In most chapter 7 and chapter 13 cases, there is only one hearing you will need to attend.
Posted by Amanda Scharber on March 29
Posted by Wesley Scott on March 10
Are you an estate planning lawyer in Minnesota? I am not. I am the managing partner at LifeBack Law Firm, Minnesota’s largest bankruptcy law firm. And I am writing this article to highlight some issues we bankruptcy lawyers see often; including pitfalls and how to avoid them. When you meet with your estate planning clients, I suspect the subject of bankruptcy does not come up often. In other words, how is what you are doing with the client, in terms of estate planning, impacting a non-client heir who needs to file bankruptcy?
Posted by Charles Nguyen on March 8
If you receive an inheritance before filing bankruptcy, whether it’s cash or physical property, then those items may become part of your bankruptcy.
Posted by Amanda Scharber on February 28
Bankruptcy filing stops creditor collection efforts from continuing. It will stop calls, letters, statements, judgments, garnishments, and more. The protection you receive from bankruptcy comes from the automatic stay.
Posted by Charles Nguyen on January 31
You may think that your credit union is the same as a typical bank, and in many respects, it is; but, there are some differences. For example, your credit union is a nonprofit, whereas a bank like Huntington Bank, is for profit.
Posted by Charles Nguyen on January 27
Two common questions I get when I speak to clients are – what happens to my credit and how do I repair it after I file my bankruptcy? Bad news first, your credit will suffer negatively when you file. Now the good news, filing bankruptcy is often the fastest way to repair credit and obtain better financing.
Posted by Wesley Scott on January 14
Many people who file bankruptcy rely upon the support of regular child support or alimony payments to meet their basic needs, and many are owed large amounts of past due child support or alimony from the other parent. Bankruptcy law generally protects a debtor’s right to receive these domestic support benefits but this right is not absolute. When a debtor in Minnesota files bankruptcy, they may choose to use either “Federal exemptions” (those provided in the Federal Bankruptcy Code) or “State exemptions” (those provided for under the Minnesota Statutes and other applicable Federal law) to “exempt,” or legally protect their property from being taken to pay creditors. This is important because debtors in a chapter 7 bankruptcy case may have to surrender money or property that is not exempt to the trustee to pay their creditors. It is also important in a chapter 13 case, as the more property that is not exempt, the higher their monthly payment, because they are required to pay to their unsecured creditors, at minimum, the value of the nonexempt property.
Posted by Amanda Scharber on January 10
When you file bankruptcy your creditors will receive a notice of filing. This goes out to all of the creditors listed in your bankruptcy case. On this notice of filing there are certain deadlines listed that your creditors, the trustee, and you will need to abide by. The following are the deadlines listed on the notice of filing:
Posted by Wesley Scott on January 8
In a legal “Trust,” money, or other property, that is owned by a “Beneficiary,” is controlled by a “Trustee” (not to be confused with a bankruptcy trustee), whose responsibility it is to distribute the property to the Beneficiary in accordance with the terms of a written “Trust Agreement.” The person who creates the legal trust, via the Trust Agreement, is called the “Settlor,” and there can be multiple Settlors, Trustees, and Beneficiaries.
Posted by Wesley Scott on November 27
“Timing is everything.” We have all heard the old adage. We have agreed with it at some point in our lives and rolled our eyes at it during others. Regardless of how one feels about the phrase, it certainly rings true when deciding at what point one should take the plunge and file for bankruptcy. By filing at the wrong time you may be taking needless risks with your money and assets by filing too late or not gaining all the benefits you could be by filing too early.
Posted by Wesley Scott on November 26
Change is healthy (and inevitable) fact of life. It can be welcome or not, it can be wonderful or it can be terrible. The bottom line is that we are all going to experience it in our lives –a lot!
Posted by Wesley Scott on October 21
You could not find a single person who will tell you that life is easy. It is not. In fact, sometimes it seems like life is purposefully cruel –dealing blow after blow, hit after hit, and just when you think there might be a moment of relief, life kicks you again when you are down. One of life’s lowest blows is overwhelming debt. Debt creeps into your life and when it finally sinks its fangs in, it is already too late. You are buried alive by it and suffocating –already weakened by the other curveballs that life has lobbed at you. It may seem hopeless. But it is not.
Posted by Wesley Scott on October 21
I love it when I am looking to research a topic and I find the website that is the leading authority on it don’t you? If you need to research what is Chapter 7 and 13 Bankruptcy, what the bankruptcy process is like in Minnesota, and what are the fees, you need to go to www.kainscott.com, Minnesota’s LARGEST Chapter 7 and 13 Bankruptcy website. No cheesy gimmicks just quality information on what is a Chapter 7 and 13 Bankruptcy, what is the process of Chapter 7 and 13 Bankruptcy in Minnesota, and what are the fees.
Posted by Wesley Scott on October 2
Have you ever heard of the word “gimmick”? I bet you have. The word means a “trick” intended to attract attention, publicity, or business. Unfortunately, when people suffer from debt, there are companies and law firms that use tricks to betray the public’s trust. How so?
Posted by Wesley Scott on September 19
With nine full-time attorneys and five permanent staffed locations and growing, Kain & Scott always wants to ensure that we have our clients at the forefront. No matter how many offices, attorneys, or staff members our firm grows to we want to make sure that our clients always get the same top-notch service that Kain & Scott is known for.
Posted by Wesley Scott on August 20
I’ve written in earlier blogs about the decision-making involved in deciding whether filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case is the best choice for a particular client.
Posted by Wesley Scott on July 26
Since about 2000, college tuition has increased massively in most places. At the same time, banks have remained eager to lend these students lots of money, even as credit requirements elsewhere tightened. As a result, Americans now owe over $1.5 trillion in education debt. If everything goes as planned for recent graduates, paying off student loans is usually not a problem. Many people might have to put off large purchases for a few years, but that’s a price most are willing to pay.
But as we know, everything does not always go according to plan. That’s basically the reason that the United States has such a generous bankruptcy law. In most cases, the debtors simply miscalculated, and they deserve fresh starts.
Posted by Wesley Scott on July 15
Over a third of Minnesotans have more than $1,000 which they keep for financial emergencies. Credit card payments and medical bills usually do not qualify as such. So, many Minnesota bankruptcy filers have at least a few hundred extra dollars in the bank. Sometimes, this money is not even an emergency fund. They simply need it to pay bills.
The bad news is that, in a Chapter 7 bankruptcy, the trustee liquidates as many nonexempt assets as possible to pay the debtors’ medical bills, credit cards, and other unsecured debts. The good news is that cash is often an exempt asset in Minnesota. Even if that’s not the case, at Kain & Scott, we know how to use legal loopholes in your favor.
Posted by Wesley Scott on July 14
Most banks have very little patience when it comes to missed mortgage payments. In fact, many lenders begin pre-foreclosure proceedings after just two missed payments. So, distressed Minnesota homeowners have very little safety cushion.
Posted by Wesley Scott on July 12
For many people, the thought of buying a house after bankruptcy is one of the reasons why they want to avoid filing for relief from their debts. They assume that once they file bankruptcy they will not be able to obtain any type of credit, including a mortgage, because of the bankruptcy. Unfortunately, this fear keeps some people from filing a bankruptcy case or delays the decision to file bankruptcy until matters are much worse. The bankruptcy myth that a debtor will never qualify to buy a house after bankruptcy is simply that — a myth.
Posted by William Kain on June 30
Most people see bankruptcy as a last resort. Typically, that strategy is a sound one. It’s usually best to try to work things out with moneylenders before choosing a more radical path.
Posted by William Kain on June 29
When you file a bankruptcy, you must include all debts; however, not all debts are treated equally in a Chapter 13 case. For example, student loans and taxes (there are exceptions to this!) are non-dischargeable debts that survive the bankruptcy. This means the debtor is still legally liable for paying the student loans and taxes if the debts are not paid in full through the bankruptcy plan. Unsecured debts may only receive a percentage of what is owed and any balance remaining at the end of the repayment period is discharged forever. To complicate matters, tax claims are generally unsecured debts but they are afforded priority status and paid after secured claims but before general unsecured claims. As you can already see, secured debt and unsecured debt get treated differently in a Chapter 13 bankruptcy case, and it can be a bit confusing to comprehend. With this blog I am hoping it make it a little simpler, to give you a better idea of how your debts would be handled in a Chapter 13.
Posted by William Kain on June 26
This question presses upon the thousands of people who either serve at one of the National Guard bases in Minnesota or work for a firm which supports these men and women. In many cases, if a person loses a security clearance, the person also loses that job. Such a situation clearly makes the family’s financial situation worse instead of better.
Posted by William Kain on June 24
Struggling with credit card debt is stressful and confusing, but it doesn’t have to be. There are options for consolidating and eliminating your debt, including filing for Chapter 13 bankruptcy. Most clients ask, “Why choose Chapter 13 over hiring a debt consolidation company?” The answer is simple, Chapter 13 allows you to put you and your family ahead of your creditors. Let me explain.
Posted by Wesley Scott on June 21
Each year, the federal government collects over $3 trillion in individual income taxes. Some people may think that’s because taxes are so high. That probably has something to do with it. The country’s high voluntary compliance rate (82 percent) may have even more to do with it.
But it’s not all good news. A lot of money, some $320 billion according to the IRS, goes uncollected. The Service states that the main problems are underreported income, underpayment of taxes, and nonfiling. The IRS has a lot of resources with which to collect this money. Even in the downsized IRS, there are agents and accountants whose sole job responsibility is collecting that unpaid tax. These individuals have a lot of tools at their disposal. In most cases, the IRS does not need a court order to garnish wages, file property liens, or even garnish bank accounts.
Posted by Wesley Scott on June 13
In many cases, a mortgage lender begins home foreclosure proceedings after just two missed payments. Sometimes the Minnesota lender is a little more patient, but that’s certainly not true in all cases.
Pre-foreclosure basically starts a financial landslide. The moneylender usually sends an acceleration notice very early in the process. Once the lender issues that notice, the bank no longer accepts partial payments. So, the homeowner goes further and further into delinquency with each passing week.
Posted by Wesley Scott on June 12
The first thing that happens when you file bankruptcy is you feel an immediate sense of relief. Why? Because as soon as you file a bankruptcy, your creditors are banned from contacting you to collect on a pre-existing debt. There is peace in the valley, your phones no longer lite up and your mail box is full of junk mail - NOT bills!
Posted by William Kain on May 4
In my last two blogs, I’ve written about some unexpected consequences that some of our clients experience as a result of filing a bankruptcy case. These surprises come from different areas - from the fact that ACH payments can be discontinued to the fact that a lapsed car insurance policy can result in a safe driver being dropped into the risk pool when a new auto-owners policy is taken out. This week I’ll continue to write about expecting the unexpected as a result of filing a bankruptcy case.
Posted by William Kain on May 3
Absolutely not. Financial problems are so common that they touch almost everyone. Many people live paycheck-to-paycheck. So even a slight income disruption or a small unexpected expense is often devastating. One in four Minnesotans worry about money so much that they have PTSD-like symptoms. That figure is self-reported, so the actual number may be even higher.
In other words, if financial problems could affect your job, many of us would be out of work. That’s simply not a workable environment, so bankruptcy discrimination is illegal.
Posted by William Kain on May 3
Bankruptcy gives fresh starts to distressed debtors. But it uses the least restrictive means to accomplish this goal. Property rights are sacred to many people in America, and that includes a contract between a debtor and a creditor. So, bankruptcy does not interfere with that contract.
Instead, a bankruptcy discharge removes the debtor’s legal obligation to repay debt. It does not affect the collateral consequences. Assume a judge discharges past-due university tuition. The school cannot do anything to collect the amount owed. However, it can withhold the student’s transcript until the debt is paid or otherwise resolved. A bankruptcy judge does not have the authority to order the school to release the transcript.
Posted by William Kain on May 1
Last week I started writing about the collateral events in a bankruptcy case that can confuse, concern or surprise bankruptcy debtors. I looked specifically at the fact that many creditors will automatically discontinue ACH automatic withdrawals out of the bank accounts of bankruptcy debtors and that many creditors will disable a bankruptcy debtor’s ability to pay bills online (by the way, many pay-by-phone services are discontinued, also).
This week I will write about some other “surprises” that debtors can find in a bankruptcy case.
Posted by Wesley Scott on April 24
To protect their property and families, thousands of people file bankruptcy in Minnesota every year. Moneylenders want people to feel ashamed when they file bankruptcy, to discourage such actions. But most people file bankruptcy because of medical debt, divorce, unemployment, or some other situation which was totally beyond their control.
Nevertheless, there are still many impediments to filing bankruptcy in Minnesota. Some people worry about how a voluntary petition will affect their jobs. Others worry about how bankruptcy may affect their spouses, and that’s the subject of this post.
Posted by William Kain on April 23
Technically, the answer to this question is “yes.” However, there may be some debt that you do not want bankruptcy to clear.
There’s a significant difference between secured and unsecured debt. Secured debt includes things like home mortgages and auto loans. If the debtor violates the security agreement, the moneylender has the right to repossess the collateral. That right remains in place whether the debtor files bankruptcy or not. Unsecured debts are things like credit cards and medical bills. As outlined below, these debts sometimes have collateral consequences as well. But in most cases, they are quite limited.
Posted by Wesley Scott on April 20
Hi everyone! So you are on line searching for information on the basics of bankruptcy. How does it work? What are the differences between a chapter 7 and a chapter 13? Which bankruptcy looks better on my credit report? These are all great questions right? But, can someone explain them in simple terms? I can!
Posted by William Kain on April 19
One of the most common questions that I get from clients after we’ve gone through the process of preparing a bankruptcy case for filing at Kain & Scott is “what else should I know?”
It’s a perfectly understandable question - our clients have been with us at every step of the process of preparing their bankruptcy petition, schedules and statements. They’ve spoken with us at the initial stage, where we put together a “game plan” for addressing their financial problems. They’ve been with us as our assistants verify the facts of their case to make sure the information that is on the petition and schedules filed with the court is complete and accurate. And they’ve sat in with the lawyer on their case to make sure, as the lawyer and clients review the petition and schedules together, that the lawyer is satisfied that there are no legal issues that will create complications in the client receiving a bankruptcy discharge. We process a lot of information, together. But many clients want to be sure that they’ve been fully informed as to what will happen when their case is filed and what they can expect after filing and after they receive their discharge.
Posted by William Kain on April 17
Bankruptcy gives fresh starts to unfortunate yet honest debtors. This fresh start usually comes through a Chapter 13 repayment or a Chapter 7 “liquidation” bankruptcy.
Unfortunately, there is a presumption in the law that criminal and civil fines are related to dishonesty. That’s certainly not always the case. Some people make one poor decision under difficult circumstances. Others got mixed up in a bad situation they did not fully understand. Still others were simply in the wrong place at the wrong time. But the presumption of dishonesty still applies.
Posted by William Kain on April 16
Raising a family in Minneapolis is not easy from an emotional or financial perspective. Statistically, wage growth barely keeps up with general inflation. In certain areas, most notably medical bills, wage growth rates are not even close to inflation rates. As a result, thousands of your neighbors file for bankruptcy protection every year. They understand that financial problems, like many other problems in life, only get worse if you ignore them.
Despite some recent changes to the Bankruptcy Code, this law still gives the honest but unfortunate debtor a fresh start. At Kain & Scott, we do much more than help people get this fresh start. We help them maximize the opportunity.
Posted by William Kain on April 11
All bankruptcy wipes out debt. The type of bankruptcy you need to file usually depends on the type of debts you owe.
David Debtor had some unexpected medical bills last year. His daughter had emergency surgery out-of-network and he ran his car off the road one night. He now owes tens of thousands of dollars that he can’t afford to pay. He tried to retire the debt as best he could. But his payments hardly made a dent and put him behind in other areas. He’s not quite at the desperation point, but he is getting close.
Posted by William Kain on April 10
Just before Laertes went off to Paris in Hamlet, his father (Polonius) gave him a slew of fatherly advice. One suggestion was “Neither a borrower nor a lender be.”
But most of us have ignored that advice. We are both borrowers and lenders. So, it’s very important for us to understand how bankruptcy affects both groups. Many of our previous posts focus on the rights of debtors in bankruptcy. That makes sense, because we are a debt-relief law firm. But we also need to examine creditors rights in bankruptcy. Believe it or not, moneylenders are people too.
Posted by William Kain on April 2
In the last two blogs, I’ve written about the issues presented in a bankruptcy case when a small business faces financial difficulty. And I’ve concentrated on the business, not the business owner, in writing about these issues. In the last two blogs, I’ve spent some time looking at the issue of whether a business should remain open - it’s a critical first issue for business owners with money problems. This week, let’s look at the issues that business owners face when the owners have decided to close the business and wind up the financial affairs of the business.
Posted by William Kain on March 30
Wage garnishment is a very serious matter because so many Minnesotans live paycheck-to-paycheck. About half of Minneapolis families cannot pay a $400 emergency expense. The really bad news is that this figure is actually lower than it was a few years ago! As outlined below, Minnesota has very aggressive wage garnishment laws. As a result, after just one or two missed payments, many people are caught in a financial vice.
Just like it does in home foreclosure and many other situations, bankruptcy gives families both short-term and long-term solutions to wage garnishment issues. In this way, families really do get the fresh financial start which they deserve and the Bankruptcy Code guarantees.
Posted by William Kain on March 28
Credit scores are a very vague concept to most people, yet they can hold so much power over your financial well-being. Almost everybody has a credit score, and like it or not, it can affect everything from being able to open up a new credit card to determining if you will be approved for a mortgage or rental property. If you are considering filing for bankruptcy, chances are your credit score has already taken a hit, and is lower than what is recommended. You are also likely worried that if you go through with a bankruptcy, your credit score will become even lower, to a point that is irreparable. We are very happy to tell you that this is not something you should worry about.
Posted by Wesley Scott on March 7
Lawmakers in St. Paul may spend much of 2018 wrestling with a projected $188 million shortfall. While not a staggering sum, the state will surely look for new revenue sources before it trims services. So, expect the Department of Revenue to be even more aggressive than usual in collecting past-due income taxes. That’s especially true for older delinquent accounts which have not seen much activity lately.
These tactics are actually good news for Minnesota taxpayers looking to discharge their tax debts in bankruptcy. As set out below, the Bankruptcy Code sets out very specific rules in this area. Taxing authorities strictly adhere to these rules and almost never grant exceptions.
Posted by Wesley Scott on February 1
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.
Posted by Wesley Scott on January 25
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.
Posted by William Kain on January 18
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.
Posted by Wesley Scott on January 12
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.
Posted by Wesley Scott on January 8
It can happen to anyone. You fall behind on your mortgage payments and you start to panic. And trust me, there are not many things that can make you panic like the thought of losing your Bloomington home because you fell behind on the payments. However, with Bankruptcy you are in luck. Bankruptcy stops foreclosure and here's how...
Posted by Wesley Scott on January 5
So, you live in or around Monticello, Minnesota and you know you need to file bankruptcy but you are not sure which bankruptcy you need to file. There are some simple questions to ask to figure out which bankruptcy makes sense for you.
Posted by Wesley Scott on January 4
Why do Minnesotans choose Kain & Scott to file bankruptcy? Simple. Kain & Scott has the best customer service experience than any other bankruptcy law firm in Minnesota. But, don’t take my word for it, read what our former and current guests say about us online with google reviews. Kain & Scott is Minnesota’s highest Google reviewed bankruptcy law firm- period.
Posted by Wesley Scott on January 3
It’s a simple question isn’t it? I mean how do you really know if you should stop paying your bills and push the reset button? You will hear so many financial “gurus” tell you to try and avoid bankruptcy. I think these people are nuts. In fact, I would tell to you to err on the side of filing Chapter 7 Bankruptcy and getting your life back. Why? Simple. Life is short. Do you want to be bogged down in debt for eternity with crappy credit anyway or do you want to live for the future, know you can pay your bills on time, and seek a new life?
Posted by Wesley Scott on January 2
There is nothing worse than medical debt. Why? Because it is so unpredictable and uncontrollable. It’s one thing to have to go through a surgery or awful illness but it is even worse when you sit back, hopefully healthy again, and receive all of the medical bills from the illness or surgery.
Posted by William Kain on December 27
One of the top reasons debtors at our Minneapolis Bankruptcy Law Firm end up filing for bankruptcy is divorce. It is unfortunate because divorce is hard enough as is. Hurt, betrayal, anger, grief, sadness and additional emotions can consume you, plus you have to get through the muddy water divorce creates, such as dividing your assets and learning to live on your own again.
Posted by Wesley Scott on December 26
One of the common concerns that our Minnesota guests have is will my bankruptcy be published in the St Cloud, MN newspaper? I get this. When you are knee deep in debt you feel like a loser- you don’t want anyone else knowing what you are going through lest they judge you, right?
Posted by Wesley Scott on December 22
Did 2017 wreak havoc on your finances? 2018 is almost here; while you’re stocking up on champagne, decorations, and party hats to ring in the new year, you probably can’t believe that 2017 has come and gone so quickly. As you sit down to write out your resolutions for 2018, have you thought about what you can do in the New Year to finally get rid of your debt for good?
Posted by William Kain on December 21
For the past five weeks, I’ve written about the differences between chapter 7 and chapter 13 bankruptcy cases. It’s taken a lot of words to go through the differences between the two chapters. For the client considering filing a bankruptcy, the choices can be somewhat daunting, so it’s important for our clients at Kain & Scott to know as much as possible about the differing approaches to debts that are present in chapter 7 and chapter 13. Only when clients have a full understanding of the operation of both chapters, and the outcomes with respect to various types of debt can the client make an informed choice regarding which chapter is best for them.
Posted by Kelsey Quarberg on December 20
Has Mother Nature caught you off guard with unprecedented winter storms?
No matter how prepared you think you are for winter, chances are when an unexpected snowstorm hits, you find that there was something you forgot: extra batteries, driveway salt, or the ever-important loaf of bread and gallon of milk may make the difference between enjoying the winter wonderland outside or cursing the swirling white fury outside your window.
Posted by William Kain on December 19
Our married clients often have many questions regarding how filing bankruptcy will affect their spouses. The first question is usually whether the spouse must also file. The second question is
Posted by Misty Myers on December 18
If you are living in Wadena and you are thinking about debt and bankruptcy, you are probably thinking about credit cards, loans, mortgages, and things like that. What you may not be thinking about are utility bills. Yet, utility bills are often the bills that get juggled when we are living paycheck to paycheck.
Posted by William Kain on December 15
Over the last month, I’ve tried to answer one of the questions most often posed to me by prospective clients: which bankruptcy chapter is best for me? What’s the difference between the two chapters. And since this is the fourth week that I’ve spent writing on this question, the answer to those questions is obviously a bit involved. This week I’ll write some more about the differences in the way chapter 7 and chapter 13 operate - and this week we’ll look at the differences as they apply to priority unsecured debt.
Posted by Wesley Scott on December 14
As Minnesota’s oldest bankruptcy law firm, we’ve heard every bankruptcy question in the book over the last 50 years of helping Minnesotans erase their debt.
Here are some of your biggest Minnesota bankruptcy questions, answered:
Posted by Kelsey Quarberg on December 13
Has your debt landed you on the naughty list this year?
It’s that time of year when Santa is making his annual inventory of all the good and bad Minnesotans. But Santa isn’t alone: many Minnesota families are also taking a good hard look at their finances and wondering how much crunch they will feel once their credit card statements come in January. According to a recent report, the average American family spent almost $1,000 on just gifts during the 2016 holiday season and the projected expense of the 2017 season is expected to be even higher. For Minnesota families that are already struggling financially, the added cost of the holidays can turn a bad situation into a dire one.
Posted by Misty Myers on December 12
Most of us been in a position where we have been living paycheck to paycheck and have to pick and choose whether to pay certain bills or put food on the table for our families. Families should not have to go through this, but up until the point they come into my office, that is often the case. Now, sometimes one of the bills that doesn’t get paid is the mortgage. If you live in a home and the mortgage is secured by land, the home would go through the normal foreclosure process. But what happens if you live in a mobile home and the mortgage is not secured by land, and instead you rent the lot? The process is a little different.
Posted by Wesley Scott on December 11
I get this question a lot. When is the right time to think about bankruptcy? Should I even be considering it if I’m current with everything? I think it really depends on circumstances and if you can project what the next couple of months forward will look like.
Posted by William Kain on December 8
For the last three weeks, I’ve tried to answer some very commonly-asked questions: what’s the difference between chapter 7 and chapter 13 bankruptcy? The answer to that question is fairly easy - chapter 7 is a liquidation approach to money problems, while chapter 13 is a repayment program. And the mechanics of the two chapters - the preparation of a petition, schedules and statements, the filing of the petition and schedules, and the steps to obtain a discharge - are also fairly easy to explain. But since it’s taken me four weeks-worth of blogs to cover this topic, it’s the follow-up question “what’s the best chapter for us?” is more complex. This week, I’ll write some more about the differences between the two chapters.
Posted by Kelsey Quarberg on December 7
The term “full-service” is all the rage in business marketing: whether a hair salon, caterer, car wash, or accountant, every business pushes to be a one-stop solution to meet their customer’s needs. But what exactly is a full-service Minnesota bankruptcy law firm?
Posted by William Kain on December 5
One of the most frequent questions potential clients ask us is, “do I really need a lawyer to file bankruptcy?” The answer is an overwhelming “yes!” While there is no law that requires you to hire a lawyer to handle your bankruptcy, it’s a good idea and can save you a significant amount of time and money.
Posted by Margaret Henehan on December 4
One of the most common points of confusion among potential clients who are considering filing bankruptcy in Minnesota is what types of debt can be discharged.
“Is all my debt eligible?”
"What about my house and car?”
“Can I get rid of my student loans?”
“Is there anything you can do about my hospital bills?”
“I have a huge utility bill – can I file for that?”
What many people don’t realize is that not all debt is the same and, as such, not all debt can be discharged with bankruptcy, regardless of the type of Minnesota bankruptcy you file.
Posted by Misty Myers on December 1
I am a fairly private person. I think it is natural for people to want to keep certain pieces of their lives private and this includes their financial affairs, whether they are having financial problems or not. However, when people are having financial issues, they are probably a little more concerned with keeping it private. It is a humbling thing to go through and people tend to not want to advertise it. It is tough to be vulnerable and it is tough for us, as humans, to admit we are going through tough times. I understand that. It is interesting the stigma that is put on individuals who may be feeling some financial stress, yet look at the companies and banks that have been bailed out by the government. I highly doubt those entities are losing sleep over being given a second chance; at being able to access a tool to help them out of their financial troubles. You should not lose sleep over being given a second chance either. But I know that before someone files bankruptcy, sometimes they are concerned with people finding out about their second chance.
Posted by William Kain on November 30
When the lawyers at Kain & Scott meet with potential bankruptcy clients, we always make it a point to ask what questions or concerns the client has during our first appointment. Almost everyone we meet with has worries about filing a bankruptcy case, and many of the questions that spring from that worry are the same from client to client. Let’s look at some of the commonly-asked questions we get from our clients - and get some answers.
Posted by William Kain on November 28
There are better words in the English dictionary than bankruptcy. If you are not nervous about filing Chapter 7 Bankruptcy, you are weird. But to the team at Kain & Scott, suffering from overwhelming debt is not unusual or weird. It’s called life. The humility of being alive. No one dreams of getting married and going through a horrible divorce, no one dreams of starting a business and have it turn into a nightmare, no one dreams of having cancer so you can’t work or pay your bills and yet these things happen all the time.
Posted by Kelsey Quarberg on November 27
Technically, all bankruptcy records are public through the federal court’s internet-based Public Access to Court Electronic Records (PACER) service. In order to access bankruptcy records through PACER, one needs an account set up. Those in Minnetonka can create their own PACER accounts, but the average Minnetonka resident doesn’t know that. One typically is in some sort of legal field in order to know about PACER access. Further, those with PACER access would need to search your name in order to find your bankruptcy filing. The chances of one of your Minnetonka friends or relatives having a PACER account and actually searching your name is pretty low. Plus, anyone that tries to access documents through PACER must pay a fee per page that they try to access. This acts as a natural deterrent from people casually searching through PACER.
Posted by William Kain on November 24
Last week I tried to answer some of the questions that are commonly asked by clients who are thinking about filing a bankruptcy case. We talked about the impact of bankruptcy on credit scores, the removal of debts discharged in a bankruptcy case from a credit report and the amount of time needed for a client of Kain & Scott to file a chapter 13 bankruptcy case. This week, I will do my best to answer other questions that commonly come up with potential clients. And let’s start with a basic question.
Posted by Kelsey Quarberg on November 23
Technically, all bankruptcy records are public through the federal court’s internet-based Public Access to Court Electronic Records (PACER) service. In order to access bankruptcy records through PACER, one needs an account set up. Those in Eden Prairie can create their own PACER accounts, but the average Eden Prairie resident doesn’t know that. One typically is in some sort of legal field in order to know about PACER access. Further, those with PACER access would need to search your name in order to find your bankruptcy filing. The chances of one of your Eden Prairie friends or relatives having a PACER account and actually searching your name is pretty low.
Posted by William Kain on November 22
With the holiday season approaching, many Minnesotans are planning on using credit cards to get through the annual spending splurge. With so many purchases this time of year—gifts, airplane tickets, gas, food, and trimmings—many families drastically increase their amount of credit card debt every holiday season. A recent study suggests that the average American household will spend $422 this year on gifts for each child in their household: that’s enough green to make anyone see red!
Posted by Kelsey Quarberg on November 21
If you’re one of the thousands of Minnesota residents struggling with debt, chances are you might be faced with some form of aggressive collections actions from creditors in the near future. What many Minnesotans don’t realize, however, is that there is one way to stop foreclosure, repossession, and creditor harassment fast: by filing for Chapter 7 or Chapter 13 bankruptcy in Minnesota.
Posted by Wesley Scott on November 20
If you’re considering filing for Chapter 7 bankruptcy in Minnesota, you probably already know how important an experienced Minnesota bankruptcy attorney is to your case (and for reasons why Kain & Scott are the best bankruptcy law firm in Minnesota to handle your Chapter 7 bankruptcy, see below!)
Posted by William Kain on November 16
Is your debt snowballing out of control this winter?
If there’s one thing that Minnesotans know, it’s snow. With an average annual snowfall of between 36 and 70 inches, The North Star State has experience handling whatever Old Man Winter throws its way.
But if you have snowballing debt, you will need more than a shovel and mittens this Minnesota winter.
Posted by Kelsey Quarberg on November 14
Have you ever been tempted by “one size fits all” Minnesota bankruptcy services? Advertisements for law firms that claim to understand the complexity of your financial situation without ever meeting you or discussing your information? Law firms that tout their bankruptcy expertise, without ever having actually taken a Minnesota bankruptcy case at all, let alone one that is exactly like yours?
Posted by Wesley Scott on November 13
One of the most common question we get at Kain & Scott in St Cloud is, "How much does St Cloud Bankruptcy cost? Obviously, if you are suffering from overwhelming debt, you don’t have gobs of money laying around and this is a legitimate concern. However, filing bankruptcy can be more affordable than you would think. Let's discuss:
Posted by William Kain on November 11
Is one option, bankruptcy vs. foreclosure, a better alternative when compared to the other? While both may seem like bleak routes, one alternative is actually significantly better when compared to the other.
Posted by William Kain on November 10
For many people, one of the first experiences they have with bankruptcy is playing Monopoly. In the game, when a player doesn’t have enough assets to pay their debts either to the bank or to another player, they are bankrupt and lose the game. Complete with orange card declaring “Bankruptcy! Do not pass Go, do not collect $200,” the game makes it clear that once you reach bankruptcy, for you the game is over -- you lose.
Posted by Wesley Scott on November 9
For those of us who were practicing law at the time, the month of October, 2005 is very memorable. It was October 17, 2005 that the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act went into effect - the most sweeping change in bankruptcy law since the Bankruptcy Reform Act of 1978.
Posted by Margaret Henehan on November 8
Congratulations on making the transformative decision to file your Minnesota bankruptcy with Minnesota’s oldest bankruptcy law firm, Kain & Scott!
Now that you’re ready to erase your debt and repair your credit with Kain & Scott, we’ve created this handy article that shows you step-by-step how fast and easy your Minnesota bankruptcy can be with our bankruptcy specialists!
Posted by Erick Bohm on November 7
Some myths are fun and harmless: from Paul Bunyan to the Lost City of Atlantis, tall tales spark our imagination and inject the extraordinary into our ordinary lives.
Other myths, such as those surrounding filing Chapter 7 bankruptcy in Minnesota, are far from harmless. Without the facts, consumers can be confused by misinformation that prevents them from making sound financial decisions. Whether it’s false claims about the time and expense, or misleading information about what bankruptcy can and can’t do, these myths are just as make-believe as the Tooth Fairy and the Fountain of Youth
Posted by William Kain on November 6
One of the most frequent questions we encounter from prospective clients is why they should hire Kain & Scott as their Minnesota bankruptcy lawyers. Whether referred to us by another satisfied client or finding us on their own, clients want to know that the Minnesota bankruptcy law firm they select has their best interests in mind when eliminating their debt.
Posted by Wesley Scott on November 3
Getting your life back by filing a Chapter 7 Bankruptcy in Woodbury, Minnesota is a wonderful thing. No one regrets filing Chapter 7 Bankruptcy, but they always regret waiting so long before they filed. Why? Because getting your life back is amazing and the scary things you think are going to happen to you when you file bankruptcy, don’t. For example, most people don’t know that most Minnesotans improve their credit by filing Chapter 7 Bankruptcy. What? Really? It’s true- you have no debt after bankruptcy- and your credit score increases because of this fact.
Posted by William Kain on October 31
Before you can file for Chapter 7 or Chapter 13 bankruptcy, you must consult with a nonprofit credit counseling agency. There are two courses you must complete. One is pre-filing and one is post-filing. Most people attend these courses online but they can be completed over the phone as well. The purpose of the first course is to see whether there are any options outside of filing for bankruptcy and the purpose of the second course is to educate you on your budget moving forward.
Posted by William Kain on October 27
There are many common words and phrases that are used in bankruptcy cases - terms that aren’t commonly used in our everyday life, but that have specific meaning in bankruptcy cases. Knowing what these words and phrases mean eliminate some of the mystery that a person considering bankruptcy might experience in making a decision as to whether a bankruptcy case is in his/her best interest. Let’s look at some of these words and phrases below:
Posted by Wesley Scott on October 26
Are you a Minnesota resident that has ever wished you could get a financial “do-over”?
There are many times in life that someone could benefit from a do-over. Whether it’s because of a fender-bender, relationship gone sour, bad decision, or unavoidable circumstances, the desire to reset the clock happens to all of us at one time or another. Unfortunately, in most cases people rarely get a second chance to start over.
Posted by William Kain on October 25
Last week, I finished writing about the way that Minnesota state law treats home ownership in bankruptcy cases. If you recall, Minnesota is one of 15 states nation-wide that allow people who file bankruptcy to either use the property protections found in the Federal Bankruptcy Code or the property protections found in Minnesota Statutes to protect their interests in property - both real estate and personal property. In bankruptcy cases, when property is protected, the property is termed “exempt.” For many of my clients, the anxiety they feel regarding the decision of whether to file a bankruptcy case has to do with making sure that the property they own and want to retain is exempt.
Posted by Margaret Henehan on October 24
From the newest time-saving gadget to high-speed forms of travel, as a society we love to get things done fast. With little time to spare, our busy lives require quick and easy solutions to problems – and that includes a fast and easy way to erase debts with Chapter 7 bankruptcy.
Posted by Wesley Scott on October 23
So you live in Mankato, Minnesota and you are swimming in debt. Life with overwhelming debt is terrifying. Our Minnesota guests all say the same thing. They never regret filing bankruptcy but they always regret waiting so long to file bankruptcy. Why? Simple- life after bankruptcy is better than life before bankruptcy. Living with no debt and nothing but the future to look forward to is intoxicating to anyone.
Posted by William Kain on October 20
I’ve been writing about the interaction between a bankruptcy debtor and the debtor’s relatives for the past three weeks. During that time, I’ve looked at the complications that can arise from having relatives involved in a debtor’s financial affairs - and how almost every debtor who has been my client very much wants to keep family members from getting entangled in the debtor’s bankruptcy case.
Posted by Wesley Scott on October 19
Filing Chapter 7 bankruptcy is a great way to get a fresh start: by erasing your debt fast. Your family can get relief from harassing creditors and aggressive collections actions, while a clean financial slate can help you obtain financing for the things you need and provide a stable starting place for repairing your credit score.
Posted by Wesley Scott on October 18
The humility of being alive. Overwhelming debt can pose a problem for anyone- literally anyone. Don’t think you are immune from this happening to you because you are not. Each year, nearly 15,000 Minnesotans file bankruptcy as a result of overwhelming debt.
Posted by William Kain on October 16
Last week, I wrote about the issue of home protection in bankruptcy. And it’s a fairly complicated issue. But the bottom line is that if you are a homeowner that lives in Minnesota, and you need to file a bankruptcy case to resolve your financial issues, the equity in your home is almost certain to be exempt - that is, your home can’t be taken from you by a bankruptcy trustee if you want to protect it.
Posted by Erick Bohm on October 13
Before you can file for Chapter 7 or Chapter 13 bankruptcy, you must consult with a nonprofit credit counseling agency. There are two courses you must complete. One is pre-filing and one is post-filing. Most people attend these courses online but they can be completed over the phone as well. The purpose of the first course is to see whether there are any options outside of filing for bankruptcy and the purpose of the second course is to educate you on your budget moving forward.
Posted by Wesley Scott on October 12
From the newest time-saving gadget to high-speed forms of travel, as a society, we love to get things done fast. With little time to spare, our busy lives require quick and easy solutions to problems – and that includes a fast and easy way to erase debts with Chapter 7 Bankruptcy.
Posted by Wesley Scott on October 11
We know, everyone thinks that bankruptcy should be your last choice. However, if you are suffering from overwhelming debt in Eden Prairie, Minnesota, you really have limited options on how to solve the debt problem for good. In the end, filing Chapter 7 bankruptcy in Eden Prairie, Minnesota should be your first choice.
Posted by Erick Bohm on October 10
Have you ever wondered what life without debt would be like? Believe it or not, it’s entirely possible. Whether you’re under water on your vehicle, fallen behind on your mortgage, or have overwhelming credit card debt, bankruptcy can help you break free from the shackles and live a debt free life. In a matter of a few short months, you could have your financial life back! Here’s how…
Posted by William Kain on October 6
If you’re serious about eliminating your debt and recharging your financial future, chances are you have heard of Chapter 7 Bankruptcy. Chapter 7 bankruptcy gives you a fresh start by erasing your debt fast and immediately stopping aggressive collections actions and calls from creditors that can cause stress and anxiety, negatively impacting your quality of life. Without your debt to hold you back or creditors to harass you night and day, you have the freedom to make the most of your fresh financial start.
Posted by Erick Bohm on October 5
Here in Minnesota, it’s not unheard of to have clients who are either from Canada or frequently move back and forth. Sometimes clients will come to us with questions regarding their foreign debt. When I say foreign debt, I’m referring to debts which were incurred outside of the United States. So, what happens when someone incurs a debt outside of the United States and then moves here? Well, unlike debts which are recognized across state borders, international debts are generally not collectible.
Posted by Wesley Scott on October 4
Filing Chapter 7 bankruptcy in Minnesota is a big step towards erasing your debt and getting a fresh start. As with any major life decision, you want to make sure that you have all the facts you need to make the right decision for your family. That’s why our bankruptcy specialists at Kain & Scott have addressed the most common questions our clients have about filing for Chapter 7 bankruptcy in Minnesota.
Posted by William Kain on October 3
Financial problems make people anxious. And when clients come to visit with me about their finances, it is normal that they are anxious and stressed about their money situation. The anxiety comes, in large part, from the feeling that there’s not enough money to pay the bills - and the consequences that go along with that. The anxiety can be intense in these situations: worries about whether a person can be jailed if there is a civil judgment taken for an unpaid debt is common (no, the person is not going to jail). If a person files a bankruptcy case, who will know about it (creditors certainly will, but friends and neighbors almost always don’t).
Posted by Wesley Scott on October 2
Congratulations on making the decision to get a fresh start with Chapter 7 bankruptcy! Over the past 50 years, we have helped many Minnesota residents just like you discharge their debt by filing Chapter 7 bankruptcy. As a law firm that specializes in Chapter 7 bankruptcy, we know how to ensure that you get the most out of your bankruptcy and how to avoid common pitfalls that can prevent your debt from being discharged.
We’ve compiled a few simple tips to help you file for Chapter 7 bankruptcy in Minnesota:
Posted by Wesley Scott on September 29
For so many of our Duluth, Minnesota guests, they know they want to file bankruptcy, they just need to find out which Minnesota bankruptcy law firm is right for them. With so many to choose from it can be overwhelming. I hear some of our guests say a bankruptcy lawyer is a bankruptcy lawyer right? Aren’t they all the same? No, they are not all the same and we all have different business models.
Posted by Wesley Scott on September 28
I am high anxiety. If I were a non-attorney facing overwhelming debt, I would prefer not to meet with someone face to face. Some people are like me, high anxiety, and prefer not to meet with a lawyer to discuss this face to face. But, there are other options. At Kain & Scott, we have a unique 4 step process to filing a Chapter 7 bankruptcy, all from the comfort of your own home.
Posted by William Kain on September 23
If you’re filing Chapter 13 bankruptcy in Minnesota, you may be aware of the stress and time-commitment required when filing your bankruptcy petition without an attorney. But did you know that with the wrong bankruptcy attorney the process can still be long, difficult, and stressful?
Posted by Erick Bohm on September 22
Fear of the unknown is one of the most difficult emotions to grapple with. When it comes to bankruptcy, most people are fearful because they don’t know what the future has in store. Let me be the first to tell you, everything is going to be ok. People are fearful of bankruptcy because of what they’ve heard from others. There’s a good chance, however, these people don’t know what they’re talking about. Bankruptcy is a great option for individuals who are overwhelmed with debt. If you’re tired of the overwhelming pressure debt has caused in your life, we can help.
Posted by Wesley Scott on September 19
What is a Chapter 7 bankruptcy in Eden Prairie, Minnesota? It is the same thing it is all throughout the state of Minnesota. Bankruptcy law is based on federal bankruptcy statutes, not state law. So, what Chapter 7 bankruptcy is in Eden Prairie, Minnesota is the same thing it is all across Minnesota. Chapter 7 bankruptcy is like hitting a reset button on your financial life.
Posted by Wesley Scott on September 18
If there was a win-win solution for your debt, would you take it?
In life, as well as in finances, there are very few circumstances that could be properly called a “win-win.” As such, it is normal to be wary of promises of a win-win solution, especially in terms of eliminating your debt.
Posted by Wesley Scott on September 16
Making the decision to file bankruptcy is not easy. Most people struggle with how to handle their financial problems and only come to the conclusion to file bankruptcy after considering all other alternatives. By the time you arrive at a bankruptcy attorney’s office for a free debt consultation, you’ll have dozens of questions to ask the attorney about the bankruptcy process. While you will likely have questions to ask an attorney that are specific to your situation, it is beneficial to add the following questions to your list of topics to discuss:
Posted by Wesley Scott on September 11
When you file for bankruptcy in Minnesota, it’s important to know which type of bankruptcy is right for you. Each type of bankruptcy has its advantages and can help your family get back on track, but chances are, one type is more suitable for your family than others. While an experienced bankruptcy lawyer can best help you decide which type of bankruptcy is appropriate for your unique situation, below we explore the reasons why Chapter 13 bankruptcy is popular among debtors and may be the debt solution you need to regain control over your finances.
Posted by William Kain on September 8
Last week I wrote about a common concern that people who are thinking about filing a bankruptcy case have: the entanglement of family members in the potential client’s financial affairs. I wrote about the effect a bankruptcy has on a non-filing spouse and the issues in bankruptcy that come up when a relative has co-signed on a financial obligation with a bankruptcy debtor.
Posted by William Kain on September 7
Most of the people that I see at my office who are experiencing financial problems are feeling a significant amount of stress about their money problems. And many of the people with whom I meet are concerned about what will happen to family members if they choose to file bankruptcy. The concerns come from many fact situations.
Posted by Wesley Scott on September 6
Kain & Scott is Minnesota’s oldest bankruptcy law firm- we have been around since 1972. We have seen a thing or two when it comes to the aftermath of filing Chapter 7 Bankruptcy and have helped thousands of Minnesotans get their lives back. Here is the truth about what the effect filing Chapter 7 bankruptcy will have on your credit:
Posted by Erick Bohm on September 5
Let’s face it, nobody wants to file bankruptcy. Then again, nobody wants to struggle financially, either. Unfortunately, we all struggle with our finances at one point or another. Sometimes we find ourselves in a financial bind and we need help getting out from underneath the pressure. Bankruptcy is a powerful option that helps consumers resurface after being brought down by crippling debt. Whether the debt is caused by ever-increasing interest rates, unmanageable credit cards, divorce, or medical related issues, bankruptcy may be a great option to get your life back.
Posted by Wesley Scott on September 4
At Kain & Scott we get asked what the chances of getting denied a Chapter 7 discharge a lot and we completely understand this concern. But, let’s talk about what actually happens to the VAST majority of Minnesotans who file a Chapter 7 bankruptcy. The VAST majority get their discharge and have their debts wiped out,
Posted by Wesley Scott on September 2
Many of our clients wonder what happens after bankruptcy. The good news is, it is not that complicated. After your bankruptcy case has ended, you simply go on with your life. You live your life as you see fit. There is no one looking over your shoulder to scold you about purchasing a new pair of shoes or taking a family vacation. Creditors and debt collectors are not permitted to pick up where they left off and begin harassing you about debts that were discharged in your bankruptcy. In most cases, no one will ever know that you filed a bankruptcy case unless you tell them, they were directly involved with your bankruptcy case or you give them permission to access your credit report. In other words, what happens after bankruptcy is up to you.
Posted by Wesley Scott on September 1
So you need to file a Chapter 7 bankruptcy but you are wondering who should you hire? There are all kinds of so-called “MN Bankruptcy Lawyers" or other paralegal services who peddle their services on park benches and street corners. But, how do you really know who to trust with filing a Chapter 7 bankruptcy for you in Minnesota? At Kain & Scott, we have heard the horror stories from our guests who have met with the park bench paralegal, the lawyer who meets with you in his house, and the lawyers who advertise on TV but don’t treat their guests like rock stars. Take it from us here's how to choose the best Chapter 7 Bankruptcy Law Firm in Minneapolis...
Posted by Kelsey Quarberg on August 29
If you're struggling with overwhelming debt there's no better time than now to start searching for an Edina Bankruptcy Lawyer to help you get the debt relief you need and deserve through bankruptcy.
Posted by Wesley Scott on August 28
Are you suffering from an overwhelming debt problem? If so, at Kain & Scott, we are sorry you are going through this. Living with overwhelming debt is painful, embarrassing, and unstable. Every day you wonder who is going to come out of the woodwork and call you and harass you and your family. It’s a terrifying way to live. However, life is very humbling, and overwhelming debt can happen to anyone in Minnesota from any walk of life. I don’t care if you are a doctor, lawyer, bill collector, credit counselor, or a teacher. So, what are the ways to get rid of the debt? Essentially, there are four and here they are...
Posted by William Kain on August 25
Filing Chapter 7 bankruptcy turns lives around by eliminating debt. Our clients are proof that by filing Chapter 7 you can get a fresh start and be free from the burden of debt that is holding them back financially, emotionally and even physically. Dealing with debt problems is a heavy burden to bear and it often causes stress and anxiety. The American Psychological Association’s annual stress survey revealed that approximately one-quarter of Americans experience high levels of stress with concerns about money, jobs and the economy being named as the top sources of stress for many. Unfortunately, unpaid bills can harm your health, arguably even more than it harms your credit rating.
Posted by Wesley Scott on August 24
Eliminating debt can change your life forever, for the better. The load that is lifted off your shoulders is incredible. Those who go through bankruptcy say it best.
Posted by Wesley Scott on August 23
Wouldn’t it be nice to understand the simple differences between a Chapter 7 and Chapter 13 bankruptcy? Like, give it to me in plain English so I can actually understand my choices, right? So many lawyers talk in legalisms that are hard for most of us to understand. So here are the basic differences in simple terms...
Posted by Wesley Scott on August 21
Many individuals are worried about the potential damage that can be done to their credit score after bankruptcy. Don’t get overwhelmed; in fact, you can rest assured knowing that filing for bankruptcy is an initial step in the right direction for rebuilding your score. While you should be responsible with what you are spending post-bankruptcy, don’t be afraid to start using credit again. Responsibly using credit cards is a great way to get back on track, and begin building up your credit. Know your limits, and start small.
Posted by Wesley Scott on August 19
In some situations, debt consolidation may be an advisable solution. On the other hand, there are situations when debt consolidation is inadvisable and bankruptcy is the better alternative.
Posted by Wesley Scott on August 18
What happens to your credit after you file Chapter 7 bankruptcy is not what you think. Most of our guests are completely shocked to find out that Chapter 7 bankruptcy does not have the negative repercussions on your credit you think. We know, there is a stigma associated with filing bankruptcy. Have you ever wondered why or who really benefits if there is a stigma associated with filing bankruptcy?
Posted by William Kain on August 14
Answering the question, “When should I file for bankruptcy” is a difficult thing to do when you are immersed in the overwhelming stress caused by debt. Worrying about how you will pay your bills and take care of your family, while dealing with aggressive debt collectors and threatening lawsuits, can quickly take its toll. This is precisely when you should meet with an experienced bankruptcy attorney. Doing so before things get out of hand and you are tempted to do something drastic will payoff in the long run.
Posted by William Kain on August 14
When I meet with clients who are facing financial difficulty, I tell them that the first thing we have to decide is if they need to do something to resolve their debt issues, other than just using the same debt reduction strategies that they’ve been using up until the time we met. For the vast majority of the people I meet with, the answer to that question is yes - the reason they are in my office is that they don’t see a good financial outcome by maintaining the status quo.
Posted by Kelsey Quarberg on August 13
Are you tired of creditors pulling the strings on your finances? Do you wish you could cut the strings from your debt and improve your credit score, but don’t know how? Puppet shows are a universal children’s favorite: the bright lights, colorful scenery, and whimsical puppets delight audiences in Minnesota and beyond.
Posted by William Kain on August 12
Last week I wrote about the Requirements to File a Chapter 7 Bankruptcy Case. I wrote who (or what) can file chapter 7 case, the means testing requirement involved in chapter 7 cases, and the requirement that a chapter 7 debtor have a credit counseling briefing prior to filing a chapter 7 case. This week, I will look at the question that, while it does not come up often, can be quite important in the few cases where it is an issue: the venue of the bankruptcy case. Then I will write about what a chapter 7 debtor has to do to obtain a discharge.
Posted by William Kain on August 10
The clients with whom I meet to discuss filing bankruptcy come in all ages, and genders. Some of my clients are very low-income wage earners; others have fairly high salaries. But my clients have one thing in common: they haven’t had very much good luck financially. For many of these people, filing a bankruptcy case, whether under chapter 7 or chapter 13, is the best option they have to resolve their financial issues. For a small percentage of these people who file bankruptcy cases, the years of bad luck that they experienced prior to filing is changed suddenly when they learn that they will inherit money or property from a deceased loved-one’s estate.
Posted by Wesley Scott on August 4
When a Minnesota resident is looking into Bankruptcy, you have a wide variety of choices amongst lawyers and bankruptcy preparer vendors. The spectrum of services provided range dramatically. Remember only Lawyers can dispense legal advice. So calling the paralegal service on a park bench is probably not the best move. They cannot give you ANY legal advice. Why? They are not lawyers. If they do give you legal advice without a law license, they are committing a crime- the unauthorized practice of law.
Posted by Erick Bohm on August 3
If you’re under water on a second mortgage, you may be in luck. Chapter 13 Bankruptcy provides two options for solving this issue. Those two options are referred to as lien strip and cramdown. Both options can be advantageous to the property owner who has real estate valued at less than the amount owed on a first mortgage. These options are provided for under the law to promote property ownership while protecting individuals from overwhelming debt. Depending on your situation, one option may be more beneficial than the other. Ultimately, the question comes down to whether or not the property is your homestead.
Posted by William Kain on August 2
When you make the decision to file for bankruptcy in Minnesota, you are making the decision to erase your debts and change your life for good. But knowing which type of bankruptcy to file – Chapter 7 or Chapter 13 – can be confusing. Each type has the power to erase your debts and which is right for you is determined by your unique financial situation.
Posted by William Kain on August 1
You’ve taken a major step in regaining your financial freedom by filing Chapter 7 Bankruptcy. Congratulations on being well on your way to becoming free from debt!
Posted by Wesley Scott on July 31
There are many misconceptions and myths about filing bankruptcy. The biggest bankruptcy myth is that you will lose everything you own if you file for bankruptcy relief. Another popular bankruptcy myth is that you will never recover your good credit rating and never be able to obtain a loan after filing a bankruptcy. While there may be some truth intermingled with the bankruptcy misconceptions that clutter the internet, the fact is that filing bankruptcy does have both benefits and a few temporary disadvantages. Wondering what bankruptcy means for your future is a valid concern that many clients have when first consulting a bankruptcy attorney. It is with the help of an experienced bankruptcy attorney that many people find the answer to their question, “What does bankruptcy mean for my future?”
Posted by Wesley Scott on July 30
Most clients ask similar questions during a bankruptcy consultation. One familiar question that I am asked is “What is a bankruptcy discharge?” The immediate follow-up question is “How can it help with my debts?” Before I answer either of these questions, I tell my clients that a bankruptcy discharge is the ultimate goal for any debtor in a bankruptcy case and it is my job as an attorney to assist you through the bankruptcy process to achieve that goal. Below is a brief discussion that answers these two questions more thoroughly.
Posted by William Kain on July 29
We see individuals and families of all shapes and sizes in need of help due to financial instability and hardship. In order to portray the “true story” of filing bankruptcy in Minnesota we want to share some of our experiences with people just like you, looking for a way out of debt and a fresh start. We are going to add generalizations and change the personal details for privacy purposes. However, many debtors experience similar situations and circumstances, so these stories are likely shared by many.
Posted by Wesley Scott on July 28
When debts turn into a vicious cycle that threatens to never end, filing for bankruptcy can be a wise and prudent choice to move toward financial freedom. There are multiple types of bankruptcy that suit different situations. The best choice for you will mainly depend on your debts, assets and current income.
Posted by Kelsey Quarberg on July 21
In Minnesota, the foreclosure process takes a pretty long time. The average non-judicial (most common) Minnesota foreclosure lasts anywhere from 9 to 12 months, sometimes even longer! When faced with foreclosure, a homeowner has a few options 1) surrender the home to the bank (and potentially file Chapter 7 Bankruptcy), 2) redeem the home, or 3) file Chapter 13 Bankruptcy. Here I will discuss the pros and cons to each of these options.
Posted by Wesley Scott on July 18
As a bankruptcy attorney, I know that individuals and couples go through several stages when they are answering the question “Should I file bankruptcy?” While most consumers follow a similar process when tackling this question, not every person will follow the same exact path to decide whether or not bankruptcy is right for them. This is because each person’s or couple’s financial situation is unique; however, through years of experience and by helping thousands of clients through the bankruptcy process, my partner and I have learned that most debtors go through at least three stages before deciding if they should file bankruptcy. While not all three steps are necessary, and many may skip to the last and most important step, there is some value in each of the following steps.
Posted by William Kain on July 18
Most of the potential clients our MN Bankruptcy Lawyers meet with at Kain & Scott have defaulted on at least one of the accounts they hold. For many of the people I meet, they have been able to stay current on some accounts, but because of their financial circumstances, they have not been able to maintain current payments on all of their accounts.
Posted by William Kain on July 15
Nancy*, one of my previous clients, went into her bankruptcy kicking and screaming. Here is how she tells her story today: Filing a bankruptcy case was the last thing I wanted to do, but I had lost my job and the bills began to pile up. There was no end in sight. I hated imagining what my parents, neighbors, co-workers and friends would think when they found out that I filed bankruptcy. I tried to find another way out of debt; however, nothing I tried helped and some solutions even made the situation worse.
Posted by Erick Bohm on July 13
When was the last time you sat down and asked yourself, “how did I get here”? Chances are you say this to yourself all the time, but, truly, when was the last time you sat down and forced yourself to answer the question? If you’re like most people, you don’t spend much time with self-reflection. Self-reflection is incredibly important so you can truly understand the situation you’re in, how you got there, and how to get you where you want to be.
Posted by Wesley Scott on July 7
If you’re asking yourself this question, you may feel like you’re literally drowning in debt. You struggle to keep your head above water, but in fact, you’re barely staying afloat. If you’re feeling this bogged down with stress over debt, it’s time to take action. Consider the many benefits of filing a Chapter 7 bankruptcy. Many people dread the very thought of filing for bankruptcy, when in fact it is a positive way out to get a fresh start. Do not feel like a failure; you’re doing the right thing.
Posted by William Kain on July 6
If you are struggling with debts and dealing with creditor harassment, you are not alone. Many Americans are facing the same situation because they are unable to meet their financial obligations due to the loss of a job, a medical illness or the loss of a spouse. Whatever the reason, stress from unpaid bills is draining both emotionally and physically.
Posted by Wesley Scott on July 3
Constantly feeling like you are trying to catch up, while preventing yourself from falling further behind, is exhausting. The longer this drags on, the more tired and discouraged you become. Financial stress is known for causing personal health problems as well as relationship issues.
Posted by Erick Bohm on July 2
Are you ready to seize your financial independence from debt in Brooklyn Park, Minnesota, this Fourth of July?
Independence Day is here and, in addition to fireworks, cookouts, and family, the holiday has many Americans considering the true meaning of independence. Sure, you may have your own house, car, job, and lifestyle, but are you really independent? Or are you shackled by the weight of outstanding debt?
Posted by Wesley Scott on June 30
If your financial situation is spinning out of control and you are no longer able to make your full monthly payments on time, something needs to happen. Or, perhaps you are already in a debt management program and aren’t able to keep up with your already lowered monthly payments. There are two things that can be done.
Posted by Wesley Scott on June 28
A chapter 13 trustee will be assigned to your case when you file for bankruptcy. Think of the chapter 13 trustee’s role in your bankruptcy case similar to the role an account manager plays. This individual is appointed by the court and will manage your case from the beginning, through your entire repayment plan, at which time you will receive a discharge.
Posted by Wesley Scott on June 26
Two of the most common bankruptcy myths lead people to believe that you will lose everything you own and you will never be able to own anything in the future. Both of these are false. Most people who file bankruptcy don’t lose anything and in the future you can buy, own and possess whatever you can afford to make payments on. One of those necessary and often treasured possessions debtors fear losing is their vehicle – their mode of transportation.
Posted by William Kain on June 22
When you enter into the Bankruptcy Process in Minnesota, or in any state, you should avoid making these common mistakes. Working with a bankruptcy attorney, if you are open and honest and trust your lawyer, will generally ensure you don’t unintentionally do anything you shouldn’t.
Posted by Wesley Scott on June 21
A discharge is a legal term used during bankruptcy and refers to the elimination of your liability from your debts. If you file Chapter 7 your discharge will be granted immediately upon case closing or if you file Chapter 13, your discharge occurs after you complete your repayment period.
Posted by Wesley Scott on June 18
To initiate the chapter 7 bankruptcy process you must file a petition. Along with this petition you must file the following:
Posted by Wesley Scott on June 17
Using a Bankruptcy Attorney to help you File a Chapter 13 Bankruptcy will be one of the best decisions you make, apart from your initial decision to get your life and finances back on track by filing bankruptcy. The bankruptcy code, court procedures and filing forms are saturated with legal jargon that will complicate the overall bankruptcy process if you don’t have the assistance from a legal professional.
Posted by Wesley Scott on June 16
Your stress will begin to diminish the day you decide to file Chapter 7 bankruptcy. Taking action against your debts will take some of the pressure off – but taking action to abolish your debt completely will have you sleeping peacefully at night.
Posted by William Kain on June 15
Chapter 13 Bankruptcy is right for you if you are experiencing a temporary setback causing you to be unable to make your payments. This option provides time, allowing you to get back on schedule with your finances. You will make monthly payments though they will be reduced, interest-free and your life will be void of collection agency harassment. Chapter 13 protects your property, prevents foreclosures and repossessions and prohibits wage garnishments.
Posted by William Kain on June 12
When your debt goes unpaid for an extended period of time, creditors begin to take severe action to get their money from you. Depending on the nature of your debt, creditors may initiate foreclosure, repossession, bank levies or wage garnishment. Foreclosure and repossession are reserved for secured debt, meaning creditors can take back the property you secured against your loan. A bank levy, also referred to as non-wage garnishment, occurs when your bank account is frozen due to a creditor seeking payment from you. This and wage garnishment are common tactics used to collect on unsecured debt, such as credit card debt.
Posted by William Kain on June 11
Chapter 7 Bankruptcy is right for you if you have no assets to lose and, after paying basic monthly expenses, you have no money left to pay off debts. It gives you a fresh start and can alleviate your stress by removing your liability for repaying debt. Primary priorities for Chapter 7 filers should be to keep exempt assets and be relieved of all liability for as many debts as possible.
Posted by Wesley Scott on June 10
Filing for bankruptcy can give you a chance to start over financially. Knowing the correct information about this process and its potential results is absolutely necessary when considering whether or not to file. Bankruptcy is a legal proceeding, which means it is surrounded by legal jargon. This can make sorting through the massive amounts of bankruptcy related information complicated.
Posted by Wesley Scott on June 9
Debt consolidation consists of combining all of your unsecured debt payments into one. This may involve taking out a loan, entering into a debt consolidation program or Filing Chapter 13 Bankruptcy. Now, what are unsecured debt payments?
Posted by William Kain on June 6
If you’re filing for bankruptcy in Plymouth, Minnesota, you’ve probably imagined how much better life will be once your debts are erased. You’ll have a comfortable home, nice car and a little money in the bank. Best of all, you can relax knowing that you are completely debt-free and have a fresh start to begin rebuilding your life.
Posted by Wesley Scott on May 25
Let’s say you have $50,000 in credit card debt and your situation has gotten to the point where you can’t keep up with your payments. Something has to be done in order for you to take care of your family, get your life back in control and so on.
Posted by Wesley Scott on May 22
Is the cost of filing for bankruptcy keeping you from getting your life back? If you are struggling with debt and think you can’t afford to file bankruptcy in Duluth, Minnesota, the truth is, you can’t afford not to!
Posted by Kelsey Quarberg on May 18
One of the benefits of filing bankruptcy is something called the Automatic Stay. The Automatic Stay is what protects you from your creditors during the life of your bankruptcy. Think of it as an invisible and impenetrable blanket surrounding you that prevents your creditors from contacting you or collecting from you. Unfortunately, there are rare circumstances in which the Automatic Stay cannot protect you from certain creditors. Certain creditors, as I discuss below, can file a Motion for Relief from your Automatic Stay. If granted, an Order for Relief allows the creditor to contact and collect from you. In this blog, I will explain what types of creditors typically file Motions for Relief and what happens if an Order for Relief is granted.
Posted by Erick Bohm on May 17
Do you cringe when your cell phone rings, afraid to answer in case it is a creditor harassing you for money? Have you been turned down for auto or home financing because of your credit score and outstanding debts? Are you overwhelmed with bills and accounts in collections?
Posted by William Kain on May 12
If you are considering a debt consolidation program – stop right there! Make sure you know all of your debt solutions before entering into an agreement. Consider a chapter 13 bankruptcy (Minnesota filers click here for state specific regulations) as an alternative to a debt consolidation program.
Posted by Wesley Scott on May 10
Most of our Minnesota guests have a lingering concern about credit should they decide to file a Chapter 7 Bankruptcy. If you are thinking about filing a chapter 7 bankruptcy in Monticello, Minnesota, this is a concern you naturally have.
Posted by Wesley Scott on May 8
Wondering if I can explain to you what a Chapter 7 and Chapter 13 Bankruptcy is so that you can understand it in English? Of course, I can! After all, I am the managing partner at Kain & Scott, Eagan, Minnesota’s oldest bankruptcy law firm - since 1972. Let's start by taking a closer look at the basics of how a Chapter 7 and Chapter 13 bankruptcy actually work.
Posted by Erick Bohm on May 4
If you are filing for bankruptcy in Duluth, Minnesota, you may be overwhelmed trying to find a bankruptcy attorney to file your case. With so many bankruptcy attorneys, it is hard to know which bankruptcy attorney will be right for you. You want a bankruptcy attorney that is friendly, knowledgeable, helpful, and experienced – but how do you find an attorney who has the experience that you need to get your debt erased fast, who will also treat you with kindness and respect, without judging you for falling behind on your bills?
Posted by William Kain on May 4
Wondering where to file for bankruptcy in Duluth, Minnesota? Envisioning a cramped dimly-lit office with an anonymous attorney frowning at your paperwork, while you fret, embarrassed, over the amount of your debt?
Traditional bankruptcy filing requires hours of paperwork and the process of finding an attorney, filling out forms, being trapped in stuffy waiting rooms, and playing phone tag with creditors, can take over your life. Who has time for that? Don’t you wish there was an easier way to file bankruptcy in Minnesota where you controlled the process, instead of the process controlling you?
Posted by Wesley Scott on May 3
Are you a Duluth resident who is drowning in debt and wondering how to file bankruptcy in Minnesota?
Filing for bankruptcy in Minnesota can be complicated and time-consuming. Between the mountains of paperwork, hours of research, and countless phone calls, the process of filing for bankruptcy can be overwhelming. Without the knowledge necessary to file on their own, Minnesotans run the risk of having their bankruptcy thrown out due to errors. Some residents hire a bankruptcy attorney to help them and then are dismayed to have their phone calls ignored and their case at the bottom of a pile on the attorney’s desk, gathering dust while they struggle with their debt.
Posted by Erick Bohm on April 20
If you’re considering filing bankruptcy and live in Crow Wing County, Minnesota, you’ve come to the right place. The decision to file bankruptcy is life-changing. You want to make sure you have as much information at your fingertips when contemplating the pros and cons of filing bankruptcy.
Posted by Margaret Henehan on April 19
So, you’ve made the decision to file for bankruptcy. But you might not know the process of filing for bankruptcy in Duluth or how it works. Things seem to be less intimidating once a person understands the process. Also, understanding the process makes things seem more feasible. This applies to bankruptcy as well. Once you understand the process, bankruptcy will be less intimidating and will seem more feasible. With that in mind, we would like to show you our process of how to file bankruptcy in Duluth, MN.
Posted by Wesley Scott on April 17
I bet you didn’t know there is a government sponsored debt consolidation plan in Eagan, Minnesota? Okay, actually, there is a government sponsored plan across the entire state of Minnesota! Why have most people not heard about this plan? Most people are familiar with debt consolidation companies out of state, many of whom are owned or linked to major credit card companies. But, did you know the government has its own debt consolidation plan for people like you and me?
Posted by Wesley Scott on April 12
Have you ever wondered how they build a bridge? Like, where do you even start? I am serious. Do you cut a tree down? Dig a hole? Get your tape measure out and measure something? What? It’s a good thing I am not building a bridge. But, I do know how to File Chapter 7 Bankruptcy in Eagan, Minnesota.
Posted by Erick Bohm on April 10
Struggling with overwhelming debt? If the answer is yes, you know the impact debt can have on your health. Debt is often accompanied with stress, anger, denial, and depression. Debt can also be accompanied by relief. In order to feel the relief associated with debt you have to take the necessary steps to overcome the underlying problem. One of the most effective ways of doing so it to file bankruptcy. Bankruptcy can provide relief by eliminating overwhelming debt in a matter of a few short months.
Posted by Wesley Scott on April 6
Have you ever wondered about which law firm is Minnesota oldest bankruptcy law firm? Ok, probably not! But, if you are looking to file Chapter 7 or Chapter 13 bankruptcy in Minnesota, age matters. Why? There is a reason why they call it the “practice” of law right? Will a law firm that started in 1995 have more experience or a law firm that started in 1972?
Posted by Erick Bohm on April 5
Are you one of the 44.2 million Americans with student loan debt? If so, you completely understand the enormous strain student loan debt causes to your financial well-being. For individuals between the ages of 20-30, the average monthly student loan payment is $351. $351 over the course of 12 months comes out to $4,212.
Posted by Wesley Scott on April 4
You already know you need to file bankruptcy, the question is which one. You have summoned the courage and anxiety to deal with the debt problem for good and move on with your life. At Kain & Scott, we are very proud of you! Most of our Duluth, Minnesota guests, once they get past this, wish they would have reached this point much earlier.
Posted by William Kain on March 28
Many people have misconceptions about bankruptcy and what it is designed for. Let’s shed some light on two aspects of bankruptcy. First, how bankruptcy protects us from malicious credit and debt collection harassment. Second, what a powerful financial tool bankruptcy can be to help you get your life back.
Posted by William Kain on March 24
Bankruptcy is a subject most people want to avoid - people want to avoid the stress of having to deal with unmanageable debt. Bankruptcy is often treated as a taboo subject - only our closest friends and relatives know about our financial affairs, and there's usually an even smaller circle of people who know about our financial struggles.
Posted by Wesley Scott on March 23
Bankruptcy is a vital financial tool many that Minnesotans turn to each year for debt restructuring and debt elimination. However, it is not right for everyone’s situation. Because of the complexity surrounding bankruptcy law and the legal process involved, we advise anyone considering bankruptcy to look into the matter with an experienced MN Bankruptcy Lawyer. In the meantime, let’s take a closer look at some of the key things you must consider. It is important to understand that not all debts can be eliminated with bankruptcy. Also, not all individuals will qualify for Chapter 7 or liquidation bankruptcy. So let’s take a look at what bankruptcy can and can’t do in general terms.
Posted by Wesley Scott on March 21
There is a stigma surrounding the topic of bankruptcy that makes it a “hush-hush” topic for many people. More often than not, clients come to the Bankruptcy Lawyers at Kain & Scott after trying their hardest to avoid filing bankruptcy. It isn’t like the court is going to stamp the word “BANKRUPTCY” on your forehead, but for many it can feel that way. The hardest part in filing bankruptcy is often accepting that bankruptcy may be the best solution to your overwhelming debt. What people should realize, is that bankruptcy doesn’t have a look, a lifestyle, a gender, an income, or a one-size-fits-all story. Bankruptcy is a single solution to an infinite number of problems for a diverse range of people.
Posted by Erick Bohm on March 17
Overwhelming debt causes stress, relationship issues, and sleepless nights. Bankruptcy can help resolve all of this. Let’s face it, nobody wants to file bankruptcy, but instead of focusing on the negative, let’s focus on how we go about solving the problem in front of you. Whether you have been struggling with overwhelming debt for five years or five months, bankruptcy may be a great option to help you get your life back.
Posted by William Kain on March 13
Every day, the MN Bankruptcy Lawyers at Kain & Scott see people who are in financial distress - the people with whom we meet find themselves in debt situations that are not easily resolved. Of course, the degree of the financial problem varies from client to client, but our clients come to meet with us because they know that their problems can’t be solved easily.
Posted by William Kain on March 8
Over the past month, I’ve written about the History of Bankruptcy - from its ancient, biblical origins, through the ancient world and in Europe during the Renaissance period. I’ve paid particular attention to the history of bankruptcy in the United States. I’ve written about the inclusion of bankruptcy in the Constitution as the exclusive legislative prerogative of Congress, and looked at the attempts Congress made to pass a national bankruptcy law in 1800, 1841 and 1867 - all attempts at having an orderly system of bankruptcy in the United States, all eventually politically unpopular and all, eventually, repealed.
Posted by Erick Bohm on February 24
Operating as a Sole Proprietor can be exciting and stressful at the same time. One of the biggest reasons it can be stressful is because you are personally liable for what happens. Unlike having an LLC, corporation, or partnership, you are personally on the hook for anything that happens. When debts become due, creditors can come after you directly to collect.
Posted by William Kain on February 14
Last week, I wrote about the Bankruptcy Act of 1898 - the first “permanent” bankruptcy law in the United States. The 1898 law came about as Congress’s reaction to the financial panic of 1893. There had not been a national bankruptcy law since 1873 when the 1867 law, like the two previous attempts at federal bankruptcy law, was repealed. The abuses of the previous bankruptcy laws had hardened political opposition to a federal bankruptcy system. However, by 1898, creditors were experiencing extreme difficulty in collecting even a portion of debts owed to them in some states, due to those states’s debtor-creditor laws.
Posted by Erick Bohm on February 13
Now that you’ve decided to file bankruptcy, there are a few things you want to make sure you stop doing. You need to stop using credit cards, stop paying off certain debts, and stop transferring property. This is not an exhaustive list, of course, but when in doubt, discuss any concerns you have with your MN Bankruptcy Attorney.
Posted by Erick Bohm on February 10
Honesty between you and your attorney is paramount when disclosing information about your estate. As Dr. Kent M. Keith says in his book Anyway: Paradoxical Commandments for Christians, “Honesty and frankness make you vulnerable. Be honest and frank anyways”.
Posted by William Kain on February 9
Bankruptcy is a federal procedure so the process in every state will be nearly identical. Each state, however, has specific laws for bankruptcy practices in their own state.
Posted by Wesley Scott on February 3
This is a source of great confusion in the marketplace. If you own a business, does the business need to file bankruptcy or you? Can I just file on business debts and not my personal debt? These are all great questions.
Posted by Erick Bohm on February 2
If you’re reading this blog, it’s likely you were kind enough to co-sign on a debt with someone, but that certain someone fell behind on payments. Since they fell behind on their payments, it’s likely the creditor is trying to collect the debt from you. If you’re experiencing this, don’t worry. We can certainly help you.
Posted by William Kain on January 31
In the previous two weeks, I’ve written about the origins of bankruptcy law. In the first week, I wrote about the formation of debt forgiveness in the ancient world up to the ratification of the Constitution of the United States, and noted that the framers of the Constitution gave Congress the exclusive power to create uniform bankruptcy laws in the United States.
Posted by William Kain on January 27
Last week, I wrote about the historical origins of the bankruptcy law - that the concept of a structured program of debt forgiveness was as old as Moses, and that Julius Caesar had formulated the first bankruptcy law that contained features that continue to this day. At the end of last week’s blog, I referred to Article I, Section 8 of the Constitution, that gave the United States Congress the sole authority to make “uniform” bankruptcy law. This week I’ll look at the historical development of bankruptcy law in the United States, from the time of our nation’s founding, to the present.
Posted by Wesley Scott on January 26
I know- you think I am a little crazy saying this right? Well, I am a little crazy but I believe the above statement with all my heart. We start with the premise that everyone wants to pay their bills on time- everyone. There are not a lot of universal statements you can make but I believe this is one of them. But then something happens to us. That something is called life. If you have not yet been humbled by life’s events then you are not living- seriously, you are dead.
Posted by Wesley Scott on January 24
So you have thought about bankruptcy until you are blue in the face and now it’s time to make a phone call- but to who? Do you know how many lawyers in Minnesota do bankruptcies and claim to do bankruptcies? There are a lot of attorneys in Minnesota who do bankruptcy work. The variation between attorneys and law firms is huge. How can you tell if the firm does bankruptcy as part of many offerings or if it is all they do? How can you tell if they are nice, and easy to work with?
Posted by William Kain on January 23
My last two blogs have discussed the “worst case” scenario any bankruptcy debtor encounters: the risk of not being granted a discharge, or if the debtor has already been discharged in a case, the revocation of that discharge. Since the reason to file a bankruptcy case is to receive a discharge of a debtor’s liability for debts, revocation or denial of that discharge is a complete frustration of the purpose of the bankruptcy. When a discharge is denied or revoked, then creditors can continue to collect against debtors as though the bankruptcy had never taken place.
Posted by Wesley Scott on January 17
After filing for bankruptcy you can expect certain events to occur and results to set in. There are many misconceptions about life after bankruptcy which deters debtors from filing. Bankruptcy will get you out of your difficult financial situation, impact your credit and require patience and responsible financial management.
Posted by William Kain on January 16
If being in debt isn’t stressful enough, creditors sure know how to make it worse. When you fall behind in payments, creditors will begin to bother you for the money you owe them. The further you fall behind, the more action creditors are going to take, progressively adding stress and embarrassment to your difficult financial situation. This non-stop pressure and continual reminder of your debt can begin to affect your livelihood, causing increased panic and anxiety.
Posted by William Kain on January 15
There is a law, in effect in all fifty states of the United States, that allows people who have entered into contracts to borrow money or to receive credit to have their contractual obligations discharged - wiped out - without harsh consequences to the borrower. This is the Bankruptcy law, set out in the U. S. Bankruptcy Code, and at first look it seems to be a very unusual public policy. Don’t we want people to honor their debts? What about the financial well-being of lenders if they run the risk of a government-sanctioned method of allowing people who asked the lender for money with a promise of repayment to break that promise? So where does this policy come from? That’s what we’ll look at in this blog.
Posted by William Kain on January 12
The short answer to this question is that a bankruptcy discharge eliminates your debt. According to Bankruptcy Basics, an overview of the United States Bankruptcy Code, a bankruptcy discharge “releases debtors from personal liability from specific debts and prohibits creditors from ever taking any action against the debtor to collect those debts.” Whatever debts are discharged when you file chapter 7 or chapter 13 bankruptcies will be removed from your life, forever.
Posted by Wesley Scott on January 6
Debt is stressful, no matter what caused you to fall and lose control of your finances. Whether or not it was poor financial decisions or an unexpected medical emergency that began your spin out of control, debt needs to be handled as soon as it becomes a situation.
Posted by William Kain on January 5
Quite often, people considering bankruptcy have tax problems in addition to debt problems. They are surprised to learn that bankruptcy can also offer relief from income tax liability.
Posted by Wesley Scott on January 4
Are you finding it increasingly difficult to keep your head above water with your finances? If so, you’re not alone. Thousands of hardworking people in Minneapolis struggle with overwhelming debt, each and every day. Often times it can feel like you’re alone but don’t let the illusion that everyone around you is managing their money efficiently, fool you.
Posted by Wesley Scott on January 4
Struggling with credit card debt is stressful and confusing. But it doesn’t have to be. There are options to consolidate your debt, including filing for Chapter 13 Bankruptcy. Why choose Chapter 13 over hiring a debt consolidation company? Chapter 13 allows you to put you and your family ahead of the creditors.
Posted by William Kain on January 3
For someone struggling with debt, bankruptcy may be a choice. It can offer the chance to wipe the financial slate clean, to get a new start. But how do you know if it’s right for you and which bankruptcy option do you choose? There is a lot of information out there and not all of it is true. Here are three common misconceptions that our MN Bankruptcy Attorneys often hear and it’s about time that they were cleared up.
Posted by Wesley Scott on January 2
You know all those bad things you’ve always heard about bankruptcy. Most of them are NOT TRUE! Here are the top 16 myths aout bankruptcy your creditors want you to believe and reasons why each is NOT TRUE.
Posted by Wesley Scott on December 30
We are in an age of consumer convenience. Consumers insist on meeting/speaking with professionals in much more convenient ways than yesteryear. I want to be very clear, I still think a face to face meeting is the best way to meet with a bankruptcy attorney.
Posted by Wesley Scott on December 29
Have you ever wondered why there is such a stigma associated with bankruptcy? After all, companies file bankruptcy all the time and reorganize themselves to live another day. The number of companies that have filed bankruptcy only to rise out of the ashes of debt are way too numerous to even mention.
Posted by William Kain on December 27
In October of 2005 the new bankruptcy law, Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, added a credit counseling and financial management requirement. So, if you file bankruptcy today you are required to complete two financial management courses that will help you get your life back on track after your debt is discharged. Those courses include:
Posted by William Kain on December 26
Last week, I wrote about some of the reasons a bankruptcy debtor can be denied a general discharge, or can lose a discharge after the court has entered it. The loss of a debtor’s discharge is a serious matter, and it usually can only happen when there has been active misconduct of a criminal, or at the very least quasi-criminal nature by the debtor relating to the bankruptcy proceedings, or the debtor’s assets. Since the reason people file bankruptcy cases is to receive a discharge of their debt, debtors need to know what kind of behavior leads to revocation of discharge so debtors do not put their discharge at risk.
Posted by Wesley Scott on December 25
Bankruptcy is our core – it’s not just what we do, it’s all we do. We believe it is a tool that should be used to help people get their lives back. Most clients come into our office feeling hopeless, helpless and defeated, but leave feeling invigorated and free. Bankruptcy allows debtors to recover and rebuild after a financial crisis, or in other words, get their lives back. However, our commitment to our clients does not stop at the filing of their bankruptcy case.
Posted by William Kain on December 21
Credit card debt is one of the most common reasons people seek debt solutions. It is easy to overspend when you aren’t paying cash and you aren’t held responsible for paying immediately. The interest built into this type of credit can add up quickly, especially if the balance isn’t paid in full or on time every month. And because accounts are being managed online it is much easier to overlook or disregard the added interest.
Posted by William Kain on December 20
One of the concerns we address with almost every client is the fear of losing assets in bankruptcy. The belief that you will lose your property when you file bankruptcy is a myth perpetuated by creditors and others to instill fear so you will not consider bankruptcy as a solution to your debt. However, here is the truth: your assets can be protected during personal bankruptcy.
In fact, filing a bankruptcy case can even SAVE your assets from being seized and sold by creditors. Individuals who may potentially face foreclosure or repossession can file bankruptcy to keep their house, vehicles and personal property. When you file a bankruptcy case, the automatic stay prevents creditors from continuing or starting actions to foreclose or repossess your property.
Posted by William Kain on December 19
Bankruptcy and divorce are two concepts that most people never entertain as they are beginning their adult life. As we step out into the adult world to begin building our life, we never dream that one day we may be facing overwhelming debts that we cannot pay and a failing marriage. Bankruptcy and divorce can crush your dreams, your spirit and life as you know it.
Posted by William Kain on December 13
In my last two blogs, I looked at debts that aren’t discharged in a bankruptcy case. Two weeks ago I looked at debts that are never discharged - student loans, most income tax debt, obligations to pay child support or spousal maintenance, to name a few. These debts are presumed to be non-dischargeable in a bankruptcy case. That means that the creditor does not have to bring an action in bankruptcy court to determine that these kinds of debts are not subject to a bankruptcy debtor’s general discharge; if there is going to be a judicial determination of dischargeability, the bankruptcy debtor has to bring the action to determine whether the debt can be discharged in the bankruptcy case, and the presumption is that the debt is not subject to discharge.
Posted by Erick Bohm on December 12
We all have at least one friend or one family member that focuses on the negative aspects in every situation. The worst part is, these are generally the least educated people when it comes to whatever the topic may be. The topic of bankruptcy is no exception. If you’ve discussed the idea of bankruptcy with other people, it would probably be safe to say there’s at least one person out there that has told you not to do it. Some people get downright mad when you mention the idea to them. Well, unfortunately, the stigma surrounding bankruptcy is the cause of such haste. If you take the time to learn about the relief bankruptcy can provide, you can most certainly debunk whatever the naysayer’s concerns may be. Here are four common misconceptions and the reasons why they’re not entirely true:
Posted by Wesley Scott on December 9
I seldom like to write about ourselves. I guess it’s my Minnesota upbringing that makes me shy away from tooting our own horn for any reason. But, then it dawns on me, we have to tell our story so our Minnesota guests can understand who we are and why it’s important to those of you reading this blog. If you are considering filing a bankruptcy in the state of Minnesota, this blog is important to you- keep reading!
Finding and meeting a Bankruptcy Lawyer to help you get your life back is very important. This is an emotional time for you and you need someone who understands what you are going through. With this in mind, let me tell you who Kain & Scott is.
Posted by William Kain on December 8
Last week, I wrote about 8 debts that a bankruptcy debtor may have that are not discharged, even if the bankruptcy client receives a “general” discharge. The kind of debts I wrote about - child support, most taxes, student loans, to name a few - are debts that are never discharged in a bankruptcy case.
People who file a bankruptcy with the types of debts that are never discharged must bring a lawsuit against the creditor in bankruptcy court if they feel, for some reason, that the debt in question should be discharged, despite its characterization. It’s up to the debtor to do this; if the debtor does nothing to contest the non-dischargeability of the debt, the bankruptcy debtor remains liable for the debt after discharge.
Posted by Wesley Scott on December 5
We have been practicing Bankruptcy Law at Kain & Scott since 1972. Our Lawyers have helped thousands of Minnesotans get their lives back and not a single one of these cases was identical to another. Everyone’s case is different because everyone is different. However, we have seen nearly everything under the sun and yet, the reasons why Minnesotan’s file bankruptcy can be reduced to 5 general categories.
I can assure you I have never had a single Minnesotan call me and say Wes, I really incurred all of this debt knowing I would file bankruptcy in the end. Or, you know Wes, I spent 12 months in Europe, with my friends, using my plastic on all of our expenses, knowing when I got back to Minnesota I would file bankruptcy. So, why do Minnesotans file for bankruptcy? Here we go!
Posted by William Kain on December 2
It’s not a bad idea to take a look at some people you know - people who are successful by almost any definition who have been through the Bankruptcy Process. These people had something unexpected happen to them financially that led them to file a bankruptcy case. When you know the financial stories of these actors, musicians, sports figures and politicians, it sheds light on why we have a bankruptcy law. It reinforces the idea that “regular” people facing financial difficulty should consider protecting their paychecks, their assets, and their family’s financial security through using the bankruptcy law.
Posted by Wesley Scott on November 27
Posted by Wesley Scott on November 23
Life should not hurt this much. You have decided that bankruptcy is the medicine your family needs to get your life back and look toward the future not keeping staring at the past. You should be proud of your courage and your need for certainty and security in life. It’s nice to know that when you start fresh you can pay your bills and keep the roof over your head. But still, you struggle with which bankruptcy makes most sense.
Posted by William Kain on November 16
The purpose of filing a Chapter 7 or Chapter 13 bankruptcy case is, plain and simple, to discharge debt - to make debt that has overwhelmed a debtor and his family “go away.” In order to receive a discharge, the bankruptcy debtor must comply with the provisions of the bankruptcy code. So legally proper papers must be filed with the bankruptcy court, all assets and liabilities identified and relevant financial transactions disclosed. The bankruptcy debtor has to attend a meeting with the case trustee, and must cooperate with the trustee and follow court orders to receive a general discharge.
Posted by Wesley Scott on October 17
So you live in Roseville MN and you had one of the 5 events happened to you which resulted in overwhelming debt: 1) business failure; 2) income drop; 3) divorce or relationship break up; 4) medical problems; 4) bad financial decisions (we have all made them). You are stressed out because you are falling behind and you can’t keep up. That uneasy feeling of slowly drowning in debt, suffocating, and you can’t seem to pull out of it. If you are a human being you will feel your tummy churning and just a depression hanging over your head.
Posted by Wesley Scott on October 6
Posted by Margaret Henehan on October 5
Bankruptcy is an outstanding tool for restructuring your debts and getting out from under financial hardship but can be very difficult to do on your own. Many people who file cases on their own, without an attorney (“pro se” filers) abandon the bankruptcy process part-way through filing because of the complexities and requirements. It can be very difficult and a lot of work for an individual to tackle on their own, that’s why at Kain & Scott we advise working with a professional such as one of our experienced bankruptcy experts. Let’s take a look at some of the more difficult and complex aspects Filing Bankruptcy in Minnesota!
Posted by Wesley Scott on October 4
Like so many Minnesotans that call us every day, we hear one common concern over and over again. Minnesotans worry about how bankruptcy affects their credit score and credit life after the bankruptcy is filed. If you are contemplating Filing Chapter 7 Bankruptcy in Minnesota, but you just need a better handle on how bankruptcy affects your credit, here it is. The obvious question so many ask about their credit relates to their future dreams and ambitions.
Posted by Wesley Scott on October 3
Many Americans seek financial recovery each year through the liquidation proceedings involved with Chapter 7 Bankruptcy yet few are aware what Chapter 7 Bankruptcy involves. In a Chapter 7 Bankruptcy any non-exempt assets the debtor possesses will be liquidated by the trustee as allowed within the US Bankruptcy Code and the revenue is to be divided among creditors based on the priorities set forth within the bankruptcy code. The vast majority who seek relief through Chapter 7 Bankruptcy have no non-exempt assets to be liquidated or perhaps the cost and effort involved addressing these assets is deemed impractical by the trustee when compared to their potential value to creditors. But what about our investments and our ideas; what about these seeds we have sown which may someday still bear fruit? Where do they stand throughout the bankruptcy process?
Posted by Margaret Henehan on September 29
Credit reporting is big business. Bigger than it's ever been in years past. There are mobile apps to track your credit score, credit cards designed to provide you with a free credit score every month and agencies you can hire specifically to help re-build your credit score. All these businesses that have popped up in the last few years only prove to us how important your credit really score is.
Posted by Margaret Henehan on September 27
One of my clients largest concerns is what will the future look like after bankruptcy. How will my credit be affected? Will I be able to get lending again? Will I be able to buy a car? Will I be able to buy a house? This blog will address renting and buying a house after filing a bankruptcy.
Posted by William Kain on September 22
The past two weeks I’ve written about the Bankruptcy Code’s provisions that govern who can file a bankruptcy case and in what state a bankruptcy case may be filed. I looked at the definitions of who may be a debtor - and noted the differences between the very inclusive chapter 7 and the much more exclusive chapter 13. I discussed the venue of a case last week - and noted the requirements in Title 28 of the United States code that governs venue of a bankruptcy case: residence, domicile and the existence of the principal place of business and/or the location of the principal assets of a business.
Posted by Wesley Scott on September 21
Chapter 7 Bankruptcybegins once an individual seeking debt relief files a petition with the Bankruptcy Court. Here in Minnesota all of our counties are divided up and assigned to a small number of divisional offices. For example, anyone residing within Hennepin County would file their Bankruptcy Petition with the Minneapolis office. There are also several other pieces of required information which will need to be submitted and reviewed in order for your bankruptcy to be approved and your debts discharged
Posted by Wesley Scott on September 19
When you are digging into what a Chapter 7 Bankruptcy Trustee in Minnesota looks like, have you ever wondered who this person is and what on earth do they do? I am a veteran MN Bankruptcy Attorney and when I first started out many years ago, I wondered myself what the Chapter 7 Trustee does. If you file a Chapter 7 Bankruptcy in Maple Grove, Minnesota, or anywhere else in Minnesota the United States Trustee’s Office will assign a Chapter 7 Trustee to your Bankruptcy Case.
Posted by Wesley Scott on September 8
I bet most of my readers did not know that there is a government sponsored debt consolidation plan. In fact, when I meet with Minnesotans from all walks of life they are surprised to learn that there really is a government sponsored debt consolidation plan. Not only does it exist, it has been around for decades. Why then do most people not know it exists? In a nutshell, because people do not look any further if it involves the “b” word. I wish the government would not call this debt consolidation plan a chapter 13 bankruptcy. I wish they would instead call it what it is, a government sponsored debt consolidation plan. I first want to walk you through the nuts and bolts of a chapter 13 bankruptcy and how it works and then I want to walk you through a real “live” (as my 4 year old son used to say) example of a chapter 13 bankruptcy at work.
Posted by William Kain on August 17
My last two blogs, Help For Small Business in Financial Trouble & Help For Small Business in Financial Trouble - Part 2, have dealt with the decision as to whether to close a business that is no longer performing financially as the owner hoped.
Posted by William Kain on August 11
Last week in my blog Help For Business In Financial Trouble - Part 1, I wrote about the decision many small business owners face: in light of the financial difficulties the business is facing, should the business close down? The decision is usually very personally painful for a person who has worked long and hard to own and operate a business. The feelings can be compounded when the reasons for business failure have to do with outside market forces more than the business decisions made by the owner. Imagine the hard-working video store owner from 1996 - today it’s very likely that the video store is no longer in business, regardless of whether the owner was a smart, capable businessman.
Posted by William Kain on August 5
Last week I started talking about little “surprises” that can happen after someone files a bankruptcy case. At the end of last week’s blog, I started discussing the issues that arise after (and sometimes significantly after) a person has received a bankruptcy discharge when someone who filed a bankruptcy attempts to refinance a mortgage that was in existence at the time the bankruptcy case was filed. Often, the mortgage company will continue to report the mortgage as “in bankruptcy” long after the bankruptcy case is done and over. Some, not all, mortgage companies do this - although the companies that do report mortgages as “in bankruptcy” are often the large, nation-wide mortgage issuers.
Posted by William Kain on July 18
For the past two weeks, I’ve written about the issue of timing in bankruptcy cases. Two weeks ago I looked at timing from the perspective of collection by creditors in my blog, How our Minneapolis Bankruptcy Lawyers Know When You Should File. Last week, I looked at timing as a function of the Bankruptcy Code, and talked specifically about timing the filing of a chapter 7 case. This week I want to discuss timing issues with chapter 13 cases.
Posted by William Kain on July 13
Last week I discussed the timing of the filing of a Chapter 13 Bankruptcy case specifically in relation to mortgage defaults and foreclosure. Chapter 13 Bankruptcy is commonly filed by people with debt problems who are facing defaults in secured loans, such as home mortgage loans. The most common secured loan, though is a vehicle loan. Because of the retail price of both new and used cars, many if not most consumers have to finance the purchase of a vehicle.
Posted by William Kain on July 12
Chapter 7 Bankruptcy is also commonly referred to as the “fresh start” bankruptcy. Chapter 7 is the most commonly filed consumer Bankruptcy in Minnesota for several good reasons. Immediately after you file a Chapter 7 you’re protected from any creditors trying to take property that secures a debt. Creditors are prohibited from obtaining a judgment for unsecured debt that can be turned into a lien against your property. You also get the option to keep any property that secures a debt or give it up to your creditor without having to pay them. Chapter 7 Bankruptcy can really give you some comforting power over your creditors. Here’s how:
Posted by Wesley Scott on June 30
How many of us lawyers meet with clients and yet miss issues the client could pursue to their benefit? I suspect the answer is a lot of us. Don’t be too hard on yourself since it’s impossible to know everything right? Most of us limit our areas of practice to a few and focus on those areas. When clients ask our MN Bankruptcy Lawyers and I about other areas of law we get jittery and tell them that we don’t practice in that area and they should see a lawyer who specializes in it. At Kain & Scott every Lawyer has a referral directory that we use to refer clients to any other area of law besides consumer bankruptcy work. Minnesota Bankruptcy work is all we do.
Posted by Wesley Scott on June 1
Let’s face it, not every client you meet with has 10k to put down toward legal fees. Some clients require the use of a payment plan to pay attorney fees incurred in a divorce. But, what happens if your client files a bankruptcy during or after the divorce, and meanwhile, the client has incurred a hefty bill for your services?
Posted by Wesley Scott on March 17
It happens all the time. We receive phone calls from anxious Minnesotans looking at their bills and wondering how in the world am I going to pay these? I am continually amazed at how long good people can hang onto a seemingly hopeless financial situation. It is not that uncommon to see people do it for years, decades even.
When it comes to debt, human nature has a common thread that runs through all of us: we want to pay it. We want to pay all of our monthly bills and yet still have enough left over to eat, keep the lights on, and make the rent/mortgage payment to keep the roof over our heads. Most of us don’t want much beyond this.
Posted by Wesley Scott on March 1
Article I, section 8, clause 4 of the United States Constitution states that . . . ”The Congress shall have the power to establish . . . uniform laws on the subject of bankruptcies throughout the United States . . . ” And so it is that the framers of the Constitution envisioned that the people of the United States would have the right to File Bankruptcy in the United States and that Congress will have the power to establish uniform bankruptcy laws throughout the United States. When you hear of individuals having a Constitutional right to file a bankruptcy, that is a bit of a misnomer. Technically, the US Constitution gives the Congress the power to give you the right it does not give you the right to file bankruptcy directly in the Constitution.
Posted by Wesley Scott on February 24
At Kain & Scott, we get the question all the time, "What happens to my credit score if i file bankruptcy?" It is a question that concerns every Minnesota debtor facing bankruptcy and wondering what the bankruptcy aftermath looks like. I am high anxiety so I would be asking the same question too. Fortunately, what makes up your credit score and how bankruptcy affects it is a lot better than you would think.
Posted by Wesley Scott on January 13
Are you struggling with debts that you cannot pay? Are creditors calling you at home and at work? Have you received threatening letters, been served with a debt collection lawsuit, or are facing a foreclosure or repossession? You may have considered filing bankruptcy to resolve your debt problem but are unsure if a bankruptcy is the best way to get rid of your debt. You may have heard that you will lose all of your property if you file bankruptcy or that you will never qualify for credit if you file bankruptcy.
Posted by Wesley Scott on January 7
Are you having trouble paying your bills? Are creditors calling your workplace or calling family members for information? Have you been served with a foreclosure complaint or a debt collection lawsuit? If so, you may need to file bankruptcy to get rid of your debt. People file bankruptcy for several reasons — unemployment, medical bills, divorce, loss of a spouse, and business failure.
Posted by William Kain on January 5
A common question we hear from clients we meet with before tax season is if it is better to file bankruptcy before or after they file their tax return. Many times they have heard from someone that if they file bankruptcy the court will take their tax refunds. This is the biggest concern most people have about filing bankruptcy and taxes. The truth is that filing bankruptcy does not directly affect filing tax returns and you should not wait to file bankruptcy based on a fear of losing your tax refunds. The consequences of waiting to seek bankruptcy relief can be very serious. You could be risking your home and other assets by waiting to file bankruptcy.
Posted by Wesley Scott on December 29
The primary goal of bankruptcy is to receive debt relief and eventually eliminate it completely. With that being said, how often you can file bankruptcy isn’t limited. However, the number of times you can receive a bankruptcy discharge is dependent on your bankruptcy history including past discharges and chapters filed.
Posted by William Kain on December 15
Are you putting off filing bankruptcy because you believe that the process is too complicated, too time-consuming, or too expensive? If these beliefs are preventing you from receiving the debt relief you need, please let us help. Our experienced bankruptcy attorneys will explain the bankruptcy process and tell you what you need to file bankruptcy. When we finish your bankruptcy consultation, you will have a much better understanding why filing bankruptcy is not as complicated, time-consuming, or costly as you have read or heard.
Posted by Wesley Scott on November 24
Are you tired of spending your evenings pouring over bills that you cannot pay? Have you reached the end of your financial rope and you are ready to consider filing bankruptcy? Filing bankruptcy is a serious step; however, filing bankruptcy is a step that will put you on the road to financial recovery.
Posted by Wesley Scott on November 5
The history of bankruptcy in the United States dates back to the founding of our country. The framers of the Constitution recognized that bankruptcy would be an essential element of a successful capitalist economy because the alternatives of sending individuals to “debtor’s prison” or allowing individuals to suffer under the weight of overwhelming debt would be unacceptable. Therefore, they authorized Congress to provide a legal process for citizens to resolve debt problems.
Posted by William Kain on November 3
When you make the decision to file bankruptcy, your next thought is likely to be how long does bankruptcy take. Your attorney understands that you have been under a great deal of stress as you have tried to handle your debt problem on your own. The frustration, fear, and anxiety of dealing with angry creditors, abusive debt collectors, and the thought of losing your home, car, and other property causes emotional and physical stress; therefore, you want to know how long bankruptcy takes and how quickly can you get on with your life.
Posted by Wesley Scott on October 20
It is not hard to fall behind on bills. Most people you know have probably done so at some point in their life; it is common and can happen to anyone at any time.
Posted by Wesley Scott on October 6
Jackie had a bright future ahead of her. She graduated high school at the top of her class and she was accepted to one of the top colleges in her state. Jackie had received help with tuition from several sources including some grants and scholarships; however, the cost of room, board, and tuition far exceeded the funds. In addition, she needed to support herself on a part-time job because her parents were not able to help her and her course of study did not allow her to work a fulltime job. In spite of the challenges, Jackie excelled in college.
Posted by Wesley Scott on September 22
Bankruptcy has a bad reputation. Most, if not all, of these negative feelings about bankruptcy are due to myths that have been passed on from one misinformed person to the next. We are here to set the record straight and show you that those myths are completely wrong. With bankruptcy experience dating back to 1972, our firm can assure you that you will not have to go through any of the following experiences.
Posted by Wesley Scott on September 17
Are you considering filing a bankruptcy case in Minnesota to relieve your debt problem? If so, you may have already found a great deal of information about what you should do prior to filing bankruptcy; however, the things you should NOT do prior to filing bankruptcy are just as important. In many cases, what you do prior to filing bankruptcy may not have a direct impact on your bankruptcy case. However, there are a few actions you can take that may negatively affect your case. Below are five things you should never do if you are contemplating filing a bankruptcy case.
Posted by William Kain on September 8
Are you considering filing bankruptcy to resolve your debt problems? Do you have questions about the bankruptcy process? The Minnesota bankruptcy attorneys at Kain & Scott want to help you find an affordable solution to your financial problems. We offer a free bankruptcy consultation so that you can get the information you need to make an informed decision on the best way to get back on your feet financially. If you are having difficulty paying your debts, ask yourself these five questions.
Posted by William Kain on September 1
When deciding if bankruptcy is right for you, there are a lot of questions. One of the most common questions that we receive is about the process. Just how does bankruptcy work and what happens after filing?
Posted by Wesley Scott on August 25
Are you wondering if you should file a bankruptcy to get rid of your debt? You have likely read information on the Internet and talked to friends, family, or co-workers who filed bankruptcy successfully, but you are still unsure if a bankruptcy is the best way to deal with your debt problems. If you are considering a bankruptcy filing, you need to consult with a qualified Minnesota bankruptcy attorney before you make any final decisions.
Posted by William Kain on August 6
We often have clients come into our office and ask, "Why do I need to include all of my debts in my bankruptcy?" Some people want to pay back some of their creditors while others want to avoid certain creditors from knowing about the bankruptcy. For example, a client comes into the office for a bankruptcy consultation. When we discuss the types of debts she owns, she tells us that she does not want to include all of her debts in the bankruptcy case because she owes her parents money and she must pay that money back. She also does not want her parents to know that she is filing bankruptcy.
Posted by Wesley Scott on August 4
Bankruptcy law was created to provide individuals with a way to resolve debt problems. Some people assume that you only need to file bankruptcy if you are "bad with money" or you abuse credit; however, this is not true. While some people who file bankruptcy do so because they got into trouble with debt, most people need the help of the bankruptcy court because of a financial crisis caused by the loss of a spouse, unemployment, a failed business, divorce, personal injury, accident, or sudden illness. You can experience a financial crisis at any time — bankruptcy can help you recover and rebuild your credit following that crisis.
Posted by Wesley Scott on July 28
In Minnesota, owning a cabin is the ultimate dream. You have likely saved up for many years to be able to buy one, but now a recent financial crisis (i.e. job loss, medical bills, divorce, etc.) has made it hard to keep up with all of your bills. You may be worried that if you file for bankruptcy you will need to sell or let go of your cabin that you worked so hard to buy. However, when you file bankruptcy, you do not lose all of you assets as many people believe. In most cases, debtors are able to keep their assets while eliminating their debts.
Posted by William Kain on July 23
In Minnesota, owning a boat is a rite of passage. You have probably saved up for years to be able to buy a boat but now a recent financial crisis (i.e. job loss, medical bills, divorce, etc.) has made it difficult to keep up with your bills. You just do not have any money left over each month after paying your necessary living expenses to pay your debts. You are worried that if you file for bankruptcy, you will lose your unnecessary assets such as your boat. You do not need to worry. Many boat owners file for bankruptcy relief and keep their boats they’ve worked so hard for.
Posted by Wesley Scott on June 30
Taking the step to meet with an attorney for a free bankruptcy consultation is the first thing you should do on your road to getting your finances under control. Many lawyers provide a free bankruptcy consultation to help you decide what is right for you and your situation. The bankruptcy consultation is an opportunity for the attorney to evaluate your financial situation in detail in order to provide affordable solutions to your debt problems based on the attorney’s vast knowledge of bankruptcy law and his experience helping people solve their financial problems.
Posted by William Kain on June 22
Prior to the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), the bankruptcy Means Test did not exist. The purpose of the Means Test was to help prevent bankruptcy fraud by preventing individuals with higher income levels from filing a Chapter 7 bankruptcy to discharge their unsecured debts. Creditors lobbied congress to pass the Means Test as a way to require individuals who DO have disposable income to pay back some of their debts in a Chapter 13 case instead of filing for a Chapter 7. Requiring those with disposable income to pay back a portion of their debts in a Chapter 13 case provides a safeguard for creditors and reduces bankruptcy fraud.
Posted by William Kain on June 19
Almost every person who comes into our office for a free bankruptcy consultation with one of our attorneys asks the same question, “Will I lose property if I file a bankruptcy?” After our attorneys address this common bankruptcy question (most debtors keep all of their property), one of the next common follow up questions from the person is, “Is it difficult to buy a car after bankruptcy?”
Posted by Wesley Scott on June 10
One of the most common questions that we are asked is, “If I file bankruptcy, will I lose all of my property.” A common misconception is that if someone files bankruptcy they will lose his or her property. Unfortunately, the fear of losing property keeps many people from seeking the debt relief that bankruptcy provides.
Posted by William Kain on June 8
Have you fallen behind on your mortgage payments and the mortgage company is threatening foreclosure? Have you been served with a foreclosure complaint or is your home scheduled for a foreclosure sale? If so, you are not alone. You are one of thousands of people in Minnesota who are facing losing their home through a foreclosure process.
Posted by William Kain on May 14
Many people ask us, “Will filing bankruptcy affect my spouse’s credit?” This is a common question we hear in our law firm when one spouse needs to file a bankruptcy case but the other spouse does not. The concern that one spouse’s debt problems will negatively affect the other spouse is a normal concern; however, there are many cases where one spouse can file bankruptcy and the other spouse is not affected at all.
Posted by Wesley Scott on May 12
As medical costs continue to rise, the ability for individuals to pay off their medical bills is becoming increasingly difficult. In fact, fifty-six million people under the age of 65 will have trouble paying their medical bills this year. These unpaid medical bills and expenses result in three out of every five bankruptcies filed in the United States. Even for individuals who are covered by health insurance, 10 million of those individuals have medical bills that they cannot afford to pay after insurance has paid its portion. For these individuals, filing bankruptcy due to medical bills may be their best option.
Posted by Wesley Scott on May 8
If you research bankruptcy online, you will find some useful information but you will also find a great deal of misinformation. Unfortunately, this misinformation can create doubt, confusion, and fear for a person who is already suffering the stress of dealing with debt problems. You may believe that the bankruptcy timeline is long and complicated; however, our staff is here to help you through each step in the bankruptcy timeline so that you can put the stress and anxiety of debt problems behind you in less time than you think.
Posted by Wesley Scott on April 21
We understand that not being able to pay your bills every month is frightening. Being harassed by creditors and debt collectors only increases the level of fear and frustration.
Posted by William Kain on April 7
As part of the bankruptcy reform in 2005, Congress enacted a provision in the Bankruptcy Code that requires debtors to complete a credit counseling course, also known as a pre-bankruptcy course, prior to filing bankruptcy. Regardless of the reason why a person may need to file for bankruptcy relief, each person must choose a consumer debt counselor to complete the credit counseling course.
Posted by William Kain on March 17
In today’s world, it is oftentimes necessary to take out some form of credit to pay for necessary items such as schooling, vehicles, a home, and emergency needs such as new tires for your car. In times of need, this available credit can be very beneficial. However, when you look at credit from the other side, this credit is now a debt you owe to a creditor. Owing debt is in no way a negative thing; in fact, most everyone you know probably owes some form of debt. If you find yourself in over your head with the debt you owe, a bankruptcy may be the relief you need.
Posted by Wesley Scott on March 5
Over the years we have had the pleasure of helping those in the St. Cloud and Brainerd areas find relief from their overwhelming debt problems. We’ve helped file thousands of Minnesota bankruptcy cases, and receive immense joy knowing we are able to provide our clients with the fresh starts they are looking for.
Posted by William Kain on February 17
When you file a bankruptcy under Chapter 13, a Chapter 13 trustee will be assigned to your case. Most people refer to this person simply as their “trustee” or “Chapter 13 trustee” but the exact title given to this person by the United States Trustee’s office is the “Chapter 13 Standing Trustee for the District of Minnesota.” There are two Chapter 13 trustees that serve in Minnesota. Each trustee is assigned a specific jurisdiction.
Posted by Wesley Scott on February 10
Here at Kain & Scott, one of the most common debts that our clients struggle with is their student loans. Unfortunately, in most cases, student loans are not dischargeable in a bankruptcy case. You may think there is no hope in solving your student loan issues, but we want to assure you that bankruptcy CAN help you. Read on to hear a personal experience from a client who had unmanageable student loan debt.
Posted by William Kain on February 5
The first step in understanding your credit score after bankruptcy is to understand how your credit score is calculated. Credit scores are not as complicated as some of us assume. Credit reporting agencies combine information from your credit history with your current financial condition to calculate your credit score. Credit scores are a very important element of your financial well-being as they are used to determine whether you are eligible to receive credit and the interest rate that will be applied to credit that you receive. However, credit scores can now affect several other areas of your financial life including rental applications, insurance rates and cell phone contracts.
Posted by William Kain on January 21
After you fall into unmanageable debt your credit score will begin to suffer. Missing payments and making payments less than minimum will negatively affect your credit. Filing bankruptcy is the first step to take toward becoming debt free and to start the credit rebuilding process.
Posted by William Kain on January 13
Bankruptcy is and has always been intended as a way for people who are struggling with debt to resolve their debt problems and receive the relief they need to rebuild their lives. In order to help people and businesses overcome debt problems, Congress enacted bankruptcy laws to provide a legal means of handling debt. It divided bankruptcies into six different chapters. Each bankruptcy chapter has its own set of requirements for eligibility as well as its own advantages and disadvantages for the debtors. Knowing what chapter of Minnesota bankruptcies to file is something that an experienced bankruptcy attorney can help you determine based upon your unique financial situation and your long-term financial goals.
Posted by Wesley Scott on January 6
One of the more common reasons why people file for bankruptcy is because of a business failure. A business failure is a difficult time and you shouldn’t make it more difficult than it has to be by trying to handle the situation on your own. If you find yourself in over your head with business debt, filing bankruptcy can provide you with a more manageable way to pay those debts. It can also give you the fresh start you need to rebuild your finances and get your life back after closing your business.
Posted by Wesley Scott on December 31
The Minnesota Bankruptcy Law Firm of Kain and Scott, P.A. has an extensive bankruptcy background and has been involved with filing bankruptcies since 1972. We have spent decades perfecting our bankruptcy practice and our service to clients.
Posted by William Kain on December 30
If you are facing a serious surgery, would you be willing to drive an extra hour or two to have one of the best surgeons in Minnesota perform it? Of course you would! Maintaining your health is one of the most important things that you can do for yourself. Not only is your physical health important, but your financial health is as well. The Minnesota bankruptcy attorneys of Kain & Scott, P.A. help individuals throughout Minnesota in addition to the St. Cloud, Brainard and surrounding communities get their financial health back on track.
Posted by Wesley Scott on December 23
Most people spend their lives building up their assets. From homes and vehicles to retirement savings, the American dream is to be able to provide for these things. When an unexpected life event happens that causes a major blow to your finances, bankruptcy can be a viable solution to solve your financial troubles. However, for those contemplating filing bankruptcy, losing assets is a major concern.
Posted by Wesley Scott on December 16
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.
Posted by William Kain on December 9
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.
Posted by Wesley Scott on December 4
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.
Posted by Wesley Scott on November 18
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.
Posted by William Kain on November 11
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:
Posted by Wesley Scott on November 7
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.
Posted by Wesley Scott on November 4
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.
Posted by William Kain on October 30
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.
Posted by Wesley Scott on October 28
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.
Posted by Wesley Scott on October 21
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.
Posted by Wesley Scott on October 16
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.
Posted by William Kain on October 9
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.
Posted by Wesley Scott on October 7
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.
Posted by William Kain on September 30
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.
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.
Posted by William Kain on September 25
When you make the decision to resolve your debt problems through bankruptcy, the next step you will need to take is to choose a bankruptcy attorney. The attorney that you choose is one of the most important decisions you will make after you decide to file a bankruptcy. Below are 10 questions that you should ask before hiring a bankruptcy attorney.
Would you let your family physician perform heart surgery on you or your family? Of course not! The same principle applies to the professionals you lean on during your financial illness. Bankruptcy is not just what we do, it’s ALL we do. Because bankruptcy is all we do, we are good at it.
Posted by William Kain on September 23
Financial problems can happen to anyone, for a variety of reasons. One of the most common reasons is job loss. I’d like to share a story about job loss, and overcoming the fear of friends, family and employers knowing that bankruptcy was filed.
My name is Karen and a few years ago my husband and I were unsure what to do about our financial problems. My husband, Chris, had lost his job and we were behind on all of our bills. We were able to keep our heads above water until his unemployment compensation ended and he still did not have a new job. My salary was not enough to pay our monthly bills and living expenses, so we started falling behind on our bills. At first it was just the credit card bills, but then the mortgage and car loan soon followed.
We were facing foreclosure and had no idea where to turn. That is when we decided to schedule a free bankruptcy consultation. We had no idea how we would feel after bankruptcy, but we know it had to be better than what we were feeling right now.
Posted by Wesley Scott on September 16
Once you decide to consult with a bankruptcy law firm to discuss your options, some of the stress that you have been experiencing will start to diminish as you take a positive step toward resolving your financial problems. However, some of our clients feel overwhelmed by the legal terms that get used throughout the bankruptcy process. During our initial consultations we explain everything in great detail, but below is a list of the most common legal terms used, for your reference.
Posted by Wesley Scott on September 11
An initial bankruptcy consultation should help you decide if bankruptcy is the right option for you based on an analysis done by an experienced bankruptcy attorney. If you schedule an initial bankruptcy consultation with our office, here are some of the things you can expect:
Posted by Wesley Scott on August 25
Getting out of debt is a top priority for many Americans today. Debt is a huge problem in our country and is causing many people to struggle financially. Debtors depend on a number of different solutions to help them get out of debt; some rely on the bankruptcy court while others are able to make changes to their budgets, get second jobs or refinance their debts.
Posted by William Kain on August 7
There are a few things debtors can do before filing bankruptcy that can end up hurting their bankruptcy case. In some cases, those actions taken before filing for bankruptcy can result in the loss of property or not receiving a discharge.
Posted by William Kain on August 5
Depending on the individual case, the number of pages in a typical bankruptcy petition and schedules is between 50 to 70 pages. The majority of the pages consist of your list of creditors. Each creditor that you owe on the day that you file your bankruptcy case must be listed in your bankruptcy schedules. Therefore, if someone has 20 creditors, his bankruptcy schedules will not have as many pages as someone who has 50 creditors.
Posted by William Kain on August 1
Some people may believe that they are eligible for bankruptcy regardless of their current financial status — they are partially correct. Others believe that the changes in bankruptcy law that came with the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 made it impossible for most people to find debt relief through bankruptcy — they, on the other hand, are completely wrong. While changes in the bankruptcy laws did restrict some of the eligibility requirements, it did not remove the right of any individuals to seek relief from creditors through the protections offered in bankruptcy.
The confusion can be summed up in two words: media and creditors. Creditors, with the help of media outlets, did a fantastic job of convincing most Americans that if they did not file bankruptcy before October 2005 when the new bankruptcy laws took effect, they would not be able to file bankruptcy (or that filing bankruptcy would be much more difficult).
While it is true that the new bankruptcy laws did contain some significant changes, experienced bankruptcy attorneys had already learned the new rules and laws and were ready to continue helping debtors find debt relief through bankruptcy.
Posted by Wesley Scott on July 24
I strongly believe that a person should not fear losing his or her wedding ring due a debt. Wedding rings are a symbol of a couple’s union and should be preserved at all costs. As a bankruptcy lawyer and a citizen of Minnesota, I did not think that the existing laws (prior to 2005) were fair because they permitted creditors to take a person’s wedding ring to satisfy a debt; so, I decided to do something about it.
Prior to the change in Minnesota exemption laws, a creditor could obtain a judgment against you that would allow them to seize your wedding ring to satisfy the debt you owed. Under Minnesota Statute 550.37, certain assets of a debtor are considered exempt. In other words, creditors cannot seize these assets from a debtor to pay the debtor’s debts. Under the old exemptions laws, a debtor’s wedding ring was not exempt. Creditors were able to seize your wedding rings, sell them and use the proceeds to pay the debt that you owed. Can you imagine owing a dentist bill for $300 and having your wedding ring seized and sold to pay for the debt?
Some people wondered why I was so passionate about working to change the exemption laws where wedding rings were concerned. To me, the prospect of losing a wedding ring to your creditors is despicable. I can understand losing a jet ski to your creditors to satisfy your debts, but not a wedding ring. A wedding ring is the symbol of marriage between two people.
Posted by Wesley Scott on July 22
Student loans are a serious debt problem for millions of Americans. Bankruptcy is designed to help provide relief for debtors who are struggling with overwhelming debt. However, in most cases, student loans are non-dischargeable in a bankruptcy proceeding. Debtors who desperately need assistance resolving their debt issues are not truly afforded a fresh start if a majority of their debt stems from student loans. This is why I am working to change the laws governing student loans in bankruptcy.
Posted by Wesley Scott on July 15
When you decide to file for bankruptcy relief, you are ready to hit the ground running. For most people, the weeks and months leading up to this decision are emotionally draining. Therefore, once you decide to meet with a bankruptcy attorney, you do not want to wait weeks or months for your case to be filed.
Posted by William Kain on June 27
Managing credit cards after bankruptcy can be a tricky matter. Some individuals are so fearful of going through bankruptcy again that they avoid using credit cards at all; however, this is not an effective way to rebuild credit after bankruptcy (which is a goal you should work toward after receiving a bankruptcy discharge). Other individuals jump back into credit without a clear idea how to manage credit wisely. This article is for all of those individuals, as well as those looking for some guidance and advice on how to manage credit cards responsibly.
Posted by Wesley Scott on June 24
You see their ads on television, billboards and on every webpage related to debt relief - - the stereotypical “Big City” bankruptcy lawyer. They play on your emotions and promise you immediate relief from debt collectors and creditors. However, what they do not explain in their advertising is that they are more of a “mill” than a law firm. You are a file number and a retainer fee, rather than a real person with real financial problems. If you are considering bankruptcy, this doesn’t have to be your experience.
There are bankruptcy lawyers out there that treat you as an individual, with emotions and unideal financial circumstances. However, if you don’t go this route, you are at risk of succumbing to the dangers of choosing a stereotypical lawyer:
Posted by Wesley Scott on June 17
In my opinion, the single most important tip to rebuild credit after bankruptcy is to not be afraid of credit. One of the biggest mistakes people make is completely avoiding credit after they file bankruptcy. Although avoidance is likely done with good reason, it won’t help rebuild your credit.
Filing a bankruptcy case is an emotional process that most people never want to repeat during their lifetime. However, it is also a process that allows individuals who are suffering from debt problems to receive the help they need to recover from a terrible financial crisis. Taking on credit again after filing a bankruptcy can be scary because credit probably played a role in your decision to file bankruptcy in the first place.
Posted by William Kain on June 5
Yes, you can file your own bankruptcy case; however, you probably will not get the results you want as efficiently as is possible. Filing a bankruptcy case can be a very complex matter, especially if it is a Chapter 13 case. In addition to filing the bankruptcy petition, schedules and statements that are required in all bankruptcy cases, you must also create and propose a repayment plan. Repayment plans are complex and require more than simple math to calculate. The benefits of having a Chapter 13 attorney far outweigh the costs you think you might save by trying it alone.
Posted by Wesley Scott on June 3
There are several types of bankruptcy available to business owners who are struggling with overwhelming debt. Due to poor economic conditions, many businesses are forced to shut their doors. For some, the damage caused by business failure extends far beyond losing their business. In many small businesses, owners personally guarantee the debt incurred by the business. This means that, if the business fails, the creditors look to the co-debtor, or the owner, for repayment of the debt. Unfortunately, the closing of their business typically means the loss of the owner’s sole source of income, leaving no means to repay the business debts.
Bankruptcy can help relieve business debt and repair the damage caused by business failure. Because there are several types of bankruptcy individuals and businesses can file, there is almost always a solution that is right for each unique set of circumstances.
Posted by William Kain on May 22
Debt is one of those situations that cause people to place blame, become depressed and experience intense emotions, such as relentless anger and the feeling of hopelessness. These then trickle into your daily life and cause poor performance at work or tense marital interactions, for example. A challenging financial situation can have a snowball effect, tirelessly enhancing your stress and contaminating your life and relationships.
Posted by Wesley Scott on May 21
One of the biggest concerns that most people have about filing bankruptcy is their credit score. As experienced bankruptcy attorneys, we understand our clients concerns about their credit score after bankruptcy. Your credit score affects everything from obtaining new credit, to the amount you pay for your automobile insurance. Credit ratings are vital to our financial stability, and rebuilding credit takes time and patience.
Posted by Wesley Scott on May 6
Sometimes, the best way to understand that you are not alone in your financial distress and the emotional despair that comes with it is to share a story of someone who has been in your shoes. So I’ve asked Patrick* if he was willing to share his story with you. He isn’t the stereotypical candidate for bankruptcy – in fact, most filers don’t fit that mold – and his journey is representative of many that come through our doors.
My story may sound familiar to you if you are dealing with overwhelming debt. My name is Patrick. My wife and I were both successful in our careers and blessed to have a good income to support our children and our lifestyle. This was until I was laid off from my job two years ago. I qualified for unemployment and we managed to make ends meet by cutting expenses and making lifestyle changes. Unfortunately, my unemployment ran out before I was able to find another job. My wife and I both assumed that I would be able to find another job within a short period of time; however, due to the recession and the economy, jobs within my industry were difficult to come by.
After my unemployment ended, we were unable to keep up with our living expenses, in addition to our other monthly bills. Of course, we tried to keep our mortgage and car payments current because they were necessary for our survival. We did not pay our credit cards, personal loans and medical bills in favor of paying our house payment, car payments and living expenses. We managed to hang on for several month months but eventually one of our vehicles was repossessed. Creditors and collection agencies would call at all hours of the day and night, they even began calling my wife at work and threatening to file lawsuits. We received notice that we owed a deficiency on our car loan and they would be seeking a judgment to force us to pay the amount due. It seemed that the more we tried to settle with creditors, the more aggressive and demanding they became.
Posted by William Kain on April 29
All of us are subject to drastic lifestyle changes that can have a negative impact on our finances, making it difficult to pay bills. It could be loss of income due to unemployment or reduced hours, a divorce, loss of a spouse, business failure or prolonged illness or medical emergency. The fact is that we never know when we might find ourselves facing a financial crisis due to a lifestyle change.
Posted by Wesley Scott on April 24
Charles*, a previous client of mine offered to share his personal bankruptcy story, in hopes that if you are facing a similar situation you might seek help and find comfort in the fact that you are not alone. I am grateful Charles is sharing his story because his experience is the epitome of financial situations taking a turn for the worse, and there was nothing he could do about it. I think many debtors relate to his situation and his emotional struggle to reach out for help.
Posted by Wesley Scott on April 23
Divorce and bankruptcy are both realities of life for many individuals. No one sets out in a marriage with the intent to file for divorce just as no one sets out in life with the intent of filing a bankruptcy. However, if divorce and bankruptcy are a future you are preparing for, you’ll need the experience and guidance of an experienced bankruptcy attorney.
Posted by William Kain on April 17
Hello, my name is Jane. I am just an average working woman, trying to make ends meet and keep the bills paid. In my mind, bankruptcy should only be relied upon when things are beyond control. However, in my experience, I know that situations can easily and quickly spin out of control. Throw one wrench into a perfectly planned and executed budget – like an unexpected car accident that results in thousands of dollars in unpaid medical bills and a vehicle purchase to replace the one that was totaled – and there you are again, buried in debt.
Posted by Wesley Scott on April 15
Most people assume that the only benefit they will receive from a personal bankruptcy is debt elimination. However, personal bankruptcy does more than simply eliminate your debts. Personal bankruptcy aims to treat the cause that brought you to the bankruptcy court, as well as addressing the symptoms of a financial crisis. For example, filing a bankruptcy case will not only eliminate the debt associated with these top five reasons people fall into debt, it will also help them address the symptoms that built up to cause financial crisis.
Posted by William Kain on April 10
We receive calls every day from people just like you who are trying to pay their bills but have suffered a financial crisis and have fallen behind. They report that creditors and collection agencies are threatening to take their homes, garnish their wages or levy their bank accounts unless the bill is paid immediately. We hear horror stories of collection agents repeatedly calling their homes, their families or their place of employment to scare them into paying their debts. Angry collection agents bang on their doors or yell into the phone using abusive language and threatening legal action if the bill is not paid. All of these actions are considered creditor harassment and you have rights to make them stop.
Posted by Wesley Scott on April 8
The decision to file a Chapter 13 bankruptcy case is not something that most individuals take lightly. It is only after thorough consideration, and with the advice of an experienced bankruptcy attorney, that most individuals commit to reorganizing their debts through the bankruptcy process. Filing a Chapter 13 bankruptcy has many benefits, including saving your home from foreclosure, stopping repossession and even keeping you from going to jail if you are behind on domestic support obligations. However, one major advantage that is often overlooked about filing a Chapter 13 case is the appointment of a Chapter 13 Trustee.
Posted by William Kain on April 3
Some people are faced with taxes that they cannot pay because of a lost job or the loss of a spouse’s income. Others may have increased the number of exemptions they claimed during the recession so they could put more money into their pockets each pay period and they are now facing huge tax bills. Whatever the reason may be for owing back taxes, bankruptcy may have the solution for your tax problems. Most personal taxes are not eligible for a discharge through bankruptcy; however, there are exceptions to the general rule. Plus, filing bankruptcy can help you with your back taxes in other ways.
Posted by Wesley Scott on March 26
Our aim in this blog is not to discredit or offend other attorneys; our purpose is to inform individuals of the benefits of hiring a Minnesota bankruptcy lawyer verses a general practice attorney when you are contemplating filing bankruptcy. There are some types of law that are very specific and unique in how they are practiced and the rules that govern them that they require a special expertise in order to effectively represent clients. Bankruptcy comes to our mind because that is our specialty, but others include tax law, international corporate law, complex product liability and copyright and patent law.
Posted by Wesley Scott on March 19
What happens when you file bankruptcy? Firstly, the automatic stay provisions under the Bankruptcy Code prohibit your creditors from contacting you regarding your debt. Filing bankruptcy stops creditor harassment and those annoying and frustrating creditor calls. However, you are probably wondering what the process looks like - when will you have to go to court, how many times, what a trustee does, how long it takes, etc. We answer questions like these each day as bankruptcy attorneys.
Posted by Wesley Scott on March 11
Congratulations, you have successfully completed your bankruptcy and you are ready to take your first steps on the road to rebuilding your finances. A very important element of any sound financial plan is budgeting. Some people believe that budgeting is too difficult or that budgeting is only a way of denying yourself what you truly want. On the contrary, budgeting makes it possible for you to achieve the things you want by helping you manage your money. Budgeting can also help you save more money by revealing any issues or incongruences between your income and your expenses.
Posted by William Kain on February 27
Are you considering filing for bankruptcy relief? It is possible to do this on your own (without a bankruptcy attorney). You will have to act as your own legal representative – which requires an understanding of the Bankruptcy Code, not to mention court etiquette and filing procedures. Incompletely or improperly filing bankruptcy will cause more headaches and issues than you had to begin with. Once you file a bankruptcy case, you may not be able to undo any mistakes you make while representing yourself.
Posted by Wesley Scott on February 25
Dealing with overwhelming debt and coping with the stress associated with a financial crisis creates emotional burdens and causes damage to your financial well-being. However, bankruptcy provides a real solution to a variety of difficult financial situations. For example, a debtor can discharge or “wipe out” unsecured debts through the filing of a Chapter 7 bankruptcy case or reorganize debts into a manageable repayment plan through a Chapter 13 bankruptcy case. Through the bankruptcy process, debtors learn where things spun out of control and how to handle or prevent debt in the future. In addition, when the bankruptcy case is completed, you are able to begin rebuilding your financial affairs.
Posted by William Kain on February 20
Many clients ask what life after bankruptcy will be like and how long it will take to recover from filing a bankruptcy. For most, life after bankruptcy is much less stressful. You will be filled with an overwhelming sense of relief as bill collectors stop calling, creditors stop breathing down your neck and you can finally see hope for your future, free from the burden of debt. You’ll get to feel optimistic about your future again, happy that you can start fresh and begin to recover and rebuild. No matter what emotions are felt after a bankruptcy is complete, there is one common thread that weaves itself through life after bankruptcy -- the ability to learn from past financial mistakes.
Posted by Wesley Scott on February 18
Because each person’s financial situation is different, it is difficult to answer these questions without first taking the time to fully understand the circumstances that brought you to this point. Some debtors have the ability to repay some or all of their debts if they are given the opportunity to reorganize their debts into a manageable repayment plan. On the other hand, some debtors do not have any funds available to pay creditors after paying for their basic living expenses. This is the purpose of having different types of bankruptcy, so that debtors may find relief under the bankruptcy code according to their specific financial needs.
Posted by William Kain on February 6
For anyone familiar with bankruptcy and student loans, you may be wondering how these two topics could have anything in common. First, bankruptcy is designed to relieve you of your debt. On the other hand, incurring student loans places you in debt. Furthermore, student loans are typically non-dischargeable (there are exceptions in some cases) in bankruptcy making them one of the few unsecured debts that survive a bankruptcy filing. It would seem that these two concepts would be the exact opposite of each other; however, there are similarities between bankruptcy and student loans.
Posted by Wesley Scott on January 23
Almost all of us will experience debt problems at some point during our lifetime due to a financial crisis such as a job loss or due to our own devices. Some individuals cause debt problems for themselves through poor spending habits, abuse of credit cards, gambling, co-signing loans for others or because of a failure to budget and manage money well. Because they feel their debt problems are due to something they did or failed to do, they may wonder, “Is personal bankruptcy a good option for me?”
Posted by Wesley Scott on January 7
According to a study conducted by NerdWallet Health, over twenty percent of Americans will struggle with medical debt this year. For some, the best alternative is to file bankruptcy. Medical bills have been an ongoing financial problem for many Americans for more than a decade. In 2009, more than 60% of individuals who filed for bankruptcy relief did so due to medical bills. According to a report published in the American Journal of Medicine, the number of individuals who had to file bankruptcy due to medical bills rose from 46% in 2001 to 62% in 2007.
Posted by William Kain on January 2
Posted by William Kain on December 19
As a legal advisor, I've come across many people who've gone through some extremely nightmarish situations due to debt. They have been lied to about the financial services they selected, made poor financial decisions or encountered bad debt consolidation companies with programs they were assured would help.
Posted by Wesley Scott on December 12
Divorce is one of the top 5 reasons many debtors turn to bankruptcy. If you are going through this situation, know that you are not alone. The following is one woman’s story about how divorce and bankruptcy turned her life around, in ways she could never have expected.
Posted by William Kain on November 14
Making the final decision to file bankruptcy can be challenging, but my clients report feeling immensely relieved. Simply settling on this decision provides relief because you have a plan to move forward and out of your financial darkness. Technically, nothing official happens until you file your petition. However, your peace of mind will lighten your load and allow you to think and see your future clearly.
Posted by Wesley Scott on September 24
If you are in debt and looking for a way to get out, consider ALL of your options. When all of your options are on the table, take time to think through the advantages and disadvantages of each and how they will affect your life in the long run. Sit down with a legal professional, too, to discuss your options and get advice and opinions about which is best for your specific situation.
Posted by Wesley Scott on September 10
The effects of filing bankruptcy are felt almost instantly. The moment you decide to file bankruptcy you will likely feel some of the stress fade because you know the end of your financial nightmare is in sight. Once your petition is approved, you can begin the journey to debt freedom, feeling lighter and happier than you have felt in a long time. Put the nightmare behind you and begin living the life you have been dreaming of.
Posted by William Kain on September 4
Posted by William Kain on September 3
Filing for bankruptcy seems like a big, scary decision, mainly due to its reputation and image painted by our media. High ranking officials and celebrities, such as George McGovern and Larry King, receive a lot of negative attention when they file bankruptcy. As of late our media is focused on Detroit, an entire city, going bankrupt. Unfortunately, the fact that individuals, businesses and even cities, are filing bankruptcy is the only part of the story that is “newsworthy,” and we don’t get to see their return to normalcy – to debt freedom.