I had a client of ours the other day comment on how she loved our website and she said something that really stuck with me. She said that are marketing presence was not “gimmicky”. That word “gimmicky” resonates with me because that is the opposite of what Kain & Scott is striving to do. We are striving to be the opposite of “gimmicky”. What did she mean by this?

It should not be surprising to be treated with common decency. One would think that it would be obvious that guests and clients are respected when they enter an establishment. It should be, but in many cases, it is not. We may forgive this at the grocery store or other retail establishments where interactions are few and fleeting. But we often hear our clients have been treated poorly at other bankruptcy law firms and we find this absolutely unacceptable. 

Some things you just want to be over and with and never have to think about again! A trip to the doctor’s for a colonoscopy, a Disney vacation with your in-laws and a toddler who just discovered they are terrified of mice, and filing for bankruptcy. All of these, I think we can agree, are situations that are better left in the rearview mirror. Maybe we have to do them, but let’s get them done and over with fast! Rip the bandage off!

 If you are looking to file bankruptcy in Minnesota you must be aware of who is marketing to you. For, example, if you call someone who is out of state, tread very carefully. Why? I have known some of these entities to have you sign contracts stating that they will immediately begin work and charge you by the hour. So, if you call them, they bill you. If you email them, they bill you. The reason why this is so important is if you pay 2k for bankruptcy but decide not to file the bankruptcy, you will not receive a full refund of your fees.

 I know that Minnesota bankruptcy professionals often think they have done their job when they get rid of your debt for you. But at Kain & Scott, we do not think we are done yet. At Kain & Scott, we go the distance with you. To me, you don’t have your life back until 1) debt is gone and 2) your credit is repaired.

Obviously, when you are considering filing Chapter 7 bankruptcy, the cost of filing Chapter 7 Bankruptcy is important. Some firms will not give you their fees over the phone or on their website. I guess they don’t want to deal with those people wondering how much the fees are to file Chapter 7 Bankruptcy. I honestly don’t know why a firm would not share the fees with you unless they cannot justify the price of their fees to you over the phone or on their website. Maybe there is a reason why you should make some extra phone calls if the firm is not interested in helping you get your life back beyond what is in your wallet.

So many good Duluth residents think that if they file Chapter 7 Bankruptcy, they will ruin their credit forever. We hear this common misconception all the time. They also wonder if, after filing bankruptcy,
can I rent, can I buy a home, and can I get credit cards or vehicle loans again? These are all legitimate questions that I would want to know the answer to as well. But life is not always what it seems. I have a little secret to let you in on: future lenders don’t care if you can pay your current debt, what future lenders really want to know is will you pay us if we lend you money now? That is really what future lenders care about.

Judging by what you see and hear in the media, it's not uncommon to hear about businesses filing for bankruptcy. Some of these businesses go on to success in life after bankruptcy. And these aren’t just huge, national corporations - according to the Small Business Administration, roughly 80 percent of small businesses will fail. If you’re a sole proprietor whose business is facing insurmountable debt, you may be wondering whether bankruptcy is a viable option for you.

Deciding to file for bankruptcy is a big step - so big that it can perhaps feel like stepping off a cliff. However, you may be surprised to feel a sense of relief once you decide to move forward. After all, bankruptcy offers the opportunity to make a fresh start. Most people think of bankruptcy as a legal mechanism that wipes out your debt. In legal jargon, this is referred to as “Chapter 7” bankruptcy or “complete liquidation.” If you’re having difficulty paying your bills and have creditors aggressively seeking payment, the opportunity to make it all go away begins to sound very attractive. However, there are situations in which Chapter 7 bankruptcy may not be your best option.

Many people worry that if they file for bankruptcy, they will lose everything - their house, their car, anything of value that can be sold to pay their debts. Fortunately, this is not the case. Bankruptcy law provides for various exemptions that allow people to retain property and avoid creditors’ claims. One of the most important of these exemptions is called the “homestead exemption,” which allows people to keep their homes.

When you file for bankruptcy, you’re basically asking the bankruptcy court to relieve you of the obligation to pay some or all of your debts. As part of that process, you need to demonstrate to the court that you can’t pay all of your creditors in full. As a result, you will need to submit what may seem to be an overwhelming amount of paperwork to the court and the other parties to your bankruptcy case. This is intimidating for many people, especially if they don’t have an attorney to represent them. The documentation you submit is critical if you want your case to be successful - failing to submit the correct documents can jeopardize your case and even result in it being dismissed.

In an earlier post, I wrote about the decision-making process that our clients go through in determining whether to file a bankruptcy case.  The last post dealt in large part with the advisability of thinking through the financial problems carefully, and involving friends and relatives to get a sense of whether these supporters think the bankruptcy option is a good one.  At the end of the post I wrote that seeing an attorney is essential to good decision-making regarding the wisdom of filing a bankruptcy case.

In an earlier post, I started writing about a common issue in chapter 13 bankruptcy cases: a change in income experienced by the debtor while the chapter 13 plan is open.  The last post looked at why this is an issue - namely, the 2005 revision of the bankruptcy law that required chapter 13 bankruptcy debtors to annually send the chapter 13 trustee copies of filed state and federal income tax returns.  It’s from that tax information that a chapter 13 trustee can ask individuals already in confirmed chapter 13 plans to adjust their income and expense schedules to more accurately reflect the debtor’s month-to-month financial situation.

A chapter 13 bankruptcy is a very helpful tool for many people who are encountering overwhelming financial problems.  For individuals dealing with a potential mortgage foreclosure, chapter 13 offers a structured, affordable way to keep families in their homes.  For a person who has a car payment that has unexpectedly become too expensive, chapter 13 offers a way to restructure the car loan to make the payment more affordable.  For the person who is dealing with child support arrears, or back income taxes, chapter 13 provides a structure to pay these important obligations. 

A lot of people have no idea the government has a debt consolidation plan. Did you know that? Probably not. What if I told you this debt consolidation plan is limited to 3-5 years, you pay what you can afford to pay, and at the end of the plan whatever doesn’t get paid off, gets wiped out, tax free? Peeks your curiosity doesn’t it?

In Part One of this series, we began reviewing some common terms you may hear during a consumer bankruptcy case. It is important to understand what is happening in your bankruptcy, which is possible with the help of an experienced Minnesota bankruptcy lawyer at Kain & Scott. Below, find brief explanations of additional common bankruptcy terms.