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Proper Business Planning Can Help You Avoid Bankruptcy

With more user-friendly technology emerging, the number of new entrepreneurs continues to increase. While entrepreneurship is important, most start-ups fizzle before they pop. With bankruptcy being a possibility, we suggest considering all possibilities when you create your business plan.

Bankruptcy law as it pertains to business differs according to the state in which the business was created. For one, the cost of a business bankruptcy is not equal for every state. The speed at which you will be able to reorganize after bankruptcy proceedings can differ as well. Now that we’ve mentioned bankruptcy proceedings, did you know the length of time for those bankruptcy proceedings isn’t the same for every state either?

It is true that in some cases, a bankruptcy filing can allow you to reorganize your business to a more profitable status. If you can avoid it, you wouldn’t want to place your business in jeopardy by filing for bankruptcy.

Even if your business is doing well, you might have a customer who files for bankruptcy. If that customer figures prominently in your accounts receivable, that may be enough of a strain to force your business into bankruptcy. It’s far better for you to have a diverse customer base.

Before you find yourself without a safety net, focus on finishing a solid business plan. It will force you to think about all the important factors as well as to discover some factors you hadn’t even considered. Never lose sight of your marketing. It’s best to be vigilant in seeking new prospects. You never know when the situations of your customers will change.

As Benjamin Franklin stated, “Although you don’t plan to fail, you shouldn’t fail to plan.” Bankruptcy is comprised of several factors. Would you rather study the nuances yourself or enlist the help of professionals? If you chose professionals, then the bankruptcy attorneys at Behm Law Group have your answers. All you have to do is ask.

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Protect Yourself from Discrimination Against Bankruptcy Filers

When discrimination makes the news, people pay attention. We all like to think we are fair-minded individuals. Even fair-minded individuals have differences of opinion. If it weren’t for these differences of opinion, we probably wouldn’t need a set of laws to follow. But, we do. The Mankato bankruptcy attorneys at Behm Law Group, Ltd., want you to be aware of the following:

“No. 11 U.S.C. sec. 525 prohibits governmental units and private employers from discriminating against you because you filed a bankruptcy petition or because you failed to pay a dischargeable debt.”

You have rights. It can be heart-wrenching and embarrassing enough to admit you need to file for bankruptcy, let alone having everyone else constantly remind you. Now you know there are rules on how others can treat you.

Of course, you still have obligations to fulfill. A bankruptcy plan can detail how and when those obligations are met. Looking at the bigger picture, you will have to own how you got to this point. If you don’t recognize why you had to file for bankruptcy, you may end up repeating this scene in the future.

For your own self-worth and knowledge, really dig deeply. If you have poor financial habits, take steps to change them. Don’t buy things you don’t need. Shop around to minimize costs for what you need. Save for inevitable surprises that might disrupt your cash flow.

Keeping your focus and energy directed toward positive steps will diminish any hurt and embarrassment you feel. You can’t change what has already happened. You can change how you deal with your dilemma though.

Forward momentum will catapult you past the bad feelings toward the good ones. Your positive action will result in the bankruptcy becoming a distant memory. Good habits will help keep you solvent in the future.

Those who have to file for bankruptcy relief have the power to change their outcomes for the better. We know what you want. Bankruptcy is all that we do. In Mankato, MN, call the bankruptcy attorneys at Behm Law Group, Ltd., to discuss the how, why, what, wherefore, and when of bankruptcy law today.

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How to Limit Bankruptcy Risk When Starting a Business

Budding entrepreneurs fill the news pages daily. Everyone wants to create that next product or service others will want. The idea of starting your own business brings thoughts of glamour and excitement. And it should! Don’t forget that business skills are needed, too. If you haven’t carefully considered all aspects of your fledgling enterprise, bankruptcy may be a distinct possibility. Many famous entrepreneurs have declared bankruptcy along the way, including Walt Disney.\

According to an October 2014 report by CB Insights, the top five reasons start-ups failed are:

  1. There was no market need for the product or service.
  2. The entrepreneur ran out of money.
  3. The business didn’t have the right team in place.
  4. The competition won.
  5. There were issues with pricing and/or cost.

With so many possibilities for failure, you have to be very careful about developing your business strategy and marketing  plan.  It is essential that you study the possible competition and how they are pricing their products and how they are marketing themselves.

Do a little market research to determine the viability of your product. Or, like Walt Disney, you could create a demand for it. Perhaps you noticed three of the top five reasons involved marketing. That means entrepreneurship involves selling. It means you have to be visible to your potential prospects, assuming you have prospects for what you’re selling.

Mankato entrepreneurs: if you find yourself battling to stay afloat, you might want to contact the bankruptcy attorneys at Behm Law Group, Ltd., to consider your options.  If Walt Disney could pull through his setbacks, so can you.

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Are Student Loans Discharged When Filing Bankrutpcy in Minnesota?

Everyone knows the cost of higher education has increased dramatically. Students grumble about the cost of their student loans, and rightfully so. According to Bloomberg, college costs have soared over 500% since 1985. Who wants to be in debt before they even start their first job? No wonder students might seek ways to erase this debt, even if it entails bankruptcy. The bankruptcy attorneys at Behm Law Group, Ltd., want you to know that normally, student loans are not discharged in a bankruptcy proceeding.

However, 11 U.S.C. sec. 523(a)(8) notes two exceptions to this rule:

1. The student loan cannot be affiliated with a governmental unit or nonprofit entity. This means if a governmental unit insures, guarantees, or funds the student loan in any way, the loan cannot be discharged.

2. If the student, or debtor, incurs an undue hardship in order to pay the loan, it’s possible the student loan could be discharged.

Before October 1998, student loans could be discharged according to certain circumstances, provided the loan was over seven years old. That stipulation no longer applies for loans after October 1998.

Meeting an exception doesn’t automatically mean a student loan can be discharged. The court weighs all factors of each case before making a decision on what is considered dischargeable debt.

Before you incur any student loan debt, you should think very carefully about your academic interests and your possible career objectives. Student loan debt can pile up quickly. It is understandable and common that people must take more than four years to complete a degree. However, if you change course of study too many times, you could find yourself under oppressive student loan debt after you graduate. Education is important, of course, but you might want to explore more affordable options if your first choice in schools would break your piggy bank.

It wouldn’t hurt to make sure you major in a viable field that can generate sufficient income to pay for your living expenses as well as your debt. Finances can bring a real-world mentality to those ideals of simply following your whims. Sometimes, you either have to be creative in developing a job for yourself or you have to just accept an available position until you can afford to leap to something you would enjoy more.As stated, the court views several factors in student loan bankruptcy cases. If you want to explore your options in Mankato, Minnesota, contact the bankruptcy attorneys at Behm Law Group, Ltd. We restrict our practice to only bankruptcy.  You can expect the best from us.