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Honestly Filing for Bankruptcy in the Mankato, Minnesota Area

This time of year, costumes, masks, and spooky makeup line the shelves of Mankato, Minnesota area department stores, beckoning folks to come along and alter their appearances. Putting on a costume or disguise can be exciting, especially for partygoers and trick-or-treaters on this one night each year. But what about the other 364 days?

Telling the truth, rather than hiding behind a costume or mask, is vitally important to a bankruptcy filing. As an example, let’s take a look at Abby Lee Miller from the popular television show Dance Moms, who came under investigation this week for fraud.

Although you may have heard about this infamous bankruptcy case over the past few days, let’s take a deeper look at Miller’s case to examine the benefits of a truthful bankruptcy filing:

  • The Disguise: Miller filed for bankruptcy with over $300,000 in debt. At the time, she was also making money from the television show Dance Moms, but failed to disclose this income to the judge.
  • The Reveal: A few years later, the judge on this case happened to be channel surfing when he came across Miller’s television show. He took another look at her case and quickly realized that she had been making significant income during the time of her bankruptcy filing.
  • The Truth: Over the past few years, Miller concealed more than $700,000 in income, all made from her television show.
  • The Consequences: Miller may spend five years in prison and receive a fine of approximately $250,000 for each count of fraud she pleads guilty to.
  • The Lesson: Always, always, always be honest with your bankruptcy filing. Although it may seem tempting to disguise income and hide the truth, the consequences far outweigh the short-term benefits!

Folks in the Mankato, Minnesota area, it’s always best to save the disguises, masks, and costumes for Halloween. When it comes to your bankruptcy filing, opt for honesty instead. The professionals at Behm Law Group Ltd. can help, and that’s the truth. Contact them today.

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Avoiding Zombie Foreclosure & Bankruptcy in the Mankato Minnesota Area

Foreclosure can make any house feel haunted in the Mankato, MN area, but there’s a certain type of foreclosure that’s especially chilling: zombie foreclosure. Although this type of foreclosure doesn’t include actual moaning zombies crawling down the street, it still feels scary to homeowners.

Just as in regular foreclosure, zombie foreclosure requires a certain timeline, especially in relation to bankruptcy. If you declare bankruptcy, your mortgage debt may be discharged to you personally (i.e. you are no longer personally responsible for it) but transfer of the property title and deed is done solely by the bank that controls your mortgage. Sometimes a bank will decide not to finish the foreclosure on the property and leave the title in your name, even though you believe you surrendered your house when you filed for bankruptcy. Thus a zombie foreclosure can wrack up numerous debts and tax expenses for homeowners if they are not careful, which can result in both financial troubles and, ultimately worsen your financial prospects with bankruptcy.

Fortunately, the professionals at Behm Law Group, Ltd. can give you perspective on bankruptcy and zombie foreclosures. Follow these simple rules and you’ll easily survive zombie foreclosure and negotiate bankruptcy no matter how terrifying it may seem:

  • Rule #1: Know your enemy – Zombie foreclosure occurs after a homeowner has moved out of a foreclosed property too quickly. If the bank does not claim the property, the property deed remains in the homeowner’s name. This can also be known as a “zombie title” or a “zombie property.”
  • Rule #2: Know your area – There are a few states with especially heightened numbers of zombie titles. These states include Florida, Illinois, New York, and New Jersey because they have especially lengthy foreclosure processes, meaning homes can sit vacant for long periods of time. For the record, states with lower numbers include California, Arizona, Nevada, and Washington.
  • Rule #3: Know the risks – Homeowners remain responsible for zombie titles if they are not transferred to the bank. As a result, homeowners become responsible for a great deal of debt and expense, which may ultimately lead to a bankruptcy filing in addition to foreclosure. Therefore, before moving out of the house and filing bankruptcy, it’s important for homeowners to know the property title has been transferred.
  • Rule #4: Know the solutions – Before moving out of a foreclosed home, be sure to check with the county recorder’s office to ensure the title has been transferred. If it hasn’t, your foreclosure may begin showing signs of the undead!

By following these rules, you’ll survive zombie foreclosure and avoid deepening your bankruptcy situation in the Mankato, MN area. If you need backup help, the professionals at Behm Law Group, Ltd. can help with all your bankruptcy needs. Give us a call today.

 

 

 

 

 

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Foreclosure and Bankruptcy in the Mankato Minnesota Area

It’s officially October! With Halloween just around the corner, scary haunted houses are popping up around the Mankato, Minnesota area. Usually, these houses have spider webs on the door or Jack-O-Lanterns on the front porch. They are presented in good fun, intended to spook ticket-buying folks in search of a scare.

For some people, however, a house doesn’t have to be haunted to be scary. A house in foreclosure can be equally as frightening as one frequented by a witch, simply because it’s full of so many uncertainties and unknowns. For example, what exactly is foreclosure? Is it better to file for bankruptcy before or after foreclosure? And, should you file for Chapter 7 or Chapter 13?

If you’re facing foreclosure and considering bankruptcy, the professionals at Behm Law Group, Ltd. may be able to answer a few of your questions:

  1. What exactly is foreclosure?

Foreclosure occurs when a homeowner cannot make mortgage payments. As a result, the bank or lender has the ability to accelerate the mortgage debt and “foreclose” on the property, which means taking the property and evicting the current occupant.

  1. Is it better to file for bankruptcy before or after foreclosure?

If you have the option, it’s best to file before. Although not all of your debts will be relieved as a result of bankruptcy, your mortgage will be discharged to you personally.  Of course, the house itself will remain liable on the mortgage debt. Also, because bankruptcy filings and foreclosures can take months to process, you may be able to remain in your home for quite some time.

  1. Is Chapter 7 or Chapter 13 a better option if foreclosing on a house?

Both options are available. However, it’s important to determine if you want to retain the home and if you can repay the mortgage delinquency through a chapter 13 bankruptcy plan.  For instance, many people miss one or two mortgage payments and then the management of the entire mortgage spins out of control because late fees, escrow additions and other charges are piled on top of the past due regular mortgage payments.  Chapter 13 can be a “reset” of sorts because one can cure or pay back the mortgage delinquency over 36 to 60 months instead of having to come up with the whole amount in a much shorter period of time.  In a Chapter 7 bankruptcy, one is not able to do this.

Filing for bankruptcy before foreclosure in the Mankato, Minnesota area can be a daunting process. With the help of Behm Law Group, Ltd., however, it shouldn’t have you spooked. Whether you need assistance filing for bankruptcy or clearing cobwebs from your financial history, contact our professionals today.

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Studying U.S. Presidential Bankruptcy in the Mankato Minnesota Area

In last week’s Behm Law Group, Ltd. blog, Donald Trump sparked a conversation in the Mankato, Minnesota area. We discussed which famous business owners recovered from bankruptcy before beginning successful careers. However, business folks are not the only ones who are susceptible to bankruptcy. Anyone, even the President of the United States, can be financially vulnerable.

There are actually a number of former presidents that have filed for personal bankruptcy. Whether before, after, or during their presidencies, these leaders of the free world all struggled financially at one point in their lives.

Here are a few names you may recognize from U.S. history class:

Thomas Jefferson

The third president truly believed in his own pursuit of happiness, especially when it came to alcohol. By today’s monetary standards, Jefferson spent over $100,000 on wine alone! Fortunately, few people know that he spent his life struggling financially because Jefferson’s roles as president and author of the Declaration of Independence overshadow his reputation for frivolous spending.

Abraham Lincoln

Though most folks know Abe Lincoln worked as a lawyer before taking office, few know about his tumultuous history as a shopkeeper. In 1840, far more than four score and seven years ago, Lincoln’s attempt to run a general store failed when his business partner unexpectedly passed away. Lincoln filed for bankruptcy, but went on to be a successful President of the United States.

Ulysses S. Grant

Between investing poorly before his presidency and overspending during it, Ulysses S. Grant financially floundered throughout his entire life. When he was diagnosed with deadly cancer, Grant elicited Mark Twain’s help in composing a series of memoirs. These memoirs provided for Grant’s family after his death, thus liberating them from his bankruptcy and debts.

Bankruptcy can impact anyone, including the Commander in Chief. Fortunately, in the Mankato, Minnesota area, the professionals at Behm Law Group, Ltd. are here to help, whether your house is painted red, blue, yellow, or white. For all your bankruptcy needs, contact Behm Law Group, Ltd. today.