Chapter 7 bankruptcy is the most common form of bankruptcy used to address issues of bankruptcy for individuals and businesses. Almost all cases of Chapter 7 bankruptcy involve converting all of the debtor’s assets into a cash value—otherwise known as liquidity. Because Chapter 7 functions to turn a debtor’s property and assets into cash used to repay creditors, it is commonly referred to as liquidation bankruptcy. At Behm Law Group, Ltd., we offer professional guidance and legal protection in all cases of Chapter 7 liquidation bankruptcy in Mankato, MN.
Chapter 7 is often the best choice for individuals filing for bankruptcy because it provides an efficiently-governed breakdown of assets. This gives the debtor a debt-free new start while also allowing for several properties exemptions. This means that the federal court allows the debtor to withhold necessities of life—such as housing and transportation—from the bankruptcy process.
The common assets that are exempt from the Chapter 7 bankruptcy liquidation process are considered basic needs for the debtor, in terms of survival and ability to function as a contributing member of society. In the state of Minnesota, these debts include, but are not limited to:
- Household car or other means of transportation
- Pension or retirement benefits
- Personal property (such as clothing, appliances, furniture, food, wedding rings, and tools of trade)
- Insurance benefits
- Assistance and other benefits
While the promise of these exemptions of property from the bankruptcy process are comforting, keep in mind that Chapter 7 bankruptcy doesn’t allow for the liquidation of several kinds of common debts. Not every debt is forgiven, and there are many cases where filing for bankruptcy is not ideal. Chapter 7 does not involve the following:
- Student loan debts
- Debts from fraud
- DUI and DWI debts
- Child support debts
- Tax debts
Chapter 7 bankruptcy is not an answer for all debt situations, but if you choose to acknowledge the exemptions for the process and file for liquidation bankruptcy, our attorneys can guide you every step of the way. We do everything in our power to make filing for bankruptcy into a beneficial situation, giving you an opportunity to start fresh.
For more information about your options with liquidation bankruptcy in Mankato, MN, contact Behm Law Group, Ltd. at (507) 387-7200, or via email at email@example.com today.
After you’ve filed for bankruptcy in Worthington, MN, your credit will be damaged, but it won’t ruin your financial future forever. Listed below are several tips the attorneys at Behm Law Group, Ltd. would like you to consider to help you rebuild your credit and life after bankruptcy. Remember, if you’re contemplating bankruptcy, the compassionate professionals at Behm Law Group, Ltd. can help you with your decision by providing solid answers to your questions and concerns.
- Create a budget to help you stay on top of your finances. The attorneys at Behm Law Group, Ltd. recommend NerdWallet. Non-profit credit counseling agencies offer free basic consumer help on topics such as budgeting. Simple budgeting forms can be downloaded from the Internet, too.
- Begin building an emergency fund, even if it’s just a small amount at first. Research by the Urban Institute shows that having as little $250 in savings for an unexpected expense can protect families from resorting to payday loans or running up credit cards, which can start a new debt spiral.
- Cautiously apply for a credit card. Try to obtain either a secured or unsecured credit card, and make sure to repay the entire balance every month. Doing this quickly establishes a timely payment history and improves your credit. Do not fall into the trap of obtaining too much credit.
- Repair your credit. It’s unusual for your credit report to be 100% accurate following a bankruptcy, and some of your debts may not indicate that they were discharged in your bankruptcy. It‘s the creditor’s responsibility to update your credit reports to show that your discharged debts have a zero balance, but you obtain the best results if you dispute incorrect items on your credit report. The three major crediting reporting agencies offer free credit reports annually.
- Open a new bank account. Opening a new checking or savings account will demonstrate financial stability. It can also give you a fresh slate to practice good financial habits. When you open your account, talk to the banker about signing up for automatic online bill pay. This will ensure that your bills are paid on time, which is a major factor in rebuilding your credit score.
If you have questions about what your life in Worthington, MN, will look like post-bankruptcy, give Behm Law Group, Ltd. a call at (507) 387-7200. We’re standing by to assist you with all aspects of filing for bankruptcy.
Parents and kids in Owatonna, MN are getting geared up for the new school year. One inevitable expense is outfitting and supplying kids with what they need to head back to the classroom. It is possible to spend wisely on supplies without going broke and facing the prospect of bankruptcy, according to the professionals at Behm Law Group, Ltd.
Here are several money-saving strategies to lessen the financial burden of getting your kids ready for school this year:
- Determine what you really need to purchase. Check each child’s closet and make a list of only what each one truly needs to head back to school. Round up all of the office and school supplies you already own. Put them in a central location so you can make a list of what you have. Take your lists with you when you shop.
- Stick to your lists. The teacher’s supply list at the start of the school year is daunting enough, so don’t waste money on unlisted items.
- Set limits. Draw up a budget and make a commitment to stick to it. Set limitations with your kids, and speak with them about money-based values. Try to stay away from trendy, cheaply made merchandise.
- Spread your spending over two or more pay periods, if possible, to help you stick to your budget.
- Shop end-of-summer sales. Snap up discounted clothing that can be worn well into fall and next spring.
- Host a back-to-school swap. Round up a couple of moms with kids the same gender as yours, but different ages, and host an annual clothes swap. Trade books and tools, too.
- Hit up the Dollar Store or Dollar General for great deals on basic supplies. You’ll be surprised at what you’ll find and how much you’ll save.
- Use coupons wisely. Scour your Sunday newspaper for coupons and search on-line coupon sites. To cut down on driving, remember that many stores offer price and coupon matching.
- Pay with cash vs. credit cards. This allows you to keep a tight rein on your budget. Once your cash is gone, you’re done shopping.
If your back-to-school expenses and other bills seem unsurmountable and you’re thinking about filing for bankruptcy in Owatonna, MN, give Behm Law Group, Ltd. a call at (507) 387-7200 to discuss your options. We’re standing by to assist you with this very difficult decision.
If you live in Marshall, MN, and are contemplating filing for bankruptcy, it makes the most sense to hire a bankruptcy attorney with Behm Law Group, Ltd. vs. doing it yourself. Filing on your own without the assistance of an attorney is a process known as “pro se” representation.
While some folks think it might save them some money by filing “pro se,” it’s actually not a wise thing to do for several reasons. They include the following:
- A lot is at stake when you file for bankruptcy, and filing a bankruptcy petition by yourself can be a complicated and demanding process.
- Attorneys have the experience and training necessary to give you the best advice possible for your specific bankruptcy situation.
- Judges, trustees, and creditors’ lawyers are comfortable working with bankruptcy lawyers and aren’t always happy to be working with someone who is not familiar with the intricacies of the law. A trustee may even request that you hire an attorney if they believe that an attorney will benefit you.
- A bankruptcy attorney looks out for your best interests at every step of the bankruptcy process and makes sure you receive the full relief to which you are entitled under bankruptcy law.
- Bankruptcy can be an intimidating and time-consuming process. You will need to fill out many forms, research the law, and attend hearings. If you are not comfortable with any aspect of the bankruptcy process, consider hiring Behm Law Group, Ltd. We will prepare the forms, attend the hearings with you, and guide you through the complicated process.
- An overwhelming majority of Chapter 13 cases filed without an attorney get dismissed by the court.
If you’re facing the possibility of filing for bankruptcy in Marshall, MN, it’s wise to give Behm Law Group, Ltd. a call at (507) 387-7200 to discuss your options. We’re standing by to assist you with the complexities of filing for bankruptcy!