In most chapter 7 and chapter 13 cases, there is only one hearing you will need to attend.

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? 

If you receive an inheritance before filing bankruptcy, whether it’s cash or physical property, then those items may become part of your bankruptcy.  

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. 

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.

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.

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.

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:

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.

“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.

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!

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. 

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.

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?

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. 

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.

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.

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.

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.

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.  

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.

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.

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.

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.

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!

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.

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.

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.

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.

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.

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.

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! 

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.

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.

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.

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.

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.

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.

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.

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. 

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.

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.

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.

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.

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.

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...

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.

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.

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?

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.

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?

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?

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.

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.

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:

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.

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.

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.

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?

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.

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.

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.

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.

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.

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!)

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?

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:

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.

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!

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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…

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.

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.

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:

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.

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.

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.

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.

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.

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.

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.

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:

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.

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,  tax free ! However, a very small percentage of cases do get denied, here are the reasons:

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.

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...

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. 

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...

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...

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.

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?

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.

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.

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.

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.

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.

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.

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.

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.

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!

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.

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.

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.

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.

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?

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.

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! 

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.

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?

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.

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.

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?

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?

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.

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.

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.

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?

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.

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.

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?

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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”.

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.

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.

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.

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.

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.

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?

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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:

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.

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.

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!

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.

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.

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.  

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. 

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!

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.

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?

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.

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.

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.

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

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.

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.

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. 

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.

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.

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.

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.

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:

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.

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?

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.

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.

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.

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.

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.

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.

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.

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.

The History of Bankruptcy

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.

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.

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.

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.

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.

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.

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.

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. 

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. 

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. 

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.

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.

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.

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.

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?”

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.

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.

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.

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. 

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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. 

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.

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. 

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.

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.

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:

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.

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. 

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.

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.

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.

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.

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.  

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.

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.

Personal Bankruptcy Filing Statistics

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.

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. 

1. Is Bankruptcy All They Do? 

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.

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.

A Story of Financial Trouble Caused By Income Loss

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.

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.

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:

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.

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.

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.

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 Eligibility Confusion

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.

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.

Lack of Protection for the Symbol of Marriage

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.

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.

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.

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.

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:

What are the Dangers of Choosing a Stereotypical Lawyer?

1. The biggest disadvantage of choosing one of these law firms is that the lawyer you meet with for your consultation may not be the lawyer that you see when you hire the firm (if you see a lawyer at all). You will be shuffled from lawyer to lawyer as you go through the bankruptcy process. Rather than having a bankruptcy lawyer that is familiar with your unique financial situation, you are placed with whatever lawyer has an open slot. You want a lawyer who takes the time to understand your situation and who is committed to helping you through this difficult time in your life. Our bankruptcy lawyers take the time to get to know each client so that we can make this process as stress-free as possible.
   
   
2. Many of these firms and lawyers have a pretentious demeanor. You may feel looked down upon, judged and intimidated when you meet with one of these lawyers. Rather than seeing you as an individual who needs help dealing with a serious financial crisis, these lawyers place blame for your financial situation squarely on your shoulders. It is our belief that most debtors are in this situation due to circumstances beyond their control, such as unemployment or a sudden illness. You need a bankruptcy lawyer who is going to be your partner in finding a resolution to your debt problems, rather than someone who is going to cause you to feel shame about your current financial situation. Unlike these firms, we understand this is a difficult and painful decision and we are here to give you the support, encouragement and guidance you need to solve your debt problems.
   
   
3. You are going to get the run around. Every time you call the law firm, you will speak to a different receptionist, then get transferred to a different assistant and maybe, if you are lucky, you will get to speak to a lawyer, but probably not the one assigned to your case. Again, these “Big City” law firms are not interested in helping you recover from a financial crisis. They only want to hurry you through the process so they can close your file and move on to the next paying customer. You are handed off to whoever is available at that moment, rather than being treated as an individual. Filing bankruptcy is a serious decision and you deserve to be treated with respect.
   
   
4. You become just another case filing to generate money for the law firm. The lawyers in these firms are looking at one thing - - their profits. Instead of seeing clients as individuals, they see them as case files. There is no personal attention or investment of time in the client. You are much more than some documents in a file folder; you are a real person with feelings, concerns and questions. We may have answered the same question hundreds of times; however, when you ask a question, you deserve to have it answered thoroughly to ensure you are comfortable with the bankruptcy process.
   
   
5. When you hire a bankruptcy lawyer, you expect to have your case filed within a reasonable period of time. However, when you are but one file of hundreds, weeks or months pass before your bankruptcy is filed and you get to court. The filing of your bankruptcy may be pushed further back because some assistant or junior lawyer wants to move another case along more quickly. Your file is shifted between several lawyers and assistants so that it never receives the proper attention you deserve. We understand your time is valuable and that you want to move as quickly as possible through the process so that you can begin rebuilding your finances and your life.

Choose the Right Partner

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.

Jane’s Experience with No Credit, Post-Bankruptcy

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.

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.

The Different Types of Bankruptcy for Business Debtors

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.

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.

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.

Meet Patrick

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.