Mortgage Options and Rebuilding after Bankruptcy in Luverne, MN

Owning a home is a big goal for individuals and families alike. In today’s world, however, buying a home is a difficult process that requires both good credit and a steady income. Unfortunately, those are conditions that many U.S. citizens don’t have in their lives. For many, the prospect of a mortgage isn’t even on the table. Those struggling with severe debts in addition to having a low income don’t have the option to buy a house unless they seek debt relief and take positive action to turn around their finances. Filing for bankruptcy is one option available to anyone qualifying, and with the help of Behm Law Group Ltd., you can file a successful case and begin rebuilding after bankruptcy in Luverne, MN.

 

Bankruptcy filing is generally offered to most individuals as a Chapter 7 liquidation or Chapter 13 reorganization process. This means your debts will either be discharged in exchange for asset liquidation of your non-exempt assets or reorganized into a repayment plan lasting three to five years and suited to your income. No matter which type of bankruptcy you file for, you’ll receive the benefits of debt relief and likely have long-term stability if you are wise with your finances.

 

While one effect of bankruptcy is debt relief, the other is a hit to your credit. The benefits of bankruptcy are not outweighed by the negative effects on your credit, but it is something you will have to deal with after you file. When it comes to buying a home, for example, you will face varying waiting periods before you can be approved for a mortgage.

 

Chapter 7 Bankruptcy

After you file for Chapter 7 bankruptcy, you will have to wait two years until you can be considered for Federal Housing Authority (FHA) loans. Any other private, conventional mortgage company requires a four-year wait period until it will consider you as a borrower. An FHA loan is offered through a system designed to help consumers struggling to get loans because of poor credit, bankruptcy filings, or other financial problems. FHA mortgages have lower down payments and lower credit score requirements.

 

Chapter 13 Bankruptcy

If you file for Chapter 13 bankruptcy, you will have a two-year waiting period for FHA loans if you have made consistent payments on your chapter 13 plan. However, if you have made consistent payments on your chapter 13 plan for one full year, you may apply for an FHA mortgage consideration with the added recommendation and explanation of your case from your bankruptcy trustee.

 

For conventional loans, that waiting period is two years after the chapter 13 repayment plan is finished and the case is officially closed. If your case is dismissed for any reason, that waiting period is extended to four years.

 

Rebuilding after Bankruptcy

No matter which type of bankruptcy you file for, getting a mortgage afterward requires patience and intelligent planning/management of your finances. To learn more about filing for and rebuilding your credit after bankruptcy in Luverne, MN, contact Behm Law Group Ltd. at (507) 387-7200 today.

 

Where Things Happen When You File for Bankruptcy in Pipestone, MN and the Surrounding Area

If you’re struggling to meet your debt payments month to month, it may be time for you to consider options for positive debt relief. One of the best long-term options available for individuals struggling with debt is bankruptcy. Bankruptcy is a complex, nuanced legal process that’s difficult to work through without guidance, but with the help of Behm Law Group, Ltd. attorneys, you can build a strong case for Chapter 7 or Chapter 13 bankruptcy in Pipestone, MN. Our attorneys will help you move through the bankruptcy process with confidence and expert advice at each step of the way.

 

Bankruptcy is highly nuanced and requires extensive financial documentation and participation from all parties involved. The participation involved means meetings and other requirements that you, as the filer, must perform. The locations of these meetings vary depending on where you live. For Pipestone, MN residents and those in the surrounding area, these locations and meetings include:

 

  • Attorney Meeting: If you choose to partner with Behm Law Group, Ltd, your attorney meeting will take place in Pipestone, MN at one of the rooms in the Pipestone County Courthouse. Our office is located at 403 South Broad Street in Suite 60, Mankato, MN, but we can and do meet with prospective clients anywhere. If you’re unable to meet with us in person, we can also meet over the telephone and maintain contact via email.
  • 341 Meeting: A meeting of the creditors, also known as the 341 meeting, is required participation for you where you and your lawyer meet with the chapter 7 bankruptcy trustee that the bankruptcy court assigns to review your bankruptcy case. The meeting takes place after you file your petition. In this meeting, the bankruptcy trustee will ask a series of questions about your debts, assets and petition overall. For Pipestone residents and those residing generally in the Pipestone area, your 341 meeting will take place in Mankato, MN at the U.S. Post Office building, if you file a chapter 7 bankruptcy petition.  The Mankato Post Office building is located right across the street from our office.  If you file a chapter 13 bankruptcy petition, the 341 hearing will be conducted in the large conference room in the lower level of the Redwood County Courthouse in Redwood Falls, MN. If you live elsewhere in Minnesota, this list of 341 meetings by county will tell you what location the meeting will take place. Learn more about the 341 meeting here.
  • Bankruptcy Court: The U.S. Bankruptcy Court operates at a national and state level. Each state has various locations of court branches that serve different regions. Minnesota has bankruptcy courthouses in Minneapolis, St. Paul, Duluth, and Fergus Falls. While bankruptcy filers will only have to meet at the courthouse to deal with rare and unusual conditions in their case, there are occasions in which you may have to travel to the court nearest to you. For Pipestone residents any issues that would need to be addressed by the bankruptcy court would be handled at the St. Paul courthouse.
  • Credit Counseling: Another requirement of bankruptcy is credit counseling. Filers must conduct a credit counseling course, either online or in person, within 180 days prior to filing their petitions. There are many court-approved credit counseling agencies in the Pipestone County region and surrounding areas, and you can easily find one suited to your schedule and location. The United States Department of Justice provides a search engine system to find local, approved credit counseling agencies here.

 

To learn more about filing for bankruptcy in Pipestone, MN or to get started on your case today, contact Behm Law Group, Ltd. at (507) 387-7200.

Understanding the Rise of Bankruptcy in Windom, MN and Nationwide

Filing for bankruptcy is a valuable way to finding long-term debt relief for either an individual or a business. If you’re struggling with your finances and find it difficult to meet debt payments each month, you may benefit greatly from filing a bankruptcy petition.

 

Taking positive steps to work through a bankruptcy case can secure a financial future and stabilize your life in many ways. Behm Law Group, Ltd. can provide the support, guidance, and legal protection you need to build a strong case for Chapter 7 or Chapter 13 bankruptcy in Windom, MN and get the results you need for long-term financial wellness.

 

The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13. Chapter 7 is also the most common type for businesses of all sizes. This chapter works to liquidate your non-exempt assets (properties and accounts) in exchange for the discharge of the majority of your debts.

 

Chapter 13, on the other hand, reorganizes your debts into a repayment plan customized to your income. This repayment plan lasts three to five years, and it may discharge a large percentage of your unsecured debts (i.e. credit card debt and medical bills).

 

If you do plan to file for bankruptcy, you’ ll not be alone among U.S. citizens. In fact, there has been a recent increase in bankruptcies across the country. While the rate of bankruptcy is still far below recession levels, there is an unmistakable uptick. The American Bankruptcy Institute recorded a 3% increase in bankruptcies from July of 2018 to July of this year, projecting a total of 796,000 cases compared to last year’s total of 777,000.

 

In contrast to this increase in bankruptcies, there has been a national average increase in minimum wages and an overall decrease in unemployment. So, why are there more bankruptcies?

 

The fact is that U.S. debt is incredibly high right now. The recorded debt for total consumer households is at $14 trillion, with credit card debt at $1 trillion. For perspective, the total debt of the 2008 recession was $1 trillion less than today’s debt. Unfortunately, on top of their debt, many individuals are still spending recklessly. Businesses and consumers alike are suffering from the national debt, as all economic conditions ripple through the U.S. financial systems. To learn more about these circumstances, explore the New York Post’s coverage.

 

You may find yourself in dire straits, financially speaking, from accumulated or sudden debts, and this may be a result of actions in or out of your hands. No matter how you got here, bankruptcy is available to you as an effective debt relief option.

 

To learn more about filing for bankruptcy in Windom, MN and the surrounding area, contact Behm Law Group, Ltd. at (507) 387-7200 today.

Why Chapter 13 Is Less Common than Chapter 7 Bankruptcy in Mankato, MN

If you’re considering filing for bankruptcy, you’re not alone. Over 700,000 individuals file for bankruptcy each year in the United States. While those numbers have decreased significantly since the 2008 market crash, they still show that anyone can struggle financially in the face of many different factors. Filing for bankruptcy is a process designed to treat personal and business debts with a legal, federal court-administered relief program. However, filing for bankruptcy can also be a highly complex, nuanced system to navigate. The help of an expert bankruptcy attorney can turn a difficult case into a successful one with long-term debt relief. Behm Law Group Ltd. attorneys have the knowledge, skills, and experience to guide you through a Chapter 13 or Chapter 7 bankruptcy in Mankato, MN.

 

The two most frequently filed types of individual bankruptcies are Chapter 13 and Chapter 7. Chapter 13 bankruptcy works to reorganize your debts into a manageable repayment plan suited to your income. This plan lasts three to five years depending on your income in comparison to the state average income of a similarly sized household. Chapter 7, on the other hand, works to liquidate your non-exempt assets in exchange for the discharge of your debts.

 

While both Chapter 7 and Chapter 13 are common bankruptcies for individuals, Chapter 7 bankruptcy is filed for much more frequently than Chapter 13. From 2006 to 2017, the ratio of Chapter 13 to Chapter 7 cases filed was on average 30% versus 70%. These ratios range from 75.09% of Chapter 7 bankruptcies versus 24.85% Chapter 13 bankruptcies in 2006, and 61.50% versus 31.94% in 2017 with fluctuations between. Historically, in the United States, every year’s total of cases shows more Chapter 7 bankruptcies than other type, and for good reason.

 

Bankruptcy isn’t something that people choose to go through if they can help it. Those who file for bankruptcy are truly struggling with debts and have other financial hardships, and they turn to bankruptcy as the best choice for help in resolving those issues. If you are considering filing for bankruptcy, you can understand the legal, mental, and general stress that those who file experience. On top of this, the most common cause of bankruptcy is unemployment. The stress of financial burdens and a typically lower income means that filers will more frequently qualify for Chapter 7 bankruptcy.

 

Chapter 13 bankruptcy is a highly effective process for those with steady incomes. While you are more unlikely to have a significant amount of debt when you have a steady income, it’s completely possible to find yourself with heavy debts and a steady income. Typically, however, a low income is a primary cause of burdensome debt and leads to a Chapter 7 bankruptcy case more often than not.

 

If you are struggling financially for any reason, filing for bankruptcy may be the best step to take for long-term debt relief. To learn more about Chapter 13 and Chapter 7 bankruptcy relief in Mankato, MN, contact Behm Law Group Ltd. at (507) 387-7200 today.

Top Three Causes of Bankruptcy in Waseca, MN

Over 700,000 cases of bankruptcy have been filed each year since the 2008 market crash. Though this number has decreased since its peak in 2010, there are still thousands of cases filed across the country.

 

If you’re struggling to meet monthly debt payments, it may be time for you to consider joining others who have used bankruptcy as an effective debt relief option and gain long-term financial wellbeing. With the help of Behm Law Group, Ltd. you can navigate the nuanced waters of bankruptcy in Waseca, MN and file a successful case for Chapter 7, Chapter 12, or Chapter 13 bankruptcy relief.

 

Bankruptcy is a process designed to support debtors, lenders, and the economy as a whole. Different systems of bankruptcy have been in place for centuries, and today’s U.S. Bankruptcy Court has several types of bankruptcy chapters established to treat individual and business debts.

 

For individuals filing for bankruptcy, the system provides solutions for the most common causes of their financial struggles. For many individuals, there are three primary sources that push them to the point of filing for bankruptcy.

 

  1. Medical Bills: Because the U.S. doesn’t provide national healthcare coverage, privatized health insurance companies are the only option for the majority of individuals. Because health insurance providers are private companies, they can be very expensive. In addition to this, medical care itself is very costly, from general check-ups to serious surgeries. For those who can’t afford health insurance, it’s nearly impossible to pay for any medical treatments. Several studies show that accumulated medical bills or sudden expenses are the number one cause of bankruptcy in the U.S.
  2. Unemployment: While the government provides support for the unemployed via unemployment compensation, it’s often not quite enough to make ends meet. Long-term unemployment will almost certainly create a situation of severe debt, especially if the individual has mortgages, credit card debt, or car loans to repay. Chapter 7 bankruptcy is designed to help those without a steady income resolve debts that they cannot pay while unemployed.
  3. Divorce: The combination of legal fees, emotional turmoil, increases in living expenses, and a decrease in income as a result of divorce can all create a situation of financial struggle. The cost of divorce is high just in terms of court fees and legal representation, often meeting a minimum of $2,500. In addition, you lose the income of your ex-spouse, and your living expenses may actually increase. All of this makes divorce a main cause of bankruptcy, especially if the couple was facing financial struggles prior to the split.

 

If you’re considering bankruptcy for any of these reasons and more, you’re not alone. Choosing to take the next step and starting a bankruptcy petition will take you down a path to long-term financial stability. To learn more about bankruptcy in Waseca, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

How Minimum Wage Can Affect Bankruptcy in Fairmont, MN and Across the State

State economies are affected by a range of factors, both within the state itself and by national or global determinants. The condition of a state economy will have its own impact on the cost of living, availability of jobs, wages, and more. Minimum wage is directly affected by the state economy, which means it should change over time to accommodate employees fairly.

 

Any changes to minimum wage will impact workers and employers alike, though this effect may manifest in many different ways. For some employers, an increase to minimum wage may stretch their finances to a breaking point. If a recent change in minimum wage, in addition to other factors, has led your small business into dangerous financial waters, Behm Law Group, Ltd. can help you file for bankruptcy in Fairmont, MN.

 

In January of 2019, Minnesota raised the minimum wage by 2.16% to a rate of $9.86 per hour for large employers and $8.04 per hour for small employers (and for underage employees). This change in minimum wage reflects the nearly annual changes in inflation, which means it will have positive and negative effects to all parties involved.

 

For employees, the increase in pay will have a very positive impact on their lives. For employers, on the other hand, even a small increase in minimum wage can impose a much higher cost of worker compensation.

 

For large employers, this increased expense doesn’t usually create a serious impact, but small businesses can take a hit. Businesses established as a sole proprietorship or a partnership in particular will have a harder time compensating for minimum wage increases over time because the owner’s personal debts include all their business debts.

 

If you own a small business as a sole proprietorship or partnership and are struggling with the changes to minimum wage in addition to other expenses, Behm attorneys can help you petition for Chapter 13 or Chapter 7 bankruptcy relief.

 

Chapter 13 bankruptcy provides a debt reorganization plan that gives you a three to five-year repayment period and discharges portions of your debts. This type of bankruptcy also allows you to keep your business running with long-term stability.

 

Chapter 7 is a bankruptcy process available to all types of businesses, big or small. This chapter works to discharge debts in exchange for the liquidation of non-exempt assets. It’s one of the most effective bankruptcy processes in terms of concretely resolving debts, but it could require you to shut down your business for the foreseeable future.

 

Owning and operating a business is a difficult profession, and it can quickly become more difficult with small changes like the increase in minimum wage this year. If you’re considering filing for bankruptcy in Fairmont, MN to find debt relief for your business, contact Behm Law Group, Ltd. at (507) 387-7200 today.