Category: Bankruptcy

The legal process surrounding bankruptcy can be overwhelming, both emotionally and practically. For Owatonna, MN residents who have little to no experience in courtrooms, the idea of arguing for debt relief may sound unattainable or unrealistic. However, a financial fresh start through the bankruptcy process doesn’t have to be an impossibility. At Behm Law Group, we provide bankruptcy assistance for individuals from all walks of life. If you’re not sure if you can handle or understand the intricacies of the bankruptcy process, we’re here to help.

We provide step-by-step legal support.

Our bankruptcy assistance team is well versed in bankruptcy laws and regulations. When you request support, our legal team will work with you one-on-one to walk you through the process. We don’t expect anyone filing for bankruptcy relief to walk into our office as an expert. In fact, we can help with the legal terminology, paperwork, and court requirements that come with the process.

The assumption that bankruptcy is a complex legal process is accurate, but having high-quality legal counsel to walk you through the process can make all the difference.

We individualize your bankruptcy assistance.

Starting the bankruptcy process can be terrifying. The idea of possibly losing some assets, your home, or your car can be paralyzing. The good news is that bankruptcy doesn’t mean being left out in the cold, like in the movies. The majority of people filing for bankruptcy in the modern age will not lose any property.

Everyone’s financial situation is different, so our legal team will help review your assets and finalize your bankruptcy plan going forward. Bankruptcy assistance is ultimately a form of debt relief, but it is not the end of your financial journey. With our legal support on your side, we can help you effectively achieve a more positive and much less stressful financial future.

Owatonna, MN area residents in need of bankruptcy support can contact Behm Law Group today at (507) 387-7200, by email, or by visiting our website. Call now for a free consultation and for more information on where to begin your debt relief process.

Individuals working through a bankruptcy case have most likely been introduced to the complexity and nuances of the legal process and court requirements. When you file for bankruptcy, you are required to provide comprehensive details of your income sources, debts, properties, and all other financial information. Not only can this documentation be daunting for most individuals unfamiliar with the process, but other issues may arise in any case that will require additional court hearings, such as creditor objections to the discharge of certain debts, judgment proceedings, and more. The best way to navigate any kind of bankruptcy is to seek the support and guidance of a qualified attorney. If you are looking for an expert bankruptcy lawyer in Luverne, MN or the surrounding areas, Behm Law Group, Ltd. offers complete services to help you work through your case from start to finish.

Bankruptcy Lawyer

We strive to provide professional services for all our clients filing for Chapter 7,12, or 13. If you are working through a case, we are here for you. With a Behm bankruptcy lawyer, you can rely on our expertise for skilled legal services, efficiency, and understanding of how stressful the bankruptcy process can be for any household.

If you’re working through a case and find your current lawyer is unsatisfactory for any reason, you can always terminate their services and seek the help of a different attorney.

Why you might need a new lawyer:

There are many reasons why you might need to replace your current bankruptcy attorney. For example, they may not be maintaining good communication by returning your calls and emails or outlining the process at each step. They could also not have the experience needed to handle your specific case if unusual circumstances arise.

If your attorney doesn’t come to your appointments and court hearings, such as the meeting of creditors, you may find yourself wanting to examine your professional relationship with them. The same is true if they fail to meet filing deadlines or if they file incomplete documentation in your petition.

Lawyer Fees

If for any reason your attorney causes delays in your case, makes more unnecessary work for you, creates additional and unnecessary legal costs, or unexpectedly increases their fees for unexplained reasons, you may want to examine your relationship. When these issues arise, you should make every effort to respectfully engage your attorney first and fully discuss any concerns you may have.  You should always err on the side of caution and not make definitive conclusions and you should always provide your attorney with a good faith chance to redress any concerns you have.  It is important to understand that your attorney may not even be aware that anything is wrong or that you have significant concerns.  It is also important to understand that many attorneys won’t want to take a case where there has been a dispute between someone and one’s previous attorney.  Further, hiring a second/alternate attorney will result in additional legal costs.

Behm Law Group, Ltd. handles only bankruptcy cases. We have extensive experience in Chapter 7 liquidation cases, Chapter 13 reorganization cases, and family farmer and fisher Chapter 12 cases. To learn more about our services or to hire a bankruptcy lawyer in Luverne, MN, contact us at (507) -387-7200 today or stephen@mankatobankruptcy.com.

When a business files a bankruptcy case, it’s generally processed without holding the owners, members, or shareholders personally responsible for business debt. However, there are several scenarios when business owners can be held liable for business debts. Typically, this depends on the type of business, whether it’s a limited liability corporation (LLC), sole proprietorship, partnership, nonprofit, or other form of incorporated company. If you are filing bankruptcy in Mankato, MN and the surrounding areas for your business or your personal debts, Behm Law Group, Ltd. can help you put together a strong petition that will provide long-term, effective debt relief. Our attorneys work with clients filing for personal/business Chapter 7 bankruptcy or personal Chapter 13 or 12 bankruptcy.

Chapter 7

Companies of any type can use Chapter 7 to liquidate their business assets in exchange for the discharge of business debts. This type of bankruptcy, while available to multiple types of businesses, can sometimes force the closure of all company operations. Chapter 11, 12, and 13 are all reorganization bankruptcies that usually allow companies to continue operating while they repay their debts under different and adjusted terms that are much more beneficial. Who can file which chapter does, however, depend on the type of ownership and the type of company involved.

Chapter 13

Chapter 13 is generally a non-business bankruptcy, but filers who own sole proprietorship businesses can use this reorganization process to resolve their personal and business debts together in one case.

Chapter 12

Chapter 12 bankruptcy is also a non-business bankruptcy, similar to Chapter 13, but it is intended solely for family farmers and fishers that make at least 50% or more of their income from farming and fishing operations. Filers that qualify for Chapter 12 use it to resolve their personal and business debts together.

Chapter 11

Chapter 11 is usually reserved for businesses where the businesses propose chapter 11 plans of reorganization and reorganize their debts under markedly adjusted terms.  Through this process, businesses can impair many rights that their creditors hold outside of bankruptcy.  Most of the time, business owners, members, or shareholders will not be responsible for business debts in a Chapter 11 case. There are some exceptions to this rule, such as:

1. A personal guarantee was made in the loan contract. This is often done for corporate credit cards and other unsecured business loans where there is no collateral involved. A personal guarantee clause can be included in loan/credit applications that makes business owners personally liable for business debts.
2. If employers didn’t pay employee withholding taxes. If you fail to pay so-called trust taxes withheld from employee paychecks, such as FICA, etc., you will be personally liable if your business is unable to pay the taxes.
3. The court has pierced the corporate veil of your corporation. If your creditors want to hold you responsible for business debts because of serious business mismanagement or fraudulent activity and the court agrees, you and any shareholders of company stock may be personally liable for the debts of the business.

Bankruptcy

Aside from these specific exceptions, you may not be responsible for business debts in a bankruptcy unless you are a sole proprietor or partner of the company involved.

To learn more about filing bankruptcy in Mankato, MN and how you may be responsible for certain business debts, contact Behm Law Group Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.

Although the concept of debt has been around since ancient times, the unnecessary social stigma of owing money hasn’t lessened much despite the increase in individuals with debts since the development of the credit card. Those people with debts they can’t repay still face socially imposed stresses that result in shame, guilt, and other negative impacts. However, recent studies show that up to 80% of U.S. citizens have debt of some kind, from mortgages to credit card debts. The high prevalence of debt should make having debt more acceptable in our society, but unfortunately that is not the case. At Behm Law Group Ltd., we work with clients filing cases for Chapter 7, 13, and 12 bankruptcy in Mankato, MN. Many of our clients communicate the severe stresses they face with unstable finances and how difficult it is to discuss these problems with their loved ones because of the stigma surrounding debs generally and bankruptcy specifically.

The idea that filing for bankruptcy is somehow a morality issue is simply not true. The misconception behind the social stigma of bankruptcy is that filers handled their finances poorly, perhaps even maxing out multiple credit cards, gambled excessively, or engaged in other irresponsible behaviors.  The truth is that people file for bankruptcy for all kinds of reasons and with many kinds of debt.

In the United States, the most common reasons individuals file for bankruptcy stem from unavoidable life circumstances that are completely beyond their control. Whether someone accumulated debt from various sources or from one sudden event, filers report the following as the most typical causes of bankruptcy:

1. Medical expenses: Because U.S. healthcare bills can be very costly and because the way insurance covers medical expenses is complex, many people file for bankruptcy to resolve large medical debts. These bills are often sudden and unexpected, throwing financial stability out the window.
2. Job loss: The loss of an income will certainly throw a wrench in making debt payments on time, especially if a household has been living paycheck to paycheck. In many cases, a job loss is completely out of an individual’s hands. A recent example of a large period of job losses that workers had no control over was during the U.S. coronavirus shutdowns.
3. Divorce: Sometimes marriages just don’t make sense anymore, and divorce is the right path for a couple. However, divorce significantly changes financial circumstances for both spouses, and legal fees can be high. In addition, ordinary living expenses may become unmanageable because each spouse must support his or her own household on only his or her own income instead of both spouses having the benefit of both incomes to support one household.  Because of this, divorce is listed as a common reason why debts can’t be repaid.
4. Natural disaster: Even with insurance, disasters like fires, floods, and tornados can put a serious strain on a household. If property is damaged from these natural disasters, repairs can add significant costs to an individual’s budget.

All these life events are situations that can’t really be avoided and have nothing to do with morality, responsibility or intellect.  The reality of bankruptcy is that filers are in their financial situations for a lot of reasons and none of the causes may be because of poor morals or bad choices.

To learn more about filing for bankruptcy in Mankato, MN, and the surrounding area, contact Behm Law Group Ltd. by calling (507) 387-7200 or by emailing stephen@mankatobankruptcy.com.

 

In the U.S., filing for bankruptcy is a process for individuals and businesses alike. Of the six different chapters in the bankruptcy code, the most commonly filed individual consumer cases are Chapter 7 and Chapter 13. Chapter 7 bankruptcy works to sell the filer’s non-exempt assets in exchange for the discharge of their debts. Chapter 13, on the other hand, works to reorganize the filer’s debts into a three- to five-year repayment plan suited to their income and reasonable living expenses. If you’re struggling to make debt payments on time and your financial obligations are severely compromising your quality of life, you’re not alone. Every year, thousands of Americans use bankruptcy to resolve debts for long-term financial stability. At Behm Law Group, Ltd., we work with clients in many different circumstances to help them file a successful petition for Chapter 7 or Chapter 13 bankruptcy in Pipestone, MN and the surrounding communities.

The words bankruptcy and insolvency are often equated and sometimes used interchangeably. Legally speaking, however, they are different situations. An individual or business becomes insolvent as soon as they’re unable to repay their debts, but they do not become bankrupt until they start the legal process of filing a bankruptcy petition.

There are two types of insolvency:

• Cash-flow insolvency: This kind of insolvency is a scenario where a debtor, individual or business, cannot pay debts with their income or saved cash. They may have assets that have value but don’t have the required cash flow/income to repay creditors. The value of their assets, if they were sold, could still be enough to pay off their debts but then they would have very few assets to continue their business operations or reorganize and rehabilitate their personal financial situations. Essentially, they don’t have the necessary liquid assets, aka, cash. Often a cash-flow insolvent party can work with their creditors to negotiate timelines, interest, penalties, or other resolutions that allow them to resolve the debt when their cash flow has increased.
• Balance-Sheet Insolvency: A balance-sheet insolvent party doesn’t have the asset value to pay their debts. They might have a short-term cash flow that allows them to make upcoming payments, but they don’t have enough cash or sufficient assets to sell to bring them out of debt. Those in this situation can find relief through various debt repayment agreements with their creditors or a third-party debt settlement provider. Filing for bankruptcy, however, is by far the most effective method of resolution.

When an insolvent party faces the consequences of their situation and chooses to permanently resolve their situation through the bankruptcy process, they meet the legal definition of being bankrupt.

If you are facing cash-flow or balance-sheet insolvency and want to begin the process of filing for bankruptcy in Pipestone, MN and the local region, Behm Law Group, Ltd. can help you put together a successful petition and avoid complications. To learn more, contact us today at (507) 387-7200 or stephen@mankatobankruptcy.com.

At Behm Law Group, Ltd., we work with individuals filing for Chapter 7 liquidation and Chapter 13 reorganization bankruptcy. We also help local businesses file Chapter 7 cases and offer legal guidance and protection to family farmers and fishers working through Chapter 12 reorganization bankruptcy. In the past year, COVID-19 has hit everyone, but it has been especially hard on the restaurant industry. Many restaurants and other food service companies closed down or filed for business bankruptcy. Although Behm attorneys don’t work with businesses filing for reorganization through Chapter 11 business bankruptcy, we still find it important to take note of bankruptcy patterns in current events. Since the coronavirus shutdowns in early 2020, there has been a sharp increase in bankruptcy filings by many in the restaurant industry in Waseca, MN and across the country.

While it’s unfortunately common and often expected for small or family-owned restaurants to struggle during times of economic depression or other financially restrictive events, like a forced temporary closure, the large corporations that own restaurant chains are usually safe from that fate. However, with the prolonged closure during the pandemic and decreased customer bases because of the fear of viral spread, many restaurant chains filed for bankruptcy during the past year.

Ten U.S. restaurants chains that filed for bankruptcy in 2020:

1. Bar Louie: Owned by Sun Capital Partners, Bar Louie’s chain filed for bankruptcy on January 27th with unlisted assets.
2. Cosi: Cosi filed for bankruptcy on February 24th with $40 million in assets.
3. Bravo Italian Kitchen: FoodFirst Restaurants, owners of Bravo (also of Brio Tuscan Grill), filed for bankruptcy on April 10th with assets of $307 million listed.
4. Souplantation: Owned by Garden Fresh Restaurants (also owners of the Sweet Tomatoes chain), Souplantation filed on May 14th with $50 million listed in assets.
5. Le Pain Quotidien: Owned by PQ New York 9, Le Pain Quotidien filed on May 27th with $3 million listed in assets.
6. HopCat: HopCat owners BarFly Ventures (also owners of Stella’s Lounge and Grand Rapids Brewing Co.) filed for bankruptcy on June 3rd with $1 million in assets listed.
7. Chuck E. Cheese: With an impressive asset listing of $1.7 billion, Chuck E. Cheese owners CEC Entertainment filed for bankruptcy on June 25^th.
8. California Pizza Kitchen: CPK owners Golden State Capital filed on July 29th with $13.5 million listed in assets.
9. Sizzler: Sizzler USA filed on September 21st, 2020 with $1 million listed in assets.
10. Ruby Tuesday: With assets listed as $146 million, NRD Capital Management, owners of Ruby Tuesday, filed for bankruptcy on October 7^th.

While the majority of chain restaurants that filed for bankruptcy in 2020 petitioned for Chapter 11 reorganization, there have been hundreds of smaller companies that had to file for Chapter 7 bankruptcy relief this past year.

To learn more about filing for bankruptcy in Waseca, MN and the local area, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.

 

The most common feelings of those who are in a difficult financial situation are a sense of being stranded, trapped, and alone. If you’re struggling to make debt payments on time, the truth is that you are not alone. Each year, thousands of U.S. citizens file for bankruptcy because of debts they will never be able to repay. The social stigma that may linger around bankruptcy today doesn’t take into account the fact that it is actually a vital part of a balanced economy.

The process of bankruptcy is designed to bring those feeling alone with their debts out of their financial stress so they can again become active, participating members of the economy. Behm Law Group Ltd. attorneys work with clients in diverse financial and personal situations, providing legal guidance and protection throughout the process of filing for bankruptcy in Jackson, MN, and the surrounding area.

While it may not seem so to some individuals, many, many people find long-term debt relief through bankruptcy each year. Many of our clients don’t know anyone else in their lives who have experienced it, which is a large part of why they may feel the process is daunting. However, because many are ashamed for having had to file for debt relief, it is not something that they readily share with other people.  It is quite likely that you interact with many people every day, including relatives, who have had to file for relief.

Demographics and other statistics of individual and business bankruptcy filings are reported annually. For the duration of 2021, the effects of the 2020 COVID-19 pandemic on bankruptcy rates can only be projected for now, but all recent reports in the past year tell us that there is no single demographic that never reports cases. This means cases are filed from all demographics regardless of age, marital status, ethnic background, property ownership, or types of debt.

When looking at the averages of that broad range of demographics, the individual and businesses filers look something like the following based on available 2020 reports:

Total bankruptcy cases:                      544,463

Total Chapter 7 filings:                      381,217

Total Chapter 13 filings:                    154,341

Total Chapter 11 filings:                        8,113

Total individual bankruptcy cases:     522,808

Total individual Chapter 7 filings:      369,020

Total individual Chapter 13 filings:    153,236

Total business bankruptcy cases:       21,655

Total business Chapter 7 filings:        12,197

Total business Chapter 13 filings:       1,105

Total business Chapter 11 filings:       7,561

This means the most commonly filed cases were Chapter 7 liquidation at 70.02%; the next most common of Chapter 13 reorganization drops to 28.35%, and finally, Chapter 11 reorganization drops to 1.49% (some additional uncommon chapters totaled to 0.14%).

While no demographic group is exempt from having to file for bankruptcy relief, there are ways to target which regions have the most cases each year. For 2020, the states that topped the list are mostly in the U.S. Southeast, including Alabama, Georgia, Mississippi, Arkansas, Kentucky, and Tennessee.

These averages can give you an idea about who files for bankruptcy, but the truth is that people and businesses of all kinds file. To learn more about the benefits of bankruptcy in Jackson, MN, contact Behm Law Group Ltd. by calling (507) 387-7200 or by emailing stephen@mankatobankruptcy.com.

 

 

While vaccination distribution is greatly improving worldwide conditions in the face of the coronavirus pandemic, there are still residual effects of a global economic shutdown negatively impacting the finances of many people and businesses so far in 2021.  The three stimulus packages in the United States have done their part in protecting many households and businesses from severe financial instability, but that financial support has limitations, and it is not something that people and businesses can rely on indefinitely.  The positive economic effects of the three Covid-19 stimulus packages have mostly been fully realized. Today, many businesses and individuals need to turn to bankruptcy to resolve their debts that were accumulated in 2020. While many different households and businesses can use bankruptcy for debt relief, the pandemic and subsequent shutdowns have greatly affected several industries much more than others. If you are considering filing for bankruptcy as a small business or as an individual consumer, Behm Law Group Ltd. can help. Our attorneys will guide and protect you throughout the process of filing for bankruptcy in Luverne, MN, and the surrounding areas.

 

We primarily work with individuals and small businesses filing for Chapter 7 liquidation or Chapter 13 reorganization bankruptcy. So far, the federal government’s stimulus support and many other aspects of the 2020 CARES Act have protected low-income households from bankruptcy.  Federal loans, federal and state grants and other Covid-19 related financing alternatives offered by various banks and credit unions have helped many small businesses stay afloat during the shutdowns. However, as previously noted, there are several industries that were more highly impacted by the pandemic, and we are beginning to see more and more bankruptcies in these industries.

 

Industries most affected and showing the most increase in bankruptcy rates include:

 

• Real estate showed an increase in bankruptcies from 605 in 2019 to 985 in 2020.
• Oil and gas had an increase from 236 bankruptcies in 2019 to 785 in 2020.
• Restaurants showed an increase from 400 bankruptcies in 2019 to 660 in 2020.
• Entertainment increased bankruptcy rates from 132 in 2019 to 524 in 2020.
• Retail showed an increase from 284 bankruptcies in 2019 to 440 in 2020.

 

These numbers are just a sign of how devastating the pandemic has been for these industries as well as others such as tourism, gaming, and hotel industries.  As we saw with the effects of the 2008 financial crisis, the peak in bankruptcy filings that the economic recession directly caused didn’t happen until 2010.   It is likely that individual and business bankruptcies will begin to greatly surge during the second half of 2021 and throughout 2022 and into 2023.

 

Even with government assistance, many companies can only pay their workers what they’re owed before shutting down. These struggles will continue while our economy goes through its healing process.

 

The good news is that bankruptcy is always an option for individuals and businesses alike. The government-sanctioned process of permanent debt relief through bankruptcy has been and will continue to provide support for those struggling financially.

 

To learn more about how filing for bankruptcy in Luverne, MN, and the local region can help you get back on your feet as an individual or business, contact Behm Law Group Ltd. by calling (507) 387-7200 or emailing stephen@mankatobankruptcy.com.

 

 

 

If you’re struggling financially, you need to know what support systems are in place to help you recover and get permanent financial stability. For many people each year, that support system comes in the form of bankruptcy. Filing for bankruptcy is a highly effective way to resolve debts and get relief from financial stress for those in many different circumstances. Whether you file for Chapter 7 liquidation bankruptcy or Chapter 13 reorganization bankruptcy, you can find debt relief through a legitimate legal process. If you’re considering filing for bankruptcy, getting help from a professional who truly has your best interests in mind is an important part of the process that will protect you from potential bankruptcy pitfalls. With the legal protection and guidance of Behm Law Group Ltd., you can file a successful case for bankruptcy in Waseca, MN, and the surrounding areas.

Specialize in Bankruptcy

There are other firms in the region who handle bankruptcy cases; however, at Behm Law Group, Stephen J. Behm has specialized exclusively in bankruptcy for nearly 20 years. Other firms might have the bulk of their attention on other civil or criminal cases, but our legal expertise is solely dedicated to individual and small business bankruptcy cases.   In fact, since 2003, Stephen Behm has been a certified consumer bankruptcy specialist certified by the American Board of Certification.

Anyone who practices responsibly in bankruptcy will not try to “sell you” on the bankruptcy process.  Everyone’s life circumstances are different.  Depending on the specific circumstances one is facing, bankruptcy is sometimes not the best option.  Any attorney who truly has your best interests in mind always needs to consider that dynamic.  Compared to our small, dedicated firm, “bankruptcy mills” are a dramatically different experience for filers who simply need help with their case.  From the benefit of nearly 25 years of bankruptcy practice experience, it is the opinion of Stephen J. Behm that anyone looking to file a solid, successful case should avoid bankruptcy mills and so-called national bankruptcy law firms.

What to be on the Alert For

Again, the following is based on the professional opinion of Stephen J. Behm.  The biggest sign of a bankruptcy mill or a national bankruptcy law firm is excessive advertising on bulletin boards, radio, and TV commercials; junk mail ads; and even bench signs. Bankruptcy mills advertise affordable prices, but those prices don’t mention their similar approach to every individual case. Bankruptcy mills usually will take on hundreds of cases. Their goal is to process as many cases as possible as fast as possible. They will often hold themselves out as being better and more highly rated or more highly qualified because of their size.  They will indicate that they have ‘filed thousands of cases” or “the most” cases in a particular area.  Some indicate that the bankruptcy process is an “easy process” where one only has to fill out “a bunch of forms”.  The filing of a bankruptcy petition is a serious legal matter and it requires work on your end to provide your attorney with all the documentation and information that your attorney needs to accurately and completely prepare your bankruptcy petition.  Your bankruptcy petition and related schedules are legal pleadings that you sign under oath and subject to penalty of perjury.  The factual representations made in those legal pleadings need to be accurate.  The filing of any bankruptcy case is certainly nothing to fear.  However, it needs to be done correctly and all the disclosures required by the bankruptcy code need to be made.

How They Work

Again, the following represents the opinion of Stephen J. Behm.  Bankruptcy mills and national bankruptcy law firms typically work hard at the initial consultation to get the filer to sign a retainer agreement and provide the first down payment. This initial consultation is usually done with a non-attorney staff member called an “attorney intake coordinator.” The client is then passed to a “prep team” of other non-attorney staff. This team gathers documents and files paperwork for the client.  A client may not even meet an attorney until the Meeting of Creditors.  Choosing to file for bankruptcy relief can be terrifying.  It is essential that one sits down across a desk with one’s attorney and visits personally and in a tactile manner with that attorney.  While videoconferencing tools such as Zoom, which is what we use at Behm Law Group, Skype and GoToMeeting are very helpful, nothing has more value and is more important in the bankruptcy process than being able to visit with your attorney in person.

To learn about the best way to file for bankruptcy relief in Waseca, MN or to determine if bankruptcy is even the right course for you, contact Behm Law Group Ltd. by calling (507) 387-7200 or emailing stephen@mankatobankruptcy.com.