Posted on

Small Business Owners in Mankato, MN – Should you file chapter 13 or chapter 7 bankruptcy?

If you’re a small business owner and you’re considering filing for bankruptcy, it’s important that you have information on which type of bankruptcy you should file for. Filing fort bankrupcy it is definitely not an ideal situation, but sometimes it’s necessary. Having the right information will help you to make the right decision so that you can begin to improve your financial situation in the most effective way possible. If you’re a small business owner in Mankato, MN, then chapter 7 bankruptcy will more than likely be the right option for you. In some cases, however, chapter 13 bankruptcy may be a more viable option.

 Let’s take a look at your options to find out which one you should choose:

 Reasons to choose chapter 7 bankruptcy:

  • It will be settled much faster – Chapter 7 bankruptcy cases usually conclude in a matter of months whereas chapter 13 bankruptcy cases can take three to five years.
  • It will be easier to start a new business – You can’t file bankruptcy for your business with chapter 13 bankruptcy. It would be much easier to close your current business down under chapter 7 than to try to keep it afloat while also having to deal with chapter 13 personal bankruptcy. You can deal with your debts and start a new and improved debt free business.
  • You aren’t required to pay your unsecured debt – In chapter 13 bankruptcy you will be required to pay at least some of your unsecured debt in most cases. You aren’t obligated to do that under chapter 7 bankruptcy.

When chapter 13 bankruptcy may be the right option:

  • You have an asset rich business – If you’re a small business owner and you don’t want your business to be shut down because it has a high amount of valuable assets that you want to keep, you should not file for chapter 7 bankruptcy. You may even want to try and settle your debts on your own and avoid filing altogether.
  • You want long term protection – If you want more time to catch up on certain payments like your mortgage or car payment under the protection of bankruptcy law, then chapter 13 bankruptcy is a better option.
  • You have a unique asset that you want to keep – If you have a certain asset that is not protected under chapter 7 bankruptcy but is protected under chapter 13 bankruptcy, then choose the latter.

Hopefully this information can help you make the right choice. If you’re a small business owner and are considering filing for bankruptcy or just want more information, contact the professionals at Behm Law Group Ltd in Mankato, MN. We’re here to guide you and help you build a better financial future.

 

 

 

 

 

 

 

 

 

Posted on

There’s No Shame in Asking for Help When Filing for Bankruptcy | Mankato, MN

Discussing money can be uncomfortable, so much that it’s often a taboo subject at social gatherings or holiday parties. When it comes to filing for bankruptcy in the Mankato and southeastern Minnesota area, some people may feel embarrassed or ashamed, perhaps because they believe filing for bankruptcy is an uncomfortable public admission of a difficult financial situation.

Fortunately, a recent study shows that these embarrassed individuals are in the minority. Only about one quarter of Americans believe that shame is a major disadvantage of filing for bankruptcy, which is likely because bankruptcy has become quite common within American households:

  • 24% of households have considered filing for bankruptcy
  • 18% of households have filed for bankruptcy
  • 32% of households with children under 18 have considered filing for bankruptcy
  • 25% of households with children under 18 have filed for bankruptcy

Now that bankruptcy has become a reality for more households, there are other disadvantages that outweigh embarrassment when filing. Rather than considering shame, Americans now tend to feel more concerned about fiscal, credit-based matters, such as their credit score or relationships with businesses.

Bankruptcy is not something to feel ashamed about and, fortunately, more than half of Americans agree. Fifty-five percent of those interviewed said that a major advantage of bankruptcy is getting a fresh start. Filing for bankruptcy can be a difficult decision and process, but receiving another chance at financial success is certainly an advantage.

Bankruptcy has become a personal subject for nearly one of four adults within the United States. With that statistic in mind, it’s important to find a bankruptcy specialist that appreciates your financial needs. At Behm Law Group, Ltd, we understand the importance of a fresh financial start in the Mankato and southeastern Minnesota area.

Three quarters of Americans agree—there’s no shame in asking for financial help. Call Behm Law Group Ltd. today.

Posted on

Don’t Commit Bankruptcy Fraud

Not committing bankruptcy fraud seems like a no-brainer to most people, and Behm Law Group always counsel their clients to be honest and transparent when filing for bankruptcy in Mankato MN. But some people think that they are above the rules or can get away with the lies, and bankruptcy fraud does happen. Just the other week the Minneapolis Star Tribune, published an article about a jewelry store owner who had filed for bankruptcy and claimed that his jewelry had been sold, dismantled, or melted down. A federal bankruptcy judge claimed the store owner owed $253,000 but his creditors only received $17,500.

A Minneapolis attorney, Nauni Jo Manty, was appointed as a trustee in this case. It took four years of dogged effort on her part between both Minnesota and Wisconsin. Finally, last month, Rohricht pleaded guilty to hiding bankruptcy assets and is currently awaiting sentencing.

The moral to this story is if you think lies and complexity will thwart your creditors, guess again. If you read the entire article, you’ll be able to appreciate how much determination it took to render justice.

If you think back to when you were owed money, did you simply shrug your shoulders when it wasn’t repaid on time? Or, did you relentlessly pursue what was owed?

We guess that if you had any difficulty whatsoever, you remember the person who owed you, the amount of money owed, and the circumstances very well. In fact, your memory probably was so good that you relayed your predicament to any and all who would listen especially if you were repaid late or never at all.

The same can be said for creditors. They provided a product or service to you on good faith and expect to be paid accordingly. If you lie or hide assets during a bankruptcy proceeding, it may take some time, but justice will be served in the Mankato, MN area, too.

There’s one more thing you may want to note that’s even more valuable than any of your assets. What about your reputation? It can take many years to repair that. In some cases, maybe never.

While there can be legitimate reasons for filing bankruptcy, don’t do so under a false pretense. Creditors can be very observant. So can trustees.

To learn how to file for bankruptcy legitimately, consult the bankruptcy attorneys at Behm Law Group, Ltd. in the southeastern Minnesota area.