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The Differences Between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Fairmont, MN

If you’re struggling to pay your bills and being hounded by debt collectors in Fairmont, MN, you may be contemplating filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. Fortunately, the compassionate and knowledgeable team at Behm Law Group, Ltd. can assist you with your decision to file for bankruptcy.

Below is a brief rundown of the differences between Chapter 7 bankruptcy, which is referred to as a liquidation, and Chapter 13 bankruptcy, which is called an adjustment of debts of an individual with regular income or a reorganization.

Your financial situation generally dictates which type of bankruptcy you will file for. Chapter 7 is for people with little or no income, while Chapter 13 is for folks who have a higher and regular income. Reportedly, the most common filing is Chapter 7. Companies, married couples, and individuals are allowed to file Chapter 7. Companies are not allowed to file Chapter 13.

A debtor filing Chapter 7 bankruptcy is essentially scrapping everything and starting over, hoping for a clean financial slate. Once the filing is underway, an administrator or trustee is appointed to manage the sale of the debtor’s assets. This does not mean everything that the person owns is sold. Both state and federal laws allow for certain exemptions, meaning that the debtor might get to keep some property, such as his or her private residence and/or personal items like clothing.

Once the debtor’s assets are liquidated, the trustee pays certain creditors a portion of the money raised. Of course, not all of the creditors receive money from the proceeds, so many of the debtor’s financial obligations are forgiven or discharged. Once a person has filed for bankruptcy under Chapter 7, he or she can’t file again for eight years.

Chapter 13 is a reorganization bankruptcy designed for debtors with regular income who can pay back at least a portion of their debts through a repayment plan. If you make too much money to qualify for Chapter 7 bankruptcy, you may have no choice but to file for Chapter 13. Many debtors choose to file for Chapter 13 because it offers many benefits that Chapter 7 does not. These benefits include the ability to catch up on missed mortgage payments or strip wholly unsecured junior liens from your house.

In Chapter 13 bankruptcy, you get to keep all of your property, including non-exempt assets that you could otherwise lose in a chapter 7 case. In exchange, you must pay back a portion of your debts through a repayment plan. The amount you pay back depends on your income, expenses, and types of debt.

If you think you are a viable candidate for either Chapter 7 or Chapter 13 bankruptcy, give Behm Law Group, Ltd. a call at (507 ) 387-7200. We’re standing by to discuss the intricacies of all four types of bankruptcy (7,11, 12 and 13) and to help you make the best decision for you and your family.

 

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How to Know it’s Time to File for Chapter 7 Bankruptcy in Redwood Falls, MN

If creditors are calling you daily, your credit card debt is rising, and you have little or no savings or assets, it may be time to let Behm Law Group, Ltd. assist you with your Chapter 7 bankruptcy in Redwood Falls, MN and surrounding communities.

Chapter 7, the most common type of bankruptcy, is often referred to as “straight” or “complete” bankruptcy. Depending on your situation, filing a Chapter 7 may help you eliminate all of your debt without having any obligation to repay any of it. Because all of your debts may be eliminated, it is also often referred to as a “fresh start” bankruptcy. Chapter 7 bankruptcies are generally best if you don’t have a significant amount of assets, such as substantial equity in your home or other investments.

How do you know if Chapter 7 bankruptcy is right for you in Redwood Falls, MN? Here’s a roundup of red flags which signal a path toward bankruptcy:

Creditors are constantly calling you. If you are a chronic late payer or non-payer, you probably get numerous calls from your creditors, or their hired hands, wanting to know when they can expect payment(s). These calls can range from professional to downright harassing. Depending on the amount you owe and the lateness of the payment, the creditor might be willing to strike a deal with you regarding a payment plan. Be wary and consult a Behm Law Group, Ltd. attorney before agreeing to any deal.

You have rising credit card debt. If you find your credit card bill growing each month – despite your best efforts to pay it down – you’re headed for financial trouble. Making minimum payments and thinking you’ll eventually pay off your high credit card balances isn’t realistic. The way high interest charges are calculated and the associated fees with missing or late payments are added almost eliminates any value to making minimum payments on the debt. Also, if you’re using your credit cards to put food on the table and gas in the car, be very careful. Balances can add up quickly. If not managed proactively, they can become unmanageable in a short amount of time.

Your nest egg is small or non-existent. If you‘re living paycheck to paycheck, chances are you have not had the opportunity to save much or any money. Many people live their entire lives this way, always being vulnerable to happenstance and potential financial disaster when things go wrong. If you find yourself in this position, you could be on the road to bankruptcy.

If the above descriptions fit you and your family’s situation, call Behm Law Group, Ltd. at (507) 387-7200 and let us help you find an equitable resolution for your financial difficulties. We’re standing by to assist you with all of your bankruptcy needs.

 

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Common Bankruptcy Myths Debunked in Mankato, MN

Sometimes hard-working and honest people in Mankato, MN find themselves mired in a financial mess and need to seek refuge from their hardships by filing for bankruptcy. If that description fits you, turn to the knowledgeable and compassionate professionals at Behm Law Group, Ltd. We have the expertise and experience to help you get through the bankruptcy process step-by-step.

There are many myths that swirl around bankruptcy and the types of people who file for it. Listed below are four common bankruptcy myths:

  • Bankruptcy doesn’t affect that many people. The number of people who file for bankruptcy protection has decreased since the peak of The Great Recession. From 2008-2010, over 4.1 million U.S. families filed for bankruptcy. These days, the number of families who file hovers around the one million mark annually.
  • Bankruptcy only happens to the poor and uneducated. Sure, among the million or so families filing for bankruptcy protection every year, there are poor and uneducated people. However, it also strikes wealthy and highly educated people. Lawyers, doctors, accountants, business owners, teachers, and many others in highly respected and high-paying professions file for bankruptcy every day.
  • Bankruptcy is the result of irresponsible spending. There are some individuals who try to game the system, carelessly racking up mountains of debt and then filing for bankruptcy. However, the majority of filers are hard-working folks who may have become financially ruined by a job loss, pay decrease, divorce, or a serious illness and the subsequent pile of medical bills that creates. In many cases people rely on their credit cards to buy the necessities – food, gasoline, car repairs, clothing for the kids – and hope that their situations will improve. Sadly, things don’t always turn around, and bankruptcy is the only viable option.
  • Bankruptcy permanently ruins your credit. People who file for bankruptcy are often surprised at how quickly their credit bounces back and how fast they start getting credit card offers in their mailboxes again. To rebuild your credit, think about applying for a secured credit card with a low limit that requires a deposit to a bank. Once approved for the card, make regular, on-time payments, and check your credit report to ensure that everything that was discharged in bankruptcy is, indeed, marked as discharged.

If you or a loved one is facing the difficult decision of whether or not to file for bankruptcy, give us a call today at (507) 387-7200 to learn what your options are. Even if you decide not to file, knowing the available options can bring you tremendous peace of mind.

 

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The Cause of the Gawker Bankruptcy in the St. Peter, Minnesota Area

In the St. Peter, Minnesota area and across the United States, people have access to all kinds of celebrity gossip. Whether it’s your grandma snagging a magazine next to the checkout or your little brother Googling information about the latest famous downfall, we have nearly unlimited access to gossip about the rich and famous.

Recently, however, this access to information has become a bit of an issue for some stars. A celebrity gossip source known as “Gawker” recently filed or bankruptcy as a result of a suit against Hulk Hogan. Here’s all you need to know about the case that led Gawker to file for Chapter 11 bankruptcy:

  • Illicit Publications: Gawker recently published a private video of Hulk Hogan against his wishes. The content of this video was somewhat explicit, making Hogan seek legal action against the celebrity gossip site. Little did Gawker know, this suit would eventually lead to a bankruptcy filing.
  • Private Funding: Hogan was able to pay for this long, arduous lawsuit because Peter Thiel privately funded Hogan’s actions. Thiel is a major player in Silicon Valley, making his funds nearly endless for the purpose of Hogan’s suit.
  • Controversy: In the midst of this suit, there has been controversy amongst journalists. Some have argued that Hogan’s suit violates freedom of press and feel frustrated that Gawker had to file for bankruptcy. Others question Gawker’s news reporting, whether it relates to Hogan or other famous folks.

Expensive lawsuits can lead to bankruptcy in the St. Peter, Minnesota area and in the world of the rich and famous. If you find yourself in expensive legal trouble and you need the assistance of a professional regarding bankruptcy, we’re here to help. Contact the professionals at Behm Law Group Ltd. today!

 

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Summertime Budgets in the New Ulm, Minnesota Area

Summertime is upon us in the New Ulm, MN area, which means folks are ready to get outside and enjoy the glorious sunshine. In the New Ulm area, there are all kinds of exciting activities to enjoy. However, if you’re going through a bankruptcy filing, it can be challenging to keep your budget in check during these three warm, sunny months.

Fortunately, there are all kinds of free or low budget activities to try out in New Ulm, so you can make the most of summer, even while on a budget or going through bankruptcy! Here’s a >list of a few exciting places to visit:

Minnesota Music Hall of Fame: For the low price of three dollars, this museum allows you to experience the musical culture of Minnesota! Featured in the museum are all kinds of well-known artists such as Bob Dylan, The Andrews Sisters, and Prince. What a fun, inexpensive way to spend a rainy summer day!

Museum of Brewing: Although it may seem like a brewery museum might only be geared towards those twenty-one or older, this museum is made for families to enjoy! Admission is free, making the Museum of Brewing a perfect venue for those budgeting or going through bankruptcy. Come see the grounds, enjoy the peacocks, and perhaps indulge in a beer (with or without root!)

Oktoberfest: German culture is important to New Ulm, so it’s only natural that Oktoberfest is widely celebrated! Better yet, admission to the event is free! Come listen to music and participate in traditional German events, without spending too much extra money. While you’re at it, why not pop by the glockenspiel, a forty-five foot tall monument that keeps New Ulm on time year round!

There are so many free or nearly free activities in the New Ulm, MN area, so if you’re concerned about spending too much money or bankruptcy, you can still have a fun and festive summer. For additional questions about your bankruptcy filing, contact the professionals at Behm Law Group, Ltd. today!

 

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Pioneer Life in the Worthington Minnesota Area

Summer in the Worthington, MN area means a lot of exciting things. Perhaps your look forward to swimming or taking long walks outside in the sunshine. Maybe your favorite activities include going out to eat, or splurging on a summer vacation to a warm and sundrenched beach!

Regardless of what you like to do, a summer bankruptcy filing or case can change your plans. Fortunately, Worthington has a number of inexpensive activities available for you to enjoy. One of these events quite literally takes visitors back to a simpler time; a time before bankruptcy, credit card debt, or expensive plane tickets. Nobles County Pioneer Village may just be the summer activity for you and your bankruptcy budget!

Here are a few exciting features of the village:

  • History: Have you been curious about how Worthington became the wonderful city it is today? This county, first occupied by Sisseton Indians, and then white settlers in 1842, has a rich and exciting history that’s waiting to be discovered at the Pioneer Village!
  • Admission Cost: To participate in this exciting attraction, your bankruptcy budget can remain well intact. The Pioneer Village opened after Memorial Day, and admission fees range from free to six dollars per person. What a deal!
  • Attractions: Pioneer Village really can remind you of a time before electronics and modern challenges. From the restored buildings to the horseshoe games scattered around the property, this location boasts fun activities for the whole family in Worthington!

Are you ready to learn more about the rich history of the Worthington, MN area while spending an amount that won’t cause bankruptcy or dent a preexisting bankruptcy budget? The Pioneer Village in Nobles County is the perfect summer activity for you and the whole family!

For modern-day concerns regarding your bankruptcy case or filing, contact the folks at Behm Law Group, Ltd. today!

 

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Will Dire Farm Economy Predictions Result in More Bankruptcies in the Redwood Falls, Minnesota Area?

The U.S. Department of Agriculture is predicting that farmers will produce a record corn crop in 2016. But if Minnesota economic forecasts of dropping commodity prices, a stronger U.S. dollar, and weak global growth create fallout in the Redwood Falls, Minnesota area, Behm Law Group, LLC is ready to help.

Analysts are worried that the combination of healthy supplies, the strength of the U.S. dollar, and slow growth in world-wide demand have kept prices for corn and soybeans low. The result is harming the profits of Minnesota farmers and it could impact other related businesses.

Stephen Behm and the staff at Behm Law Group, LLC are keeping an eye on the latest trends and their impact on the local economy. Behm Law Group has earned a reputation for skill and excellence in the field of bankruptcy law in the Redwood Falls area. They have assisted hundreds of people to make a fresh start financially through Chapter 13, 12, and 7 bankruptcies.

The outlook for 2016 does have some bright spots as well: forecasters credit Minnesota’s large and diverse economic base for helping it absorb the global slowdown. There is a reason for optimism with job gains in education, health care, retail, and finance, as well as a need for tradespeople as homebuilding activity begins to rebound.

If Minnesota’s changing economic fortunes leave you seeking some assistance and you need questions answered, Behm Law Group, LLC offers private and free bankruptcy information. These meetings at the Redwood County courthouse are available to anyone and we expect no commitment should you decide to attend.

Behm Law Group, LLC wants to help you navigate the ever-shifting world economy and get the relief you need through bankruptcy, even if it’s only by having a conversation to help you answer some questions and figure out your options. You don’t have to live with crushing debt and hounding collection calls. Allow us to do what we have confidently and successfully done for hundreds of others: help you with a fresh financial start.

 

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Little Free Summer Activities in the Mankato, Minnesota Area

Summer has officially begun in the Mankato, Minnesota area, which means folks are ready to get outside, work on their suntans, and celebrate three months of sunshine and fun! Although there are a lot of fun activities available during the summer months, it can be challenging to pay for expensive tickets or experiences while on a tight budget or while going through bankruptcy.

Fortunately, there are a lot of free activities available in the Mankato, Minnesota area. There’s one that’s especially exciting that also allows for a little physical activity: the Little Free Libraries scattered around Mankato and surrounding towns. Here’s how to make the most of those little libraries while keeping your bankruptcy budget in check:

Look for Libraries! There is a website available that can help you find all the Little Free Libraries nearest to you. How cool is that? Once you know the locations, sit down with a friend or family member to set your route. The more walking in the sunshine, the better!

Walk it Out! Once you’ve got a plan in mind, grab a book you’re ready to part with and start walking! Take time to enjoy the adventure between little libraries, and to see the neighborhood or town in a whole new way.

Lend or Borrow: Little Free Libraries rely on consistent donations and borrows from folks that pass by. If you see something you like, drop off your old book inside the library and take one that’s new. It’s yours to keep. That is, until you find the next book you want to borrow!

A Little Free Library walk is the perfect free summertime activity to kick off June in the Mankato, Minnesota area. Regardless of your budget or the status of your bankruptcy filing, this free outing will keep you happy and well read. Bankruptcy is not always fun, but that doesn’t mean your summer has to suffer!

For more information about your personal bankruptcy budget or bankruptcy filing, call the professionals at Behm Law Group Ltd. today!

 

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Bankruptcy Turbulence for SkyMall in the Owatonna, Minnesota Area

It’s almost summertime in the Owatonna, Minnesota area, which means folks are preparing to travel and enjoy the sunshine! Though you may be boarding a plane sometime in the next few months, you’ll notice something is glaringly absent. Although you’ll still have access to those individually packaged peanuts, tiny glasses of ginger ale, and in-flight movies, Skymall will be nowhere in sight due to a bankruptcy filing from this past January.

There are a few different reasons why SkyMall succumbed to bankruptcy over the past few years, but here are the major reasons why you’ll be missing SkyMall on your next trip:

Phone Competition: Rather than perusing pages of neck pillows and pet accessories during flights, folks have recently preferred to look through their personal devices. This has decreased the amount of traffic through SkyMall, consequently decreasing their overall sales and taking them one step closer to bankruptcy.

Touch Down and Take Off: Although this had already been a problem during flights, SkyMall still took advantage of that precious time when customers couldn’t use phones during touch down and take off. When flights changed their policy on cell phone usage and folks didn’t have to turn off their phones, SkyMall finally had to file for bankruptcy.

The Cost of Paper: Under increasing pressure to go paperless—for either environmental or cost-based reasons—airlines have recently found it difficult to justify carrying magazines or catalogues.

In the Owatonna, Minnesota area, folks are getting ready to take flight without SkyMall to keep them distracted and entertained. Fortunately, in recent months SkyMall has found a new buyer based out of New Jersey . Perhaps they’ll be back in business, out of bankruptcy, and ready to fly just in time for you to purchase a festive cat hat for Aunt Muriel this fall.

For additional information about bankruptcy filings, contact the professionals at Behm Law Group Ltd. today!

 

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Fun, Fashionable, but filing Bankruptcy in the Marshall Minnesota Area

It’s important to look fashionable and fun in the Marshall, MN area, especially with summer just around the corner. While shops in the area are pulling their shorts and sundresses out of storage, one teen-focused retailer will be pulling out a “Closed” sign instead. Aeropostale filed for bankruptcy earlier this week.

Though Aeropostale may have once been a go-to destination for teen shoppers, it’s recently slipped out of the public eye. After a few years of struggling, they finally filed for Chapter 11 bankruptcy protection. Here’s all the information you need to know:

In total, this New York-centered retailer will close 113 of their 739 stores across the United States and Canada. This process will begin soon, and may have already begun in certain store locations. Stores slated to be closed in Minnesota are located in Blaine, Coon Rapids, and Woodbury.

The market for teen shoppers has changed in recent years. Rather than looking for logos, polos, or high price clothing, teenagers are looking to stores like H&M and Forever 21 for their quick fashion fixes. These types of stores have pushed Aeropostale out of the current youth market and into bankruptcy.

Though Aeropostale stores near you may be closing, they hope to reopen as a “standalone enterprise” after their Chapter 11 filing is complete. This will mean higher efficiency and a lower number of stores.

Aeropostale recently tried a social media revival, which ultimately fell flat. This failed marketing tactic was a sign that bankruptcy may be the best option for this teen clothing retailer.

Although Aeropostale is filing for bankruptcy protection, that doesn’t mean you’ll be without fashionable clothing in the Marshall, MN area. After their bankruptcy filing is complete, this retailer should be up and running once again.

If you have questions regarding bankruptcy or feel you need to file for bankruptcy protection contact the professionals at Behm Law Group, Ltd. today!