A Chapter 7 Bankruptcy is sometimes referred to as a “fresh start” bankruptcy. It’s like hitting the reset button and starting over again or taking a mulligan in golf. It is a wonderful tool that can be used by residents in and around Duluth, MN to get rid of unwanted debt. Each year many Duluth residents opt to get their lives back quickly and are now living without overwhelming debt.

Unfortunately, we see situations like this all too frequently. We get people who call us up and say basically, can you help us with our bankruptcy? The attorney we hired goofed up and now will not call us back. You would be shocked at how many times Kain & Scott gets this type of phone call. I feel bad for these people but I also wonder, had these good people spent a few more minutes researching Minnesota bankruptcy attorneys, could they have found someone better?

Raise your hand if you have been affected in some way by the Coronavirus? That will be all of us. Now raise your hand if you have been financially devastated by the Coronavirus? That is a lot of us. Now, raise your hand if you wanted to be negatively financially impacted by the Coronavirus? Of course you did not.

Cross-collateralization is a common practice used by credit unions, where one piece of collateral—such as your vehicle—secures multiple loans. This means if you have a car loan and later take out a personal loan from the same credit union, your car could be used as collateral for both debts. As a result, even if you pay off your car loan, the credit union may still hold the title to your vehicle until all other loans are repaid.

On March 27, 2020 the CARES Act was signed into law, which among many things, provided temporary student loan relief. This relief is only for federal student loan borrowers whose loans are held by the US Department of Education. This is an important point. Any private student loans are not affected by this Act, and continue to remain collectable.

Your credit score is a number that measures how likely you are to repay loans on time. It essentially assesses the risk of an individual not being able to pay back that loan.

The US Constitution authorizes Congress to enact uniform laws regarding bankruptcy. Congress created the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. The Code and Rules set forth the formal procedures and legal processes for individuals and entities experiencing debt.

Debt smothers the life out of you. Everything is dependent upon how much debt you have. Think about it, the kind of vehicle you drive, the kind of home you live in, and even the quality of food you eat is determined by the amount of debt you have. No wonder thousands of Minnesotans each year decide to get their lives back by ridding themselves of debt and repairing their credit using Kain & Scott’s FREE 90 Day Credit Repair Program.

I wonder about this question a lot. If you think it doesn’t take courage to file bankruptcy, you have never done it. My mom used to say that about raising children. She would say, “if you think raising children is easy, you have never done it.” My mom was right about that! Let me ask you a question. When you go to the doctor, and get a physical, do you like doing so? Of course not. We humans are private people and we would prefer not to be exposed. And yet we still go to the doctor. Why? Because we want to protect our health.

We know you would rather be fishing, going to the park, or spending time with your family rather than filing bankruptcy. Having debt problems cripples your life. Everything is seen through the prism of the debt you have. Can you purchase this? No, you have too much debt. Can you buy a house? No, you have too much debt. And so the story goes.

At Kain & Scott, we have two jobs. One is to help our guests eliminate debt using either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Once the debt is eliminated, we do not leave our guests hanging. We go the distance with our guests.

On March 27, 2020, Congress passed, and the President signed into law the CARES Act, designed by Congress to address the pressing financial concerns facing Americans in light of the  Coronavirus pandemic.

The preparation of bankruptcy petitions, schedules and statements, whether for a chapter 7 or a chapter 13 case involves an analysis of how much income is earned by the bankruptcy debtor or debtors.  It’s a factor in the determination of monthly income (the means test) and it’s a factor in scheduling an accurate budget in the bankruptcy schedules.

The CARES Act passed last week by Congress authorized stimulus checks based on income for most Americans.

One leading reason for people to consider filing a bankruptcy case is becoming a defendant in a lawsuit.  In many cases, being served with a lawsuit is the “last straw” that makes people who have been trying to fight off their financial problems change course and decide to file a bankruptcy case.

Every single client has unique circumstances that brings them into our office. We fully understand that bankruptcy is not what people want to be doing and for that specific reasoning, they don’t want to be in our offices. Please make note, we will never judge you or your circumstances that brought you to us—we will simply help you in the most empathetic and professional way possible.