For the last three weeks, I’ve written about the function of bankruptcy to serve the twin purposes Congress set out in passing bills that codified bankruptcy law into the Bankruptcy Code: treating creditors fairly and allowing debtors to live with dignity.  I’ve written about why the bankruptcy debtor has to list assets and liabilities accurately in her schedules, about the specific features of chapter 13, the benefits of the automatic stay in bankruptcy and the requirement that the bankruptcy debtor list all of her creditors in her bankruptcy paperwork.  This week, I’ll continue to look at how bankruptcy law and procedure seeks to meet the policy goals of Congress.

Depending on the timing, bankruptcy’s automatic stay often stops eviction actions in Minneapolis, even if the wolves are already gathering at the door.

To fully answer this question, it’s important to understand how the eviction process works in the Gopher State. In most cases, landlords give notice of the defect and an opportunity to cure. Most Minneapolis evictions are based on unpaid rent. Some other common grounds include a lease violation (e.g. an unauthorized pet or roommate), drug activity, prostitution, weapons violations, or some other public nuisance, and a holdover tenancy. This letter is not a legal eviction notice, even if it contains the E-word.

You have had a good paying job and also using your credit cards for purchases like any other person would when the unthinkable happens: you either lose your job or for some reason your income decreases.  The dam is about to break and there is no relief in sight because you now have these credit card bills that you previously had been able to pay and had every intent to pay back.  Bankruptcy seems like the best option to get your life back, but you have heard that your creditors will cry “FRAUD!” because you have been using your credit cards recently and you fear you need to wait 90 days before you can file bankruptcy.  Your worry is that you simply cannot wait any longer.  You do not want to be accused of fraud, but you also do not think you can wait 90 days before filing for bankruptcy.  You need relief sooner rather than later.  What can you do?  What SHOULD you do?

If you live in Minnesota and you are contemplating filing a Chapter 7 or Chapter 13 Bankruptcy, you might feel nervous about doing so. After all, you don’t file bankruptcy every day. You will have a lot of questions about doing so. You may feel nervous about filing bankruptcy.

In the last two weeks I’ve written about how bankruptcy "works" - the nuts and bolts of bankruptcy law so that the policy goals of bankruptcy law can be met. The two main underpinnings of bankruptcy are to treat creditors fairly and to allow debtors to live with dignity. My first blog dealt with the contents of the bankruptcy petition, schedules and statements - documents that must be filed in every bankruptcy case - and how the information contained in these documents further the policy goals of bankruptcy.

You may have heard or seen advertisements claiming that this firm or that firm offers low-cost bankruptcy filing. But do you know what that advertised “low price” will actually cost you?

Typically, if someone else pays a person’s debts, the IRS considers such payments to be taxable income. Prominent exceptions include certain student loan repayments and gift repayments. Based on that analysis, many people think the answer to this question is a resounding “yes.” But it is actually a surprising “no,” because bankruptcy discharge is different from debt repayment.

Although some bankruptcy filing records are public record, there are several very good reasons why that partial disclosure should not deter people from filing bankruptcy. Overall, bankruptcy filings are down significantly. In September 2017, consumer filings reached a ten-year low. However, many observers do not expect the downward trend to last. Instead, Northwestern University bankruptcy professor Bruce Markell expects rising interest rates to drive the number of filings back up, as distressed consumers will no longer be able to borrow their way out of financial jams in such an environment.

Don’t have any idea how bankruptcy works or what it can do for you? You’re not alone – many of our clients tell us during their free initial consultation that all they know about bankruptcy is that it is a way to get rid of debt, but are unsure how bankruptcy works and how it will affect their lives.

Last week, I wrote about the nuts and bolts of bankruptcy - how bankruptcy “works.” In doing so, I concentrated on the paperwork any bankruptcy debtor has to file with the court: the bankruptcy petition, schedules and statements.  And I wrote about those documents through the lens of the two goals of bankruptcy: to treat a debtor’s creditors fairly, and to allow the debtor to live with dignity.  This week, I want to take a deeper look at how bankruptcy law attempts to satisfy those two goals.

What happens when the unexpected happens? You are going along and unexpectedly (or perhaps it is expected), your parent passes away without a will, leaving their home to you as the beneficiary. You are now trying to juggle the mortgage payment on your parent’s home in an effort to keep the home in the family, in addition to another mortgage and your own debt. Pretty soon you realize that your parents were behind on their mortgage payments when they passed away and you get that dreaded foreclosure notice. You were barely making ends meet before and now you need to come up with additional money to save the house.

Many seniors—perhaps after a lifetime of responsible spending and financial planning—find themselves in debt later in life. Typically, an upsurge in medical bills and related expenses causes seniors to fall behind on payments; because most seniors are on a fixed income, they sometimes lack the additional resources needed to pay for ongoing treatment or hospitalizations. With constant harassment from creditors and worries about liens and other aggressive collections actions, instead of enjoying your retirement you may end up even more stressed about money than ever before.

When you are contemplating a MN Bankruptcy filing, there are several things that you should not do before filing your petition. Taking certain actions immediately prior to filing for bankruptcy relief can hurt your bankruptcy case and turn a simple bankruptcy into a complicated case, at risk of having your bankruptcy discharge denied.

Most Americans are worried about money. In fact, for about a quarter of people dealing with debt issues, the stress is bad enough to create PTSD-like symptoms. Sometimes, a few hours of moonlighting per week and some financial sacrifices in other areas are sufficient to restore financial sanity. But in many other cases, that method will not work because there is simply too much debt. Making matters worse, moneylenders call and send letters almost daily, and each new communication is a little more threatening than the last one.

I meet with prospective clients every day to speak with them about their financial problems and if and how filing a Chapter 7 or Chapter 13 bankruptcy case would help resolve the specific problems confronting them.  At Kain & Scott, our MN Bankruptcy Lawyers have a structure to these meetings - the lawyers do what is in essence an intake interview. 

If you are a resident of Minnesota, be careful about getting sucked into using services of an out of state marketing company, or out of state law firm trying to help you File Bankruptcy in Minnesota. Some of these companies have www.glassdoor.com reviews from their former employees that are scathing.