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The Right Time to File for Bankruptcy in Redwood Falls, MN and Popular Businesses That Nearly Filed for Bankruptcy

Knowing when to file for bankruptcy is a financial decision that can make or break the bank. You may feel like you’re sinking and just floating with your head above the water. Behm Law Group, Ltd. can give you the insight you need to know if your financial situation might necessitate filing for bankruptcy.

The right time to file for bankruptcy is when you realize you’re in a financial slump that you may not be able to get out of for years to come. If your debts surpass your income, if you use your credit cards to pay for necessities like groceries, gas, and utility bills, or if you only make the minimum payments on most or all of your credit cards, you may have to consider declaring bankruptcy.

Here are a few examples of companies that faced similar questions about whether to file for bankruptcy or not.

GM and Chrysler

The famous government bailout of the automotive industry kept them from filing for bankruptcy in 2009. The bailout was part of a plan to prevent the Midwest from going into a depression. The bailout kept an estimated 2.6 million jobs alive in 2009 and 1.5 million jobs in 2010, which also kept unemployment rates lower than they would have been.

American Apparel

The company was still just floating above water when its financers were ready to drop American Apparel. The company went into a debt-for-equity conversion and escaped filing Chapter 11 bankruptcy.  Lenders have taken $230 million in debt in exchange for ownership of the company.

Apple

The famous powerhouse company nearly went bankrupt in 1997 before its co-founder, Steve Jobs, stepped back in to save the company and came out with “cool” products like the iPod, iPhone, and iPad. Apple is now the most profitable company in history.

Kentucky Fried Chicken (KFC)

Kentucky Fried Chicken hasn’t gone bankrupt, but it is lagging behind against its competitor, Popeye’s. The company hasn’t introduced a new successful menu in quite some time and its southern fried chicken competition is blowing it away. In 2012, twenty-eight KFC franchises were bought out by Popeye’s in the St. Paul-Minneapolis area.

Many times a company or an individual may have to come to terms with the fact that filing for bankruptcy is the only way to relieve themselves of financial distress. Knowing your financial situation well and determining whether you should file for bankruptcy in Redwood Falls, MN is a dilemma that Behm Law Group, Ltd. can give insight on.

If you do decide to file for bankruptcy, the professionals at Behm Law Group can help you through the daunting process. Contact us today!

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You’re Not Alone Going Through Bankruptcy in St. Peter, MN: A List of Big Businesses That Have Gone Under in the Past Five Years

Going through bankruptcy in St. Peter, MN can be an intimidating process, one that might make you feel like you’re the only one going through that kind of struggle. Rest assured that is not true, and not only are you not alone in filing bankruptcy, but there are also well-known businesses that have filed for bankruptcy. Everyone, no matter how big or small, can file for bankruptcy when hard times hit. Behm Law Group, Ltd. can help you get regain some piece of mind when going through the bankruptcy process.

Blockbuster

The famed video rental giant filed for Chapter 11 bankruptcy in September of 2010. The company was simply unable to pay their debt. Of their 3,000 stores, they closed 110. In total, 402 underperforming stores closed in the wake of Blockbuster’s bankruptcy.

Borders

Borders filed for Chapter 11 bankruptcy in February of 2011. Its main downfall was taking far too long to create an e-reader, like the Nook and the Kindle. Borders fell behind its competition and closed 30% of its 642 stores.

Hummer

The company was hit hard in the recession. With rising gas prices, the Hummer’s mileage—10 gallons per mile that is—and the movement for more environmental friendly machines made the Hummer an obsolete vehicle.

Jennifer Convertibles

The trendy furniture store was also hit hard during the recession and due to a lack of funding, the company filed for bankruptcy in July of 2010 and has closed 78 of its original 142 stores. Today, the largest financer, Haining Mengu, owns approximately 90% of the company.

RadioShack

The electronics retailer announced that it would be closing 1,784 of its stores last year. It first opened 94 years ago, and in 2015 the company filed for Chapter 11 bankruptcy.

It’s good to note that bankruptcy did not mean certain doom for some of these businesses. Jennifer Convertibles is still around; however, the majority of the company is under new ownership. This shows that you can get back on your feet after filing for bankruptcy in St. Peter, MN. The attorneys at Behm Law Group, Ltd. will help you realize that bankruptcy is not as intimidating as it’s made out to be. Contact us today!

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Knowing When and How to File For Bankruptcy in New Ulm, MN

Filing for bankruptcy may be a daunting task in New Ulm, MN, and knowing how and when to do so can be overwhelming. The attorneys at Behm Law Group, Ltd. will help you with your bankruptcy process by making it flow smoothly and easily.

The timing for when you file for bankruptcy can be an advantage or detriment to the bankruptcy process. For instance, there is a popular belief that one can splurge with a large amount of money right before filing for bankruptcy and not have to pay it back.

This is simply not true.

The money will have to be paid back and, in addition to that, the legitimacy of the bankruptcy claim may be questioned. Our attorneys will inform you whether you qualify for bankruptcy and which bankruptcy option is best for you.

There are two ways one can file for bankruptcy in New Ulm, MN. The first is voluntary and the debtor chooses to file for bankruptcy. The second is when a debtor is forced by a court order to file for bankruptcy.

How to file for bankruptcy depends on the type of debt you have. At Behm Law Group, Ltd., we assist with filing for Chapter 7, 12, and 13 bankruptcies. Since Chapter 12 is for fishermen and family farmers with a regular annual income, most people choose Chapters 7 or 13.

Chapter 7 bankruptcy does not allow the debtor to repay their debt using a payment plan. Rather, the debtor’s non-exempt assets are sometimes sold in order to pay some of their debt.  While much of the analysis would depend on the value of property and the amount of debt, if any, against that property, some non-exempt property may include a second home or car, family heirlooms, or an expensive musical instrument. A person eligible for Chapter 7 does not have an income to pay off or materially reduce over time the debts that have accrued.

Chapter 13 bankruptcy allows debtors with a regular income to repay all or a portion of their debt based on their income. The debtor will repay the debt for the next three to five years. This process can be a tad more complicated, but the professionals at Behm Law Group, Ltd. will make the bankruptcy process easier and understandable.

Knowing your options during your bankruptcy in New Ulm, MN will help make for a smoother process. The professionals at Behm Law Group, Ltd. will take you through the process and thoroughly inform you every step of the way.

 

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Make a New Year’s Resolution to File for Bankruptcy and Get Out of Debt in Mankato, MN

2016 has arrived, and that means that people in Mankato, MN and across the nation are making resolutions to change their lives for the better in the new year. If you have been struggling with debt in the past, the big question on your mind might be, “How will I handle my finances for the new year?”

Whether you’ve already filed for bankruptcy or you’re still considering your options, starting the new year with a “get out of debt” mindset will help you come out of the financial hole you’re in.

Here are a few ways you could make your debt-cutting process easier:

  1. Put yourself on a budget. Yes, you’ve probably already heard that, but setting and adhering to a budget is imperative to getting out and staying out of debt. Identifying and curbing your spending on surplus or unnecessary items will help keep you from using your money on the same purchases that most likely put you in debt. For instance grocery shop on a budget and adhere to it and search for discounts and try your luck with thrift stores when buying clothing.

 

  1. Avoid using credit cards for the most part. While in debt, you need to save the money you spent that created the debt. Breaking some of the bad habits starts with ceasing the use of credit cards. They are part of the source of your debt, thus, saving as much as you can, will help you pay off your debt faster.

 

  1. Make the process fun. It never hurts to have a little fun, right? Being optimistic about cutting down your debt will make the task seem less daunting and drawn out. Create incentives for yourself every time you pay off a credit card, utility bill, or loan.

 

  1. Reach out your family and friends for emotional support. At Behm Law Group Ltd., we do our best to help you file for bankruptcy quickly and efficiently so you can find relief from debt. However, being in a state of bankruptcy still causes some stress and emotional strain, so reaching out to friends and family can help relieve the stress and give you more peace of mind.

 

Contact the professionals at Behm Law Group, Ltd. in Mankato, MN. We can provide you the bankruptcy services you need to start off fresh in 2016!