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Slash Daily Expenses to Avoid Bankruptcy in Waseca, MN

Drastically reducing your daily expenses is one proven way to help your paychecks go further in today’s economy in Waseca, MN. However, if you’ve slashed your daily and monthly expenses to the bare bone but your debt load dictates that you still need to declare bankruptcy, the non-judgmental and knowledgeable team at Behm Law Group, Ltd. can assist you with all facets of your decision to file.

If you’re stumped about ways to save, here are four ideas you can use to help cut your monthly bills by several hundreds of dollars, according to a recent issue of the Minneapolis Star Tribune newspaper. Taking any or all of the following steps could help you lower your debt, increase your cash flow, and eliminate the need to file for bankruptcy:

Save on groceries. A family of four spends up to $1,284 a month on food at home, reports the U.S. Department of Agriculture. One of the best ways to save money on groceries is to stock up on sale items that are nonperishable or that can be frozen. Once you have a stockpile, you can plan weekly meals around what you have and perishable items on sale at the supermarket. Clipping coupons and shopping during double-coupon days and eliminating restaurant trips are other ways to save.

Eliminate your landline. Growing numbers of households are ditching their landline telephone service and relying strictly on wireless service. According to the U.S. Depart of Labor Consumer Expenditure Survey, consumers spent an average of $353 per year on residential phone services in 2014. Eliminating your landline could put an extra $25 to $30 in your pocket each month.

Cut the cost of wireless service. If you are not locked into a contract with a service provider, you might be able to lower your monthly bill by switching to a smaller carrier that offers more competitive pricing than major carriers. If you don’t want to switch to a smaller carrier that might have a limited coverage area, you still might be able to lower your monthly bill with a major carrier by exploring plans with lower data allotments. Long-time customers can sometimes trim their bills with a call to the service provider’s loyalty department.

Cut or trim the cable cord. The Leichtman Research Group reports that the monthly spending on pay-TV is nearly $100 per month, a 40% increase since 2010. Cutting your cable cord could create savings that would add up quickly. If you’re not ready to give up on cable TV, you could lower your bill by opting for the most basic package.

If taking the above steps still doesn’t leave enough room in your budget, give Behm Law Group, Ltd. a call at (507) 387-7200 a call to discuss your bankruptcy options. We’re standing by to assist you!

 

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The Differences Between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Fairmont, MN

If you’re struggling to pay your bills and being hounded by debt collectors in Fairmont, MN, you may be contemplating filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. Fortunately, the compassionate and knowledgeable team at Behm Law Group, Ltd. can assist you with your decision to file for bankruptcy.

Below is a brief rundown of the differences between Chapter 7 bankruptcy, which is referred to as a liquidation, and Chapter 13 bankruptcy, which is called an adjustment of debts of an individual with regular income or a reorganization.

Your financial situation generally dictates which type of bankruptcy you will file for. Chapter 7 is for people with little or no income, while Chapter 13 is for folks who have a higher and regular income. Reportedly, the most common filing is Chapter 7. Companies, married couples, and individuals are allowed to file Chapter 7. Companies are not allowed to file Chapter 13.

A debtor filing Chapter 7 bankruptcy is essentially scrapping everything and starting over, hoping for a clean financial slate. Once the filing is underway, an administrator or trustee is appointed to manage the sale of the debtor’s assets. This does not mean everything that the person owns is sold. Both state and federal laws allow for certain exemptions, meaning that the debtor might get to keep some property, such as his or her private residence and/or personal items like clothing.

Once the debtor’s assets are liquidated, the trustee pays certain creditors a portion of the money raised. Of course, not all of the creditors receive money from the proceeds, so many of the debtor’s financial obligations are forgiven or discharged. Once a person has filed for bankruptcy under Chapter 7, he or she can’t file again for eight years.

Chapter 13 is a reorganization bankruptcy designed for debtors with regular income who can pay back at least a portion of their debts through a repayment plan. If you make too much money to qualify for Chapter 7 bankruptcy, you may have no choice but to file for Chapter 13. Many debtors choose to file for Chapter 13 because it offers many benefits that Chapter 7 does not. These benefits include the ability to catch up on missed mortgage payments or strip wholly unsecured junior liens from your house.

In Chapter 13 bankruptcy, you get to keep all of your property, including non-exempt assets that you could otherwise lose in a chapter 7 case. In exchange, you must pay back a portion of your debts through a repayment plan. The amount you pay back depends on your income, expenses, and types of debt.

If you think you are a viable candidate for either Chapter 7 or Chapter 13 bankruptcy, give Behm Law Group, Ltd. a call at (507 ) 387-7200. We’re standing by to discuss the intricacies of all four types of bankruptcy (7,11, 12 and 13) and to help you make the best decision for you and your family.

 

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How to Know it’s Time to File for Chapter 7 Bankruptcy in Redwood Falls, MN

If creditors are calling you daily, your credit card debt is rising, and you have little or no savings or assets, it may be time to let Behm Law Group, Ltd. assist you with your Chapter 7 bankruptcy in Redwood Falls, MN and surrounding communities.

Chapter 7, the most common type of bankruptcy, is often referred to as “straight” or “complete” bankruptcy. Depending on your situation, filing a Chapter 7 may help you eliminate all of your debt without having any obligation to repay any of it. Because all of your debts may be eliminated, it is also often referred to as a “fresh start” bankruptcy. Chapter 7 bankruptcies are generally best if you don’t have a significant amount of assets, such as substantial equity in your home or other investments.

How do you know if Chapter 7 bankruptcy is right for you in Redwood Falls, MN? Here’s a roundup of red flags which signal a path toward bankruptcy:

Creditors are constantly calling you. If you are a chronic late payer or non-payer, you probably get numerous calls from your creditors, or their hired hands, wanting to know when they can expect payment(s). These calls can range from professional to downright harassing. Depending on the amount you owe and the lateness of the payment, the creditor might be willing to strike a deal with you regarding a payment plan. Be wary and consult a Behm Law Group, Ltd. attorney before agreeing to any deal.

You have rising credit card debt. If you find your credit card bill growing each month – despite your best efforts to pay it down – you’re headed for financial trouble. Making minimum payments and thinking you’ll eventually pay off your high credit card balances isn’t realistic. The way high interest charges are calculated and the associated fees with missing or late payments are added almost eliminates any value to making minimum payments on the debt. Also, if you’re using your credit cards to put food on the table and gas in the car, be very careful. Balances can add up quickly. If not managed proactively, they can become unmanageable in a short amount of time.

Your nest egg is small or non-existent. If you‘re living paycheck to paycheck, chances are you have not had the opportunity to save much or any money. Many people live their entire lives this way, always being vulnerable to happenstance and potential financial disaster when things go wrong. If you find yourself in this position, you could be on the road to bankruptcy.

If the above descriptions fit you and your family’s situation, call Behm Law Group, Ltd. at (507) 387-7200 and let us help you find an equitable resolution for your financial difficulties. We’re standing by to assist you with all of your bankruptcy needs.

 

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Common Bankruptcy Myths Debunked in Mankato, MN

Sometimes hard-working and honest people in Mankato, MN find themselves mired in a financial mess and need to seek refuge from their hardships by filing for bankruptcy. If that description fits you, turn to the knowledgeable and compassionate professionals at Behm Law Group, Ltd. We have the expertise and experience to help you get through the bankruptcy process step-by-step.

There are many myths that swirl around bankruptcy and the types of people who file for it. Listed below are four common bankruptcy myths:

  • Bankruptcy doesn’t affect that many people. The number of people who file for bankruptcy protection has decreased since the peak of The Great Recession. From 2008-2010, over 4.1 million U.S. families filed for bankruptcy. These days, the number of families who file hovers around the one million mark annually.
  • Bankruptcy only happens to the poor and uneducated. Sure, among the million or so families filing for bankruptcy protection every year, there are poor and uneducated people. However, it also strikes wealthy and highly educated people. Lawyers, doctors, accountants, business owners, teachers, and many others in highly respected and high-paying professions file for bankruptcy every day.
  • Bankruptcy is the result of irresponsible spending. There are some individuals who try to game the system, carelessly racking up mountains of debt and then filing for bankruptcy. However, the majority of filers are hard-working folks who may have become financially ruined by a job loss, pay decrease, divorce, or a serious illness and the subsequent pile of medical bills that creates. In many cases people rely on their credit cards to buy the necessities – food, gasoline, car repairs, clothing for the kids – and hope that their situations will improve. Sadly, things don’t always turn around, and bankruptcy is the only viable option.
  • Bankruptcy permanently ruins your credit. People who file for bankruptcy are often surprised at how quickly their credit bounces back and how fast they start getting credit card offers in their mailboxes again. To rebuild your credit, think about applying for a secured credit card with a low limit that requires a deposit to a bank. Once approved for the card, make regular, on-time payments, and check your credit report to ensure that everything that was discharged in bankruptcy is, indeed, marked as discharged.

If you or a loved one is facing the difficult decision of whether or not to file for bankruptcy, give us a call today at (507) 387-7200 to learn what your options are. Even if you decide not to file, knowing the available options can bring you tremendous peace of mind.