COVID-19 Medical Expenses and Chapter 7 Bankruptcy

Even for those with excellent health insurance, mounting medical bills can put a serious strain on finances. During this time especially, with the threat of COVID-19, many U.S. citizens fear a serious medical bill might cause a loss of financial stability. In fact, a recent survey showed that about half of Americans felt a serious medical cost would force them to file for bankruptcy relief.

 

Because of the coronavirus pandemic, this belief has increased by around 5% since 2019. While the threat of poor health and financial downturn is a scary possibility to keep at the forefront of your day-to-day, it’s important to remember that if you do have to file a bankruptcy case, those medical debts and many others will be quickly resolved. With the guidance and support of a Behm Law Group, Ltd. attorney, you can file a successful case for Chapter 7 bankruptcy in Owatonna, MN and receive long-term, effective debt relief.

 

Chapter 7 bankruptcy is a liquidation bankruptcy process. Essentially, this means your non-exempt assets will be sold (liquidated) and that non-exempt value will be paid to your creditors. The liquidation/sale of non-exempt assets is the exception rather than the rule of how things usually transpire in a chapter 7 bankruptcy case, however. Typically, all that people lose in a chapter 7 bankruptcy case are their unwanted debts.  Because the bankruptcy system is in place to help debtors who cannot repay their debts reorganize and rehabilitate their financial affairs, you will have the opportunity to assert bankruptcy exemptions that protect your property from the liquidation process. This typically includes protecting your house with the homestead exemption and protecting your car with a vehicle exemption. This means filers aren’t left completely destitute while fairness to creditors is still taken into account.

 

There are three main types of debt broken down in a Chapter 7 bankruptcy case:

 

  1. Priority debt, including child support, alimony, some tax debts, and others, all of which will be generally excepted from discharge in any bankruptcy process.
  2. Secured debt, such as a mortgage or car loan, you’ll pay in full if you want to retain the property securing (serving as collateral for) the debt. If you don’t want to retain the property, you’ll have that debt fully discharged.
  3. Unsecured debt, including medical bills and credit card debt, is discharged in a Chapter 7 bankruptcy case. If you’re struggling from severe medical debt from a COVID-19 case or any other treatment cost, a Chapter 7 bankruptcy might be the most effective debt relief option for you.

 

If the majority of your debts are unsecured and you know you can protect your home or other important property with exemptions, Chapter 7 will likely be a very effective way of obtaining long-term financial reorganization and rehabilitation.

 

To learn more about Chapter 7 bankruptcy in Owatonna, MN or the surrounding area, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.

 

COVID-19 Stimulus and Bankruptcy

As the future of potential stimulus bills is still undecided, households across the United States are keeping a close eye on their finances. For some, a stimulus check may mean the difference between making a rent payment or being evicted. Not only do proposed stimulus bills offer a second check, they also extend several aspects that protect debtors from backlash if they are unable to meet monthly payments. If you are one of those debtors who faces unstable finances for any reason, this may be the ideal time to take action for long-term debt relief. Filing for bankruptcy may be the best option for your circumstances. With the help of Behm Law Group Ltd., you can determine if filing for bankruptcy in Luverne, MN, and the surrounding area is right for you.

 

When the CARES (Coronavirus Aid, Relief, and Economic Security) Act was established in March 2020, $2.2 trillion was used for various support systems for individuals and businesses across the United States. Anyone who filed for bankruptcy after the CARES Act passed knows that the stimulus checks and other aspects of the bill were protected assets in their bankruptcy cases. They could not be seized by the trustees administering their bankruptcy cases.  If you are worried about losing that vital stimulus support after the next bill passes, fear not. Any income from COVID-19 stimulus will be exempt from liquidation in Chapter 7 bankruptcy or a repayment plan in Chapter 13 bankruptcy. Additionally, the boost in income from the stimulus won’t prevent you from qualifying for bankruptcy.

 

While we wait for the next stimulus bill to pass, we can compare the CARES Act to what might be coming. Nearly all of us experienced the benefits of the CARES Act, so if we look at the differences between the proposed HEROES (Health and Economic Recovery Omnibus Emergency

Solutions) and HEALS (Help End Abusive Living Situations) Acts, we can predict how each might affect us.

 

Total cost of each packages

  • CARES: $2.2 trillion
  • HEROES: $3 trillion
  • HEALS: $1 trillion

 

Stimulus check amounts

  • CARES: $1,200 for each individual earning under $75,000, $2,400 for joint earners making under $125,000 with a reduction of $5 from every $100 for earners making more than income maximums
  • HEROES: same as CARES
  • HEALS: same as CARES

 

Stimulus check additions for dependents

  • CARES: $500 per dependent 16 and younger, which eliminated college students from receiving either a stimulus check or dependent additions
  • HEROES: maximum of three additions of $1,200 per dependent
  • HEALS: $500 per dependent with no age limit

 

Unemployment benefit additions

  • CARES: additional $600 per unemployment check, plus the usual state benefits
  • HEROES: same as CARES
  • HEALS: starting additional $200 per unemployment check, which will increase to an additional $500 per unemployment check to match 70% of lost wages subtracted against the state unemployment check

 

Many parts of the CARES Act expired at the end of July, but eviction moratoriums and other protections are still in place for those unable to meet rent and debt payments. Because of these protections, it is still viable to file for bankruptcy during this time. To get started on your bankruptcy in Luverne, MN, today, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.

COVID-19 Federal Aid for Farms and Chapter 12 Bankruptcy News

For many reasons, farmers across the United States frequently struggle financially. Not only is it difficult, especially given our country’s current economic difficulties, to generate a profit from a family-owned farm, but also American farms often incur much debt from the purchase of equipment and the payment of property taxes. Fortunately, the government is aware of the difficulties that many farmers across the nation face, and it works to provide support systems in many ways. Most recently, the CARES Act stimulus support has helped many farmers weather the economic shutdown as a result of COVID-19. When the stimulus support ends, however, family farmers and fishers will still have options for resolving their debts and stabilizing their finances. One debt relief option for farmers and fishers is filing for Chapter 12 reorganization bankruptcy. With the help of Behm Law Group Ltd., you can file a successful case for Chapter 12 reorganization bankruptcy in Pipestone, MN.

 

Chapter 12 bankruptcy is a reorganization type of bankruptcy designed specifically for farmers and fishers who derive at least 50% of their gross income from farming or commercial fishing operations. The Chapter 12 process works to restructure 100% of secured and priority debts and 0%-100% of unsecured debts into a manageable repayment plan. Chapter 12 has some special rules for the circumstances of farmers and fishers, differentiating it from Chapter 13, the other primary form of reorganization  bankruptcy relief for individuals.

 

Right now, the number of Chapter 12 bankruptcy cases that will be filed during the next year is difficult to predict, largely due to the added support of the CARES stimulus act. With the stimulus support, Chapter 12 bankruptcy cases decreased from 509 in the first half of 2019 to 284 in the first half of 2020. Additionally, many bankruptcy courts were closed and online filing was the only option up until as late as June. This closure and limitation to virtual-only filings contributed significantly to reduced Chapter 12 cases.

 

As the country moves forward with much less support from the stimulus act and with bankruptcy courts re-opening, most people expect to see a dramatic increase in the filing of Chapter 12 reorganization bankruptcy cases. Farms will struggle with the continuing COVID-19 restrictions and lowered sales without the unemployment and stimulus support. Potential acts that may be put into place for more COVID-19 stimulus relief are not guaranteed, but farmers and fishers will have the option to file Chapter 12 bankruptcy.

 

Because the majority of U.S. Chapter 12 bankruptcy cases are in the Midwest, Minnesota farmers are among the most at risk for financial difficulties. Taking positive action for debt relief by filing for Chapter 12 bankruptcy might be the best option farmers and fishers have for protecting their homes and businesses in the long run.

 

To learn more about the rates of Chapter 12 bankruptcy in Pipestone, MN, and the surrounding area, or to start your own Chapter 12 case, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.

Income-to-Debt Ratio and What It Means for Liquidation Bankruptcy

Many people have been struggling financially during 2020 because of the countless destructive economic impacts of the coronavirus pandemic. Even those with a stable income may be finding it difficult to meet debt payments each month.

 

If your finances are out of balance, no matter the cause, you always have the option to file for bankruptcy and receive long-term debt relief. At Behm Law Group, Ltd. we help clients work through reorganization chapter 13 or liquidation chapter 7 bankruptcy in Windom, MN, offering legal protection and guidance from start to finish.

 

One of the aspects of your finances that’s considered for any type of bankruptcy, but especially for liquidation bankruptcy (Chapter 7), is your income-to-debt ratio. This ratio measures your net surplus income after all debts are paid, and the ratio is a percentage of that value. For example, if your income is $35,000 before taxes and other deductions are removed and your total annual debt amount is $14,000, your income-to-debt ratio is 40%. When mortgage lenders or landlords take a look at your finances to see if you are eligible for a contract or loan, they typically measure your income-to-debt ratio on a monthly basis. For most lenders, a minimum income-to-debt ratio allowance is 43%.

 

When it comes to Chapter 7 liquidation bankruptcy, the income-to-debt ratio determines if a filer is eligible for that process. Chapter 7 bankruptcy works to discharge debts in exchange for the liquidation or sale of non-exempt assets.  In most cases, the bankruptcy code exemptions allowing one to protect one’s property are more than adequate to protect all of a person’s property from liquidation, however.  To prevent abuse of this system, filers are required to pass a legal mathematical threshold called the Means Test.

 

The Means Test asks a series of questions and requests the submission of some financial documents. It essentially determines your income-to-debt ratio and decides whether that ratio is below or above the state median or average income for a household of a similar size. If your income-to-debt ratio is lower than the state median or average, you qualify for chapter 7 bankruptcy.

 

The reason your income-to-debt ratio is considered rather than just your gross monthly income is because the debt load of each household can vary so greatly. You might have a low income but very little debt, and that combination could be a deterrence for filing Chapter 7. Likewise, a very high-income household might also have very high debt that renders an income-debt-ratio that is appropriate for the filing of a chapter 7 bankruptcy.

 

Income-to-debt ratio is also used to calculate certain aspects of your repayment plan in a Chapter 13 case if you’re ineligible for Chapter 7 or if you simply don’t wish to file chapter 7. Mainly, this ratio helps determine how much you will pay to the trustee every month for distribution among your creditors during your Chapter 13 repayment plan period.

 

If you are considering filing for bankruptcy or would like to learn more about chapter 7 bankruptcy in Windom, MN, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.

 

Why Chapter 7 Bankruptcy Is Essential

Because the United States is currently in a financial crisis due to the economic shutdowns taking place during the coronavirus pandemic, many people are now struggling to meet monthly debt payments. If you are among the many individuals fighting against debt and unstable finances, you may need to take positive action for debt relief. One debt relief option that is available to all individuals and businesses is the process of filing for bankruptcy. At Behm Law Group Ltd., we work with clients to support and guide them through filing for Chapter 13, Chapter 12 and Chapter 7 bankruptcy in Mankato, MN.

 

Bankruptcy is often incorrectly viewed negatively or as some kind of bail-out tool for big businesses. The truth is that bankruptcy is a highly important legal process that protects the economy from failure in many ways. Chapter 7 bankruptcy, in particular, is an essential process for sustaining and invigorating the U.S. economy.

 

Especially during these financially challenging times, Chapter 7 bankruptcy is important to both individuals and businesses.

 

  1. Individual consumers: Chapter 7 bankruptcy is a powerful debt resolution tool for individuals. This type of bankruptcy works to liquidate filers’ non-exempt assets in exchange for the discharge of certain debts. In most cases, however, the bankruptcy exemption laws are more than adequate to protect all property and all people lose are their debts.  With the help of Chapter 7, filers are rid of debts that they would never be able to repay, such as high credit card debt and medical bills. Creditors are also protected in this process as they are paid in part from the value gained in the possible liquidation/sale of non-exempt assets. The ability to help both debtors and creditors is key in preventing economic impediments. Chapter 7 bankruptcy allows both parties to re-enter the economy and continue participating in that system more efficiently.
  2. Businesses: Chapter 7 bankruptcy is also important for business debt relief. When businesses file for Chapter 7, the process is similar to when individuals file. Business assets are liquidated in exchange for the discharge of all business debts. The major differences between business and individual Chapter 7 bankruptcies is that businesses usually close operations when they file and businesses do not have bankruptcy exemptions with which to protect assets/property. The closures of businesses that file for bankruptcy relief serve to eliminate continually failing companies from the economic network. The fact that businesses only file for Chapter 7 when they have absolutely no other options shows that it’s critical to have that bankruptcy process available when no other solution works. If a business cannot be revived, it is best for the economy to have it closed and have creditors paid as much as possible.

 

Chapter 7 bankruptcy is a powerful and essential tool that many people have used to receive relief from severe financial burdens. If you are finding it impossible to meet individual or business debt payments, consider whether filing bankruptcy might be right for you. Contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com to learn more about filing for Chapter 7 bankruptcy in Mankato, MN.

 

 

Understanding What “Judgment Proof” Means and Debt Relief through Bankruptcy

Thousands of U.S. citizens struggle to make debt payments each month, and with the added impact of coronavirus shutdowns, many more will continue to lose financial stability. If you are among those finding it difficult to keep your budget balanced, you may want to consider taking positive action for debt relief. One of the most effective ways to resolve the majority of common debts in the United States is through the process of bankruptcy. While some creditors can force debtors into involuntary bankruptcy, depending on the situation, most cases are voluntarily filed under whatever chapter best fits the circumstances. At Behm Law Group Ltd., we provide guidance and support to help our clients file a successful bankruptcy case and receive much needed debt relief in Waseca, MN, and the surrounding communities.

Filing for bankruptcy may seem like a drastic action, but it is actually one of the most common ways people in severe debt can resolve those financial struggles and find long-term financial stability. For individuals, two options are typically available for bankruptcy processes.

First, there is the option to file for Chapter 7 liquidation bankruptcy. This process works to discharge debts in exchange for the liquidation of non-exempt assets. This type of bankruptcy is most suitable for individuals with low income and high dischargeable debts such as credit card debts and medical bills.  In the majority of cases, people don’t lose assets and all that they lose are their debts.

Second, filers can choose to use Chapter 13 to restructure their debts into a manageable repayment plan where there are no late fees, no penalties and no interest. This process involves the discharge of unsecured debts, the reorganization of secured debts such as motor vehicle loans and mortgage delinquencies, and the payment of tax debts, child support/alimony debts and other priority unsecured debts on more generous terms. The final results of this process depend on the filer’s own situation and the income/debts involved.

For those who may not be able to file for bankruptcy right away but still cannot pay certain debts, they can sometimes protect themselves from lawsuits and other collection activities if they are “judgment proof”. Even with debt, you can live in a way that makes it harder for creditors to sue you for not paying debts. To be judgment proof, you generally need to receive income from sources that are not subject to garnishment or attachment, such as Social Security income, unemployment income, child support income and state or county welfare income/benefits and other such income.  If you can show that you have a very low income or are unemployed, have minimal assets in the form of money in a bank account or real estate, and have your income sources exempt from seizure (e.g., unemployment benefits), then you are generally “judgment proof” and it will be more difficult, though not impossible, for creditors to initiate and maintain collection activities against you.

Even if you are presently judgment proof, your financial circumstances could improve or you could inherit property unexpectedly.  In other words, your circumstances could change quickly and your creditors would then be in a better position to pursue collection activities against you.   You must be aware that creditors are extremely vigilant and doggedly persistent.  They typically will review and investigate your economic/employment/financial situation at least once a month for any changes.

If you believe you are judgment proof, but want to learn more about what that term means, or if you want to start the process of filing for bankruptcy, Behm Law Group Ltd. can help. Contact us at (507) 387-7200 or stephen@mankatobankruptcy.com for more information about debt relief in Waseca, MN.

Industries Most Likely to File Commercial Bankruptcy Due to COVID-19

Today’s economic and social circumstances are continuing to be unpredictable and unstable. Unfortunately for investors and business owners, this can mean dramatic variations in the economy. With coronavirus infections still spiking and most businesses having operations limited in some way, a wide range of industries are struggling to stay afloat.

If you’re a business owner in this climate or even if you’re an individual having a hard time with current finances, Behm Law Group, Ltd. can provide expert legal advice and protection to help you resolve debts by filing for bankruptcy in Fairmont, MN and the surrounding area.

Our skilled attorneys work with clients filing for personal bankruptcy including Chapter 7, 12, and 13, in addition to sole proprietorship or partnership-owned business bankruptcies. We expect to see an increase in small business bankruptcy cases throughout many industries, but some industries may be impacted much more than others.

Some of the hardest hit industries include:

 

Theaters, both film and stage, will most likely still be avoided by many customers after they open. With the severe impact of the initial shutdowns already forcing theaters into dangerous territory, the continued decrease of attendance doesn’t bode well for the future.

Restaurants will also find the coming terrain difficult. Dine-in services are still unavailable in many U.S. regions, and take-out consumption has been greatly reduced. Locally owned restaurants, cafes, and other small food service providers will find it hard to move forward successfully.

Boutique stores and gift shops will suffer as well, unless they can provide curbside and shipping services that are accessible to their customer base.

Gyms, spas, and other similar health centers are also in danger of failure due to decreased consumer interest. Since the pandemic hit, health-conscious individuals have been more likely to find at-home workout routines and self-care solutions.

Sports arenas, local or otherwise, may not open for some months. When they do, attendance is expected to be low, and many sports centers and arenas will suffer financially because of this.

Amusement parks and entertainment centers will see a similar decrease in attendance when they re-open. If the infection rates and exposure in the U.S. don’t change by the next summer season, many parks may be forced to close.

 

These industries are just the tip of the iceberg when it comes to decreases in consumer spending and participation. The avoidance of these often public, busy commercial operations is already showing effects in current sharp economic declines.

 

If you own a business suffering from COVID-19 shutdowns, Behm Law Group, Ltd. can help you alleviate your debts and work with you through a bankruptcy case. Contact us today at (507) 387-7200 or stephen@mankatobankruptcy.com to file for bankruptcy in Fairmont, MN.

Potential Covid-19 Student Loan Relief Act of 2020 and Debt Relief through Bankruptcy

Tuitions in the United States are higher than ever before, and individuals who graduated within the last ten years are facing large amounts of student loan debt. For those already struggling with additional debts, student loans with high interest rates can push some people to the point of needing debt relief. With the additional financial stresses of the current pandemic times, many people are turning to bankruptcy as a source of government-regulated debt relief. At Behm Law Group Ltd., we can help you find long-term financial stability and debt relief in Redwood Falls, MN, and the surrounding area by filing for bankruptcy.

 

While student loans are typically exempted under 11 U.S.C. § 523(a)(8) from the general discharge awarded at the end of the bankruptcy process, with some rare exceptions, there may be some changes as to how student debt is treated in bankruptcy due to a potential Covid-19 relief act.

 

The many lingering effects, both medical and financial, of the peak of the coronavirus pandemic and subsequent shutdowns are still being recognized and processed by the U.S. government, and acts like the potential Covid-19 Student Loan Relief Act might be put in place until national health and economic conditions are more stable. The initial CARES Act of March 2020 put many other benefits into place, including stimulus checks and additional federal unemployment, but now that much of that first act is coming to a close, new legislation will likely be enacted to continue addressing the severe economic effects of the pandemic.

 

For now, those with federal or private student loans looking for debt relief through bankruptcy may be able to have those loans discharged depending in a few specific circumstances. Primarily, discharge of student loans in bankruptcy is only available to filers who have been directly economically affected by the coronavirus shutdown. This means:

 

Your income was significantly reduced because of Covid-19. This reduction must be a certain percentage, depending on your prior income. Qualifying reductions of income include:

  • 20% reduction for those earning $75,000 or less;
  • 30% reduction for those earning $75,000 to $125,000;
  • 40% reduction for those earning $125,000 or more.

Your household’s primary income earner passed away during the pandemic shutdowns. The timeline for the period this rule covers will be outlined more specifically in the legislation’s details.

You were permanently disabled during the shutdown/pandemic. Again, the timeline will have more specifics for qualifying dates in the legislation’s details.

 

While the requirements of the potential Covid-19 Student Loan Relief Act are highly limiting, the legislation could open the door for many more people struggling financially to benefit from student loan discharge in addition to the discharge of the other usual debts included in a bankruptcy.

 

To learn more about how the new stimulus legislation might affect your bankruptcy case, more about qualifying for student loan discharge, or more about how filing for bankruptcy can be an effective source of debt relief in Redwood Falls, MN, and the surrounding area, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.

Litigation That Can Move from State Court to Bankruptcy Court

Working through the U.S. legal system is often a complex process, and no matter what type of case you’re handling, it’s likely that details will vary greatly from other similar cases. For example, if you’re working through a state court case that involves litigation and one of the parties in the case files for bankruptcy relief, certain aspects of the litigation may be moved to bankruptcy court.

 

When this sort of thing happens, it’s essential to have the expertise of a bankruptcy attorney on your side. Whether you’re involved in state court litigation or not, Behm Law Group, Ltd. attorneys can guide you through the process of filing for bankruptcy relief in Jackson, MN.

 

Filing for bankruptcy is a nuanced process, and moving civil litigation from state court to bankruptcy court can make the bankruptcy process even more complicated. There are several types of litigation that may result in the removal of a case from state court to bankruptcy court. All litigation that involves the payment from one party to another will impact a bankruptcy case because the litigation may piecemeal or dilute resources that would otherwise have been used to repay creditors in a bankruptcy. For example:

 

Fraud: A common example of a fraud litigation that may be moved to bankruptcy court is when a creditor files suit against a debtor and claims the debtor misrepresented one’s financial standing in a repayment contract. The bankruptcy court needs to determine if the debt would be discharged in a bankruptcy outside of the litigation case. If the bankruptcy court determines that fraud has been committed, the bankruptcy court could decide that the debt is not dischargeable which could change the value paid to all creditors in the bankruptcy estate.

Personal injury: In personal injury litigation, the offender may need to make monetary restitution to the victim or the victim’s family. If the offender also files for bankruptcy relief, the money that could be used to pay the victim in the personal injury litigation could be used to pay other creditors as well through the debtor’s bankruptcy estate. This means there could be less money to repay the personal injury creditor.

Business: The movement of business litigation to bankruptcy court occurs most commonly when shareholders of a company file a lawsuit against that company for negligently or intentionally causing their stock to lose value due to ineffective or incompetent business decisions or outright corruption. If the company then files for bankruptcy relief, the shareholders will likely request that the litigation case be moved to the bankruptcy court to save money. If the case is handled in bankruptcy court, the process would likely be less costly for the parties.

 

The results of moving litigation from state court to bankruptcy court can be highly varied depending on the circumstances and timeline of any particular case. If you are considering filing for bankruptcy in Jackson, MN, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com to learn more about the process.

Case Dismissal without Prejudice and How Bankruptcy Assistance Can Help

If you are working through a difficult financial time, you are not alone. The results of the Covid-19 pandemic and associated economic hardships are impacting millions of individuals and businesses across the United States. Through the process of filing for bankruptcy, debt relief and financial stability are all possible for people who are struggling to pay their bills.

 

Filing for bankruptcy may seem like a tough choice, but it’s a much more common occurrence than you might think. In fact, bankruptcy is a legal process that aids many individuals and businesses in need of positive debt relief and financial rehabilitation. If you take the step to file for bankruptcy relief, Behm Law Group Ltd. can provide you with bankruptcy assistance in St. Peter, MN, and the surrounding area. Our attorneys’ expert legal support can help you work through a case and limit the risk of having your bankruptcy case dismissed with or without prejudice.

 

To eliminate the potential for abuse of the bankruptcy system, the U.S. Bankruptcy Court system has strict requirements for filers. Bankruptcy petitions involve extensive documentation of your financial situation and rigorous paperwork on top of pre-bankruptcy requirements. The guidance and support of a Behm attorney can help you navigate through the very nuanced bankruptcy filing process and prevent the possibility of case dismissal.

 

If there is intentional fraud or other such issues with your case, the court could dismiss your bankruptcy case with prejudice, and this ruling comes with its own significant restrictions on being permitted to file for bankruptcy relief again and the potential of criminal prosecution. However, even if there is no intentional fraudulent behavior or abuse of the bankruptcy system involved in your case, there is still the possibility of that your case could be dismissed without prejudice. Dismissal without prejudice is highly improbable with the expertise and legal aid of an experienced lawyer. If you choose to file without the support of an attorney, you will have a greater chance for dismissal of your bankruptcy case without prejudice.

 

In fact, dismissal without prejudice can occur if you:

 

  1. Do not file the correct bankruptcy forms or fail to fill out a form accurately
  2. Do not submit full documentation of your financial standing that supports your bankruptcy paperwork
  3. Do not perform all pre-bankruptcy requirements, including the attendance of a credit counseling course with an approved credit counseling agency
  4. Do not attend the 341 hearing
  5. Do not make monthly payments to your trustee in the event you file a Chapter 13 case and have a repayment plan approved and put into motion for a three- to five-year period
  6. Fail to meet any additional deadlines or paperwork requirements that may be specific to your case

 

If the court dismisses your case without prejudice, you can file again right away with corrections made and other failures remedied. However, if you file again right away, the automatic stay placed on your creditors’ ability to collect debts is limited to 30 days. Also, if you have two or more cases dismissed within the past year, you will receive no automatic stay protection when you file again.

 

To learn more about receiving bankruptcy assistance in St. Peter, MN, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.