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.



      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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      Will My Surviving Spouse Have to Pay My Debts If I Die in Minnesota?

      Posted by Kelsey Quarberg on February 20

      Generally, the answer is “no,” with a few exceptions. First, I will explain what happens to your debts when you die. After that, I will cover the few exceptions to the rule for surviving spouses in Minnesota.

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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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      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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      How to Find a Winning Minnesota Bankruptcy Law Firm

      Posted by Kelsey Quarberg on February 21

      Sports fans have been anxiously waiting and the time is almost here: March Madness. As you gear up for a series of exciting games and limitless chicken wings, there’s one preparation that any dedicated basketball fan takes very seriously: picking a winning bracket.

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      Getting the Most Out of Your Minnesota Bankruptcy

      Posted by Kelsey Quarberg on February 10

      If you’re one of the thousands of Minnesota residents who is considering filing for either Chapter 7 or Chapter 13 bankruptcy, follow these simple tips to help you get the most out of your Minnesota bankruptcy.


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      How Does Bankruptcy “Work” - Part 4

      Posted by William Kain on February 8

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

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      (Video) Common Fears Associated With Filing Bankruptcy In Minnesota

      Posted by Wesley Scott on February 1

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

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      How Much Does Filing for Bankruptcy in Minnesota Cost?

      Posted by Kelsey Quarberg on January 30

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

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      Are Bankruptcy Discharged Debts Taxable In Minnesota?

      Posted by William Kain on January 29

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

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      How Does Bankruptcy “Work” - Part 2

      Posted by William Kain on January 24

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

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      Can I File Bankruptcy For my Deceased Parent’s Home in Walker, MN?

      Posted by Misty Myers on January 22

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

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      Can Bankruptcy Be Filed On Medical Debt In Edina, Minnesota?

      Posted by Wesley Scott on January 10

      Medical bills are the worst kind of debt there is. They are impossible to predict and certainly not preventable. I have a relative who is a young woman who has brain cancer. Do you have any idea how huge the medical bills are for something like this? That is not to mention the amount of other debt incurred along with medical bills.

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      (Video) What Bankruptcy Should I File In Monticello, Minnesota?

      Posted by Wesley Scott on January 5

      So, you live in or around Monticello, Minnesota and you know you need to file bankruptcy but you are not sure which bankruptcy you need to file. There are some simple questions to ask to figure out which bankruptcy makes sense for you.

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      (Video) Minnesotan Clients Choose Kain & Scott To File Bankruptcy

      Posted by Wesley Scott on January 4

      Why do Minnesotans choose Kain & Scott to file bankruptcy? Simple. Kain & Scott has the best customer service experience than any other bankruptcy law firm in Minnesota. But, don’t take my word for it, read what our former and current guests say about us online with google reviews. Kain & Scott is Minnesota’s highest Google reviewed bankruptcy law firm- period.

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      (Video) How Do I Know If I Should File Chapter 7 Bankruptcy In St Cloud, MN?

      Posted by Wesley Scott on January 3

      It’s a simple question isn’t it? I mean how do you really know if you should stop paying your bills and push the reset button? You will hear so many financial “gurus” tell you to try and avoid bankruptcy. I think these people are nuts. In fact, I would tell to you to err on the side of filing Chapter 7 Bankruptcy and getting your life back. Why? Simple. Life is short. Do you want to be bogged down in debt for eternity with crappy credit anyway or do you want to live for the future, know you can pay your bills on time, and seek a new life?

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      (Video) Can Bankruptcy Clear Medical Debt In St Cloud, Minnesota?

      Posted by Wesley Scott on January 2

      There is nothing worse than medical debt. Why? Because it is so unpredictable and uncontrollable. It’s one thing to have to go through a surgery or awful illness but it is even worse when you sit back, hopefully healthy again, and receive all of the medical bills from the illness or surgery.

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      (Video) Are Bankruptcy Filings Published In The St Cloud, MN Newspaper?

      Posted by Wesley Scott on December 26

      One of the common concerns that our Minnesota guests have is will my bankruptcy be published in the St Cloud, MN newspaper? I get this. When you are knee deep in debt you feel like a loser- you don’t want anyone else knowing what you are going through lest they judge you, right?

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      Become Debt-Free in 2018 with Minnesota Bankruptcy

      Posted by Wesley Scott on December 22

      Did 2017 wreak havoc on your finances? 2018 is almost here; while you’re stocking up on champagne, decorations, and party hats to ring in the new year, you probably can’t believe that 2017 has come and gone so quickly. As you sit down to write out your resolutions for 2018, have you thought about what you can do in the New Year to finally get rid of your debt for good?

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      Unexpected Debt and Minnesota Bankruptcy

      Posted by Kelsey Quarberg on December 20

      Has Mother Nature caught you off guard with unprecedented winter storms?

      No matter how prepared you think you are for winter, chances are when an unexpected snowstorm hits, you find that there was something you forgot: extra batteries, driveway salt, or the ever-important loaf of bread and gallon of milk may make the difference between enjoying the winter wonderland outside or cursing the swirling white fury outside your window.

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      Bankruptcy and Marriage in Maple Grove, MN: Does Your Spouse Have to File & Other Common Questions

      Posted by William Kain on December 19

      Our married clients often have many questions regarding how filing bankruptcy will affect their spouses. The first question is usually whether the spouse must also file. The second question is typically whether the spouse will need to be involved in the process, and if so, how much. The third most asked question is usually how the spouse will be affected by the filing. These three common questions will be discussed below.

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      How Bankruptcy Can Help With Your Utility Bills in Wadena

      Posted by Misty Myers on December 18

      If you are living in Wadena and you are thinking about debt and bankruptcy, you are probably thinking about credit cards, loans, mortgages, and things like that.  What you may not be thinking about are utility bills.  Yet, utility bills are often the bills that get juggled when we are living paycheck to paycheck.

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      Commonly Asked Questions About Priority Debt

      Posted by William Kain on December 15

      Over the last month, I’ve tried to answer one of the questions most often posed to me by prospective clients: which bankruptcy chapter is best for me?  What’s the difference between the two chapters.  And since this is the fourth week that I’ve spent writing on this question, the answer to those questions is obviously a bit involved.  This week I’ll write some more about the differences in the way chapter 7 and chapter 13 operate - and this week we’ll look at the differences as they apply to priority unsecured debt.

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      Your Biggest Minnesota Bankruptcy Questions, Answered

      Posted by Wesley Scott on December 14

      As Minnesota’s oldest bankruptcy law firm, we’ve heard every bankruptcy question in the book over the last 50 years of helping Minnesotans erase their debt.

      Here are some of your biggest Minnesota bankruptcy questions, answered:

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      Tackling Your Debt During the Holiday Season

      Posted by Kelsey Quarberg on December 13

      Has your debt landed you on the naughty list this year?

      It’s that time of year when Santa is making his annual inventory of all the good and bad Minnesotans. But Santa isn’t alone: many Minnesota families are also taking a good hard look at their finances and wondering how much crunch they will feel once their credit card statements come in January. According to a recent report, the average American family spent almost $1,000 on just gifts during the 2016 holiday season and the projected expense of the 2017 season is expected to be even higher. For Minnesota families that are already struggling financially, the added cost of the holidays can turn a bad situation into a dire one.

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      Mobile Home Repossession Laws in Minnesota

      Posted by Misty Myers on December 12

      Most of us been in a position where we have been living paycheck to paycheck and have to pick and choose whether to pay certain bills or put food on the table for our families.  Families should not have to go through this, but up until the point they come into my office, that is often the case.  Now, sometimes one of the bills that doesn’t get paid is the mortgage.  If you live in a home and the mortgage is secured by land, the home would go through the normal foreclosure process.  But what happens if you live in a mobile home and the mortgage is not secured by land, and instead you rent the lot?  The process is a little different.

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      Should I be Considering Bankruptcy if I’m Current on all my Payments?

      Posted by Wesley Scott on December 11

      I get this question a lot. When is the right time to think about bankruptcy? Should I even be considering it if I’m current with everything? I think it really depends on circumstances and if you can project what the next couple of months forward will look like.

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      Commonly Asked Questions About Secured Debt and Bankruptcy

      Posted by William Kain on December 8

      For the last three weeks, I’ve tried to answer some very commonly-asked questions: what’s the difference between chapter 7 and chapter 13 bankruptcy?  The answer to that question is fairly easy - chapter 7 is a liquidation approach to money problems, while chapter 13 is a repayment program.  And the mechanics of the two chapters - the preparation of a petition, schedules and statements, the filing of the petition and schedules, and the steps to obtain a discharge - are also fairly easy to explain.  But since it’s taken me four weeks-worth of blogs to cover this topic, it’s the follow-up question “what’s the best chapter for us?” is more complex.  This week, I’ll write some more about the differences between the two chapters.

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      How to File Bankruptcy in Minnesota

      Posted by William Kain on December 5

      One of the most frequent questions potential clients ask us is, “do I really need a lawyer to file bankruptcy?” The answer is an overwhelming “yes!” While there is no law that requires you to hire a lawyer to handle your bankruptcy, it’s a good idea and can save you a significant amount of time and money.

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      What Types of Debt Can (and Can’t) Be Discharged in a Minnesota Bankruptcy

      Posted by Margaret Henehan on December 4

      One of the most common points of confusion among potential clients who are considering filing bankruptcy in Minnesota is what types of debt can be discharged.

      “Is all my debt eligible?” 
      "What about my house and car?” 
      “Can I get rid of my student loans?”
      “Is there anything you can do about my hospital bills?”
      “I have a huge utility bill – can I file for that?”

      What many people don’t realize is that not all debt is the same and, as such, not all debt can be discharged with bankruptcy, regardless of the type of Minnesota bankruptcy you file.

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      Defeat Your Credit Card Debt with Minnesota Bankruptcy

      Posted by William Kain on November 22

      With the holiday season approaching, many Minnesotans are planning on using credit cards to get through the annual spending splurge. With so many purchases this time of year—gifts, airplane tickets, gas, food, and trimmings—many families drastically increase their amount of credit card debt every holiday season. A recent study suggests that the average American household will spend $422 this year on gifts for each child in their household: that’s enough green to make anyone see red!

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      How to Stop Foreclosure, Repossession, & Creditor Harassment with Bankruptcy

      Posted by Kelsey Quarberg on November 21

      If you’re one of the thousands of Minnesota residents struggling with debt, chances are you might be faced with some form of aggressive collections actions from creditors in the near future. What many Minnesotans don’t realize, however, is that there is one way to stop foreclosure, repossession, and creditor harassment fast: by filing for Chapter 7 or Chapter 13 bankruptcy in Minnesota.

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      How to Stop Snowballing Debt Fast with Minnesota Bankruptcy

      Posted by William Kain on November 16

      Is your debt snowballing out of control this winter?

      If there’s one thing that Minnesotans know, it’s snow. With an average annual snowfall of between 36 and 70 inches, The North Star State has experience handling whatever Old Man Winter throws its way.

      But if you have snowballing debt, you will need more than a shovel and mittens this Minnesota winter.

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      Kain & Scott: Minnesota Bankruptcy Services As Unique As You Are

      Posted by Kelsey Quarberg on November 14

      Have you ever been tempted by “one size fits all” Minnesota bankruptcy services? Advertisements for law firms that claim to understand the complexity of your financial situation without ever meeting you or discussing your information? Law firms that tout their bankruptcy expertise, without ever having actually taken a Minnesota bankruptcy case at all, let alone one that is exactly like yours?

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      Am I Going To Lose My House? - Part 3

      Posted by William Kain on October 25

      Last week, I finished writing about the way that Minnesota state law treats home ownership in bankruptcy cases. If you recall, Minnesota is one of 15 states nation-wide that allow people who file bankruptcy to either use the property protections found in the Federal Bankruptcy Code or the property protections found in Minnesota Statutes to protect their interests in property - both real estate and personal property. In bankruptcy cases, when property is protected, the property is termed “exempt.” For many of my clients, the anxiety they feel regarding the decision of whether to file a bankruptcy case has to do with making sure that the property they own and want to retain is exempt.

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      How Can I Keep My Family Out Of My Bankruptcy? – Part 2

      Posted by William Kain on October 20

      I’ve been writing about the interaction between a bankruptcy debtor and the debtor’s relatives for the past three weeks. During that time, I’ve looked at the complications that can arise from having relatives involved in a debtor’s financial affairs - and how almost every debtor who has been my client very much wants to keep family members from getting entangled in the debtor’s bankruptcy case.

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      (Video) 2 Things Every Minnesotan Should Know Before Filing Chapter 7 Bankruptcy

      Posted by Wesley Scott on October 18

      The humility of being alive. Overwhelming debt can pose a problem for anyone- literally anyone. Don’t think you are immune from this happening to you because you are not. Each year, nearly 15,000 Minnesotans file bankruptcy as a result of overwhelming debt.

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      Am I Going To Lose My House? - Part 2

      Posted by William Kain on October 16

      Last week, I wrote about the issue of home protection in bankruptcy. And it’s a fairly complicated issue. But the bottom line is that if you are a homeowner that lives in Minnesota, and you need to file a bankruptcy case to resolve your financial issues, the equity in your home is almost certain to be exempt - that is, your home can’t be taken from you by a bankruptcy trustee if you want to protect it.

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      (Video) Why Filing Chapter 7 Bankruptcy In Eden Prairie Should Be Your First Choice

      Posted by Wesley Scott on October 11

      We know, everyone thinks that bankruptcy should be your last choice. However, if you are suffering from overwhelming debt in Eden Prairie, Minnesota, you really have limited options on how to solve the debt problem for good. In the end, filing Chapter 7 bankruptcy in Eden Prairie, Minnesota should be your first choice.

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      (Video) Why File Chapter 7 Bankruptcy With Kain & Scott In Duluth

      Posted by Wesley Scott on September 29

      For so many of our Duluth, Minnesota guests, they know they want to file bankruptcy, they just need to find out which Minnesota bankruptcy law firm is right for them. With so many to choose from it can be overwhelming. I hear some of our guests say a bankruptcy lawyer is a bankruptcy lawyer right? Aren’t they all the same? No, they are not all the same and we all have different business models.

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      (Video) Filing Chapter 7 Bankruptcy In Duluth From Home

      Posted by Wesley Scott on September 28

      I am high anxiety. If I were a non-attorney facing overwhelming debt, I would prefer not to meet with someone face to face. Some people are like me, high anxiety, and prefer not to meet with a lawyer to discuss this face to face. But, there are other options. At Kain & Scott, we have a unique 4 step process to filing a Chapter 7 bankruptcy, all from the comfort of your own home.

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      What is a Priority Creditor - Part 2

      Posted by William Kain on September 21

      Last week, I wrote about priority debt - the type of unsecured debt that Congress decides should take priority over general unsecured debt in a bankruptcy case. Holding priority debt can be very beneficial for creditors, since in a chapter 7 case, all priority debt is paid, in full (if there are sufficient funds available) before any general unsecured debt is paid, and in a chapter 13 case, all priority debt must be paid in full in order for a chapter 13 plan to get confirmed and for the chapter 13 debtor to receive a discharge.

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      What Happens to Your Tax Debt After Bankruptcy?

      Posted by Margaret Henehan on September 20

      Many people I speak with are interested in finding out what debts are not dischargeable in a bankruptcy. Meaning what debts will still remain after a bankruptcy. Tax debt is the most tricky debt to deal with in bankruptcy because there are so many rules in place that must be followed in order to determine whether tax debt can be discharged in a chapter 7 bankruptcy.

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      Is Debt Settlement a Good Alternative to Bankruptcy?

      Posted by Margaret Henehan on September 15

      When a potential client comes in for an initial consultation, one of the available options for a client with a debt problem is debt settlement. But is it a good alternative to bankruptcy? The answer is mainly no, it’s not, the reasons of which are spelled out below.

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      What is a Priority Creditor?

      Posted by William Kain on September 14

      When the lawyers at Kain & Scott file bankruptcy cases, one of our jobs is to “classify” debt. There are three classes of debt in bankruptcy cases: unsecured, secured and priority.

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      How To File For Chapter 7 Bankruptcy

      Posted by Erick Bohm on September 13

      Don’t you wish there was a fast and easy way to erase your debt in Minnesota?

      It’s easy to get into debt: the loss of your job, change of circumstances, an unstable market, and serious illness are just a few reasons you may have fallen behind on your payments. Once you fall behind on your payments, the amount of your debt grows quickly as penalties and interest are added.

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      (Video) How To Tell The Difference Between The Real IRS or Scam Artist?

      Posted by Kelsey Quarberg on September 12

      I often receive panicked phone calls and emails from clients stating they received a call from the IRS threatening to arrest them for failure to pay taxes. After looking into each client’s case, more often than not I find that the call or email was a scam. When you are faced with overwhelming debt, it can be difficult to distinguish between what is real and what is fake. You may be receiving a mix of calls from real debt collectors and fake debt collectors. The fake collectors take advantage of people that have other, real types of debt in the hopes that they will accidentally get paid. Here are some signs and tips to avoid IRS scams:

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      (Video) How Does Filing for Chapter 7 Bankruptcy Affect Your Credit Score?

      Posted by Wesley Scott on September 6

      Kain & Scott is Minnesota’s oldest bankruptcy law firm- we have been around since 1972. We have seen a thing or two when it comes to the aftermath of filing Chapter 7 Bankruptcy and have helped thousands of Minnesotans get their lives back.  Here is the truth about what the effect filing Chapter 7 bankruptcy will have on your credit:

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      (Video) What Are The Chances of Getting Denied a Chapter 7 Discharge?

      Posted by Wesley Scott on September 4

      At Kain & Scott we get asked what the chances of getting denied a Chapter 7 discharge a lot and we completely understand this concern. But, let’s talk about what actually happens to the VAST majority of Minnesotans who file a Chapter 7 bankruptcy. The VAST majority get their discharge and have their debts wiped out,  tax free ! However, a very small percentage of cases do get denied, here are the reasons:

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      (Video) How To Get Rid Of Debt Without Paying It – Tax Free!

      Posted by Wesley Scott on August 28

      Are you suffering from an overwhelming debt problem? If so, at Kain & Scott, we are sorry you are going through this. Living with overwhelming debt is painful, embarrassing, and unstable. Every day you wonder who is going to come out of the woodwork and call you and harass you and your family. It’s a terrifying way to live. However, life is very humbling, and overwhelming debt can happen to anyone in Minnesota from any walk of life. I don’t care if you are a doctor, lawyer, bill collector, credit counselor, or a teacher. So, what are the ways to get rid of the debt? Essentially, there are four and here they are...

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      My Friend Stopped Paying on the Car I Co-Signed!! What Now!?!?

      Posted by Erick Bohm on February 2

      If you’re reading this blog, it’s likely you were kind enough to co-sign on a debt with someone, but that certain someone fell behind on payments. Since they fell behind on their payments, it’s likely the creditor is trying to collect the debt from you. If you’re experiencing this, don’t worry. We can certainly help you.

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      Non-Dischargeable Debts: Debts That won't Go Away in Bankruptcy - Part 3

      Posted by William Kain on December 13

      In my last two blogs, I looked at debts that aren’t discharged in a bankruptcy case. Two weeks ago I looked at debts that are never discharged - student loans, most income tax debt, obligations to pay child support or spousal maintenance, to name a few. These debts are presumed to be non-dischargeable in a bankruptcy case. That means that the creditor does not have to bring an action in bankruptcy court to determine that these kinds of debts are not subject to a bankruptcy debtor’s general discharge; if there is going to be a judicial determination of dischargeability, the bankruptcy debtor has to bring the action to determine whether the debt can be discharged in the bankruptcy case, and the presumption is that the debt is not subject to discharge.

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      Non-Dischargeable Debts: Debts That won't Go Away in Bankruptcy - Part 2

      Posted by William Kain on December 8

      Last week, I wrote about 8 debts that a bankruptcy debtor may have that are not discharged, even if the bankruptcy client receives a “general” discharge. The kind of debts I wrote about - child support, most taxes, student loans, to name a few - are debts that are never discharged in a bankruptcy case.

      People who file a bankruptcy with the types of debts that are never discharged must bring a lawsuit against the creditor in bankruptcy court if they feel, for some reason, that the debt in question should be discharged, despite its characterization. It’s up to the debtor to do this; if the debtor does nothing to contest the non-dischargeability of the debt, the bankruptcy debtor remains liable for the debt after discharge.

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      MN Attorneys: Here's Why Your Clients Shouldn't Do Traditional Debt Consolidation

      Posted by Wesley Scott on August 18

      So, you are a Minnesota lawyer with a clientele from all walks of life. How many times have you heard a client say they have overwhelming debt? The answer is probably a lot right? And how many times has the suggestion to solve the problem been maybe you should consider debt consolidation? The answer agin is probably a lot right?

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      The Best Ways To Get Rid Of Credit Card Debt

      Posted by William Kain on March 9

      Wouldn’t it be nice to get rid of all your credit card debt and start fresh again? Could you imagine the peace of mind you would have knowing that you could wipe your credit cards clean and not have to worry about paying them back? If you’re like most Minnesotans it’s pretty easy to rack up large amounts of debt on your credit cards quickly especially if something unexpected happens. Let’s face it, you never know if something unexpected is going to happen that might cost you several hundreds or even thousands of dollars. Let’s say your vehicle breaks down, you get sick or are injured in an accident, your business becomes unprofitable or you maybe you get laid off from work. The bottom line is that these types of things can happen to anyone and they happen all the time.

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      4 Options To Resolving Overwhelming Debt

      Posted by William Kain on February 17

      If your overwhelmed by debt, sick of creditors calling you and struggling to make your payments don't worry, you’re not alone. Millions of MN residents are struggling with debt and truthfully finding someone these days that is not is like finding a needle in a haystack – virtually impossible. 1 in 3 people carry credit card debt month to month and hundreds of thousands have debt in collections. Most of the time at no fault of their own. Wouldn’t it be nice just to eliminate it all? Could you imagine how much less stress you would have? Just imagine how well you could sleep at night! The good thing is that’s a possibility. When it comes to resolving overwhelming debt you have 4 options.

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      Make a New Year's Resolution to Reach Your Financial Goals

      Posted by Wesley Scott on January 1

      The new year is a time for new beginnings, and if you haven’t already done so, it is time to make your New Year's resolutions for 2016. If you are living with overwhelming debt, this year’s resolution should be easy to determine – take control of your finances and improve your financial well-being in 2016. To make your New Year’s resolution easier to attain, we’ve compiled a list of several tools you can use to reach your goal.

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      Get Judgment Free Debt Help

      Posted by Wesley Scott on October 8

      It is easy to get into debt, but much more difficult to get out of debt. Some of us get into debt because of an unexpected financial crisis such as a medical illness or a prolonged period of unemployment. Others may need debt help when they lose a spouse due to a sudden illness or accident. Divorce and business failure are other reasons that cause many individuals to search for debt help. Regardless of the reason why you need debt help, we encourage you to seek the advice and counsel of a bankruptcy attorney who has your best interests at heart and who wants to see you get back on your feet so you can enjoy your life free from debt.

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      Who to Turn to for Debt Management Help in Eagan, MN

      Posted by William Kain on August 20

      Are you struggling to pay your debts each month? Do you feel hopeless when you think about your financial situation? Do you wish there was someone who could help you with debt management in Eagan, MN?  If so, you are not alone.  Many people are facing the same debt management problems that you are facing. They do not have the money each month to pay their living expenses, bills, and debts.  The stress and anxiety from dealing with their financial problems leaves them feeling hopeless and defeated.

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      Do I Have to Include All of My Debts in My Bankruptcy?

      Posted by William Kain on August 6

      We often have clients come into our office and ask, "Why do I need to include all of my debts in my bankruptcy?" Some people want to pay back some of their creditors while others want to avoid certain creditors from knowing about the bankruptcy. For example, a client comes into the office for a bankruptcy consultation. When we discuss the types of debts she owns, she tells us that she does not want to include all of her debts in the bankruptcy case because she owes her parents money and she must pay that money back.  She also does not want her parents to know that she is filing bankruptcy. 

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      5 Ways You Can Get Out of Debt

      Posted by William Kain on May 6

      Getting out of debt is a great feeling. Many of us want to get out of debt but we do not know exactly where to begin. Having a plan to get out of debt is the first step. When you have a plan and specific goals, it helps you  focus on the steps that you must take to achieve your financial goals. Below are several ways you can improve your financial well-being by taking control of your finances to get out of debt.

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      Types of Debt Bankruptcy Eliminates

      Posted by William Kain on March 17

      In today’s world, it is oftentimes necessary to take out some form of credit to pay for necessary items such as schooling, vehicles, a home, and emergency needs such as new tires for your car. In times of need, this available credit can be very beneficial. However, when you look at credit from the other side, this credit is now a debt you owe to a creditor. Owing debt is in no way a negative thing; in fact, most everyone you know probably owes some form of debt. If you find yourself in over your head with the debt you owe, a bankruptcy may be the relief you need.

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      3 Bankruptcy Discharge Debt Limitations You Should Be Aware Of

      Posted by Wesley Scott on September 18

      When you file a bankruptcy, the end goal is to receive a bankruptcy discharge (a.k.a. freedom from your debts). The bankruptcy discharge releases you from the legal liability to repay all debts that are discharged through your bankruptcy case. Post-bankruptcy-discharge your creditors are prohibited from attempting to collect discharged debts, including but not limited to contacting you to request payment of a discharged debt, filing or continuing a lawsuit or turning the debt over to a debt collector for collection.

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      Getting Out of Debt, Even the Debt You Owe Your Parents and Friends

      Posted by Wesley Scott on August 25

      Getting out of debt is a top priority for many Americans today. Debt is a huge problem in our country and is causing many people to struggle financially. Debtors depend on a number of different solutions to help them get out of debt; some rely on the bankruptcy court while others are able to make changes to their budgets, get second jobs or refinance their debts.

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      Consumer Debt Statistics Prove You Aren't Alone

      Posted by William Kain on July 17

      When you are struggling to pay bills and to make ends meet, it may feel like you are alone. However, consumer debt statistics prove that you are not alone. Individuals throughout the United States continue to struggle to pay their bills each month. As unemployment continues to be a problem and individuals suffer without adequate health insurance, consumers are forced to take on more debt in order to pay for basic necessities such as food, shelter and clothing.

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