Bankruptcy Attorneys Representing Owatonna, MN
If you’re struggling with overwhelming debt, an experienced Owatonna, MN bankruptcy attorney can help you find a path forward. At Behm Law Group, Ltd., we represent individuals and families in Chapter 7, Chapter 13, and Chapter 12 bankruptcy cases, offering practical solutions, clear guidance, and trusted legal support during challenging financial times.
Attorneys Stephen Behm and Isabelle Lewis-Behm bring years of bankruptcy experience, along with professional backgrounds in public defense, county attorney work, and private practice. This well-rounded experience allows them to understand both the legal system and the real-world pressures their clients face. Their goal is to help clients stop creditor harassment, protect important assets when possible, and regain long-term financial stability.
Stephen and Isabelle have strong ties to the Owatonna community and genuinely enjoy serving local residents with honesty, respect, and compassion. If you’re ready to explore your bankruptcy options with attorneys who truly care about Owatonna and the surrounding area, contact Behm Law Group, Ltd. today to schedule your free consultation.
Common Reasons Owatonna Residents File Bankruptcy
Medical Debt
Unexpected medical emergencies and ongoing healthcare costs can quickly overwhelm even financially stable families. Medical bills are one of the leading causes of bankruptcy filings in Minnesota and can be discharged in both Chapter 7 and Chapter 13 bankruptcy.
Job Loss or Income Reduction
Losing employment or experiencing a significant reduction in income can make it impossible to keep up with existing debt obligations. Bankruptcy provides a fresh start when circumstances beyond your control have affected your ability to pay.
Divorce
Divorce often leads to financial strain as households split assets while maintaining similar debt levels. The division of property, legal fees, and transition to single-income living can make bankruptcy necessary for a fresh financial start.
Foreclosure Prevention
If you’re facing foreclosure on your Owatonna home, Chapter 13 bankruptcy can stop the foreclosure process and allow you to catch up on missed mortgage payments over time while keeping your home.
Credit Card Debt
High-interest credit card debt can spiral out of control, especially when minimum payments barely cover interest charges. Bankruptcy can eliminate these unsecured debts and provide relief from overwhelming balances.
Business Debt
Small business owners in Owatonna who have personally guaranteed business debts may find themselves personally liable when a business struggles. Bankruptcy can provide relief from both business and personal obligations.
The Bankruptcy Process: What to Expect
1
Initial Consultation
During your free consultation with Behm Law Group, we review your financial situation, discuss your goals, and explain which type of bankruptcy may be the best fit for you. We answer your questions and provide clear, honest guidance. Although our offices are in Mankato, we are happy to travel to Owatonna to meet with you in person.
2
Credit Counseling Requirement
Before filing for bankruptcy, you are required to complete a credit counseling course from an approved provider. This course is usually completed online and takes only a few hours. We will provide you with a list of approved providers and instructions on how to complete this requirement.
3
Preparing Your Bankruptcy Petition
We work closely with you to collect all required financial documents, including income information, tax returns, property details, debts, and monthly expenses. Our team prepares your bankruptcy petition and supporting schedules, ensuring everything is accurate, complete, and ready for filing with the court.
4
Filing Your Case
Once your paperwork is finalized, we file your bankruptcy case electronically with the U.S. Bankruptcy Court. This filing immediately creates an automatic stay, which stops most creditor actions such as collection calls, lawsuits, foreclosures, repossessions, and wage garnishments.
5
The 341 Meeting of Creditors
About 4–6 weeks after filing, you will attend a Meeting of Creditors, commonly called a 341 meeting. A bankruptcy trustee will ask basic questions about your finances under oath. We prepare you ahead of time and attend the meeting with you to ensure the process goes smoothly.
6
Debtor Education Course
After your case is filed, but before your discharge is granted, you must complete a debtor education course from an approved provider. This course can typically be completed online and focuses on financial management skills for the future.
7
Receiving Your Discharge
In a Chapter 7 case, your discharge is usually entered 60–90 days after the 341 meeting. In a Chapter 13 case, the discharge is granted after you successfully complete your repayment plan. The discharge legally eliminates qualifying debts included in your bankruptcy.
8
Life After Bankruptcy
After bankruptcy, the focus shifts to rebuilding your financial stability. This may include budgeting, reviewing your credit reports, and responsibly reestablishing credit. Our team can offer guidance on rebuilding strategies to help you move forward with confidence and avoid future financial difficulties.
Why Choose Behm Law Group for Your Owatonna Bankruptcy?
Exclusively Focused on Bankruptcy Law
Unlike general practice attorneys, we focus exclusively on bankruptcy law. This specialization means we have deep expertise in all aspects of Chapter 7, Chapter 13, and Chapter 12 bankruptcy cases.
Local Knowledge and Relationships
As longtime southern Minnesota residents with deep connections to Owatonna, we have extensive experience working with local bankruptcy trustees, creditors, and the U.S. Bankruptcy Court. This local knowledge benefits our clients throughout the bankruptcy process.
Personalized Attention
We treat every client as an individual with unique circumstances. You’ll work directly with experienced attorneys, not paralegals or support staff, throughout your case. It’s easy to get overwhelmed when declaring bankruptcy, but at Behm Law Group, Ltd., we will make sure you find the debt relief and financial freedom you need.
Transparent, Affordable Fees
We believe in transparency, offering clear and upfront pricing with no hidden fees. Our flexible payment plans ensure that quality bankruptcy representation is within reach, even for those on a tight budget. You’ll always know what to expect, with no surprises.
Comprehensive Service Area
While our office is conveniently located in downtown Mankato, we serve clients throughout southern Minnesota including Owatonna, Waseca, Fairmont, Austin, Albert Lea, Blue Earth, St. Peter, Madison, Marshall, Redwood Falls, Worthington, Luverne, Granite Falls, Ivanhoe, Windom, Jackson, Pipestone, and communities along the South Dakota border.
Proven Track Record of Successful Outcomes
Behm Law Group has a history of helping clients achieve favorable bankruptcy results, whether it’s discharging unsecured debts, reorganizing finances under Chapter 13, or protecting family assets. Our attorneys leverage their 25+ years of experience to handle complex cases efficiently, giving clients peace of mind during a challenging time.
Frequently Asked Questions About Bankruptcy in Owatonna
Will I Lose Everything If I File Bankruptcy?
No. Minnesota has generous bankruptcy exemptions that protect most property. The vast majority of our clients keep their homes, vehicles, household goods, retirement accounts, and other essential property.
Can Bankruptcy Stop Wage Garnishment?
Yes. Filing bankruptcy immediately stops wage garnishments through the automatic stay. Any wages garnished within 90 days before filing may potentially be recovered.
Will My Employer Find Out About My Bankruptcy?
Your employer will only be notified if they’re a creditor or if wages are being garnished. Otherwise, bankruptcy filings are public record but not typically monitored by employers.
Can I Keep My Car If I File Bankruptcy?
In most cases, yes. If you’re current on your car loan and the vehicle’s equity is protected by exemptions, you can keep your car by continuing to make payments. In Chapter 13, you may even be able to reduce your car loan balance or interest rate.
How Long Does Bankruptcy Stay on My Credit Report?
Chapter 7 bankruptcy remains on your credit report for 10 years from the filing date. Chapter 13 bankruptcy remains for 7 years from the filing date.
Can I File Bankruptcy on Some Debts But Not Others?
You must list all debts when filing bankruptcy, but you can choose to voluntarily repay certain debts after receiving your discharge. You can also reaffirm secured debts like car loans or mortgages to keep the property.
What Debts Cannot Be Discharged in Bankruptcy?
Certain debts are non-dischargeable, including most student loans, recent income taxes, child support, alimony, debts incurred through fraud, criminal restitution, and debts not listed in your bankruptcy petition.
How Often Can I File Bankruptcy?
The timing between bankruptcy filings depends on the chapters involved. Generally, you must wait 8 years between Chapter 7 filings, 4 years between a Chapter 7 and a subsequent Chapter 13, and 2 years between Chapter 13 filings.
Contact Our Bankruptcy Attorneys in Owatonna, MN Today
With offices in Mankato, Behm Law Group, Ltd. is more than willing to travel to Owatonna to meet with you one-on-one for a free bankruptcy consultation. We understand that the bankruptcy process can feel overwhelming and stressful, especially when you’re facing mounting debt or constant creditor pressure. Our team takes the time to explain your options clearly and guide you through every step of the process.
At Behm Law Group, Ltd., our goal is to help you achieve meaningful debt relief and regain long-term financial freedom. If you’re ready to take the first step toward a fresh start, contact us today to schedule your free consultation.
