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.


Debt Collection and Bankruptcy

Posted by Charles Nguyen on April 15

If you owe money to your credit card company, and if you stop paying them, they can sue you for the amount owed.  If that same credit card company obtains a judgment from a court, they can take that judgment and garnish your wages.

Read More

Tax Consequences of Debt Settlement in Minnesota

Posted by Jesse Horoshak on August 20

Are you considering foregoing a bankruptcy filing in favor of attempting to settle your debt? Whether you're attempting to settle debt directly with your creditors or with some third-party debt relief agency, it is important to first consider the potential tax consequences that will arise from pursuing debt settlement.

Read More


Posted by Wesley Scott on October 29

While Section 109(a) describes who can file a Chapter 13 Bankruptcy, we want to know now where can the bankruptcy be filed?

It is not possible to move from one state to another and file Chapter 13 Bankruptcy the next day. 28 U.S. Code Section 1408 states that debtor may file a bankruptcy in the bankruptcy court of the federal judicial district in which the person filing bankruptcy has his/her principal residence, place of business, or principal assets. The domicile has to be where you were domiciled the greater part of the last 6 months and so, where you have been domiciled the last 91 days.

Read More


Posted by Wesley Scott on October 28

What is the goal of filing a Chapter 7 Bankruptcy? Getting a Chapter 7 discharge. Getting a Chapter 7 discharge means the debt is wiped out, tax free, forever. Are there situations where creditors can object to you discharging a debt? You bet there is. Section 523 of the Bankruptcy Code outlines several reasons a creditor could object to you discharging a debt made with the creditor.

Read More


Posted by Wesley Scott on October 27

Minnesotans are always amazed to find out that there really is a government sponsored debt consolidation plan. Most Minnesotans are not aware of this. If you live in St Paul, Minnesota and you are suffering from overwhelming debt and you are currently in a traditional debt consolidation plan, you are wasting your time. You read this right, you are wasting your time. Why? Because the government sponsored debt consolidation plan is much better for you and your family.

Read More

Be Aware of the Benefits and Dangers of Debt Consolidation Loans

Posted by Wesley Scott on November 19

The economy is tough, and many people are looking for ways to help them manage and eliminate debt. With the rising cost of living, it can be tough for many consumers to even make the minimum payments each month on credit cards, charge cards and loan payments. If you are one of these people, there are several options available to you. One of those options is combining a lot of small debts into larger debt consolidation loans. However, before you make any decisions regarding your credit and debt situation, you should know how debt consolidation loans work. Having all the facts can help you choose the right option for your personal situation and avoid any unmanageable circumstances.

Read More
Learn What To Expect From Your Free Bankruptcy Consultation

Dangers of Debt Consolidation Programs

Posted by William Kain on September 30

You’ve heard them on the radio and seen them on TV. They make promises about eliminating your debt in no time at all, at no cost to you. All you have to do is make the phone call and your debt can be put in the past. Well this sounds great, and your first conversation may go great, too. However, debt consolidation programs like to put all of the exciting benefits and the promise of a better tomorrow at the front, so you don’t see what lives behind the curtain.

Read More

How Does Debt Consolidation Work & When Should I Consolidate?

Posted by Wesley Scott on August 19

In some situations, debt consolidation may be an advisable solution. On the other hand, there are situations when debt consolidation is inadvisable and bankruptcy is the better alternative.

Read More

Debt Help You Can Trust

Posted by Wesley Scott on August 17

Life is stressful enough without overwhelming debt. When overwhelming debt is part of your life, normal life issues become amplified and much harder to handle. Creditors are breathing down your neck, your 7-year old wants to join a dance studio, gas prices keep rising and you are continually stressed because you can’t make your payments and keep everyone satisfied. They say money can’t buy happiness, but why does having no money cause so many horrible thoughts and feelings?

Read More
Download our Free Debt Solutions Comparison Chart

What Debt Consolidation Programs Conveniently Forget to Tell You

Posted by Wesley Scott on July 19

When you meet or discuss with a debt consolidation company they may not explain the “fine print” associated with their programs. At first glance debt consolidation programs seem appealing but before you sign the dotted line, make sure you know the fine details of the program you are signing up for. Here is a summary of details some debt consolidation companies try to gloss over to make their programs more appealing:

Read More

Do Debt Consolidation Loans Actually Work?

Posted by William Kain on July 16

There are many situations in which debt consolidation loans can be used and applied. In some situations a debt consolidation loan will benefit your financial situation, and in others it will not. Determining the best solution suited for your specific situation can be tricky, and I highly recommend discussing with a legal professional or financial advisor before taking action.

Read More

How Does Debt Consolidation Work?

Posted by William Kain on July 14

Debt consolidation can be a very confusing concept. Generally speaking, debt consolidation works by combining all of your debts into one payment, often extending your repayment period, resulting in an increased total amount paid. There are four options commonly sought by those looking to get out of a difficult financial bind through debt consolidation and each works in its own way.

Read More

Finding Debt Consolidation Solutions for Your Financial Situation

Posted by Wesley Scott on June 9

Debt consolidation consists of combining all of your unsecured debt payments into one. This may involve taking out a loan, entering into a debt consolidation program or Filing Chapter 13 Bankruptcy. Now, what are unsecured debt payments?

Read More

Need to Get Out of Debt Fast? Consider All Your Options

Posted by Wesley Scott on May 25

Let’s say you have $50,000 in credit card debt and your situation has gotten to the point where you can’t keep up with your payments. Something has to be done in order for you to take care of your family, get your life back in control and so on.

Read More

Manage Debt with a Chapter 13 Bankruptcy - Minnesota Debt Solutions

Posted by William Kain on May 12

If you are considering a debt consolidation program – stop right there! Make sure you know all of your debt solutions before entering into an agreement. Consider a chapter 13 bankruptcy (Minnesota filers click here for state specific regulations) as an alternative to a debt consolidation program.

Read More

Stop Creditor Harassment

Posted by William Kain on January 16

If being in debt isn’t stressful enough, creditors sure know how to make it worse. When you fall behind in payments, creditors will begin to bother you for the money you owe them. The further you fall behind, the more action creditors are going to take, progressively adding stress and embarrassment to your difficult financial situation. This non-stop pressure and continual reminder of your debt can begin to affect your livelihood, causing increased panic and anxiety.

Read More

What are my debt consolidation options?

Posted by Wesley Scott on January 6

Debt is stressful, no matter what caused you to fall and lose control of your finances. Whether or not it was poor financial decisions or an unexpected medical emergency that began your spin out of control, debt needs to be handled as soon as it becomes a situation.

Read More

Filing for Chapter 13 Bankruptcy vs. Debt Consolidation

Posted by Wesley Scott on January 4

Struggling with credit card debt is stressful and confusing. But it doesn’t have to be. There are options to consolidate your debt, including filing for Chapter 13 Bankruptcy. Why choose Chapter 13 over hiring a debt consolidation company? Chapter 13 allows you to put you and your family ahead of the creditors.

Read More

Consumer Credit Counseling Improves Post-Debt Financial Management

Posted by William Kain on December 27

In October of 2005 the new bankruptcy law, Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, added a credit counseling and financial management requirement. So, if you file bankruptcy today you are required to complete two financial management courses that will help you get your life back on track after your debt is discharged. Those courses include:

Read More

5 Reasons Why Bankruptcy In Roseville Is Better Than Debt Consolidation

Posted by Wesley Scott on October 17

So you live in Roseville MN and you had one of the 5 events happened to you which resulted in overwhelming debt: 1) business failure; 2) income drop; 3) divorce or relationship break up; 4) medical problems; 4) bad financial decisions (we have all made them). You are stressed out because you are falling behind and you can’t keep up. That uneasy feeling of slowly drowning in debt, suffocating, and you can’t seem to pull out of it. If you are a human being you will feel your tummy churning and just a depression hanging over your head. 

Read More

3 Reasons Debt Consolidation Is A Complete Waste Of Time

Posted by Wesley Scott on March 11

Life is humbling is it not? Who among us starts out in life with the dream of incurring overwhelming debt we cannot pay for? Naturally, none of us do. And yet, it happens to 10,000 plus Minnesotans each year. At Kain & Scott, we have been practicing bankruptcy law since 1972. We have never seen a person yet who says something like- hey, I just got back from a fabulous trip with all my friends, using my credit cards, knowing I was going to file bankruptcy when I returned.

Read More

Chapter 13 Bankruptcy vs. Debt Consolidation

Posted by William Kain on February 19

Struggling with credit card and medical debt is stressful and confusing. But it doesn’t have to be. There are options to consolidate your debt, including filing a Chapter 13 Bankruptcy. Why choose Chapter 13 over using a debt consolidation company? Chapter 13 allows you to put you and your family ahead of the creditors. When working with a debt consolidation company, you pay them. They set up a repayment plan and collect a percentage as payment for their services. You’re paying all of the debt and then some. When finances are already tight, why pay more?

Read More

Everything You Need to Know About Your Debt Consolidation Options

Posted by William Kain on July 9

What is Debt Consolidation?

If you are struggling with debt, you may have considered debt consolidation but are unsure if it is right for your situation. Furthermore, you may be confused by the various types of debt consolidation. In its basic form, debt consolidation  combines several debt accounts into one monthly payment. For some people, this may be an affordable solution to debt problems; however, you should only make this decision after discussing all of your options with an experienced attorney.

Read More

What Debt Consolidation Companies Don't Tell You

Posted by Wesley Scott on June 17

Eliminating calls from creditors, reducing finance charges, lowering interest rates, and only having one debt payment to worry about each month sounds wonderful to someone who is struggling to pay his or her debts.  That is exactly what debt consolidation companies promise clients.  Debt consolidation companies promise to cut years off your debt payments, help reorganize your debt, alleviate your stress and anxiety, and improve your financial situation. 

Read More

How Does Debt Consolidation Work and Will it Work for Me?

Posted by Wesley Scott on May 27

As a bankruptcy attorney, I am often asked questions about consolidating debts, such as, “How does debt consolidation work?” and “Can I do this to avoid filing bankruptcy?” To be honest, many people who are dealing with debt problems think about debt consolidation loans or other similar solutions at some point. Most people begin wondering how debt consolidation works when they are searching for a way to make creditors and debt collectors stop calling and sending threatening letters. Others begin to explore debt consolidation options only when they are served a lawsuit.

When clients ask me how debt consolidation works, I first begin by explaining the difference between a debt consolidation loan and the use of a debt consolidation company. Before diving into these differences I make an extremely important point: these options generally only work in situations where individuals have the ability to repay their debts, or at the very least, a significant portion of them. There are very few cases where we find that debt consolidation is the best option for solving overwhelming debt problems. To illustrate, let me explain each option and give examples of when it will work and when it is often better to file a bankruptcy.

How Does Debt Consolidation Work?

Read More

Debt Consolidation Programs Treat the Symptom(s), Not the Cause

Posted by William Kain on March 20

For many debtors, debt consolidation programs do not work. In fact, many people who file bankruptcy have already tried to resolve their debt problems by contacting one of the many debt consolidation programs that are advertised. These companies claim that they can resolve debt problems for pennies on the dollar, when in fact they are more concerned about making a profit than finding real debt solutions for their clients.

Read More

What is Loan Consolidation and Will it Help My Financial Situation?

Posted by William Kain on January 30

If you are wondering, “What is loan consolidation and will it help me?” you are not alone. Banks and loan consolidation companies target people who are struggling to pay their bills with advertising claiming that a loan consolidation can solve all of their debt problems. However, while loan consolidation may help some individuals, it is not always the best solution. Furthermore, there are several types of loan consolidations available, each having unique benefits and disadvantages. Before I go into detail about the various types of loan consolidations and how they may benefit you, I would like to provide you with a clear answer to the question, “What is loan consolidation?”

Read More

Debt Consolidation Pros and Cons You Need to Consider

Posted by Wesley Scott on December 31

If you are struggling with debt, you are not alone. Many Americans face this situation every day due to job loss, loss of a spouse, medical illness or other circumstances that prevent them from paying their bills. Whatever your situation may be, it is important that you understand that there are options available to help you manage this burden and recover financially and emotionally. One possible solution for dealing with debt is debt consolidation. Debt consolidation can help individuals who are struggling to make minimum monthly payments on their credit cards or other debts. However, in some cases, debt consolidation could create more problems than it solves. While it may seem practical to consolidate debts into one, lower monthly payment, you must first consider the pros and cons to debt consolidation.

Read More

How Debt Consolidation Companies Turn Lives from Bad to Worse

Posted by William Kain on December 19

As a legal advisor, I've come across many people who've gone through some extremely nightmarish situations due to debt. They have been lied to about the financial services they selected, made poor financial decisions or encountered bad debt consolidation companies with programs they were assured would help.

Read More

How Does Debt Consolidation Work | Debts That Can Be Consolidated

Posted by Wesley Scott on July 18

You cannot and should not borrow your way out of debt, especially if you are currently not able to manage your debt. Doing so will result in extended payment plans, and, in the end, you will be deeper in debt than when you started. This is precisely the foundation that debt consolidation programs are built on. By extending your debt timeline you will pay more money; that money then gets paid to the debt consolidation company you “hire” to help you manage your debt.

Read More

Debt Consolidation Solutions Blog Series: Chapter 13 Bankruptcy

Posted by Wesley Scott on June 25

Chapter 13 bankruptcy, also called a “wage-earners” bankruptcy, is essentially a repayment plan based on what you can afford. It allows you to prioritize your debt and make payments based on your income. This plan is best for those who are experiencing a temporary setback and need some time and space to breathe, in order to get their financial situation under control.

Read More

Debt Consolidation Solutions Blog Series: Debt Management Programs

Posted by William Kain on June 20

Overview of Debt Management Programs

A debt management program enlists the help of a third party management company. You will work with a debt consolidation company or credit counseling agency to consolidate your unsecured debts into one monthly payment. Essentially you will make one monthly payment to your debt consolidation company or credit counseling agency. They will disperse payments to creditors on your behalf. You do not need a good credit score to qualify for a debt management program.

Read More

Debt Consolidation Solutions Blog Series: Debt Settlement Programs

Posted by Wesley Scott on June 18

Overview of Debt Settlement Programs

The third blog in our debt consolidation solutions series focuses on debt settlement programs. It functions by halting all payments you are making to creditors and requires you to close your accounts. Instead, you will make monthly payments (usually lower than your current payments) to a trust account. When that account has built up enough to pay off your debt in full, the debt settlement program company will begin negotiations with your creditors. They will also attempt to negotiate a lower debt amount by offering to make a lump sum payment.

Read More

Debt Consolidation Solutions Blog Series: Home Equity Loans

Posted by William Kain on June 13

The second debt consolidation solution in our blog series is the Home Equity Loan. Here is a quick reminder of all the debt consolidation options we will cover, and in the order they will appear:

Read More

Debt Consolidation Solutions Blog Series: Unsecured Loans

Posted by Wesley Scott on June 11

Debt consolidation can be a very confusing concept because financial terminology is complicated and contracts can be very convoluted. The term itself, debt consolidation, is confusing because it can be used to describe a group of debt solutions or as an individual option. For simplification purposes we are going to use the term ‘debt consolidation’ to describe the general concept of combining multiple unsecured debts into one.

Read More

My Credit Card Company Won't Comply with My Debt Consolidation Plan

Posted by Wesley Scott on April 9

Credit card companies are in business to make money and we make it very easy for them to be profitable. Credit cards fulfill our need for instant gratification. It is very easy to spend money on a credit card because there is no physical exchange of cash and you are not expected to pay at the time of transaction. This process plays upon humans’ need for instant gratification.

Read More
Take the first step toward  getting your life back  Let us help you get started on your road to a debt-free life Sign Up for a Free Consultation