Bankruptcy Relieves Student Loan Debt in the Waseca, Minnesota Area

For many students nearing graduation in the Waseca, Minnesota area, it can be overwhelming to consider their impending student loan debt. Although many believe that this particular type of debt cannot be discharged through bankruptcy, there are actually a few specific circumstances where bankruptcy can grant individuals relief from their debt.

If you’re struggling to repay student loans or fearful about the future of your upcoming debts, it may be time to take an important examination to determine whether or not you’re eligible for bankruptcy.

In Minnesota, the standard for determining whether or not you’re able to discharge student loan debt through bankruptcy is known as the “totality of circumstances” test. Though school is full of exams and quizzes, this may be one of the most helpful tests you’ll ever take. So, let’s do a little studying up on the totality of circumstances test:

The totality of circumstances test addresses all relevant factors influencing your ability to pay back student loan debt rather than just a few specific ones. Here are a few personal, relevant factors that may impact your ability to pay back your debt:

  1. Are you able to purchase necessities such as food and housing? You need food, water, and housing in order to survive. That goes without saying! However, if you’re unable to afford these basic items as a result of your debt, it may be time to consider bankruptcy.
  1. Are you trapped in a cycle of debt? This means that you’re continually unable to pay off your loans. If so, this may be a circumstance that can contribute to a bankruptcy filing.
  1. Are you working towards repaying your debt? Making regular payments certainly shows that you’re putting in the effort to be rid of your debt, but if that effort is not enough, bankruptcy may be a viable option!

In the Waseca, Minnesota area, discharging student loan debt through bankruptcy may be the best option for people who pass the totality of circumstances test. To determine your eligibility, or to learn more about bankruptcy filings, contact the professionals at Behm Law Group Ltd. today.

Two Ways to Discharge Debt in the Marshall, Minnesota Area

In the Marshall, Minnesota area, students may find repaying their student loan debt challenging. For those former students struggling to overcome the weight of crippling expenses and education-related debt, Behm Law Group Ltd. can help!

Last week, we discussed how to examine whether or not substantial student loan debt could be discharged through bankruptcy. The first step is to take the Brunner Test, and after determining your personal financial situation regarding your ratio of debt to credit, it’s important to take a look at your options for discharging student loans through bankruptcy.

Here are two different options for discharging your personal student loan debt:

  • Privacy Issue: Did you utilize student loans to help pay for your private college education? If so, you may be able to discharge your student loans by redefining their purpose! Federal aid is often not available for students attending private or smaller schools, which makes private student loans a necessity rather than a choice. Since the choice to use federal student aid was not available, these private loans can be considered something other than an “education” loan and can be discharged legally through bankruptcy.
  • Attendance Record: Did you use federal student loans in order to pay for anything other than tuition or school fees? In the past, some folks struggling with student loans and bankruptcy have argued that non- “cost of attendance” expenses, or non-tuition related expenses such as computers, can be discharged from their student loan debt. However, borrowers beware! Oftentimes, loans require that students initially agree to consider additional expenses within the “cost of attendance” when getting their student loans.

Although student loan debt and bankruptcy can be equally frightening to folks in the Marshall, Minnesota area, there are options to consider. By examining the definition of these loans and considering the classification of “cost of attendance” loans, students can save themselves from years of challenging payments or debt.

For more information regarding student loan debt and related bankruptcy, contact the professionals at Behm Law Group Ltd.!

Avoiding Ponzi Schemes and Bankruptcy in the Mankato, MN Area

In the Mankato, Minnesota area and throughout the rest of our country, folks have heard stories about Tom Petter’s infamous ponzi scheme involving false electronic sales. Although the case was filed approximately seven years ago, difficulties in processing this complex case have caused a series of delays and a number of bankruptcy filings from Petter’s victims. Fortunately, this case recently had another day in court, bringing Petter’s victims closer to justice and financial stability.

To maintain your own financial health and well being, it’s important to understand the warning signs related to fraud or ponzi schemes. Here are a few signs that a deal is likely too good to be true and that it may lead you to bankruptcy:

  • Advise Safely: If you are consulting with a financial advisor, make sure that they’re accredited and truly qualified to help you with your money. Allowing others access to your banking information and statements requires a great deal of trust, so in order to avoid potential bankruptcy, be sure to do your research!
  • Custodian Versus Manager: Before selecting an advisor, understand the distinction between an advisor and a custodian. A custodian only possesses your accounts, whereas a manager actually makes transactions. These two positions should be separate, otherwise you’re allowing one person far too much access to your finances, and you could ultimately be heading towards bankruptcy!
  • Be a Skeptic: Does something about your banker seem odd? Are you receiving a pitch for a strange product or service that seems too good to be true? It likely is too good to be true, and it may cause you personal financial woes or even bankruptcy. It’s important to be aware of all the risks and to have all the information before committing yourself financially!

Before making these important financial decisions in the Mankato, Minnesota area, be sure that you understand exactly what you’re getting into and who is getting into it alongside you. With a discerning eye, you’ll be able to avoid ponzi schemes and the resulting bankruptcy or financial woes.

For further information regarding bankruptcy, contact the professionals at Behm Law Group Ltd. today.

Bankruptcy is All Relative in the Fairmont, Minnesota Area

When you’re watching television in the Fairmont, Minnesota area, what do you usually think about? Are you focusing on the plotline and characters, the filming techniques, or perhaps something else entirely?

Though much of television drama happens onscreen, there is a fair portion that happens behind the scenes. There are actors and directors and writers, all with unique perspectives that help build the content that arrives onscreen. For one especially dramatic media company, the reality of bankruptcy has been written into their path to success, forcing them to rescript their financial structuring to remain afloat.

This recent off-screen television drama deals with the bankruptcy of Relativity Media, a case with hearings this week in New York, Delaware, and California. If you’re curious about this company‘s turbulent ride through Chapter 11 bankruptcy, here are a few interesting details to consider next time you turn on the tube:

What is Relativity Media? Relativity Media is a recently bankrupt media company with ties to the television shows Limitless, Catfish, and Kim of Queens, and movies such as The Fighter, Limitless, Safe Haven, and Act of Valor.

What Happens Next? As a result of their Chapter 11 bankruptcy filing, Relativity Media has been divided into TV and film divisions. The television portion of the business has already been sold, which will hopefully preserve some of Relativity’s content!

Who is their Leader? Prior to this bankruptcy filing, Ryan Kavanaugh was the CEO of Relativity Media. After a financial restructuring, however, there’s talk that Kevin Spacey will be the next commander of this multimedia company.

When will Relativity Media emerge from bankruptcy? The company will continue working on their bankruptcy hearing through the end of February. We’ll see what happens after that!

Relativity media is just as fallible as the rest of us in the Fairmont, MN area. Although we can attempt to protect ourselves from bankruptcy, there are certain incidents that we simply cannot anticipate.

If you have been surprised by a recent turn of financial events that may have you considering filing for bankruptcy, or have questions about your financial health, contact the professionals at Behm Law Group, Ltd. today!