Behm Law Group, Bankruptcy Attorneys

Chapter 7 liquidation bankruptcy is the most common type of individual consumer bankruptcy in the US. The process of Chapter 7 works to liquidate a filer’s non-exempt bankruptcy estate property in return for the discharge of their debts. Not only is it an effective way to free yourself from credit card debts, medical bills, and more, Chapter 7 bankruptcy represents a government-sanctioned fresh start. If you’re struggling to meet debt payments, Behm Law Group, Ltd. offers the legal support and advice you need to file a successful case for bankruptcy in Jackson, MN.

Chapter 7 bankruptcy offers a direct path to debt relief, but it’s not a process available to everyone. To prevent bankruptcy abuse, every filer must pass the Means Test before they can qualify for Chapter 7.

The Means Test examines your finances to determine if your income and debts are at a level that will benefit from Chapter 7 bankruptcy while remaining fair to your creditors. If your income is lower than the Minnesota median for a similar household size, you qualify to file for Chapter 7 bankruptcy. You may also qualify if the Means Test shows your debts are higher than your income even if your income is greater than the state median income for a household of your size.

If you’re married, you may be able to qualify for Chapter 7 bankruptcy using the marital adjustment deduction.

The Means Test looks at the household income to determine your eligibility, but if you choose to file for bankruptcy and your spouse doesn’t, you can deduct the expenses attributed solely to your spouse. By deducting these expenses, you can lower the income you list on your Means Test, making it possible to qualify for Chapter 7. It works like this:

• Your spouse’s income would usually be listed with your own on the Means Test, but he or she doesn’t want to file for bankruptcy with you.
• You choose to take away the expenses of your spouse using the marital adjustment deduction.
• In doing this, you reduce those expenses from the full income of the household, lowering your overall income and making it more likely that you will qualify for Chapter 7.

Expenses that can be deducted from your income vary depending on your location and court approval, but most deductions will allow for:

• Payroll including taxes, insurance, union dues, retirement, and other deductions
• Alimony, child support, and other court-issued domestic support payments
• Your spouse’s attorney fees
• Payments on debts in your spouse’s name
• Payments on 401(k) loans
• Expenses on your spouse’s car
• Cell phone expenses in your spouse’s name
• Recreation expenses including vacations, hobbies, memberships, and other entertainment expenses
• Property expenses for real estate in your spouse’s name

Overall, you can deduct a significant portion of your income through the marital adjustment deduction and possibly qualify for Chapter 7 bankruptcy even with a high income. To learn more about filing for bankruptcy in Jackson, MN, contact Behm Law Group, Ltd. today at (507) 387-7200.

If you own a business and are struggling to meet payments on anything ranging from rent to utilities, you may benefit from taking advantage of the government-regulated system of bankruptcy. While it might seem like a big step to take, bankruptcy is designed to help businesses of all sizes into a full financial recovery. In fact, if you file for a Chapter 13 bankruptcy, your debts will be restructured into a manageable repayment plan for your business.

Not only is it possible to protect your business and the property involved when you choose to file for Chapter 13 bankruptcy, you may be able to continue expanding your business during the bankruptcy period. With the help of our attorneys at Behm Law Group, Ltd., you can keep your business afloat while you file for bankruptcy in St. Peter, MN.

 Filing for Chapter 13 Bankruptcy

Chapter 13 bankruptcy works to restructure your debts as a whole into a new repayment plan spanning a period of three to five years. Within this repayment plan your secured debts and priority debts must be repaid in full, but your unsecured debts will be restructured into the plan with only partial repayment required ranging from 0% to 100%.

Chapter 13 is a debt reorganization process available to both consumers and businesses, and while Chapter 11 is a similar reorganization process businesses can utilize, it is designed for very large businesses and is often impractical for individual consumers.  There are often greater benefits and more opportunities for full, long-lasting recovery when you choose Chapter 13 over 11.

One reason your business may thrive even through a repayment plan in Chapter 13 bankruptcy is because it’s possible to gain business credit, allowing for overall growth in your company.

Business Credit

Because even the most efficient businesses still incur debts through normal operations, especially when all disposable income in a Chapter 13 bankruptcy plan is used to repay unsecured creditors, you’re allowed to gain ordinary credit without needing approval from your trustee or authorization from the court. For example, if you own a bakery and need to buy a large inventory order of sugar and flour, you don’t need court approval to do so if you can pay for that shipment within 30-60 days.

However, if you gain credit outside the terms of ordinary business operations, you’ll need to receive court approval before making a purchase that’ll put your business in debt. In the example of the bakery, you’ll need court approval if you have to purchase a large appliance or vehicle necessary for normal business operations. To prove you can repay that item without it affecting your repayment plan, you have to:

1. File a motion to authorize the purchase
2. Explain to your trustee, creditors, and the court why that item is needed
3. Demonstrate you can afford the item and still make payments on your plan

Gaining business credit during your repayment plan is an option that Chapter 13 bankruptcy often provides within reason and choosing this form of reorganization bankruptcy can allow your business to grow even through difficult times. To learn more about filing for a business bankruptcy in St. Peter, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

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.

Bankruptcy is often viewed as a last option for those with extreme debt and low income, but there’s more than one kind of bankruptcy available to individuals and businesses. Chapter 7 bankruptcy is the type of bankruptcy that fits the description that’s most often associated with being bankrupt due to the liquidation of the filer’s non-exempt assets. Chapter 13 bankruptcy, on the other hand, is a completely different process that works to reorganize a filer’s debts. If you’re struggling to meet debt payments but don’t want to possibly sacrifice non-exempt assets in a liquidation process, Behm Law Group, Ltd. can provide the legal support you need to file a strong case for Chapter 13 bankruptcy in Mankato, MN.

If your income to debt ratio is higher than the Minnesota median income for a household of your size, you cannot qualify for Chapter 7 bankruptcy. Even if your income is low enough to pass the Means Test, you may still choose to file for Chapter 13 bankruptcy and keep your estate intact. In this case, you’ll work with an attorney and trustee to draft a repayment plan that is suited to your situation.

A Chapter 13 bankruptcy repayment plan is a highly effective way for those struggling with debt to sort through their finances under the guidelines of a three to five-year bankruptcy period. Despite the many benefits of a repayment plan, however, the period it fills is a long time. During that three to five-year period, you might experience several life changes including anything from a new job to moving into a new home. Your repayment plan could be altered to accommodate those life changes, but there are occasions where you need to operate outside of your bankruptcy plan. One common example of this is when the filer is in need of getting a loan.

There are few reasons an individual working through a Chapter 13 bankruptcy repayment plan may need to seek a loan, and because of your overall financial history, your trustee may or may not approve any loans you try to obtain. However, there are times when you need a little boost, whether you’re starting a business that’ll gain more revenue in the long-term or if you have a real emergency.

Gaining credit during your repayment plan period depends on several factors:

1. Whether you receive the required court authorization and trustee approval.
2. The type of credit you’re attempting to obtain (consumer or business).
3. How a new loan will alter your repayment plan.

Generally, you may be granted permission to obtain a loan based on household emergencies. Home repairs, medical emergencies, vehicle repairs, or disaster recovery are some primary examples.

If you’re working through a repayment plan or considering filing for bankruptcy in Mankato, MN, Behm Law Group, Ltd. can help. To learn more about the legal support and advice our attorneys offer, contact us at (507) 387-7200 today.

With medical insurance getting more expensive each year and procedures becoming more technically-advanced with new equipment and medicines, individuals can easily accumulate overwhelming medical debt very quickly. While studies may debate whether severe medical debt is directly causing an increase in U.S. bankruptcies, the fact remains that it’s often a correlating problem most filers experience. Because the bankruptcy process is structured to discharge or reorganize medical debts, it’s a viable option for those who can’t pay their medical bills. With the help of Behm Law Group, Ltd., you can recover from medical debt and successfully file for bankruptcy in Worthington, MN.

Medical debt can happen gradually as chronic treatments rack up bills or all at once if an unexpected medical emergency occurs. No matter the circumstances leading up to unmanageable medical debt, those debts are treated the same in bankruptcy cases. All your medical bills are considered to be unsecured nonpriority debts in your case. To put this in perspective, your credit card debts are categorized as unsecured nonpriority debts as well.

How your unsecured nonpriority debts are handled depends on the type of bankruptcy you file for.

Chapter 13 works to reorganize debts that aren’t exempt from the bankruptcy process into a new repayment plan. Secured debts are repaid in full along with select priority debts, but your unsecured debts—like the medical bills you owe—are often only partially repaid if they’re required to be repaid at all.

Chapter 7 works to liquidate your assets to repay your creditors in return for the discharge of most debts. This discharge includes your unsecured debts and allows immediate full relief from medical bills.

Limitations on Discharges

Relief from medical bills is guaranteed if you qualify for Chapter 7 bankruptcy by passing the Means Test. All your unsecured debts will be dissolved in return for major liquidation of your assets. In Chapter 13 bankruptcy, there are some limitations on the relief you can receive for your medical bills. Because your medical debt is lumped into one category with all your other unsecured nonpriority debts, they’re all subject to the same limitation. This limit manifests as a cap on the amount you can include in your repayment plan. Currently, you may file for Chapter 13 if you have under $394,725 in unsecured debts. This amount will change in April of 2019 to meet standards of income and overall economic adjustments, but for now, you can resolve all your debts in a new repayment plan if you meet this and other Chapter 13 requirements.

 There may be some limits to the possibility of recovering from severe medical debt by filing for bankruptcy, but the majority of cases are highly effective in providing a solution for those struggling with hospital bills and more. For more information about filing for bankruptcy in Worthington, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

If you’re struggling with meeting monthly payments on your credit cards, car, medical bills, and even your mortgage, you may be a candidate for bankruptcy. Bankruptcy is often negatively viewed as a social taboo, but the reality of bankruptcy is largely a positive one. Those who file for individual or business bankruptcy are offered a fresh start, and those filers actually provide positive influences on our national economy. With the help of Behm Law Group, Ltd., you can start your financial recovery today and successfully file for bankruptcy in New Ulm, MN.

The process of bankruptcy was designed to benefit all parties involved with a fair and balanced relief of debt for the filer and as much of a dividend as possible to their creditors. Administrated through government regulations and overseen by a bankruptcy trustee, the ultimate goal of offering debtors the choice of filing a bankruptcy is to keep the economy afloat.

The U.S. economy cannot function without consistent, widespread consumerism. Without spending from individuals at all income levels, our economic structure would start to collapse. In a nutshell, bankruptcy allows those who couldn’t afford to participate in consumerism because of their debt to begin supporting the economy again. This could mean an individual starts to spend money again or a business is able to continue selling its products.

The Economy Feedback Loop

Whether it’s in recession, booming, or simply stabilized, the economy works in a feedback loop. The more we spend, the more businesses can grow which creates more jobs, national income, and products to keep spending money on. If we’re unable to spend or borrow because our debts and income levels prevent us from being consumers, the more and more the economy will recede. Bankruptcy works to remedy the potential that individual consumers and businesses cannot contribute to the economic feedback loop in positive ways. Relieving debts and repaying creditors provides a viable solution to what may quickly become the main factor of a severe economic downturn.

If you’re considering filing for bankruptcy, in many ways you’ve taken the first step to supporting our national and global economies in a positive way.  When debtors balk from filing for bankruptcy because of the fees involved or how it may affect their credit, they’re in fact possibly setting up our country for even poorer financial conditions down the road.

Contact Behm Law Group, Ltd. at (507) 387-7200 today to find out more about successfully filing for bankruptcy in New Ulm, MN.

If you’re struggling to meet debt payments on a regular basis and have been for some time, you may find yourself in over your head financially. Fortunately, U.S. law offers a way back to the surface and an opportunity for a fresh start through the process of bankruptcy. Navigating this nuanced system alone is a large feat, but with the help of Behm Law Group, Ltd., you’ll have the guidance and support you need to file a strong, successful case for bankruptcy in Owatonna, MN.

When you choose to file for bankruptcy, the long-term benefits are numerous, and you receive certain immediate advantages as soon as you file (automatic stay, for example). However, the benefits that bankruptcy provides come with the rest of the process, including the examination of your debts and the categorizing of your properties and accounts into a bankruptcy estate.

No matter which type of bankruptcy you file for, the bankruptcy estate plays an essential part in your case. In a Chapter 7 case, the estate determines what your trustee can liquidate in exchange for your debt being discharged. In a Chapter 13 case, the bankruptcy estate can determine the structure of your debt repayment plan and the amount you will have to repay to your creditors. While most of your properties and accounts are included in the bankruptcy estate, there are some exceptions.

What’s not in the bankruptcy estate?

1. Any property or accounts you acquired after the date you file your bankruptcy petition. Keep in mind, however, that you must notify your bankruptcy attorney of any property that you acquire within 180 days of the date that you filed for bankruptcy relief. Your bankruptcy attorney will speak with the bankruptcy trustee administering your bankruptcy case to determine whether how much, if any, of such property may be subject to seizure.
2. Child support arrears owed to you from another party.
3. Joint bank accounts that your name is on along with the name of some other party (if the proceeds in such an account don’t actually belong to you).
4. Withheld wages for employee benefits and health insurance programs.
5. Education funds that are tax deferred.
6. Funding from tuition programs qualified under the 2005 bankruptcy act and Coverdell account—if those funds are deposited at least one year prior to filing for bankruptcy or are for the benefit of your child, stepchild, step-grandchild, or foster child. Any funds deposited two years prior to bankruptcy are exempt from your estate, and you can exempt up to $5,850 from your estate if it was deposited between the one and two-year period.
7. Last but not least, the majority of retirement funds are exempt from the bankruptcy estate.

The process of bankruptcy is designed to give debtors recovery and relief and not to punish or leave them without anything to their name while repaying something to their creditors as best as possible. While many of your properties are included in the bankruptcy estate, you’ll still have ample opportunity to exempt and protect most of your assets.

To learn more about filing for bankruptcy in Owatonna, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

When you file a petition for bankruptcy, your case will immediately see the effects of an automatic stay. Whether you qualify for Chapter 7 liquidation bankruptcy or choose to file for Chapter 13 bankruptcy, you can benefit from the court-ordered halt to creditor action that takes the form of an automatic stay. The power of an automatic stay can provide a wide range of advantages to the filer in addition to its ability to prevent creditor harassment and further missed debt payments. Halting wage garnishments, evictions, foreclosures, and more are possible under the restrictions of an automatic stay. With the help of a Behm Law Group, Ltd. bankruptcy attorney in Marshall, MN, you can successfully navigate the rest of your case.

While the benefits that an automatic stay provides are numerous, there are some circumstances where it doesn’t apply. Primarily, you cannot receive the full benefits of an automatic stay if you’ve filed for bankruptcy more than once within a year.

1. Limited Automatic Stay Period: If you’ve filed for bankruptcy once before in the same year, you will have an automatic stay period limited to 30 days the second time you file. This is because the court will assume your second case is filed in bad faith and may be dismissed. With the help of Behm attorneys, you may be able to prove your good faith to the court and receive the full automatic stay period for the creditors you need to prevent from collecting.
2. No Automatic Stay Applied: You will not be granted any automatic stay period if you have already filed twice or more in a year and then file again. With three or more bankruptcies, the court still presumes that you’re filing in bad faith and will not provide a stay to halt any of your creditors. Again, you can work with our attorneys to prove your case is not in bad faith with accurate and plausible evidence.

If you have the evidence to prove your bankruptcy case is filed in good faith, our attorneys will work to draft your motion for requesting that your automatic stay be granted in full. You may not be granted the stay if your previous case was dismissed because you failed to file certain documents or if your financial situation has not changed since the last time you filed. Additionally, if you’ve filed for bankruptcy within the year and now choose to file jointly with a spouse, the restrictions on an automatic stay apply only to you.

If you aren’t granted an automatic stay in your bankruptcy case, your best means to successfully file for bankruptcy is with the help of a professional attorney. Without the stay, creditors can continue to collect debt payments and may even attempt to take action against your property. To get the help and support you need when you file for bankruptcy, contact Behm Law Group, Ltd. at (507) 387-7200 and get started today with an expert bankruptcy attorney in Marshall, MN.

When you file for Chapter 13 bankruptcy, your debts will be restructured into a three to five-year repayment plan that fits your income and financial situation. For those with incomes too high to pass the Means Test or who wish to hold on to most of their nonexempt properties, Chapter 13 is a highly effective way to resolve debts and get a fresh financial start. Organizing your documents, files, forms, and information into a structured repayment plan proposal that the court will accept is a difficult task to manage without the help of a trained bankruptcy professional. Behm Law Group, Ltd. offers the legal support and assistance you need to file a strong case for Chapter 13 bankruptcy in Luverne, MN.

After you propose a Chapter 13 repayment plan that’s accepted by the court, the bankruptcy trustee administering your case will collect monthly payments that may vary based on the disposable income information you provide. The amount you’ll be required to repay in your plan depends on your creditors and your disposable income. For example, you must fully repay your priority unsecured creditors, such as certain tax debts, child support debts, alimony and court fines, while your unsecured creditors only need to be paid much less as determined by several factors. Changes may be made to your plan depending on other claims, income, and financial gains or losses. To prevent your case from being dismissed within your three to five-year repayment period, continued communication with your attorney and the bankruptcy trustee is key.

You may also find yourself facing unforeseen circumstances that make it impossible for you to complete your Chapter 13 repayment plan.

If you find yourself in these circumstances, you may be eligible for the Hardship Discharge. This discharge works similarly to a discharge granted in a Chapter 7 bankruptcy case.  You will no longer have to make a plan payment.  Like in a Chapter 7 case, certain debts, including unsecured debts like medical bills, credit card debts, and more, are discharged. However, priority debts like tax debts, child support debts and alimony are not subject to the Hardship Discharge.

Eligibility: To be eligible for the Hardship Discharge, you have to prove your conditions render you unable to continue with your repayment plan. If you’ve failed to meet repayment requirements for more than a month due to burdens that are out of your control (“for which you should not justly be held accountable”), you have the chance to make your case for a hardship discharge. You improve your chances of the court granting you a Hardship Discharge if you can prove your circumstances are permanent (physical disability, for example) and if you’ve already repaid to your unsecured creditors what they would have received if you’d filed for Chapter 7.

For more information about the Hardship Discharge and filing for Chapter 13 bankruptcy in Luverne, MN, contact Behm Law Group, Ltd. at

Today, Chapter 7 is the most common form of bankruptcy for both individuals and businesses. Because the Chapter 7 process is only available to those with income-to-debt ratios lower than the Minnesota median, bankruptcy is often associated with unemployment or even financial ruin. However, bankruptcy is an option to people and businesses with a wide range of incomes and debts in the form of debt restructuring—Chapter 13 bankruptcy. Behm Law Group, Ltd. offers legal advice and guidance to help you decide which type of bankruptcy in Windom, MN, would be the most beneficial to your current financial situation.

If you have a stable job and your debts weigh heavily enough for you to consider bankruptcy, chances are you’ll gain the most out of a Chapter 13 case. Chapter 13 bankruptcy works to structure your debts into a 3 to 5-year repayment plan that’s suited to your income. The process is designed to give your creditors as much of a return on your debt as possible without crippling your finances or severely damaging your quality of life.

In a Chapter 13 repayment plan, your debts are broken down into several categories based on the priority claim those creditors have on repayment. First, secured creditors are generally the creditors with property secured through a promissory note and security agreement such as mortgages, car loans, or any other debt concerning a physical property. These creditors can be repaid in different ways during your Chapter 13 plan period. In some cases, you will continue to pay these creditors directly rather than through your bankruptcy plan.  For instance, if you have a mortgage with Wells Fargo and you are current with the mortgage payments, you would continue to pay that debt directly to Wells Fargo.  However, if you are delinquent with your mortgage payments, you can pay the mortgage delinquency back to Wells Fargo throughout the 36 to 60 months of your chapter 13 plan rather than all at once.  Of course, you would still have to continue making your regular monthly mortgage payments to Wells Fargo but the delinquency owed before your case was filed would be paid back by the chapter 13 trustee with the payments you make through your chapter 13 plan.  Second, priority debts involved in the bankruptcy process (bankruptcy fees, for example) must also be paid in full.

You’ll also be required to repay certain debts in full regardless of any type of plan period, income, or bankruptcy you file for. These commonly include child support and alimony, most tax debts, and debts from personal injury or death you caused while operating a vehicle while intoxicated.

The rest of your debts will be considered unsecured or nonpriority debts, and these may be paid at a determined portion from 0% to 100%. The amount you’ll be required to repay to unsecured creditors in your Chapter 13 plan varies based on your disposable income, the exemptions you can claim, and the minimum amount those creditors would receive if your assets were liquidated in a Chapter 7 bankruptcy.

Overall, the amount you repay all your creditors, including priority, secured, and unsecured, depends on several financial components. Your debts and other claims you owe that factor into a Chapter 13 plan include:

1. Mortgage owed and arrears
2. Other home loans and arrears
3. Car loans owed and loan arrears
4. Personal property loans
5. Debts on other property loans
6. Alimony and child support
7. Priority tax debts
8. Other priority debts
9. Death or personal injury claims against you
10. Administrative bankruptcy fees
11. Attorney fees

Some debts, like medical bills and credit card debt, may even be discharged in a Chapter 13 bankruptcy repayment plan. For more information about creditors, repayment plans, and filing for Chapter 13 bankruptcy in Windom, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.