Chapter 13 bankruptcy, often called a "wage earner's plan," offers a structured path to debt relief for individuals with regular income in Minnesota. While it allows you to keep your assets and catch up on missed payments, it's natural to wonder how restrictive this process might be. Let's delve into the financial commitments and lifestyle adjustments involved in a Chapter 13 bankruptcy.

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The word “bankrupt” come from the Italian words, “banca rotta”, which means “broken bench”. In Italy, money dealers worked from benches or tables. If a dealer ran out of money, his bench was broken in half and he was out of business.  

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.

Gambling debt can be included and discharged in your bankruptcy case.

One of the most common questions we field this time of year is whether personal income tax debt is dischargeable. So many people are under the impression that tax debt can never be discharged in a bankruptcy, but that is not always the case! As with many things in life, and bankruptcy, the answer is not a simple yes or no. Read more to find out if your tax debt might be discharged in a bankruptcy.

Before filing bankruptcy many debtors try other means of dealing with their debt. Occasionally debtors will take out additional debt in hopes of consolidating the debt. But for the creditors to provide additional credit to a potentially risky lender they may ask that the debtor obtain a co-signer on the debt. This co-signer will remain liable on the unsecured debt even after the debtor has received a discharge in the bankruptcy.

A common question I receive is whether there is a minimum debt requirement to file a bankruptcy? Good news! The answer, which may surprise you, is no.

     If you live in Minnesota, and you are struggling with a debt problem, you can solve your debt problem for good in 2 steps:

Not all debts are treated the same in bankruptcy. Unsecured debts are those debts that are not secured by collateral. Of course, secured debt remains secured to the collateral even in bankruptcy, but strictly speaking about unsecured debt-will it all be discharged in the bankruptcy?

When you are thinking strongly about filing a Chapter 7 Bankruptcy in Rochester, MN, you will be tempted to do one thing you definitely should NOT do before filing the bankruptcy. You will be tempted to pay family and friends on debts you owe them. We understand this temptation. But if you pay family and friends money before you file bankruptcy, so you can avoid listing them as a creditor on the bankruptcy or just because you want them to get paid back even though others creditors are not getting paid any money, that may be considered a “preference” and the trustee may be able to avoid that preference.

If I told you there was a way to get 100% debt relief in less than four months would you believe me? Well you should! Because at Kain & Scott our Chapter 7 Bankruptcy Lawyers help people do it everyday. Not only that we help them repair their credit - fast! Here's how... 

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?

If you’re grappling with your finances and trying to stay afloat, it’s quite possible you have fallen behind on your utility bills. Well, if you have, you’re certainly not alone. When you’re living paycheck to paycheck, it’s tough deciding which bills you pay and which ones you don’t. Often times you take turns paying your debts. If you’ve fallen behind on utilities, don’t worry. When you file for bankruptcy we can make sure you’re protected from the past due amounts that are owed. After the bankruptcy, there may be a few things you have to do to keep your services, but we’ll talk about that too. The main thing I want you to know is, it’s all going to be ok. No matter what you’re faced with, we can help you manage the obstacles in front of you. Take a look at the scenario below and then read about how the MN Bankruptcy Attorneys at Kain & Scott helped Tony with his situation.

First, let me tell you a little bit about Nickie. In one word – Wow! She is an extremely impressive, hardworking, mother. She works three jobs and has a teenage daughter at home. Can you imagine having to work three jobs, raise a teenager by yourself, and still pay off your debts?! Yikes! Despite Nickie’s tenacity, she fell victim to overwhelming debt. She made every effort to pay off her debts, but finally reached “the point”. If you reach “the point” when it comes to your debt, you’ll know exactly what I’m referring to. Nickie started receiving court summons in the mail that eventually turned into judgments. As she knows, the next step is wage/bank garnishment. Once that happens, the creditors will start taking up to 25% of her paychecks. Our MN Bankruptcy Attorneys simply could not let this happen.

Recently, a man Mike approached our experienced MN Bankruptcy Attorneys at Kain & Scott with concerns about his paychecks being garnished. No fault of his own, Mike fell severely behind on medical bills after having surgery about a year ago. Because of the type of surgery, Mike has been unable to work a full 40 hour week since. Before the surgery Mike was an experienced electrician making very good money. Unfortunately, his surgery has prevented him from performing his trade as he once did. Since the surgery, Mike has only been able to earn about 30% of what he once did.