While we are still learning all the effects of the COVID-19 coronavirus, the far-reaching impact of this pandemic and related government shutdowns will continue to be discovered for years. Many people have been directly impacted and been laid off, furloughed, or otherwise had their hours and compensation cut. But the even wider reaching are the effects will be felt for years and across nearly every industry.

As bankruptcy attorneys, we will be the first to admit that bankruptcy is challenging and has many moving parts, while also being completely unique per case. At Kain & Scott, we primarily file chapter 7 and chapter 13 bankruptcies—focusing solely on the consumer.

If you file a Chapter 7 bankruptcy in Minnesota, any secured lenders listed in your schedules are likely to send you a reaffirmation agreement to sign. More often than not, it is a bad idea to sign a reaffirmation agreement.

It is common for people to pay back their family members for past debts owed to them instead of paying back other creditors, such as credit card companies and medical providers. This can be problematic because Minnesota law requires creditors be paid back equitably.

Many divorces today are accomplished by a default order and are never litigated. In fact, many individuals draft their own divorce decrees. While this may save you money on a divorce attorney it could end up costing you in your bankruptcy.

This is one of my most frequently asked questions from a prospective bankruptcy client. When researching bankruptcy, or speaking to people that have filed, you will hear the word ‘trustee’ come up frequently. Who is the trustee?

Money problems can cause friction in relationships, and these problems can sometimes result in the relationship becoming fractured. If couples are divorcing, and they have financial problems, the lawyers for the couple will often recommend the couple file a bankruptcy case. Because of expense, many lawyers will advise that the divorcing couple file a joint bankruptcy case.

The world is changing, so we must change too. As hopeful as we all are for what 2021 will bring us, it seems COVID-19 will be sticking around for a while. Does that mean I cannot file a bankruptcy if the court houses are closed? No! In fact, just because the physical federal courthouse building is closed, does not mean we cannot file bankruptcy cases.

One of the best reasons to file for Chapter 13 bankruptcy in Minnesota is to help with tax debt. Typically, tax debt that you incurred in the last few years or from a late filed return is not dischargeable in bankruptcy.

People typically file for bankruptcy when their debt becomes too overwhelming for them to continue to handle. This is nothing to be ashamed of and thousands of people file for bankruptcy each year in Minnesota alone.

The bankruptcy law is designed to allow people to hit the “reset button” and be relieved from their legal obligation to pay past-due debt. Rarely do people regret filing for bankruptcy and many wish they had not waited so long to file when they finally do.

There are endless fines and fees associated with all walks and circumstances of life, just seems to be the theme these days. Typically, bankruptcy can assist in getting rid of the unwanted and unrelenting debt that plagues many people in society. But what about the miscellaneous fees and fines, from parking tickets, restitution, or reimbursement expenses?

Relationship break-up is one of the most common reasons why people end up filing for bankruptcy, and it is easy to put your personal finances on the back-burner while coping with the stress of losing your partner in life. The problem is, that bills still keep coming due, and your creditors are not very sympathetic and understanding when your finances (and life in general) are in flux.

Under Minn. Stat. § 550.37, subd. 4, “[a]ll wearing apparel, one watch, utensils, and foodstuffs of the debtor and the debtor's family; and (b) household furniture, household appliances, phonographs, radio and television receivers of the debtor and the debtor's family...” are exempt. See In re Irwin, 232 B.R. 151 (Bankr. Minn. 1999).

Your location is important in a bankruptcy, because it will determine the district you file in and applicable exemptions.

When a person neglects or refuses to pay their tax debt, the IRS can obtain a lien on the tax payer’s property. The federal tax lien attaches to every interest in property that the taxpayer has or acquires during the time of the lien in effect. The IRS obtains the perfected security interest in the person’s property by filing a Notice of Federal Tax Lien with the county recorder’s office. The lien remains in effect until it is satisfied or becomes unenforceable by the lapse of time.

Unfortunately, one of the main reasons for filing bankruptcy is a failing business. I often meet with clients that are business owners that know that their business is failing, but have yet to close the business.

There are usually many questions surrounding when to close a business. Here are some general tips on the best timing for closing a business and filing for bankruptcy.