; if there is going to be a judicial determination of dischargeability, the bankruptcy debtor has to bring the action to determine whether the debt can be discharged in the bankruptcy case, and the presumption is that the debt is not subject to discharge.

We all have at least one friend or one family member that focuses on the negative aspects in every situation.  The worst part is, these are generally the least educated people when it comes to whatever the topic may be.  The topic of bankruptcy is no exception.  If you’ve discussed the idea of bankruptcy with other people, it would probably be safe to say there’s at least one person out there that has told you not to do it.  Some people get downright mad when you mention the idea to them.  Well, unfortunately, the stigma surrounding bankruptcy is the cause of such haste.  If you take the time to learn about the relief bankruptcy can provide, you can most certainly debunk whatever the naysayer’s concerns may be.  Here are four common misconceptions and the reasons why they’re not entirely true:

I seldom like to write about ourselves. I guess it’s my Minnesota upbringing that makes me shy away from tooting our own horn for any reason. But, then it dawns on me, we have to tell our story so our Minnesota guests can understand who we are and why it’s important to those of you reading this blog. If you are considering filing a bankruptcy in the state of Minnesota, this blog is important to you- keep reading!

Finding and meeting a Bankruptcy Lawyer to help you get your life back is very important. This is an emotional time for you and you need someone who understands what you are going through. With this in mind, let me tell you who Kain & Scott is.

Last week, I wrote about 8 debts that a bankruptcy debtor may have that are not discharged, even if the bankruptcy client receives a “general” discharge. The kind of debts I wrote about - child support, most taxes, student loans, to name a few - are debts that are never discharged in a bankruptcy case.

People who file a bankruptcy with the types of debts that are never discharged must bring a lawsuit against the creditor in bankruptcy court if they feel, for some reason, that the debt in question should be discharged, despite its characterization. It’s up to the debtor to do this; if the debtor does nothing to contest the non-dischargeability of the debt, the bankruptcy debtor remains liable for the debt after discharge.