What is Bankruptcy?

The word “bankruptcy” has roots from two words found in ancient Latin; “bancus” which translates to “bench,” and “ruptus,” which can be interpreted as “break” or “shattered.” In ancient times a “banker” would set-up his bench in the market area and conduct his business. When a banker failed or lost his money, the bench would be broken and put on public display so everyone would know that this particular banker was out of business or “broke.”

In ancient Greece, bankruptcy did not exist. If someone became indebted to another, they became “debt slaves” until their obligation was discharged. Thankfully, England began to write laws and statutes in the 14th century that dealt with insolvency, providing the model for laws adopted by the United States and specifically dealt with in our Constitution. Although guidelines exist, bankruptcy law varies from state to state.

Across Minnesota and the country there has been an alarming, and news-making, increase of bankruptcy cases filed over the past several years. Student loan debt is a hot topic issue as students, carrying many thousands of dollars in student loan debt, graduate and face a struggling economy and sluggish job growth.   Along with an alarming increase in medical costs (which is the number one cause of bankruptcy), these two dilemmas can add to the financial burden of those subjected to sudden lay-offs, lengthy unemployment, prolonged unproductive employment searches and/or underemployment. Divorce can also put tremendous financial strain on both parties. These are not rare occurrences but things folks deal with every day which can stress financial wellbeing past tolerable limits.

Whatever may have caused an accumulation of unmanageable debt, make sure that you take the time to find a qualified attorney to advise and represent you. If you live in Southern Minnesota, the certified and experienced legal firm you can trust to work hardest for you when your financial future is at stake is the Behm Law Group.

Financial Dysfunction and Fun Have Never Gone Together

The phrase “Let’s put the fun back into dysfunctional!” has become famous over the years. It can be found on coffee mugs, bumper stickers, magnets and more. The one place it can’t be found is your finances, especially if you are going through a bankruptcy. Since the Great Recession hit a few years ago, many people who thought the big b-word could never happen to them have had to file for personal bankruptcy.

Even businesses that appeared rock-solid, from mega retailers to mom and pop stores, have had to file for bankruptcy protection during these times of financial meltdowns. Banks and lending institutions that previously provided loans have experienced fiscal woes of their own, crippling manufacturers and retailers alike in their ability to refinance and obtain credit in order to continue production and sales.

The good news: bankruptcy filings have gone down. The bad news: they’ve gone down from recent record highs. The record high number of bankruptcy filings was not an isolated event. It happened all across the country, in small towns and big cities alike. Mankato, Minnesota, a community that’s received lots of praise on the national level, was just as financially rocked as the communities that surround it.

Many who face a potential bankruptcy cringe at the thought of having a spotlight cast upon their financial troubles. To protect assets however, one must fully disclose all financial information to their bankruptcy lawyer when filing for bankruptcy. Bankruptcy attorneys are there to help, not to judge those filing to seek financial protection. Whether you need to file a Chapter 7, Chapter 11 or Chapter 13 bankruptcy, your bankruptcy lawyer is going to need all pertinent financial records so they can help you protect your assets.  With their professional assistance your dysfunctional finances can receive renewal, giving you a fresh start and a way back to being in control of fully functioning finances.

Typically, Mankato likes to “rock it” in the music scene. Rolling Stone magazine recently shone a light on Mankato, Minnesota’s music scene and ranked Mankato among the top 50 college towns for its vibrant music scene. Many would agree that it’s fun to “rock on” in life but being “on the rocks” financially and facing bankruptcy is no fun in any sense of the word.  If you find yourself helplessly staring at a financial crisis with no apparent way to work it through, contact us and let us provide you with “rock solid” and professional support if a bankruptcy is required.