Welcome To The MN Bankruptcy Blog

Inside you will find over 500 helpful articles discussing the Chapter 7 & 13 Bankruptcy Process and other solutions for difficult financial situations.

 

      Judgments

      Posted by Col Ovik on May 14

      When a creditor has failed to obtain payments from the debtor, the creditor may sell the debt to a debt collector. If the debt collector or creditor is still unable to collect on the debt they may employ a law firm to pursue the debt through a lawsuit. The initial start of the lawsuit begins with notice to the debtor that they are being sued.  

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      Can I File bankruptcy on Medical Debt?

      Posted by Amanda Scharber on April 11

      Medical debt is dischargeable in bankruptcy, both in chapter 7 and chapter 13 cases.

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      Forgiven Debt and Tax Liabilities in Minnesota

      Posted by Col Ovik on September 25

      Under the Internal Revenue Code, the general rule is that the discharge of a debt is a form of gross income. The forgiveness of a debt does sound nice, but it does come with some consequences. For example, if a creditor forgives a debt of $20,000, you would have an additional $20,000 for taxable income. At a conservative tax rate of 15% you would owe an additional $3,000 in federal income taxes for that year.

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      What Are Forgiven Debts and Taxes in Minnesota? | LifeBack Law Firm

      Posted by Col Ovik on September 5

      Under the Internal Revenue Code, the general rule is that the discharge of a debt is a form of gross income. The forgiveness of a debt does sound nice, but it does come with some consequences.

      For example, if a creditor forgives a debt of $20,000, you would have an additional $20,000 for taxable income. At a conservative tax rate of 15% you would owe an additional $3,000 in federal income taxes for that year.

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      Can Bankruptcy Help Me With My Medical Debt in Minnesota?

      Posted by Tim Tonga on August 4

      There are lots of reasons that people file for bankruptcy. One very common reason is because they have lots of medical debt. Medical services can be very expensive, particularly for those who have no or little insurance. Medical debt is considered general unsecured debt, just like credit cards and personal loans that are not secured by any collateral. This type of debt can be completely wiped out by a bankruptcy discharge.

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      Can I Choose Which Debts to Include and Exclude in My MN Bankruptcy?

      Posted by Kelsey Quarberg on March 9

      The short answer to this question is simple: no, you cannot choose which debts are in your bankruptcy and you cannot leave any out. When you file bankruptcy, you must list all of your debts, including any secured debts, domestic support obligations, tax debts, and general unsecured debts. You are asked in both your filing paperwork, and while under oath at your 341 meeting, if you included all of your debts and you need the answer to be a simple: “yes.”

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      Reorganizing Your Debts in Minnesota: Is Bankruptcy the Bets Way?

      Posted by Jake Peden on February 10

      While we are still learning all the effects of the COVID-19 coronavirus, the far-reaching impact of this pandemic and related government shutdowns will continue to be discovered for years. Many people have been directly impacted and been laid off, furloughed, or otherwise had their hours and compensation cut. But the even wider reaching are the effects will be felt for years and across nearly every industry.

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      Should I Keep Paying My Debts When Considering Filing for Bankruptcy in MN?

      Posted by Tim Tonga on February 1

      People typically file for bankruptcy when their debt becomes too overwhelming for them to continue to handle. This is nothing to be ashamed of and thousands of people file for bankruptcy each year in Minnesota alone.

      The bankruptcy law is designed to allow people to hit the “reset button” and be relieved from their legal obligation to pay past-due debt. Rarely do people regret filing for bankruptcy and many wish they had not waited so long to file when they finally do.

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      Let Us Worry About Your Overwhelming Debt

      Posted by Wesley Scott on October 21

      You could not find a single person who will tell you that life is easy. It is not. In fact, sometimes it seems like life is purposefully cruel –dealing blow after blow, hit after hit, and just when you think there might be a moment of relief, life kicks you again when you are down. One of life’s lowest blows is overwhelming debt. Debt creeps into your life and when it finally sinks its fangs in, it is already too late. You are buried alive by it and suffocating –already weakened by the other curveballs that life has lobbed at you. It may seem hopeless. But it is not. 

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      New Year’s Resolution: Taking Control of Your Debt

      Posted by William Kain on December 13

      Many people make New Year’s resolutions to exercise more, eat healthier, or be kinder to others. But what about resolving to address your financial situation? A lot of people facing financial stress and debt tend to sweep it under the rug. It may feel so overwhelming that they think there is nothing that can be done about it. This is not the case, however, as our experienced bankruptcy attorneys have helped many people overcome even the most serious financial situations. The following are only some debt-related resolutions that can make for a happier 2019.

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      (Video) What Does It Mean To Liquidate Assets In A Bankruptcy?

      Posted by Wesley Scott on July 17

      The language of bankruptcy attorneys can seem like Greek to the non-attorney. What does it mean for a Chapter 7 trustee to “liquidate” assets? When would the trustee do such a thing anyway? When we say, a Chapter 7 trustee will “liquidate” assets, we mean the Chapter 7 trustee will sell the assets and reduce the physical assets to money. You can’t take physical assets and distribute those assets to creditors. Instead, you sell the assets, reduce the assets to money, and disburse those proceeds to creditors pro rata and based on a set of priorities.

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      (Video) Are Debts Discharge In Chapter 7 Taxable?

      Posted by Wesley Scott on July 16

      This is a great question to ask. Normally, debts that are forgiven are taxable income to you. For example, if you had 100k in debt and your creditors all said- forget about it and wiped it out that is fantastic, except, you now will have to pay taxes on the 100k. Why? Anytime an entity writes off a loss on their taxes it is income to someone else. Make sense?  Now, let’s be clear, paying taxes on 100k is better than paying 100k. If your tax bill is 35k you just saved 65k.

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      Four Dischargeable Debts In A Minnesota Chapter 7

      Posted by William Kain on July 1

      Just like there is good cholesterol and bad cholesterol, there is also good debt and bad debt. The average Minnesota household has about $134,000 in debt. But much of this debt is secured debt, like mortgages and auto loans. Most people do not mind paying these loans, as long as the terms are reasonable and they like the car, house, or other collateral.

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      (Video) 3 THINGS TO DO WHEN SUFFERING FROM OVERWHELMING DEBT IN MINNESOTA

      Posted by Wesley Scott on June 3

      If you are living in or around Woodbury, MN and suffering from overwhelming debt, you are not alone. Each year, more than 15,000 Minnesotans file for bankruptcy protection because the debt simply becomes unmanageable. Suffering from overwhelming debt is mentally and physically stressful. If you find yourself in this position, there are a few things to do right now.

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      Will Bankruptcy Clear All Of My Debt?

      Posted by William Kain on April 23

      Technically, the answer to this question is “yes.” However, there may be some debt that you do not want bankruptcy to clear.

      There’s a significant difference between secured and unsecured debt. Secured debt includes things like home mortgages and auto loans. If the debtor violates the security agreement, the moneylender has the right to repossess the collateral. That right remains in place whether the debtor files bankruptcy or not. Unsecured debts are things like credit cards and medical bills. As outlined below, these debts sometimes have collateral consequences as well. But in most cases, they are quite limited.

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      What Bankruptcy Wipes Out Debt?

      Posted by William Kain on April 11

      All bankruptcy wipes out debt. The type of bankruptcy you need to file usually depends on the type of debts you owe.

      David Debtor had some unexpected medical bills last year. His daughter had emergency surgery out-of-network and he ran his car off the road one night. He now owes tens of thousands of dollars that he can’t afford to pay. He tried to retire the debt as best he could. But his payments hardly made a dent and put him behind in other areas. He’s not quite at the desperation point, but he is getting close.

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      JUDGMENTS

      Judgments

      When a creditor has failed to obtain payments from the debtor, the creditor may sell the debt to a...

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