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Can Intentional Sabotage Cause Bankruptcy Around Mankato, Minnesota?

Over the past few weeks we have been bombarded with news stories regarding the Germanwings co-pilot who deliberately crashed a plane directly into the French Alps. An unimaginable, unspeakable act–yes. Yet, we need to talk about it. Certainly, the parent company of Germanwings, Lufthansa, never dreamed this could happen. There is speculation Lufthansa may not be able to survive the anticipated lawsuits of the 150 passengers who perished.

Can intentional sabotage of your business or home cause bankruptcy? The short answer is yes, it could. However, there are many factors to consider. What does your insurance cover? How carefully do you screen your employees? How carefully do you screen your visitors? What is the wording in your business contracts? These reflect some of the considerations.

We aren’t advocating paranoia in southern Minnesota. Far from it. We only want you to take a closer look at your situation. If you employ some common-sense strategies, it’s likely you could minimize your exposure to risk.

For instance, given the current craziness in the world today, how likely is it that you could be subjected to sabotage? People wanting to make a horrific statement seem to choose some businesses more frequently. Is your business one of those?

Do you have a thorough vetting process for your employees, or do you sacrifice safety because you choose not to spend the time? What about your conflict resolution skills? Do employees harbor resentment because they don’t believe they’ve been heard? How difficult is it for you to incorporate needed change?

Do you have a procedure to handle visitors? Or do they roam around unattended with everyone assuming they have a right to be there?

The answers to these questions will be different depending on your business and your locale. While the bankruptcy attorneys at Behm Law Group, Ltd. don’t pretend to know your business better than you do, we could certainly help you in determining what your risk of bankruptcy would be in the event of intentional sabotage.

Behm Law Group, Ltd. specializes specifically in bankruptcy and can answer all of your bankruptcy questions in St. Peter, New Ulm, Mankato, Fairmont, Albert Lea, RedwoodFalls, Worthington, Marshall, Waseca and Owatonna, MN.

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Accidental Bankruptcy in the Mankato, Minnesota Area?

You’re in your parked car ready to drive away. Then it hits you. Literally. Another driver backs into you. Perhaps they were distracted. You don’t care about that. You care that your car is damaged, and your back hurts. You sue for damages. The other driver files for bankruptcy. What now?

Typically, when someone files for bankruptcy, in some cases, their debts can be erased. You’re probably wondering why someone would be able to shirk responsibility under the guise of bankruptcy, especially if filing after the fact, whether in Mankato, Owatonna, or Albert Lea, MN.

Bankruptcy isn’t always as simple as we’d like it to be. Lots of factors can affect a legal decision. We encourage you to contact Behm Law Group, Ltd. when you’ve encountered a situation similar to the one above.

Depending on your viewpoint in the Mankato, MN area, bankruptcy may be an advantage or a hardship. Although it may seem like an easy pass like in the example above, qualifiers do exist to prevent people from wrongfully filing for bankruptcy. Some types of debt can be extremely difficult to discharge. Some examples of debts that could follow you continuously include:

• Child support and alimony
• Student loans
• Tax debt
• Any debt not mentioned in the bankruptcy paper work

Just because someone filed for bankruptcy after a car accident they caused does not necessarily mean that they don’t owe you anything. In certain cases, judges can be convinced that certain debts should remain.

The bankruptcy attorneys at Behm Law Group, Ltd. can answer all of your questions regarding bankruptcy in Mankato, Faribault, Waseca, Fairmont, Worthington, Redwood Falls, St. Peter, Marshall or New Ulm, MN, accidental or not. Bankruptcy law can be confusing and emotionally draining, but with our help, you can get through it. Contact us today!

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Bankruptcy During Tax Season

While bankruptcies occur year round, timing is everything. Once you have determined you need to file for bankruptcy, consult with local attorneys, especially those whose practice focuses exclusively on bankruptcy. Factors such as assets, upcoming life changes (like marital status), and pending judgments you might have affect when you should file.

As you can see in the table below, people tend to file for bankruptcy predominantly around tax season. These statistics represent the 2014 bankruptcy filings according to the U. S. Courts:

Month in 2014 U.S. Total Filings Business Filings Non-Business Filings
January

70,491

2,233

68,258
February

74,508

2,228

72,208
March

70,491

2,233

68,258
April

90,670

2,563

88,107
May

87,966

2,467

85,499
June

76,223

2,253

73,970
July

79,239

2,218

77,021
August

77,190

2,098

75,092
September

75,312

2,039

73,273
October

81,179

2,295

78,884
November

64,250

1,830

62,420
December

65,161

2,094

63,067
Total

936,795

26,983

909,812

The highest number of total bankruptcy filings in the U. S. for 2014 was in April. In fact, according to Bob Lawless, bankruptcy filings consistently top out in the beginning part of the calendar year. Typically, January and February tend to accumulate at least 15% of the total filings, as is the case here.

Although the reasons could be numerous, let’s take a look at a few possibilities for why the beginning of the year and, in particular, the tax season may garner so much attention:

  • With taxes due April 15, people focus more on their finances and are apt to make significant changes then.
  • People think bankruptcy will lessen their tax burden.
  • Folks feel they can’t be audited if they file for bankruptcy.
  • Some think they can go on a spending spree before April 15, file for bankruptcy, and then owe nothing.
  • They expect a large tax refund and believe they can simply use that to pay toward a bankruptcy.

Wouldn’t it be nice if bankruptcy were that simple? It’s not. That’s why you should contact the bankruptcy attorneys at Behm Law Group, Ltd. Here’s why:

  1. In a bankruptcy, certain debt called priority debt cannot be discharged. Priority debt includes child support, DWI charges, some penalties, plus more.
  2. A bankruptcy does not stop an audit. The IRS gets priority here.
  3. If you go on a spending spree before declaring bankruptcy, that could be construed as intentional fraud.
  4. If you have filed for bankruptcy, you may or may not be able to spend your tax refund.

These are just a few examples where legalities can get tricky. You need to understand there are enough nuances within bankruptcy law that could really cause you problems if you don’t know what you are doing.

When to file tax returns regarding bankruptcy has its own issues. One thing that is certain is you cannot discharge taxes that haven’t been filed in the first place. For specific advice, contact the bankruptcy attorneys at Behm Law Group, Ltd. We serve mankato, MN and the surrounding areas, including Marshall, Worthington, Owatonna, New Ulm, St. Peter, Redwood Falls, Waseca, and Fairmont.

One good thing to keep in mind is that discharged debt doesn’t really affect taxes because it isn’t considered to be taxable income.

This April 15, if you are considering filing for bankruptcy, make sure you have the facts. It may not be in your best interest to file now. Any important financial change deserves careful thought. For further advice, contact your local bankruptcy attorney.