In today’s world, it is very common to be asked to provide a co-signer when seeking a loan, apartment, or other form of credit from a bank or company. It is their way of assuring themselves that they will get paid. You may think that they require this because they don’t trust people to make their payments, but in reality, they too know that bad things can happen to good people. Things in life may happen that are not under control of the debtor such as unemployment, divorce, death of a spouse or a prolonged illness. When these events happen, the duties of a co-signer may become a reality.

When you are struggling to pay your debts, the idea of losing tax refunds after bankruptcy is frightening.  Some people rely on their tax refunds each year to make necessary repairs to their home or vehicle, pay for medical checkups or buy clothes and other necessities for their children.  We often have clients say that they want to put off filing a bankruptcy case because they are worried what will happen to their tax refunds after bankruptcy. 

In today’s world, a college degree has become a necessity to acquire a good job. More often than not, students start college right after completing high school. This typically means they haven’t had much time to begin saving up for their higher education. Unless their parents were able to put money away for them, most students end up taking out student loans to pay for the bulk of their education. Then, when they complete college they have a large amount of debt waiting for them; and, if they are unable to find a good paying job right away, troubles can begin escalating quickly. It doesn’t take long for student loans and their interest rates to spiral out of control.

In our experience, when someone decides to file bankruptcy they are taking the first step in a final solution to their debt problems. There are other alternatives to bankruptcy, but they act more like a Band-Aid than a solution. Choosing bankruptcy is an important personal decision, but too often people allow other’s misconceptions about bankruptcy prevent them from resolving their debt through bankruptcy.

In some instances, overwhelming debt develops when consumers are unaware of how much they are spending. Other common reasons include job loss or health problems that drastically reduce available funds. Whatever the reason, when debt starts to consume your life, bankruptcy can provide a fresh start and a clean slate to begin rebuilding your finances. People oftentimes become overwhelmed with debt due to unexpected medical problems, divorce and other life events. One way to become more aware of your finances and prepared for unplanned events is by starting a household budget.

Under the Bankruptcy Code, spouses may file joint bankruptcy petitions or either spouse may file individually. Two of the most common reasons couples choose to file individually include:

There are many factors that can play into your decision to want to file bankruptcy. Oftentimes creditor harassment becomes too much to handle, or you come to the realization that you are in too far over your head and need some help finding a way out. Most of the time we encourage our clients to stop waiting and take action right away to get on the fast track to debt relief.

One of the most common fears when someone considers filing bankruptcy is that everyone will know about it. In reality, very few people other than your creditors or those you tell personally will ever know that you filed a bankruptcy case. Though bankruptcy filings are a matter of public record, it is not as easy to locate these records as it is to find other matters of public record, such as arrests, driving violations or real estate purchases. 

Filing bankruptcy is an important decision; it can be the first step in resolving your debt problems so that you can focus on recovering and rebuilding your finances. We understand that you may feel nervous about meeting with an attorney to discuss bankruptcy options. We also understand that you may have doubts about whether bankruptcy is right for you, especially if you are considering a Chapter 7 bankruptcy case.

People from all walks of life can end up with financial struggles; no one is immune to financial crises and overwhelming debt. The events that unfold after falling behind on payments vary by case, but one common element that is involved in many cases is a mortgage payment. For many families, mortgages are one of the highest monthly payments they have, which makes it one of the first to fall behind on. I’ve asked James and Jean if I could share their story, to show you that financial trouble can occur at any time in your life – but this chapter in your life doesn’t need to end poorly.

We receive questions from clients about eliminating tax debts in bankruptcy on a regular basis. Owing the IRS is a frightening and frustrating experience because it can seem as if no matter how hard you try, you never get out from under your IRS debt. The interest and penalties alone can quickly add up to more than the actual tax debt, making it impossible for most individuals to pay it off. When dealing with the IRS becomes too overwhelming, people turn to us for help.

If creditors are threatening to take your property or money for a debt, you may want to ask a lawyer how you can stop lawsuits, garnishments, repossessions, foreclosures or other collection efforts.

Many debtors are uncertain about the role a trustee plays in their case, so I’ve asked one of my previous clients to share his thoughts.

Do you know what to do before filing bankruptcy? Most people know very little about the bankruptcy process, unless they’ve been through it firsthand. The only information an average person has about bankruptcy is what is in the media or what other people are saying. One of our objectives is to educate individuals this process, including the steps that should be taken before filing bankruptcy. We believe that if you know what to do before filing bankruptcy, your concerns and stress about the entire process will lessen significantly.  

A myth is an idea or belief that is believed by many people to be true when in reality the idea or belief is false. Myths can be harmful because they are passed from person to person until people begin to believe them without question. Bankruptcy myths can be especially harmful, because those who truly need the financial relief bankruptcy provides won’t even consider it as an option.

Are you considering filing a personal bankruptcy? If so, I’d be willing to bet you feel like you are all alone; however, that is far from the truth. Often, when you are facing a problem, you feel as if you are alone and no one understands your situation. It is very easy to feel this way when dealing with overwhelming debt. I’d venture to say the vast majority of our clients have felt this way at some point during their struggle with debt. The frustration of not being able to pay your bills combined with the fear of losing everything you worked so hard to build is terrifying. It may seem like you are fighting an army of creditors and debt collectors with no one on your side to help you.

Personal Bankruptcy Filing Statistics

Thousands of Americans file for bankruptcy relief each day. The statistics show that bankruptcy filings have decreased in the past few years; however, the number of individuals seeking personal bankruptcy still falls in the hundreds of thousands. Over one million Americans filed for bankruptcy relief in 2013. Of that number, 14,295 of those filings occurred in Minnesota. For many, filing a personal bankruptcy remains a cost-effective and efficient way of dealing with debt.