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Thirteen Facts about Chapter 13 (Part Two) in the Mankato Minnesota Area

Welcome back scholars in the Mankato Minnesota area! Today, we’ll be completing our study guide of thirteen facts about Chapter 13 bankruptcy.

Before we get started, let’s have a brief moment to review. Chapter 13 bankruptcy is often called a “wage earner’s plan” because debtors are offered the opportunity to repay debts. This gives them approximately 3-5 years to repay creditors and, during that time, they must typically be employed.

So, now, let’s learn a little bit more about Chapter 13:

1. Q: Other than the creditor and debtor, who else is involved in filing for Chapter 13 bankruptcy?
A: Typically, a neutral trustee must be involved in the filing.

2. Q: Are co-debtors protected under Chapter 13?
A: Yes, co-debtors are protected. Creditors are restricted from collecting “consumer debt” from anyone liable on a debt with the individual debtor. A creditor can get relief from the bankruptcy court to pursue a co-debtor if good cause warrants such relief.

3. Q: What is “consumer debt,” exactly?
A: The term “consumer debt” refers to individual debts acquired for personal, familial, or household reasons.

4. Q: What are the types of claims related to Chapter 13 bankruptcy?
A: There are three types of claims involved:
• Priority claims: These claims have a special status within bankruptcy law, and they include claims regarding taxes and filing costs.
• Secured claims: Creditors who have these claims have collateral securing the debts that they can take from a debtor if the debtor does not make payments.
• Unsecured claims: Creditors who have these claims do not have collateral securing the claims that they can take if a debtor does not make payments.

5. Q: What happens if a debtor is unable to pay?
A: Their Chapter 13 filing may be converted to a Chapter 7 filing instead or it may be dismissed.

6. Q: Can a debtor be discharged from Chapter 13 after repaying debts?
A: Yes, but only if the debtor has completed all payments required under the debtor’s chapter 13 plan, if the debtor has not received a chapter 13 discharge within 2 years before the present case was started, and if the debtor has taken a course in financial management.

Well, this concludes our two-week course in Chapter 13 bankruptcy! If you live in the Mankato Minnesota area and believe all this studying has prepared you for your own filing, contact the professionals at Behm Law Group Ltd. today.

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Successful Business after Bankruptcy in the Mankato Minnesota Area

Donald Trump’s history with bankruptcy has been all over the news lately. It may seem odd that a high-profile name associated with wealth, apprentices, and successful business could also be associated with bankruptcy. Unfortunately, Donald Trump’s financial struggles are not uncommon and serve as proof that bankruptcy can happen to anyone.

If you’re living comfortably in the Mankato, Minnesota area, this may be an unsettling thought. There’s no need to fret, though, because many important, successful business folk have experienced bankruptcy and thrived as a result of it. Behm Law Group, Ltd. has compiled a short list of names you’ll likely recognize:

  • Walt Disney – Thanks to an untrustworthy distributor, Disney’s first, Kansas City-based company went under in 1923. Just five years later, though, Disney worked his magic with a new creation: Mickey Mouse. His new company in Hollywood, California quickly bounced back from bankruptcy.
  • Henry Ford – Ford proved to be his own downfall in 1901. He held his vehicles to such a high standard of perfection that, in one year, the company only made and distributed 20 cars. Only two years later, however, Ford took a new approach towards The Ford Motor Company and made it a post-bankruptcy success. 
  • Milton Hershey – The Hershey company hasn’t always been a sweet success. Milton Hershey filed for bankruptcy after his businesses in Philadelphia and New York both failed, which then brought him home to Lancaster, Pennsylvania. It was here, after his bankruptcy filing, that Hershey struck gold in the form of milk-based caramels and secret recipe chocolate bars.

These famously successful business moguls prove that, no matter the circumstance, bankruptcy can happen to anyone. For each of them, though, success didn’t arrive until after they’d let go of past debts. If you like how that sounds, live in the Mankato, Minnesota area, and feel prepared to begin filing, contact Behm Law Group, Ltd. today.

 

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Seven Facts about Chapter 7 Bankruptcy in the Mankato Minnesota Area

School is about to start up in the Mankato, MN area, which means that students everywhere are looking ahead to homework and assignments. By the end of the month, they’ll be memorizing biology flashcards, solving algebra equations, and working through textbook chapters.

However, students aren’t the only ones working through chapters. At Behm Law Group, Ltd., our bankruptcy professionals are always ready to handle Chapter 7, a specific type of bankruptcy with a unique set of rules and restrictions.

If Chapter 7 is something you’d like to learn more about, take a peek at our notes. Behm Law Group, Ltd. has compiled a study guide of seven facts to know about Chapter 7 bankruptcy:

1. Q: How long does it take to file for Chapter 7 bankruptcy?
A: Typically, it takes about 3-4 months to file and obtain relief from debt.

2. Q: How long does a filing remain on my credit report?
A: A bankruptcy filing can remain for about five to seven years.

3. Q: What might I lose when filing for Chapter 7 bankruptcy?
A: It depends on each individual case but most possessions will be exempt and the exemption laws allowing you to keep property are quite generous.

4. Q: Will Chapter 7 take care of alimony or student loan debt?
A: If a debt is truly alimony, probably not but sometimes alimony is not really alimony and the right to receive it has been assigned to some other entity. In such a case, sometimes relief can be accorded. With respect to student loans, a person must go beyond the filing of a bankruptcy petition by filing an adversary proceeding against the student loan lender. Sometimes, student loans can be discharged if one can establish “undue hardship” but the process is very expensive and protracted.

5. Q: Am I able to file for bankruptcy a second time?
A: Yes! However, there are certain time restrictions involved.

6. Q: What kinds of time restrictions?
A: In most scenarios, you must wait at least six years between Chapter 7 bankruptcy filings.

7. Q: Do I still need to repay certain debts despite a Chapter 7 filing?
A: Sometimes. Certain types of debts, like some tax debts, child support or alimony obligations, aren’t generally discharged in a Chapter 7 proceeding.

Feel prepared for an exam on Chapter 7 bankruptcy? If you live in the Mankato, MN area, put down your number two pencils, throw away those test booklets, and give Behm Law Group, Ltd. a call today.

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Thirteen Facts about Chapter Thirteen in the Mankato, MN Area | Part 1

Class is still in session in the Mankato, Minnesota area! Please take your seats, sharpen your pencils, and prepare for your second week of Bankruptcy 101. Last week was all about Chapter 7 which means that, today, we’re going to focus on another type of bankruptcy: Chapter 13.

We at Behm Law Group, Ltd. have prepared another overview to help you decide which type of bankruptcy is best for you. So, without further ado, here’s part one of our Chapter 13 study guide:

  1. Q: What exactly is Chapter 13 bankruptcy?

A: Chapter 13 is a type of bankruptcy that allows debtors to gradually repay some (but not all in most cases) of their debts. This is why it’s often called a “wage earner’s plan.”

 

  1. Q: In order to file, do debtors need to have a consistent income?

A: Yes. This is because payments to a chapter 13 trustee are made in regular installments over a period of time.

 

  1. Q: How long does a debtor have to repay these debts?

A: A chapter 13 bankruptcy must last at least 3 years.  Sometimes, however, it can go for 5 years.  The maximum time a chapter 13 bankruptcy case last is 5 years.

 

  1. Q: Do debtors have to confront their creditors through out the process of filing?

A: No. Debtors don’t need to have any direct contact with their creditors.

 

  1. Will Chapter 13 bankruptcy erase all outstanding debts and payments?

A: Debtors are still responsible for paying certain expenses, such as mortgages, but are able to halt foreclosure and allow extra time for other payments such as payments on tax debts and mortgage delinquencies.

 

  1. Q: Who can file for Chapter 13 bankruptcy?

A: Individuals are eligible for this type of filing, but generally corporations and partnerships do not file for chapter 13 bankruptcy protection.

 

  1. Q: Which documents are required for a Chapter 13 filing?

A: At a minimum, four documents are required: a creditor list, the debtor’s documented income, the debtor’s documented property, and the debtor’s documented living expenses.

If you live in the Mankato area and believe Chapter 13 is the right kind of bankruptcy filing for you, contact the professionals at Behm Law Group, Ltd. today. Class dismissed!

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Taking Control of Time and Bankruptcy in the Mankato and Southeast Minnesota Area

For people living in the Mankato and southern Minnesota area, summertime gets to be a little hectic. Schedules are jam-packed with everything from county fairs to work events, Little League practices to Fourth of July celebrations. Busy schedules make it very easy to lose track of time.

When it comes to filing for bankruptcy, however, timing is important. There’s not a generally accepted “best time” of year for people to file for bankruptcy, so it can be difficult to decide which time is personally best for your finances. This summer, however, Behm Law Group, Ltd has developed a four-step process to make your decision a little easier:

1. First, ask yourself a few important questions:

Do bill collectors contact you regularly?

Do you feel afraid to address your finances or to consider bankruptcy?

Do you know how much money you owe?

Do you pay only the minimum on your credit cards?

2. If you answered “yes” to the above questions, it may be time to seriously address your financial situation regarding bankruptcy. This can be a scary realization, so it may be beneficial to recruit some help. After assessing your situation, contact a professional credit counselor or financial advisor. This professional can serve as a support system for both you and your finances!

3. Next, begin collecting all of your bills and expenses, adding together retirement funds, stocks, bonds, and any of your other liquid assets. Though this may be time consuming, it’s worthwhile. Having a calculated total of your assets will give you a much clearer understanding of your financial situation when considering bankruptcy.

4. Finally, compare your total assets to your total debt. If you find that your assets are still worth more than your debt, you may be a candidate for loan modification, refinancing, or creditor negotiation. If you realize that your assets are worth less than your overall debt, it’s likely the right time to file for bankruptcy.

Here in the Mankato and southern Minnesota area, summer goes by way too quickly. Rather than wasting time feeling worried about your finances or putting off tough decisions regarding bankruptcy, take control of your time. Contact Behm Law Group, Ltd today.