For many U.S. citizens, maintaining financial well-being is a difficult prospect, and any additional debt burdens can send a household into a serious financial situation. If you are finding it impossible to meet debt payments each month, you may want to take advantage of legal sources of debt relief, such as filing for bankruptcy. Bankruptcy is a government-sanctioned debt relief process that provides thousands of individuals with long-term financial stability each year. If you are planning on filing a petition, Behm Law Group Ltd. can help you navigate each step and be aware of the potential risks of bankruptcy in New Ulm, MN, that might arise in your case.
While possible risks of bankruptcy are frequently overblown with hyperbole, the truth is that if your situation is the right one for the bankruptcy process, there are very little risks to filing. The two most common types of bankruptcy available to individuals are Chapter 7 and Chapter 13. Both bankruptcy types have pre-filing requirements and other conditions that limit possible abuse of the system and often prevent those whose financial situation isn’t right for bankruptcy from filing. Additionally, with the help of a Behm attorney, you can avoid or predict potential risks during your case.
One obstacle filers might face is an objection to the discharge of a debt. This occurs most often during a Chapter 7 case in which a filer typically receives debt discharge in exchange for the liquidation of non-exempt assets. Creditors or trustees can raise an objection to the discharge of a particular debt for a variety of reasons, most commonly due to some form of fraud. If the filer has attempted to abuse the bankruptcy system or has committed a fraud, such as purposefully listing incorrect information on the paperwork, an objection to a discharge may be warranted. If the objection to discharge is based on an unintentional act that led to a mistake in paperwork or a missing document, a discharge will likely still be awarded if that mistake is corrected.
In some cases, however, fraud is not the reason for an objection to discharge. Two main conditions that may lead to an objection of discharge even if the case is filed correctly and no fraud is present are:
- A debt that was incurred close in time to the bankruptcy filing – usually within the 90 days preceding the bankruptcy filing date – for gambling, an expensive trip, the purchase of a luxury item such as a vehicle or jewelry, or the purchase of some expensive item for some other person.
- Student loans, tax debts, alimony or child support obligations that paid off with credit cards.
Objections to debt discharge are a nuanced part of the process. With the guidance of Behm Law Group, you can be sure your case in New Ulm, MN, will be filed accurately and in the most beneficial way to your situation. To learn more about filing and what to expect, contact Behm Law Group Ltd. by calling (507) 387-7200 or emailing stephen@mankatobankruptcy.com.
