Behm Law Group, Bankruptcy Attorneys

Class is still in session in the Mankato, Minnesota area! Please take your seats, sharpen your pencils, and prepare for your second week of Bankruptcy 101. Last week was all about Chapter 7 which means that, today, we’re going to focus on another type of bankruptcy: Chapter 13.

We at Behm Law Group, Ltd. have prepared another overview to help you decide which type of bankruptcy is best for you. So, without further ado, here’s part one of our Chapter 13 study guide:

1. Q: What exactly is Chapter 13 bankruptcy?

A: Chapter 13 is a type of bankruptcy that allows debtors to gradually repay some (but not all in most cases) of their debts. This is why it’s often called a “wage earner’s plan.”

2. Q: In order to file, do debtors need to have a consistent income?

A: Yes. This is because payments to a chapter 13 trustee are made in regular installments over a period of time.

3. Q: How long does a debtor have to repay these debts?

A: A chapter 13 bankruptcy must last at least 3 years.  Sometimes, however, it can go for 5 years.  The maximum time a chapter 13 bankruptcy case last is 5 years.

4. Q: Do debtors have to confront their creditors through out the process of filing?

A: No. Debtors don’t need to have any direct contact with their creditors.

5. Will Chapter 13 bankruptcy erase all outstanding debts and payments?

A: Debtors are still responsible for paying certain expenses, such as mortgages, but are able to halt foreclosure and allow extra time for other payments such as payments on tax debts and mortgage delinquencies.

6. Q: Who can file for Chapter 13 bankruptcy?

A: Individuals are eligible for this type of filing, but generally corporations and partnerships do not file for chapter 13 bankruptcy protection.

7. Q: Which documents are required for a Chapter 13 filing?

A: At a minimum, four documents are required: a creditor list, the debtor’s documented income, the debtor’s documented property, and the debtor’s documented living expenses.

If you live in the Mankato area and believe Chapter 13 is the right kind of bankruptcy filing for you, contact the professionals at Behm Law Group, Ltd. today. Class dismissed!

For people living in the Mankato and southern Minnesota area, summertime gets to be a little hectic. Schedules are jam-packed with everything from county fairs to work events, Little League practices to Fourth of July celebrations. Busy schedules make it very easy to lose track of time.

When it comes to filing for bankruptcy, however, timing is important. There’s not a generally accepted “best time” of year for people to file for bankruptcy, so it can be difficult to decide which time is personally best for your finances. This summer, however, Behm Law Group, Ltd has developed a four-step process to make your decision a little easier:

1. First, ask yourself a few important questions:

Do bill collectors contact you regularly?

Do you feel afraid to address your finances or to consider bankruptcy?

Do you know how much money you owe?

Do you pay only the minimum on your credit cards?

2. If you answered “yes” to the above questions, it may be time to seriously address your financial situation regarding bankruptcy. This can be a scary realization, so it may be beneficial to recruit some help. After assessing your situation, contact a professional credit counselor or financial advisor. This professional can serve as a support system for both you and your finances!

3. Next, begin collecting all of your bills and expenses, adding together retirement funds, stocks, bonds, and any of your other liquid assets. Though this may be time consuming, it’s worthwhile. Having a calculated total of your assets will give you a much clearer understanding of your financial situation when considering bankruptcy.

4. Finally, compare your total assets to your total debt. If you find that your assets are still worth more than your debt, you may be a candidate for loan modification, refinancing, or creditor negotiation. If you realize that your assets are worth less than your overall debt, it’s likely the right time to file for bankruptcy.

Here in the Mankato and southern Minnesota area, summer goes by way too quickly. Rather than wasting time feeling worried about your finances or putting off tough decisions regarding bankruptcy, take control of your time. Contact Behm Law Group, Ltd today.

If you’re living in the Mankato, MN area, it’s likely you’ve heard plenty of jokes about Minnesotan dialects and language. There are all sorts of local idioms around these parts, from “Duck, Duck, Gray Duck” to “hot dish,” each of which belong proudly situated within the culture of Minnesota.

When it comes to the culture surrounding bankruptcy, it’s no surprise that it has a language all its own. There are all sorts of words that sound unfamiliar, even in a basic definition of what “bankruptcy” means:

“A federally authorized procedure by which a debtor—an individual, corporation, or municipality— is relieved of total liability for its debts by making court-approved arrangements for their partial repayment.”

…What?!

Including a few words from that definition, Behm Law Group, Ltd. has a list of key terms that will help you translate the language of bankruptcy:

1. Liabilities are monetary or legal obligations.
2. Debts are monetary or legal obligations that are owed.
3. Debtors can be people, partnerships, corporations, or municipalities. The debtor is the subject within a bankruptcy case, meaning they owe money or have legal obligations towards another person or organization.
4. Creditors are people or organizations that debtors owe. Typically, they are owed either money or another legal entity.
5. Assets are all forms of property held by the debtor.
6. Liquidated debts are for a specific, numerical amount. While debtors are still responsible for non-liquidated debts, their exact monetary amount is not known.

With this list of terms in your dictionary, it should be just a little easier for you to decipher the complex vocabulary within a bankruptcy filing.

Whether you speak the language of bankruptcy fluently, or you’re still a little confused, the professionals at Behm Law Group, Ltd. can help. For a clear, simple translation of bankruptcy in the Mankato, Minnesota area, contact Behm Law Group, Ltd. today.

If you’re living in the Mankato and the southern Minnesota area, this is your summer to get fit with Behm Law Group, Ltd. At Behm Law Group, Ltd, “fit” doesn’t mean low-fat smoothies, long outdoor runs, or a perfect beach body. Here, “fit” means managing personal financial fitness in order to make the best decisions regarding bankruptcy. Although you may think your finances are in shape, we’ve devised a workout plan to manage your monetary health this summer.

1. Learn the facts: Bankruptcy can happen to anyone. Did you know that over four million families filed for bankruptcy between 2008 and 2010 within the United States alone? Or that many people don’t file for bankruptcy when they should? Knowing the facts about bankruptcy is the first step to improving your overall financial health.

2. Manage your credit: Maximize your credit score by paying bills on time and tracking credit card balances. It can be easy to lose track of payments or bills, especially during summer vacations or holidays. Continued missed payments can lead to both debt and bankruptcy. Be sure to create a schedule in order to follow bill schedules, exceed minimum payments, and avoid accruing debt.

3. Boost your nest egg: Even if money’s tight, try to invest a small amount of each paycheck into a future nest egg. Anyone, whether excessively wealthy or living between paychecks, is susceptible to bankruptcy if they experience a sudden accident, financial crisis, job loss, or serious illness. It’s healthiest to prepare before disaster strikes.

The attorneys at Behm Law Group, Ltd can help get your finances back in shape. When filing for bankruptcy is the healthiest option for your finances, Behm Law Group, Ltd can answer questions, offer advice, or create a monetary workout that best suits your needs. If you live in the Mankato or southern Minnesota area, and you are ready to get financially fit, contact Behm Law Group, Ltd today.

According to a survey conducted by YouGov, far more adults (62%) are worried about the effect bankruptcy would have on their credit reports than the shameful stigma attached to declaring bankruptcy (26%). If you are considering bankruptcy in the Mankato, MN area, Behm Law Group wants to help you understand what declaring bankruptcy means for your credit profile.

How does bankruptcy affect my credit score?

Your credit score is an easy way for you and creditors to calculate the health of your credit profile. Declaring bankruptcy means that you are in a situation where you are unable to make payments on your debt, so it is viewed as a very negative event on your credit report. But the overall impact it has depends on your entire credit profile. If you had perfect credit, you would probably see a large drop in your credit score. However, since most people who declare bankruptcy usually have poor credit and several other negative marks on their credit reports, bankruptcy might make a relatively small dent in a credit score.
Additionally, bankruptcy stays on your credit report for up to 10 years after you file and will continue to affect your credit score until it is removed. Even so, that doesn’t mean you are unable to obtain new credit in the meantime.

How soon can I qualify for new credit?

Bankruptcy is a means of clearing your financial slate and it will take time for you to rebuild your credit history to the point where creditors are willing to grant you a line of credit. Generally it takes 18-24 months of full, on-time payments before you will be able to qualify for most loans. Of course, creditors also take into account your income, debts and assets so you may be a viable candidate for new credit sooner if your financial situation has greatly improved since you declared bankruptcy.

Here are some general timelines for a few of the major types of credit:
• Credit Cards: This type of credit is usually available immediately after a bankruptcy because credit card companies can justify charging you higher interest rates and fees if you have a checkered credit history. Be wary of opening new credit cards, however, as you might easily find yourself deep in debt again. A secured card is a safer way to begin rebuilding your credit because it can be used like a regular credit card but it requires a deposit upfront to cover your credit limit.

• Auto Loan: Auto loans are also often readily available soon after filing bankruptcy thought the interest rates will be quite steep. If possible, you might want to wait until you can qualify for a loan with a more competitive interest rate to avoid paying more in interest over the life of the loan.

• Mortgage: While some lenders will give you a home loan right after filing for bankruptcy, it is best to wait at least two years before applying for a mortgage. Not only will you have time to develop a good credit history, lenders will usually leave your bankruptcy out of the consideration and offer you better interest rates. Plus you will also be able to save for a down payment and decrease the amount you need to take out in loans.

Though bankruptcy may cause your credit to take a hit immediately after filing, declaring bankruptcy can actually help you in the long-term by wiping out most, if not all, of your debt. This allows you to start managing your money better and rebuilding your credit without the burden of monthly payments. If you are ready to start over financially, call Behm Law Group for assistance with declaring bankruptcy in the Mankato, MN area.

When starting a new business, you need to carefully consider many decisions such as where to locate, what type of services to offer, how much equity each owner gets, and what pricing and business models to use. But did you ever think you should be concerned about your partner’s spouse? The bankruptcy attorneys at Behm Law Group, Ltd. believe such a consideration should be duly noted in the Mankato, MN area.

You might think this doesn’t matter because you are going into business with your partner, not their spouse. But consider these questions before you sign on the dotted line and commit your capital to the business venture.

• What if the spouse has undue influence over your partner’s decision-making abilities?
• Does the spouse have any experience in or knowledge about running a business?
• What if the spouse is designated as a successor in the business should your partner suffer an untimely demise?
• Is spouse difficult to work with when in a position of power?
• Does the spouse share your and your partner’s vision for your business?

Of course, you want to trust that your business partner will be able to keep their professional and personal relationships separate for the good of your business. But you could find yourself in an uncomfortable situation if you don’t take some precautions in your business agreement:

1) Make sure all business owners in your venture sign a business agreement which addresses all aspects and possibilities for your business. Leave nothing to chance.

2) Define the spouse’s role in your business. How much influence, if any, a spouse would have? Can he or she make decisions? Can a spouse become an owner? If an owner, what are the terms for selling the spouse’s share?

3) Address the potential need for bankruptcy. At what point should the discussion of bankruptcy be brought up? Who makes the final decision to declare bankruptcy?

Whether you’re contemplating a business agreement or have already filed for bankruptcy, seek our counsel at Behm Law Group, Ltd. We specialize in bankruptcy in the Mankato, Minnesota area and can offer you sound advice for making the best decision regarding bankruptcy for your business before it’s too late.

If you’re a small business owner and you’re considering filing for bankruptcy, it’s important that you have information on which type of bankruptcy you should file for. Filing fort bankrupcy it is definitely not an ideal situation, but sometimes it’s necessary. Having the right information will help you to make the right decision so that you can begin to improve your financial situation in the most effective way possible. If you’re a small business owner in Mankato, MN, then chapter 7 bankruptcy will more than likely be the right option for you. In some cases, however, chapter 13 bankruptcy may be a more viable option.

 Let’s take a look at your options to find out which one you should choose:

 Reasons to choose chapter 7 bankruptcy:

• It will be settled much faster – Chapter 7 bankruptcy cases usually conclude in a matter of months whereas chapter 13 bankruptcy cases can take three to five years.
• It will be easier to start a new business – You can’t file bankruptcy for your business with chapter 13 bankruptcy. It would be much easier to close your current business down under chapter 7 than to try to keep it afloat while also having to deal with chapter 13 personal bankruptcy. You can deal with your debts and start a new and improved debt free business.
• You aren’t required to pay your unsecured debt – In chapter 13 bankruptcy you will be required to pay at least some of your unsecured debt in most cases. You aren’t obligated to do that under chapter 7 bankruptcy.

When chapter 13 bankruptcy may be the right option:

• You have an asset rich business – If you’re a small business owner and you don’t want your business to be shut down because it has a high amount of valuable assets that you want to keep, you should not file for chapter 7 bankruptcy. You may even want to try and settle your debts on your own and avoid filing altogether.
• You want long term protection – If you want more time to catch up on certain payments like your mortgage or car payment under the protection of bankruptcy law, then chapter 13 bankruptcy is a better option.
• You have a unique asset that you want to keep – If you have a certain asset that is not protected under chapter 7 bankruptcy but is protected under chapter 13 bankruptcy, then choose the latter.

Hopefully this information can help you make the right choice. If you’re a small business owner and are considering filing for bankruptcy or just want more information, contact the professionals at Behm Law Group Ltd in Mankato, MN. We’re here to guide you and help you build a better financial future.

Discussing money can be uncomfortable, so much that it’s often a taboo subject at social gatherings or holiday parties. When it comes to filing for bankruptcy in the Mankato and southeastern Minnesota area, some people may feel embarrassed or ashamed, perhaps because they believe filing for bankruptcy is an uncomfortable public admission of a difficult financial situation.

Fortunately, a recent study shows that these embarrassed individuals are in the minority. Only about one quarter of Americans believe that shame is a major disadvantage of filing for bankruptcy, which is likely because bankruptcy has become quite common within American households:

• 24% of households have considered filing for bankruptcy
• 18% of households have filed for bankruptcy
• 32% of households with children under 18 have considered filing for bankruptcy
• 25% of households with children under 18 have filed for bankruptcy

Now that bankruptcy has become a reality for more households, there are other disadvantages that outweigh embarrassment when filing. Rather than considering shame, Americans now tend to feel more concerned about fiscal, credit-based matters, such as their credit score or relationships with businesses.

Bankruptcy is not something to feel ashamed about and, fortunately, more than half of Americans agree. Fifty-five percent of those interviewed said that a major advantage of bankruptcy is getting a fresh start. Filing for bankruptcy can be a difficult decision and process, but receiving another chance at financial success is certainly an advantage.

Bankruptcy has become a personal subject for nearly one of four adults within the United States. With that statistic in mind, it’s important to find a bankruptcy specialist that appreciates your financial needs. At Behm Law Group, Ltd, we understand the importance of a fresh financial start in the Mankato and southeastern Minnesota area.

Three quarters of Americans agree—there’s no shame in asking for financial help. Call Behm Law Group, Ltd today.

Not committing bankruptcy fraud seems like a no-brainer to most people, and Behm Law Group always counsel their clients to be honest and transparent when filing for bankruptcy in Mankato MN. But some people think that they are above the rules or can get away with the lies, and bankruptcy fraud does happen. Just the other week the Minneapolis Star Tribune, published an article about a jewelry store owner who had filed for bankruptcy and claimed that his jewelry had been sold, dismantled, or melted down. A federal bankruptcy judge claimed the store owner owed $253,000 but his creditors only received $17,500.

A Minneapolis attorney, Nauni Jo Manty, was appointed as a trustee in this case. It took four years of dogged effort on her part between both Minnesota and Wisconsin. Finally, last month, Rohricht pleaded guilty to hiding bankruptcy assets and is currently awaiting sentencing.

The moral to this story is if you think lies and complexity will thwart your creditors, guess again. If you read the entire article, you’ll be able to appreciate how much determination it took to render justice.

If you think back to when you were owed money, did you simply shrug your shoulders when it wasn’t repaid on time? Or, did you relentlessly pursue what was owed?

We guess that if you had any difficulty whatsoever, you remember the person who owed you, the amount of money owed, and the circumstances very well. In fact, your memory probably was so good that you relayed your predicament to any and all who would listen especially if you were repaid late or never at all.

The same can be said for creditors. They provided a product or service to you on good faith and expect to be paid accordingly. If you lie or hide assets during a bankruptcy proceeding, it may take some time, but justice will be served in the Mankato, MN area, too.

There’s one more thing you may want to note that’s even more valuable than any of your assets. What about your reputation? It can take many years to repair that. In some cases, maybe never.

While there can be legitimate reasons for filing bankruptcy, don’t do so under a false pretense. Creditors can be very observant. So can trustees.

To learn how to file for bankruptcy legitimately, consult the bankruptcy attorneys at Behm Law Group, Ltd. in the southeastern Minnesota area.

Can a business owner lose everything because of what they said? Well, business mogul and 2016 presidential candidate Donald Trump recently came under fire for some of his remarks regarding Mexicans and others who cross the U. S. border illegally. While this is a far cry from the bankruptcy cases Behm Law Group typically handles, let’s take a look at whether freely expressing your views could land your Mankato, MN business in bankruptcy.

The Trump Situation

Univision had already severed its contract with Donald Trump when he declared that he couldn’t continue his tv show, The Celebrity Apprentice, because of his candidacy. Nonetheless, NBC blasted Trump for his comments regarding Mexicans as well. Some wonder if the rebuke was because NBC would lose money by not continuing that show.

Other companies and persons who currently do business with Donald Trump are reconsidering their alliance with him. For instance, Cheryl Burke and Thomas Roberts, the two co-hosts of a pageant produced by Trump, will not participate in the next pageant.

Despite heavy criticism and loss of business partners, Trump remains steadfast in the accuracy of his comments, citing both truth and free speech.

Could It Happen to You?

Obviously, Donald Trump is a big celebrity personality and a billionaire to boot, so losing the revenue stream from his television show and a few business partners isn’t going to force him into bankruptcy. But what if you have far less money in reserve and really depends on a steady stream of customers for your small business to make a profit?

The short answer is yes, but it’s not truly because of what you actually said. Everyone is able to say whatever they please through the right of free speech. However, the 1st Amendment does not protect against others reacting negatively to your views. When consumers don’t like the views a business owner holds, they will often boycott that particular store or service. Furthermore, they will probably tell their friends and family to avoid shopping at that business as well which means you could lose even more revenue and gain an unfavorable reputation that could be hard to shake.

In the 21st century, word of mouth is still critical to business success and your customers show approval or disapproval with the ways they spend their money. So while you have the right to say whatever you want, as a business owner you might want to be careful. An off-color comment could potentially lead to a domino effect that ends in bankruptcy.

A situation like this certainly be one of the most interesting set of circumstances Behm Law Group Ltd has come across in our years of practicing bankruptcy law. But whether a comment you’ve said has cast a negative cloud over your business or you’re facing more mundane financial problems, contact Behm Law Group when you need to file for bankruptcy in Mankato, MN.