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Deciphering the Language of Bankruptcy in the Mankato Minnesota Area

If you’re living in the Mankato, MN area, it’s likely you’ve heard plenty of jokes about Minnesotan dialects and language. There are all sorts of local idioms around these parts, from “Duck, Duck, Gray Duck” to “hot dish,” each of which belong proudly situated within the culture of Minnesota.

When it comes to the culture surrounding bankruptcy, it’s no surprise that it has a language all its own. There are all sorts of words that sound unfamiliar, even in a basic definition of what “bankruptcy” means:

“A federally authorized procedure by which a debtor—an individual, corporation, or municipality— is relieved of total liability for its debts by making court-approved arrangements for their partial repayment.”

…What?!

Including a few words from that definition, Behm Law Group, Ltd. has a list of key terms that will help you translate the language of bankruptcy:

  1. Liabilities are monetary or legal obligations.
  2. Debts are monetary or legal obligations that are owed.
  3. Debtors can be people, partnerships, corporations, or municipalities. The debtor is the subject within a bankruptcy case, meaning they owe money or have legal obligations towards another person or organization.
  4. Creditors are people or organizations that debtors owe. Typically, they are owed either money or another legal entity.
  5. Assets are all forms of property held by the debtor.
  6. Liquidated debts are for a specific, numerical amount. While debtors are still responsible for non-liquidated debts, their exact monetary amount is not known.

With this list of terms in your dictionary, it should be just a little easier for you to decipher the complex vocabulary within a bankruptcy filing.

Whether you speak the language of bankruptcy fluently, or you’re still a little confused, the professionals at Behm Law Group, Ltd. can help. For a clear, simple translation of bankruptcy in the Mankato, Minnesota area, contact Behm Law Group, Ltd. today.

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Managing Financial Fitness After Bankruptcy in the Mankato and Southeast Minnesota Area

If you’re living in the Mankato and the southern Minnesota area, this is your summer to get fit with Behm Law Group, Ltd. At Behm Law Group, Ltd, “fit” doesn’t mean low-fat smoothies, long outdoor runs, or a perfect beach body. Here, “fit” means managing personal financial fitness in order to make the best decisions regarding bankruptcy. Although you may think your finances are in shape, we’ve devised a workout plan to manage your monetary health this summer.

1. Learn the facts: Bankruptcy can happen to anyone. Did you know that over four million families filed for bankruptcy between 2008 and 2010 within the United States alone? Or that many people don’t file for bankruptcy when they should? Knowing the facts about bankruptcy is the first step to improving your overall financial health.

2. Manage your credit: Maximize your credit score by paying bills on time and tracking credit card balances. It can be easy to lose track of payments or bills, especially during summer vacations or holidays. Continued missed payments can lead to both debt and bankruptcy. Be sure to create a schedule in order to follow bill schedules, exceed minimum payments, and avoid accruing debt.

3. Boost your nest egg: Even if money’s tight, try to invest a small amount of each paycheck into a future nest egg. Anyone, whether excessively wealthy or living between paychecks, is susceptible to bankruptcy if they experience a sudden accident, financial crisis, job loss, or serious illness. It’s healthiest to prepare before disaster strikes.

The attorneys at Behm Law Group, Ltd can help get your finances back in shape. When filing for bankruptcy is the healthiest option for your finances, Behm Law Group, Ltd can answer questions, offer advice, or create a monetary workout that best suits your needs. If you live in the Mankato or southern Minnesota area, and you are ready to get financially fit, contact Behm Law Group, Ltd today.

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What Bankruptcy Means for Your Credit Now and in the Future | Mankato, MN

According to a survey conducted by YouGov, far more adults (62%) are worried about the effect bankruptcy would have on their credit reports than the shameful stigma attached to declaring bankruptcy (26%). If you are considering bankruptcy in the Mankato, MN area, Behm Law Group wants to help you understand what declaring bankruptcy means for your credit profile.

How does bankruptcy affect my credit score?

Your credit score is an easy way for you and creditors to calculate the health of your credit profile. Declaring bankruptcy means that you are in a situation where you are unable to make payments on your debt, so it is viewed as a very negative event on your credit report. But the overall impact it has depends on your entire credit profile. If you had perfect credit, you would probably see a large drop in your credit score. However, since most people who declare bankruptcy usually have poor credit and several other negative marks on their credit reports, bankruptcy might make a relatively small dent in a credit score.
Additionally, bankruptcy stays on your credit report for up to 10 years after you file and will continue to affect your credit score until it is removed. Even so, that doesn’t mean you are unable to obtain new credit in the meantime.

How soon can I qualify for new credit?

Bankruptcy is a means of clearing your financial slate and it will take time for you to rebuild your credit history to the point where creditors are willing to grant you a line of credit. Generally it takes 18-24 months of full, on-time payments before you will be able to qualify for most loans. Of course, creditors also take into account your income, debts and assets so you may be a viable candidate for new credit sooner if your financial situation has greatly improved since you declared bankruptcy.

Here are some general timelines for a few of the major types of credit:
• Credit Cards: This type of credit is usually available immediately after a bankruptcy because credit card companies can justify charging you higher interest rates and fees if you have a checkered credit history. Be wary of opening new credit cards, however, as you might easily find yourself deep in debt again. A secured card is a safer way to begin rebuilding your credit because it can be used like a regular credit card but it requires a deposit upfront to cover your credit limit.

• Auto Loan: Auto loans are also often readily available soon after filing bankruptcy thought the interest rates will be quite steep. If possible, you might want to wait until you can qualify for a loan with a more competitive interest rate to avoid paying more in interest over the life of the loan.

• Mortgage: While some lenders will give you a home loan right after filing for bankruptcy, it is best to wait at least two years before applying for a mortgage. Not only will you have time to develop a good credit history, lenders will usually leave your bankruptcy out of the consideration and offer you better interest rates. Plus you will also be able to save for a down payment and decrease the amount you need to take out in loans.

Though bankruptcy may cause your credit to take a hit immediately after filing, declaring bankruptcy can actually help you in the long-term by wiping out most, if not all, of your debt. This allows you to start managing your money better and rebuilding your credit without the burden of monthly payments. If you are ready to start over financially, call Behm Law Group for assistance with declaring bankruptcy in the Mankato, MN area.

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Limit Spousal Input Before Starting a Business or Declaring Bankruptcy for Your Mankato, MN Area Business

When starting a new business, you need to carefully consider many decisions such as where to locate, what type of services to offer, how much equity each owner gets, and what pricing and business models to use. But did you ever think you should be concerned about your partner’s spouse? The bankruptcy attorneys at Behm Law Group, Ltd. believe such a consideration should be duly noted in the Mankato, MN area.

 

You might think this doesn’t matter because you are going into business with your partner, not their spouse. But consider these questions before you sign on the dotted line and commit your capital to the business venture.

  • What if the spouse has undue influence over your partner’s decision-making abilities?
  • Does the spouse have any experience in or knowledge about running a business?
  • What if the spouse is designated as a successor in the business should your partner suffer an untimely demise?
  • Is spouse difficult to work with when in a position of power?
  • Does the spouse share your and your partner’s vision for your business?

 

Of course, you want to trust that your business partner will be able to keep their professional and personal relationships separate for the good of your business. But you could find yourself in an uncomfortable situation if you don’t take some precautions in your business agreement:

 

1) Make sure all business owners in your venture sign a business agreement which addresses all aspects and possibilities for your business. Leave nothing to chance.

 

2) Define the spouse’s role in your business. How much influence, if any, a spouse would have? Can he or she make decisions? Can a spouse become an owner? If an owner, what are the terms for selling the spouse’s share?

 

3) Address the potential need for bankruptcy. At what point should the discussion of bankruptcy be brought up? Who makes the final decision to declare bankruptcy?

 

Whether you’re contemplating a business agreement or have already filed for bankruptcy, seek our counsel at Behm Law Group, Ltd. We specialize in bankruptcy in the Mankato, Minnesota area and can offer you sound advice for making the best decision regarding bankruptcy for your business before it’s too late.