Understanding When and Why a Trustee Looks for Fraud and How to Avoid Mistakes in Filing for Bankruptcy in St. Peter, MN

Bankruptcy is a balanced system designed to help debtors recover from severe financial struggles and reenter the economic system as a productive consumer while remaining fair to creditors to whom debts are owed. The U.S. Bankruptcy Court oversees the outcome of bankruptcy cases for both individuals and businesses filing for bankruptcy, but the case details are handled through an appointed bankruptcy trustee. If you’re considering filing for bankruptcy in St. Peter, MN, Behm Law Group, Ltd. can help you build a strong case.

 

One of the things trustees are highly efficient in finding within a bankruptcy case is evidence or potential for fraud. While most incidents of fraudulent behavior in a bankruptcy case are intentional, there are times when mistakes or misunderstandings can lead to a technical fraud. Understanding when and why a trustee determines an action is fraud is an important step to protecting yourself when filing for bankruptcy.

 

What is Considered Fraud When Filing for Bankruptcy?

 

There are several actions and events that can be directly or indirectly considered fraud in an individual consumer or business bankruptcy case. When this fraud is intentional, it’s generally straightforward for a trustee to dismiss a case based on those actions and events. Direct, intentional bankruptcy fraud most often includes:

 

  • Lying and falsifying documents of financial records such as records of personal loans
  • Purposefully filing incorrect bankruptcy forms
  • Falsely reporting income amounts
  • Hiding assets and accounts
  • Lying under oath
  • Transferring accounts and assets to other parties to hide them from creditors and your trustee
  • Creating a fake identity to hide assets or otherwise lie
  • Bribing your trustee, creditors, or court officials to your benefit
  • Embezzling any amount from your bankruptcy estate

 

These actions and events are the common types of fraud a bankruptcy trustee will base a case dismissal on, but there are other fraudulent behaviors that may occur. Indirect fraud is often caused by ignorance of your circumstances or mistakes in your bankruptcy documents. With the expert advice and assistance of Behm attorneys, you can avoid unintentional fraud including:

 

  • Missing bankruptcy forms or financial document records from your petition
  • Forgetting to pay bankruptcy fees or not understanding which fees apply to your case
  • Filing incorrect or incomplete financial information and bankruptcy forms
  • Missing deadlines or appointments accidentally
  • Building an infeasible Chapter 13 repayment plan
  • Failing to report changes in employment or income (as long as it was not intentional)
  • Attempting to apply exemptions where they cannot be applied
  • Any other unintentional signs of fraud that are caused by a lack of understanding of the requirements of filing for bankruptcy or simply by mistake

 How Professional Counsel Helps You When Filing for Bankruptcy

When you work with Behm attorneys, you can trust us to help you build a strong case and eliminate any potential for mistakes in your documents and forms. With the protection and counseling we provide, you can rest easy on your road to debt relief through the bankruptcy process.

 

To get started with Behm Law Group, Ltd. or to learn more about filing for bankruptcy in St. Peter, MN, contact us at (507) 387-7200 today.

 

Protecting Your Case with the Help of an Expert Bankruptcy Attorney and Understanding the Statute of Limitations for Bankruptcy in Redwood Falls, MN

Bankruptcy in the U.S. is a nuanced system for individuals and businesses alike. Like other legal processes, it’s best to proceed with a trained professional who can protect and counsel you from start to finish. Because filing for bankruptcy in Redwood Falls, MN, is rarely a straightforward process, taking advantage of the knowledge and professional standing of a bankruptcy attorney is key to a successful case. Behm Law Group, Ltd. bankruptcy attorneys are dedicated to providing expert counsel to our community households and local businesses.

 

If you’re struggling with overwhelming debt, filing for bankruptcy may be a viable way to recover for long-term financial stability. Filing for bankruptcy without a bankruptcy attorney, however, is not something we recommend. Not only is bankruptcy a difficult process to tackle without professional training and a working knowledge of the U.S. legal system overall, but without the protection of a lawyer, you’ll be vulnerable to aggressive creditor judgments and other potential claims against your case. Additionally, you may set yourself up for accusations of bankruptcy fraud, intentional or not, without the counsel of a bankruptcy attorney.

 

Even if you’re not criminally charged with bankruptcy fraud, the consequences of a case dismissed based on fraudulent behavior can be hard to come back from if you ever find yourself in the position to file again. This is because of the strict rules set in place through the federal bankruptcy fraud statute of limitations. A bankruptcy attorney can help you navigate this.

 

The statute of limitations is based on evidence of bankruptcy fraud and dictates when an individual or business can file a petition after a case dismissal or charge against them for fraudulent behavior. A limitation period is set into place for each filer’s own situation and the fraud committed, and that period determines a time period during which the government may press criminal charges.

 

This time period is dictated depending on certain circumstances unique to each case. Primarily, the limitation period depends on the type of crime committed in a case:

 

  1. If a filer commits a crime as a single event, like falsifying a document or lying under oath, the limitation period begins on the date of the crime.
  2. If a filer commits a crime in multiple events, such as a crime that takes several actions to complete, the limitation period begins when the last action is performed.
  3. If a filer commits a continuing crime, like hiding an asset or account, the limitation period starts with the beginning of the crime and continues until the property is revealed.

 

In bankruptcy cases, crimes generally include asset hiding – which provides a limitation period starting when the court grants a discharge, dismisses the case, or denies the discharge – or all other types of bankruptcy crimes – which provide a limitation period of five years.

 Protect Your Case With a Bankruptcy Attorney

If you’re considering filing for bankruptcy in Redwood Falls, MN, protect yourself from accidental fraud and get the help you need to file a strong, successful case. Get started with a bankruptcy attorney from Behm Law Group, Ltd. today and contact us at (507) 387-7200.

 

Differences Between Discharge, Settlement, and Dismissal for Debt Relief in New Ulm, MN

In this fast-paced world, it’s easy to rack up a lot of debt from various sources. Whether you have debts from mortgages, cars, credit cards, medical bills, or any number of other sources, you have the obligation to repay those debts. If you’re unable to meet debt payments each month, there are several methods to resolve debts, but the most effective for those struggling with severe debt is through the process of bankruptcy. Behm Law Group, Ltd. offers the expert advice and protection you need to receive debt relief in New Ulm, MN by filing for bankruptcy.

 

The three primary methods individual consumers and businesses can receive debt relief are debt settlement, discharge, or dismissal. These processes happen very differently and will affect your legal standing differently in both the short and long term.

 

Discharge of Debt

 

Debt discharges are only possible through the process of bankruptcy. If you file for Chapter 7 bankruptcy, many of your debts will be discharged during the asset liquidation process. This means your debts will be dissolved in exchange for the sale of your non-exempt property. The value of your non-exempt assets sold will be paid to your creditors. You may also receive a discharge in a Chapter 13 case for some unsecured debts (you will be required to repay 0% to 100% of those debts in your Chapter 13 repayment plan). Discharge through bankruptcy is permanent and government sanctioned.

 

Debt Settlement

 

Some debtors choose to find debt relief outside of bankruptcy through debt settlement. To settle a debt, you must negotiate that process with your creditor without the protection of a court process. This can be tricky and will reflect negatively on your financial records. Additionally, you may still have to pay taxes on the original amount of a reduced or settled debt, and any late payments or owed taxes on this debt will also become a detriment to your credit.

 

Debt Dismissal

 

This is a more unusual form of debt relief that only occurs if you can prove that your creditors are harassing you, abusing their authority (for example, charging extremely high late payments), your identity was stolen to gain the debt, your information on debt paperwork is incorrect, the items or services you took the debt on for were never received, or if your creditors can’t prove you owe the debt. If you suspect you may be able to prove these things, debt dismissal may be a viable option for debt relief, but in most cases, debt settlement or bankruptcy are more realistic choices.

 

Debt settlement has its place, but filing for bankruptcy is often the best long-term, concrete solution for debt relief. To learn more about receiving debt relief in New Ulm, MN and filing for bankruptcy, contact Behm Law Group, Ltd. at (507) 387-7200 today.

Financial Strain in the Changing Economy May Lead to Increased Cases of Bankruptcy in Jackson, MN

The economy is an ever-changing system, as years of sudden or gradual changes have proven. Because of the intricacies that make up an economy, the way this system affects industries, businesses, and people varies differently depending on their various financial standings. Today, the economy has seen changes within the last few years that benefit some parties but has become detrimental to others. If you find yourself dealing with difficult financial conditions, you may be seeing the effects of our economy. Behm Law Group, Ltd. provides expert legal assistance to help you determine if filing for bankruptcy in Jackson, MN may help you combat how the economy has affected your family or business.

While many reports of economic standing in the U.S. are positive, we still have reason to believe that not everything is going as well for some as it is for others. In fact, numerous studies and investigations show that many Americans are struggling to stay above the poverty line, and others are still living from paycheck to paycheck despite two incomes supporting the household. Unemployment rates may be lower than they’ve been in years, but some studies show that even as much as 31% (76 million) of U.S. citizens with jobs are still struggling to make ends meet.

 

Why is this happening?

The economy is a complex system, and there are thousands of individual circumstances that may be adding to the financial strain on households and businesses across the country. One condition that may be adding to the financial difficulties of many is the constant “hollowing out” of the middle class. This means the middle class is shrinking for two reasons: the households that prosper move to upper class economic standing, and the households that do not prosper move to lower class economic standing.

Because the middle class is shrinking, the economy is shifting to create a greater financial gap between the small percentage of citizens at an economic upper class standing and the much larger percentage of citizens at an economic lower class standing. This leads to decreased spending from the population as a whole, which then leads to increased prices in all areas of consumer industry, making it more difficult for those in the remaining middle class and lower-class.

The increase in financial strain many Americans are experiencing means more and more households are seeing expense and debt increases without increases in income. If you find yourself in this position, debt relief can be an invaluable chance to stay above the poverty line and keep your financial situation stable. Filing for Chapter 13 bankruptcy may be the best option to restructure your debts into a manageable repayment plan without losing your home, car, and other properties as you might with liquidation bankruptcy. Chapter 7 has its place among debt relief options, but with a regular income and a family or business to support, Chapter 13 bankruptcy is the best choice for individual consumers above the poverty line.

 

To learn if filing for bankruptcy in Jackson, MN, is the best choice for you, or to get started with your case today, contact Behm Law Group, Ltd. at (507) 387-7200.

Minimum and Maximum Debt Amounts Allowed to File for Bankruptcy in Worthington, MN

If you’re preparing to file for bankruptcy, it’s important to understand the limitations before entering into the process. Bankruptcy is an extremely beneficial tool for those struggling with debt, even with a high income. Despite its effect on your financial credit rating, bankruptcy is an effective solution for immediate financial recovery and long-term stability for an individual consumer or business. The requirements of bankruptcy are strict in order to prevent abuse, but with the help and protection of Behm Law Group, Ltd. attorneys, you can successfully file for bankruptcy in Worthington, MN.

 

Because most individuals and small businesses that file for bankruptcy don’t have the legal knowledge of a trained attorney or a team of lawyers a larger company might have to help them through the process, it’s critical to take advantage of professional assistance in the form of a bankruptcy attorney. Behm attorneys are highly knowledgeable and capable of working through your case for a positive outcome as well as protecting you from creditor harassment and advising and educating you along the way.

 

One common concern we hear from our clients is about debt amounts when entering the bankruptcy process. Some of our clients worry they may have too little debt to file, while others face the opposite. When it comes to minimum and maximum debt limits, the requirements are, fortunately, quite straightforward.

Minimum Debt

 

There is no court-set limit on the minimum amount of debt you need to file for bankruptcy. You may have limits on your income if you plan on filing for Chapter 7 bankruptcy, but all filers must pass the Means Test, which will determine your eligibility. The only limits on a minimum debt will be put in place by your own judgment. If you have a debt amount so low that it doesn’t justify bankruptcy and attorney costs, you may want to resolve your debts another way. Additionally, if you have high debts but they are excepted from the bankruptcy discharge, you won’t gain much from a case. High credit card debts, medical bills, mortgages, and car loans are all common debts that will be relieved in the bankruptcy process and will certainly justify a case even if they’re as low as $5,000.

 

Maximum Debt

 

The U.S. Bankruptcy Court does set a maximum limit on the debt amounts that can be resolved in a bankruptcy case. These limits are very high, but occasionally we see clients that struggle with this compromise. For a Chapter 13 case, this maximum amount currently stands at $1,184,200 for secured debts and $394,725 for unsecured debts. Chapter 7 doesn’t have a current maximum debt limit, but again, you must pass the Means Test to be eligible for a petition.

 

 Find Expert Help When You File for Bankruptcy

If you have debts you would like to resolve through bankruptcy and want to learn more about your eligibility and the process as a whole, contact Behm Law Group, Ltd. today at (507) 387-7200 for more information about filing for bankruptcy in Worthington, MN.

The Role of Mechanic’s Liens in the Event of Bankruptcy in Mankato, MN

When you work with a lender to enter into a property loan agreement, you will most likely have a voluntary lien built into that contract. Property liens are effective methods for lenders to secure the loan value they give you in case of bankruptcy or other inability to repay. All liens act to protect the lender, but they can take many different forms in addition to the common car lien or mortgage lien. If you are struggling to meet debt payments on a lien regarding secured debt and you choose to file for bankruptcy in Mankato, MN, Behm Law Group, Ltd. offers the legal advice and professional counsel to help you build a strong case and understand how your lien-secured property and debts will be handled.

 

While the common types of liens often deal with homes, cars, and other properties most individuals and businesses own, there are specialty liens that come into play for specific situations. One the more unusual liens you may encounter is a Mechanic’s Lien.

 

How it Works

Like other liens, a Mechanic’s Lien protects the lender if a borrower can’t repay the loan. These liens are sometimes called construction liens because they come into play for contractors and construction crews as well as mechanics, suppliers, designers, and professional builders. A Mechanic’s Lien is a legal document that gives a mechanic or other specified professional who signs and files the lien the right to collect payment. If you hire a contractor to remodel your kitchen, for example, that contractor is allowed to do several things if you refuse payment for services. First, they are allowed to file a lawsuit against you for the amount owed, and second, they can contribute to forcing you into bankruptcy if you have other creditors you’ve also refused or been unable to pay. Whatever action they take, they will have to file a Mechanic’s Lien to be guaranteed repayment.  They are secured as to the asset that they perform services on.  For instance, if a roofer installs a new roof on your house, the roofer could obtain a mechanic’s lien against your house as security for repayment.

 

How it Works in Bankruptcy

 

If you file for bankruptcy, voluntarily or otherwise, the creditors involved in your case that hold a lien over your property—a Mechanic’s Lien, or any other type of lien—are considered secured creditors. This means they will come first in line (along with priority creditors, such as tax debts and child support or alimony debts) for repayment in the event your assets are liquidated, or you propose a repayment plan. In a Chapter 7 case, secured creditors receive the value gained from liquidating your assets that serve as their collateral before any other creditors, and in a Chapter 13 case, secured creditors are either repaid the value of their collateral securing the amount you owe or you must surrender that collateral.

 

Whether you file for Chapter 7 liquidation or Chapter 13 reorganization, your secured creditors will receive the highest payment priority in your case, including those who file for a Mechanic’s Lien. To learn more about liens and the role they play when you file for bankruptcy in Mankato, MN, contact Behm Law Group, Ltd. today.