Behm Law Group, Bankruptcy Attorneys

There are many reasons to file for bankruptcy—from resolving credit card debts to reorganizing a mortgage into a repayment plan. And bankruptcy can be a highly effective way to fix financial problems that would otherwise fester and grow worse. Because every part of the bankruptcy process is handled through the U.S. Bankruptcy Court, filing for bankruptcy is a protected legal process and one of the most effective immediate and long-term solutions for financial difficulties. If you are struggling with debt in your life as an individual or a business, filing for bankruptcy can help. For those with a low income or a failing business, Behm Law Group Ltd. can work with you to build and file a successful case for Chapter 7 bankruptcy in Pipestone, MN.

Chapter 7 bankruptcy is a liquidation process for individual consumers or businesses. In exchange for debt discharge, Chapter 7 trustees can sometimes sell certain assets you own and return the value gained to your creditors. This process may seem like a drastic measure, but the court protects you from losing any properties that you need for day-to-day life (home, car, etc.) with exemption allowances. Plus, your debts connected to unsecured loans will also be discharged (credit card debt, hospital bills, etc.).

In addition to debt recovery, filing for bankruptcy provides several other financial and legal remedies. One more unusual legal issue that can be resolved through bankruptcy is any lawsuit your creditors file because of your lack of debt payments. These suits become judgement lawsuits in a bankruptcy case, and they can be treated in one of two ways.

1. Your lawsuit progress is halted as soon as you file for bankruptcy and is eventually dissolved in your Chapter 7 case. This occurs if your lawsuit is connected to a low-impact debt. For example, credit card debts, car loans, medical bills (with an exception addressed later), personal loans, mortgages, and more are all low-impact debts when they are put into the light of a pending lawsuit and bankruptcy case. When you file for Chapter 7 bankruptcy, these lawsuits are halted and you will not be held responsible for any costs.
2. Your lawsuit progress is halted as soon as you file for bankruptcy, but is deemed a high-impact case and is not dissolved in your Chapter 7 case. High-impact cases typically involve actions you made that directly affected another person’s health, life, or well-being. For example, common high-impact suits connected to a debt you owe include those involving your payment of alimony or child support, any fraud or criminal activity, your drunk or reckless driving that caused injury, or other causes of injury to another person (two reasons your medical bill-related debts might be non-dischargeable). These cases can also be connected to priority debts like tax debts.

If you are considering filing for Chapter 7 bankruptcy in Pipestone, MN, and have a lawsuit connected to a debt, contact Behm Law Group Ltd. at (507) 387-7200 to learn more.

Filing for bankruptcy is a difficult legal process on its own, but often filers can be simultaneously
dealing with lawsuits and other legal actions. The help of a bankruptcy attorney is the key to
successfully navigating the complexities of any type of bankruptcy. With the legal advice and
assistance of Behm Law Group, Ltd. attorneys, we can help you understand how lawsuits will be
handled when you file for bankruptcy in Redwood Falls, MN.

It’s not unheard of for someone to be working through multiple legal proceedings at the same
time, and bankruptcy is no exception. If you’re considering filing for bankruptcy but you are
worried how it may affect another lawsuit or court process you’re currently working through or one
that you suspect you may encounter soon, Behm Law Group, Ltd. can help you determine
whether entering into bankruptcy is the right choice given your situation.
The most common lawsuits individual consumers encounter can often be handled at the same
time as a bankruptcy case.

Domestic Disputes: Divorce, child support suits, alimony claims, and other common domestic
court actions will have little to no effect on bankruptcy proceedings. This means the court will
allow both processes to continue, without staying or suspending the domestic disputes, until the
bankruptcy concludes. The exception is that some courts will delay discharge and debt
reorganization results until final divorce settlements on property are determined.

Criminal Proceedings: Because criminal cases are handled through local governments and
police powers, they’re often unaffected by bankruptcy proceedings. For violent crimes, theft, and
other common criminal allegations, a bankruptcy filing won’t interfere. However, if the criminal
proceedings involve other money and property related schemes (i.e. bad checks, fines, fraud)
against the government, the potential fines and payments involved are sometimes suspended by
the automatic stay of 11 U.S.C. §362. This effectively halts court proceedings until the bankruptcy
is concluded or the automatic stay is lifted for another reason.

Bankruptcy-Related: Lawsuits can also arise during a bankruptcy case. While creditors are
prevented from collecting pre-bankruptcy debts when a bankruptcy case is filed and the
automatic stay is implemented, they can commence lawsuits against you in bankruptcy court to
request that their debts not be discharged. Many such claims are asserted under 11 U.S.C. §523
(Exceptions to Discharge). For instance, a creditor that extended you credit or lent you money
can sue you in bankruptcy and request a bankruptcy court not to discharge any debt incurred as
a result of alleged fraudulent conduct, such as providing a creditor with a false financial
statement.

Other: Lawsuits like foreclosure and eviction are handled from case to case in bankruptcy, but
are often dismissed or suspended as a result of a bankruptcy proceeding. Other common
lawsuits such as building code enforcement and administrative court actions are almost always
unaffected by bankruptcy proceedings. If you want to bring a lawsuit against another party while
you’re filing for bankruptcy, you can often do so without any obstacles, but you absolutely should

list any such claim as an asset in your bankruptcy petition and related schedules. Sometimes, the
bankruptcy trustee administering your case will have an interest in any such claim and must be
involved. However, there are cases when the automatic stay must be lifted to continue with the
legal action.

If you’re struggling to reconcile multiple legal processes, Behm Law Group, Ltd. can help. Contact
us at (507) 387-7200 today to learn more about filing for bankruptcy in Redwood Falls, MN.

When you file for bankruptcy, your finances are very closely scrutinized. No matter what type of bankruptcy you file for, all your sources of income and debts must be considered in the process. When it comes to your income, this can mean anything from your normal job to money from a garage sale. Income you’ve gained from a lawsuit is no exception to this requirement, and in some cases, you may have to forfeit your lawsuit money. Behm Law Group, Ltd. can help you navigate through the process of determining how your lawsuit money is handled during a bankruptcy filing in Marshall, MN.

The two main types of bankruptcy—Chapter 7 and Chapter 13—treat your income differently. When you file for Chapter 13 bankruptcy, your income is considered in balance with your debts in order to determine a suitable repayment plan. This means that your lawsuit money is taken into account for your debt repayment, but it remains generally untouched. The process of Chapter 7 bankruptcy is when your lawsuit money really comes into question.

Lawsuit Money With Chapter 7

In Chapter 7 bankruptcy, your assets will be liquidated in order to repay your creditors and discharge your debts. While it’s almost always beneficial to Chapter 7 filers to have these debts discharged, they still have to sacrifice many of their property assets in the process.

Lawsuit money falls into the category of assets in a bankruptcy estate. This includes any money you have received/expect to receive/are entitled to receive from a lawsuit case. In some situations—for example, if you did not have many assets and were in a position to potentially file a lawsuit against a person or entity—your bankruptcy trustee has the right to pursue that claim on your behalf. However, the money from any lawsuit will be used to pay your creditors and discharge your debts unless you can use an exemption.

Exemptions can work to protect the income you’ve earned from a lawsuit. In Minnesota, you can exempt lawsuit money from liquidation if it’s protected under certain exemption laws. For example, Minnesota exemption laws protect lawsuit money from cases involving personal injury, wrongful death, and damaged exempt property (e.g. if your home is wrongfully damaged after it was protected with a Homestead Exemption.)

Federal exemption laws also protect lawsuit settlements involving wrongful death, personal injury, and future incomes lost. Depending on your financial situation, you may choose federal or Minnesota exemption laws to protect your lawsuit money.

Behm Law Group, Ltd. works with you through the process of filing for bankruptcy in Marshall, MN, to help you choose exemptions and protect your assets during Chapter 7 bankruptcy filings. For more information, contact us at (507) 387-7200 today.

Bankruptcy is a highly effective debt relief option available to individual consumers and businesses alike. It’s a system that is designed to protect the economy on varying scales from the oversaturation of debtors unable to continue making regular payments. It’s also designed to protect debtors from destitution while maintaining fair treatment for any creditors involved. If you are considering choosing bankruptcy as a long-term debt relief option, it’s important to understand how difficult it could be to file without professional experience, knowledge, and guidance. With the help of Behm Law Group Ltd, you can work through the nuances and complexities of filing for bankruptcy in Fairmont, MN, and build a strong, successful case.

While bankruptcy is an efficient tool for debt relief, it doesn’t necessarily wipe out all debts. Unsecured debts like credit card debt or medical bills are almost always discharged, but other debts like some taxes or priority obligations like child support are largely exempt from discharge in bankruptcy. Like those debts, not all legal debts like lawsuit judgments, fines, or other debts are always discharged in a bankruptcy.

Embezzlement judgments, for example, may or may not be discharged in your bankruptcy. If you have committed embezzlement fraud and have gone through the legal processing of that crime, you will most likely have a criminal fine or restitution on your record. Criminal fines or restitution fall into the category of priority (non-dischargeable) debt and they will not be discharged in your bankruptcy. However, you may be able to have that debt discharged if it is only classified as a civil judgement.

Civil judgments are claims against you that fall into the category of debts owed for “fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny.” If your debt for embezzlement is a civil judgment rather than a criminal fine or restitution, the creditor you owe that debt to must request that the court declare it non-dischargeable. To do this, they must take action early on in your case, specifically, within 60 days of the date set for the 341 meeting of creditors.

To request this, a creditor will have to file an adversary proceeding (i.e., lawsuit) with the court. In this proceeding, the creditor must prove that your embezzlement actions were fraudulent, that you were not authorized by the company or by the law to take the money or property, and that the property taken was held in trust for another party (i.e., the company or person embezzled from). If a creditor files a successful adversary proceeding, your civil judgment debt will not be discharged in bankruptcy.

If you are considering filing for bankruptcy in Fairmont, MN, and want to learn more about how different debts will be affected, contact Behm Law Group Ltd. at (507) 387-7200 or via email at stephen@mankatobankruptcy.com today.

Filing for bankruptcy can be a highly beneficial remedy for severe consumer or business debt. While the majority of benefits gained from bankruptcy are long-term, filers will see an immediate benefit gained from the protection of the automatic stay. When you file your bankruptcy petition, a stay preventing your creditors from collecting payments from you will automatically be put into place. In some situations, filers may need to speed up the process leading up to the automatic stay by filing for an emergency bankruptcy. If you’re considering filing for bankruptcy, Behm Law Group, Ltd. provides the counsel you need to build a strong case and the guidance you need to determine if you should file for an emergency bankruptcy in Marshall, MN.

Filing for an emergency bankruptcy gives you automatic stay protection from creditors sooner than a standard bankruptcy. The process is completed online with fewer forms and less paperwork than a typical bankruptcy case would require, but an emergency bankruptcy can only be filed if your situation meets certain circumstances.

When and why?

You can file an emergency bankruptcy if you would not be able to complete the full paperwork before an event that will directly affect your case occurs. For example:

• you have an impending foreclosure
• you are facing repossession
• your wages will be garnished
• you have a collection lawsuit

There may be other events that could allow you to file an emergency bankruptcy, but they must be time-sensitive issues. You will also be required to complete and file the rest of the bankruptcy papers within 14 days after filing an emergency bankruptcy.

How?

To file an emergency bankruptcy, you must complete a set of online forms and meet some other requirements, including:

• filling out the primary bankruptcy petition document that covers your general information, which chapter you are filing for, and your identity information
• a list of your creditors, including their names and addresses
• your certificate of completion for the credit counseling requirement
• payment of the filing fee, or an application to have the fee waived or paid in an installment plan

Behm Law Group, Ltd. attorneys can help you work through the steps of filing for an emergency bankruptcy in Marshall, MN or filing a standard Chapter 13, 7, or 12 case. To learn more about our counsel in filing for bankruptcy or to get started with us today, contact our office at (507) 387-7200.

For hundreds of years, bankruptcy was wrongfully associated with morally unsound citizens who could not manage their finances. The reality, however, is that people are stuck with debt because of a wide range of circumstances. Today, individuals can accrue debt from more sources than ever before—from credit cards to student loans to medical costs. You are not alone if you are struggling to meet debt payments each month, and like many other debtors in the United States, you can recover financial stability in your life by filing for bankruptcy. With the help of Behm Law Group, Ltd. in Windom, MN, you can decide which type of bankruptcy is right for you and build a strong case to resolve your debt.

Filing for bankruptcy is a viable solution for many debts but be aware that some debts are not dischargeable through the bankruptcy process. The majority of debts the common U.S. individual holds can be included in all bankruptcy formats, including Chapter 7 and Chapter 13. These bankruptcy formats include debt from credit cards, medical bills, mortgages, bad checks, old utility bills, and car loans—all debts that cause individuals to file for bankruptcy at the highest frequency.

Unusual Debts When You File for Bankruptcy

Debts that may not be discharged when you file for bankruptcy range from unusual debts, like malicious misconduct debts, to even the most common type of debt in America, student loans. Sometimes student loans can be discharged but one must actually commence a law suit against the student loan company and prove to the bankruptcy court that the student loan will impose a financial undue hardship going forward. Such law suits can be both expensive and protracted.

Exempt Debts

The following list of debts is not comprehensive, but covers the most prevalent in the United States that are typically not discharged in the bankruptcy process:

1. Student Loans Where Undue Hardship is Not Proven
2. Child support and alimony debts
3. Most tax debts
4. Some debts owed to government agencies such as the Environmental Protection Agency for environmental hazards
5. Reckless or malicious misconduct debts (for example, a debt in a lawsuit against you for injuries caused by drunk driving)
6. Other forms of restitution debt
7. Wages owed to your employees

So why are these specific debts not discharged in the bankruptcy process when so many others are? When considering each type of debt individually, the answer is a complex legal issue that takes into consideration other debts, other parties involved, location, and much more. However, if we take a look at all these debts together, we can see they have one thing in common: All these debts directly affect the well-being of another person or the well-being of the government as an entity that protects and supports the individual American.

If the bankruptcy process allowed the discharge or restructuring of these debts, it could significantly harm another person who has no direct responsibility for the cause to file for bankruptcy. While there are certain exceptions that include some of these debts in your bankruptcy case, they are most often excluded to protect innocent people in your life and the government that, in turn, protects people across the country.

Find Professional Help When You File for Bankruptcy

If you are uncertain whether or not you should file for bankruptcy in Windom, MN, contact Behm Law Group, Ltd. at (507) 387-7200 to learn more about the process and your own situation today.

When you work with a lender to enter into a property loan agreement, you will most likely have a voluntary lien built into that contract. Property liens are effective methods for lenders to secure the loan value they give you in case of bankruptcy or other inability to repay. All liens act to protect the lender, but they can take many different forms in addition to the common car lien or mortgage lien. If you are struggling to meet debt payments on a lien regarding secured debt and you choose to file for bankruptcy in Mankato, MN, Behm Law Group, Ltd. offers the legal advice and professional counsel to help you build a strong case and understand how your lien-secured property and debts will be handled.

While the common types of liens often deal with homes, cars, and other properties most individuals and businesses own, there are specialty liens that come into play for specific situations. One the more unusual liens you may encounter is a Mechanic’s Lien.

How it Works

Like other liens, a Mechanic’s Lien protects the lender if a borrower can’t repay the loan. These liens are sometimes called construction liens because they come into play for contractors and construction crews as well as mechanics, suppliers, designers, and professional builders. A Mechanic’s Lien is a legal document that gives a mechanic or other specified professional who signs and files the lien the right to collect payment. If you hire a contractor to remodel your kitchen, for example, that contractor is allowed to do several things if you refuse payment for services. First, they are allowed to file a lawsuit against you for the amount owed, and second, they can contribute to forcing you into bankruptcy if you have other creditors you’ve also refused or been unable to pay. Whatever action they take, they will have to file a Mechanic’s Lien to be guaranteed repayment.  They are secured as to the asset that they perform services on.  For instance, if a roofer installs a new roof on your house, the roofer could obtain a mechanic’s lien against your house as security for repayment.

How it Works in Bankruptcy

If you file for bankruptcy, voluntarily or otherwise, the creditors involved in your case that hold a lien over your property—a Mechanic’s Lien, or any other type of lien—are considered secured creditors. This means they will come first in line (along with priority creditors, such as tax debts and child support or alimony debts) for repayment in the event your assets are liquidated, or you propose a repayment plan. In a Chapter 7 case, secured creditors receive the value gained from liquidating your assets that serve as their collateral before any other creditors, and in a Chapter 13 case, secured creditors are either repaid the value of their collateral securing the amount you owe or you must surrender that collateral.

Whether you file for Chapter 7 liquidation or Chapter 13 reorganization, your secured creditors will receive the highest payment priority in your case, including those who file for a Mechanic’s Lien. To learn more about liens and the role they play when you file for bankruptcy in Mankato, MN, contact Behm Law Group, Ltd. today.

In this fast-paced world, it’s almost impossible to go through life without incurring debt. From mortgages to car loans and credit card debt, many areas of a consumer’s financial life involve borrowing. While it’s obvious that borrowers directly gain from loans, it can be difficult to understand how lenders benefit outside of the amount they gather from interest. Understanding the full lending process is an important part of financial management, including knowing when you should file for bankruptcy because of those loans. With the help of Behm Law Group, Ltd., you can determine if, when, and how you should file for bankruptcy in Marshall, MN.

While the primary reason lenders supply loans to consumers is the percentage of interest gained in the period it takes those borrowers to repay them, they can also benefit from holding secured collateral on a debt. This collateral usually manifests as some item of property that acts as security for the lender and provides the lender the opportunity to offer better rates and sign with more customers. If you enter into an agreement with a lender on a loan with secured collateral, you have incurred a secured debt.

Secured debts always involve properties that act as security or collateral. Common secured debts include mortgages, car loans, and loans for work equipment, appliances, or luxury items. Lenders generally secure debt with the implementation of a lien, either voluntary or involuntary.

Voluntary: This is the most common form of a lien lenders will place on a secured loan. Often these liens are written into the initial contract you sign to close the agreement and allows secured creditors such as mortgage providers to foreclose on your home if you can’t make monthly home payments. Voluntary liens can also be imposed on personal properties such as tools, work equipment, furniture, and inventory.

Involuntary: Lenders can also impose involuntary liens as security interest by going through the court system. These options take forms similar to lawsuits and are usually put into place as judgment liens, but occasionally can include income tax liens, mechanic’s liens, and landlord’s liens.

Liens, either voluntary or involuntary, work to protect a creditor’s right to repayment. In the event a debtor defaults, the creditor can repossess the secured property, foreclose a home, or file court action. If a debtor chooses to file for bankruptcy, a secured creditor is protected and most likely guaranteed some repayment in the process.  At a minimum, the secured creditor would receive the collateral securing its lien which the creditor would auction off and use the sale proceeds to pay off some of the underlying debt.

If you’re struggling to meet debt payments on any of your debts, secured or otherwise, contact Behm Law Group, Ltd. today at (507) 387-7200 to learn more about filing for bankruptcy in Marshall, MN.

Bankruptcy is a form of debt relief available to U.S. individuals and businesses alike, and while there are several versions of reorganization or liquidation bankruptcy, the overall goal of giving debtors a viable opportunity for financial recovery remains the same. If your limited liability company (LLC) or corporation chooses to file for bankruptcy, you can take advantage of the benefits a reorganization case provides through Chapters 11, 12, and 13, or you can liquidate your assets and receive debt relief through Chapter 7. With the advice and guidance of Behm Law Group, Ltd., you can choose the right type of bankruptcy in Luverne, MN, for your business and file a successful case for long-term financial stability.

While reorganization bankruptcy is an effective option for high-income businesses dealing with equally high debts, the best choice for businesses struggling to stay above water may be a Chapter 7 liquidation case. Chapter 7 bankruptcy is the most common format for individual bankruptcies, but because of the differences in how a case is handled for corporations and LLCs, this process can also be a viable option for companies going out of business.

Debt Discharge

For individual consumers, Chapter 7 bankruptcy works to liquidate non-exempt assets (properties including anything from homes and vehicles to jewelry and appliances the values of which are in excess of your applicable bankruptcy exemptions) and discharge many of their debts in return (including credit card debts, medical bills, mortgages, car loans, and more). In a Chapter 7 business case, the debts of the business are also discharged.  However, in a business Chapter 7, the business does not have the benefit of asserting bankruptcy exemptions to protect at least some assets.  Instead, the bankruptcy trustee will generally liquidate all business assets and use those funds to repay at least some dividend to creditors. When this process is accomplished, the business usually closes. Regardless of whether the business closes or stays in operation, its debts are discharged just as in an individual Chapter 7 and its creditors are unable to legally collect the discharged debts from the business.

Time and Place

An LLC or corporation might choose to file for Chapter 7 if they’re ready to close down and cut their losses. For example, if a technology company’s product becomes obsolete and they can’t alter their production to fit the changing market, the owners of that company can benefit from filing for Chapter 7. A company may also choose to file for Chapter 7 to stop creditor harassment and alleviate concerns of fraud that may lead to lawsuits.

On the other hand, it may not be time to file for liquidation bankruptcy if the majority of your business debts will become personal liabilities after filing—debts you’ll be responsible for even after your business is closed. The types of business debts that are considered personal liability after bankruptcy include trust fund taxes, alter ego claims, and fraud claims and debts of the business for which you may have signed personal guarantees.  Sometimes, one needs to file a business Chapter 7 bankruptcy and, thereafter, file an individual Chapter 7 bankruptcy to discharge debts of the business that one personally guaranteed.

f your corporation or LLC is failing to meet debt payments and gain steady revenue, Chapter 7 bankruptcy might be the right step to take. Contact Behm Law Group, Ltd. at (507) 387-7200 to start your case today and get the most out of filing for bankruptcy in Luverne, MN.

If you’re struggling to make monthly debt payments on time or missing payments completely, you may be eligible to file for bankruptcy. However, there are many who consider bankruptcy to be a last-ditch effort to save their finances. Whether you’re ready to file for bankruptcy or want to try to work through your debts another way, the full bankruptcy process might still be in the cards. This is because it’s possible for your creditors to force you into an involuntary bankruptcy if your debts and properties fit certain criteria. If you’re pushed into an involuntary bankruptcy in Fairmont, MN, Behm Law Group, Ltd. can protect you and guide you throughout the process.

Bankruptcy law is designed to benefit both the consumer or business as well as the creditors involved in the highest capacity possible. You may not want to file for bankruptcy, but you might be forced to “choose” this process anyway if your creditors file an involuntary case against you.

Involuntary Bankruptcy

The U.S. bankruptcy code protects creditors against negligent debtors by allowing them to file involuntary cases against those debtors, pushing them to file for Chapter 7 bankruptcy (Chapter 13 is not permitted in an involuntary case). When a debtor neglects their debts yet still maintains valuable assets, creditors can petition the courts to force that debtor into a liquidation bankruptcy process that’ll result in two things. First, creditors will gain some repayment from the liquidation of the debtor’s assets. Second, the debtor will receive discharges for the related debts. The majority of involuntary cases are filed against businesses rather than individuals, family farmers, or fishermen, but creditors can force individuals into bankruptcy if they owe significant debts and have adequate assets for creditors to benefit from in liquidation.

Rules

1. One or more creditors must file a petition to set the ball rolling on an involuntary bankruptcy case.
2. The debtor must respond to the petition within 20 days of receipt or the court will automatically force the debtor and creditors to start the involuntary bankruptcy process.
3. If the debtor responds within 20 days, a hearing date will be established that’ll allow the debtor to defend themselves against the bankruptcy.
4. If a debtor has more than 12 unsecured creditors, there must be a minimum of three creditors (with at least $15,775 owed to them in unsecured debt) participating in the petition for an involuntary bankruptcy.
5. A single creditor can file an involuntary petition if the debtor owes them at least $15,775 and that debtor has under 12 unsecured creditors.
6. Debts cannot be disputed or dependent on future legal decisions (e.g. lawsuit-related debts).
7. Involuntary bankruptcies cannot be filed against family famers or fishermen, banks, insurance companies, credit unions, or non-profits.

If you’ve been avoiding debt payments for some time and are worried your creditors may try to file an involuntary case against you, contact Behm Law Group, Ltd. today at (507) 387-7200 to learn more about bankruptcy in Fairmont, MN.