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Guilt, Blame, and Shame: The Real Reasons Why Most People File for Bankruptcy in Mankato, MN

The accumulation of debts is a widely varied process that can occur over the course of years or in an instant. Those struggling with overwhelming debts for whatever reason often experience situational guilt or shame. Creditors will frequently add to this negative mindset, placing the blame solely on the debtor and gaining an advantage over them by emphasizing their guilt. At Behm Law Group, we’re here to tell you that the guilt and shame you may be feeling about your debts is unwarranted, despite the blame-game your creditors play. If you are considering filing for bankruptcy in Mankato, MN, we’re here to help, starting with lifting the pressure on your conscience and beginning to think critically about the situation.

While your creditors would have you believe that your debts are all your fault and shame you into feeling guilty enough to place repaying them ahead of your health and your family, these claims are often baseless. In fact, the vast majority of debts leading to bankruptcy are due to unavoidable or unexpected circumstances.

Job loss is one of the most common reasons our clients have found the need to file for bankruptcy. Lay-offs and a poor job market make optimal conditions for people of all income brackets to gain debts.

Medical bills are a necessary debt for anyone who needs medical care to stay healthy and capable of caring for their families. Unfortunately, even those with insurance can land in a pit of soaring medical expenses.

Divorce rates grow each year and the emotional upset alone can be enough to damage the health and security of a household. The debts from lawyer fees, spousal lawsuits, and general divorce expenses can send anyone down a spiraling path to bankruptcy.

Credit misuse is a common occurrence for people of all ages and financial backgrounds. With late fees, interest rates, and general credit card misuse, credit debt can multiply right beneath your nose.

Accumulated expenses from a variety of sources can quickly land you in a world of debt. These expenses are often unexpected and unavoidable, such as home damage after a natural disaster or costs related to a broken–down car.

You may be in a rough financial situation, but know that the blame does not rest on your shoulders alone. If you are considering filing for bankruptcy in Mankato, MN, contact Behm Law Group for a consultation at (507) 387-7200.

 

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The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) and How to Declare Bankruptcy in Mankato, MN

Coping with the financial and personal hardships that come with debt can pose significant struggles for families and businesses alike. While these hardships put pressure on the lives of those involved, filing for bankruptcy is an option for Minnesota residents and business owners when the financial stress of debt becomes overwhelming. The process of declaring and filing for bankruptcy, however, can add even more difficulties to those struggling with debt. At Behm Law Group, Ltd., we are dedicated to providing expert legal advice and assistance for those considering filing for bankruptcy in Mankato, MN.

In October of 2005, a law was passed that requires any individuals declaring bankruptcy to go through credit counseling during the 180 days prior to filing. However, before the filing process can begin, the filer in question has to take the first step and see if one actually qualifies for chapter 7 bankruptcy relief. One can qualify for chapter 7 bankruptcy relief by satisfying the “means test” of 11 U.S.C. §707(b).

2005 Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) Means Test

The means test is designed to determine if an individual qualifies for filing for chapter 7 bankruptcy. The potential filer must provide pay advices, pay stubs and any other evidence of income generation for the past six months for a bankruptcy attorney to analyze and then compare with the median Minnesota income or state average income for a household of similar size to the household of the person seeking to file for chapter 7 bankruptcy relief. If the analysis proves that the filer’s income is less than the median, the filer can begin the filing process for Chapter 7. If the filer’s income is found to be greater than the median income for a household of that filer’s size in Minnesota, the filer must choose to file Chapter 13 bankruptcy.

To officially begin filing, paperwork detailing debts, income, living expenses, property, major transactions, and tax returns must be gathered and provided to a bankruptcy attorney. With our help, gathering this paperwork won’t be as daunting as it may seem.

The BAPCPA Means Test is in place to start those considering bankruptcy on the path that will best suit their financial situation. For more information about declaring bankruptcy in Mankato, MN, contact Behm Law Group, Ltd. at (507) 387-7200.

 

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Large Cases of Bankruptcy and How They Relate to Filing for Bankruptcy in Mankato, MN

There are several common misconceptions about filing for bankruptcy, one being that only large companies or people with extreme wealth end up in situations that require bankruptcy filing. There is also the misconception that “regular” people only fall into bankrupt circumstances after irresponsible spending and racking up reckless debt. In reality, bankruptcy affects a diverse number of people and businesses with varying incomes. If you are struggling with your debts, Behm Law Group, Ltd. is here to help you through the steps of filing for bankruptcy in Mankato, MN.

Because bankruptcy affects people and businesses of all wealth and sizes, it’s important to look at different cases of bankruptcy. If you are struggling with your own bankruptcy, other cases may help you better understand your own situation. If you’re worried you’re falling into a bankrupt state, you may benefit from learning about other cases that are happening today.

Magnetation LLC

Minnesota-based iron ore processing company, Magnetation LLC, announced the possible shutdown of one of its three plants across the state. The company has slowly lost financial security, and without the support of another financier or a third party buyer, Magnetation LLC will have to officially enter bankruptcy court by the end of September.

Because the company filed for bankruptcy in May of 2015, they are currently working with government agencies to establish an agreement that will protect stakeholders and any employees affected by the dissolution of this company branch.

Christian Laettner

After an attempt to turn out-of-use tobacco warehouses in Durham, NC into apartments and spaces for various uses, this former Minnesota Timberwolves NBA player now owes his creditors (other financiers and project managers) around $14 million in investments and loaned project money.

The events leading up to Laettner’s situation involve a lot of money, but, monetary scale aside, they are similar to many other cases we see with our clients here in Mankato, MN.

Even though the bankruptcy situations with Magnetation and Laettner seem far from the circumstances most people find themselves in, there is a lot that can be taken away from the problems of others. If you have questions or are considering filing for Bankruptcy in the Mankato, MN, area, contact Behm Law Group, Ltd. at (507) 387-7200.