One of the most frequent questions I get from prospective clients in Eden Prairie, Minnesota is: “What happens to my credit after filing bankruptcy?” Oftentimes, my Eden Prairie, Minnesota clients are asking because they are worried that a bankruptcy filing will hurt their credit or make it more difficult for them to get approved for financing in the future. One of the greatest benefits to filing bankruptcy is that it is often the quickest way to improve your credit and get quality financing.

When I meet with clients I often hear the phrase, “I am embarrassed I have to file bankruptcy”. The truth of the matter is no one wants to be the position where they are asking for help, but we all find ourselves in that position at some point. We may not all need the same type of help, but at some point everyone has to rely on someone else. There is no shame in needing help. Bankruptcy is a legal way for individuals to get the help they need. There are unforeseen and sometimes foreseen circumstance that individuals can find themselves in that are just insurmountable.

A bankruptcy consultation typically occurs when a person seems to have run out of options. Whether it’s medical debt, trying to catch up on bills, divorce, foreclosure, etc., we completely understand that it is a difficult decision to decide to give us a call. Let us be the advocate, the listener, the adviser when life has taken some unexpected turns.

Since this pandemic has begun, it has changed our day-to-day lives in major ways. It has also drastically affected the court buildings and court systems throughout the nation. As part of the Chapter 7 and Chapter 13 bankruptcy process, there is a hearing with a trustee, referred to as a 341 meeting of creditors. This is a hearing where creditors have an opportunity to ask questions on the record regarding the debtor—it is very common for creditors to not appear though.

Debt is a common threat that plagues businesses and individuals alike. Sometimes, the last resort is to consider bankruptcy. Do not worry, there are personal and business related bankruptcy options for you! But first, let’s discuss the basics of business entities and debtors.

In March of this year, Congress passed the CARES Act as a result of the Covid-19 outbreak. As you may already know, included in the CARES Act were stimulus checks to individuals and families that qualified based on certain income limitations. Qualified individuals received up to $1,200 each plus $500 per child. Many Kain & Scott clients worried that their creditors would be able to levy the stimulus checks before they received the money. Mostly, clients worried about the IRS or Minnesota Revenue taking the funds to pay for any tax debt they may have. The good news is that Congress made sure to protect the stimulus checks from most creditors, including all tax agencies. That means, not even the IRS could take a stimulus check from someone.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) includes a means test set forth primarily in subsection 707(b) of the Bankruptcy Code. The Code provides that a case may be dismissed if "the granting of relief would be an abuse of the provisions of this chapter." The formula for determining whether a presumption of abuse exists is called the means test. 

There is not a single law firm in Monticello, Minnesota that focuses 100% on Chapter 7 and Chapter 13 Bankruptcy. However, just miles to the west in St. Cloud, MN or miles to the east in Maple Grove, MN, you will find the same law firm that does 100% Chapter 7 and Chapter 13 Bankruptcy work. When looking for a bankruptcy attorney it is best to choose a law firm that dedicates 100% of their time to helping people in and around Monticello, MN get their lives back by 1) getting rid of unwanted debt and 2) using Kain & Scott’s unique and FREE 90-Day Credit Repair Program.

People suffering with debt search for a bankruptcy lawyer near me because they want their lawyer to be their rock during their difficult period of life. People who are suffering with debt want empathy and compassion, not coldness and rudeness. That is exactly why residents in and around Maple Grove who are suffering with debt search Google and other search engines for phrases like “bankruptcy lawyer near me in Maple Grove, MN”. 

I am not aware of a single bankruptcy law firm in Hutchinson, MN. What I am referring to is this: I don’t believe there is a single law firm in or around Hutchinson, MN who does 100% Chapter 7 and 13 Bankruptcy work. However, Kain & Scott is close enough in St. Cloud, MN where we have an office and numerous staff dedicated 100% to helping you get your life back. A lot of residents of Hutchinson and the surrounding area prefer to look out of town for a bankruptcy attorney for privacy reasons too. No problem—we understand. Yet with technology, we can easily meet with you easier than ever.

There are many lawyers in and around Brainerd, MN. However, there is only one law firm that is in Brainerd, MN and whose practice is dedicated 100% to the practice of Chapter 7 and 13 Bankruptcy. Why is that important to you? Let me ask you a question. Would you want an eye doctor to perform heart surgery on you? Of course not. Would you want a foot doctor to perform heart surgery on you? Of course not. Would you like a doctor who does heart, eye, and foot surgery on your heart? Of course not. You want a heart surgeon that does only heart surgery to do your heart surgery right? Of course.

Hi! I am Wes Scott, the managing partner at Kain & Scott. When you do a Google search, the title of this blog strikes at the intention of most searchers on Google. You may not be looking for a “bankruptcy attorney near me in Duluth, MN” but my point is how often have you added those words in a Google search, “near me”? A lot right? Well, if you are suffering with a debt problem in Duluth, MN, you have come to the right place. Kain & Scott is located in Duluth and we staff our Duluth office with real people during our stated hours on our Google Map listing.

Having debt is no fun. We all want to pay our bills as they become due. Yet, if you live in Rochester, Minnesota and you are suffering with not just debt, but crippling debt, bankruptcy offers a chance to get your life back sooner than later. At the end of the day, every one of us is the same. We all want to pay our bills; but, if you put me in a position where I am forced to choose between my family and my creditors, my family should and must win.

When I research a topic, I really get annoyed at reviewing a website that doesn’t give me thoughtful and meaningful information. When I land on a website that provides useful and actionable information, I am super happy! When you are researching a topic and become frustrated because the information you are coming across is trying to use a gimmick to get you to call the law firm, you should know that they are not really committed to helping you.

The Bankruptcy Means Test is a legislative attempt at a formula that measures the ability of debtors to repay unsecured creditors over a period of time. The means test is a backward-looking litmus test using mathematical computations to help the court determine if the debtor is abusing the system by filing a Chapter 7 bankruptcy. The objective of the bankruptcy means test was to remove judicial discretion from the process of determining if the abuse exists.