Delinquent Mortgages in Chapter 13 Bankruptcy

Behm Law Group provides bankruptcy advice for Mankato, MN residents.

The bankruptcy attorneys at Behm Law Group, Ltd., believe everyone deserves a second chance. You want your self-esteem and dignity back. You want to be a contributing member and a better citizen in society. You dream of financial solvency.

Make that dream become your new reality, for a second time. First, let’s consider your bankruptcy dilemma. You, like everyone else, need shelter. A home mortgage, however, can be quite pricey.

Let’s say you are delinquent with your mortgage by $10,000.00. You filed for bankruptcy. At this time, things have changed. While you now have an income, the mortgage is still delinquent. Under 11 U.S.C. Sec. 1322 and 1325 of the Bankruptcy Code, in a Chapter 13 bankruptcy, you can “cure” or pay back the delinquency over a period of 60 months. How? You would be submitting your monthly payments to the Chapter 13 trustee for those 60 months. The trustee would in turn ensure the payments were received by the mortgage lender in question. One stipulation is that you must remain current in your mortgage payments during your Chapter 13 plan.

Sixty months may seem like a long time, but the bankruptcy attorneys at Behm Law Group, Ltd., know that time will pass quickly. Just having a plan can be a big dream booster for that opportunity of a second chance. It won’t be long until making payments will become a habit for you. Pretty soon you’ll be out of Chapter 13 bankruptcy.

Your strengthened self-esteem will be waiting for you. You will have relinquished those bouts of not knowing what to do. You will have acquired some financial discipline. After those 60 months, prepare for the worst, but hope for the best. If feasible, maybe you could continue those “mortgage payments.” Instead of giving them to a trustee, why not put them in a savings account as a payment to yourself. You will accumulate a buffer to hedge against future financial disasters.

We know you can’t predict the future. You can only plan the best that you can. Should you find yourself in financial difficulty, give us a call. Like we stated, everyone deserves another chance.

5 Financial Tips to Avoid Bankruptcy in Mankato, MN

Financial solvency gives you freedom, independence, and peace of mind. You get the freedom to be your own boss in financial matters. You purchase what you want, while living within your means. Bankruptcy may either be a thing of the past or something you’ve never experienced.

Financial independence and peace of mind are wonderful. They lift your spirits and keep stress away. The bankruptcy attorneys at Behm Law Group, Ltd. believe that following five financial tips will help you to remain financially solvent in 2015:

1) Establish goals for 2015. What do you want to have accomplished by January 1st, 2016? How will those goals impact your finances? Will you have a financial cushion to protect you from bankruptcy? The bankruptcy attorneys at Behm Law Group, Ltd., want you to carefully consider your responses before making your final decision.

2) Prepare a monthly budget. Look at your expected 2015 income, and carve out those expenses that are essential for your family to live. Assuming you have a positive number after subtracting expenses from income, you are well on your way to avoiding bankruptcy. If your number is negative, double check your expenses. Did you only include needs, or have some “wants” slipped in?

3) Keep track of your monthly expenses. This is slightly different from #2. With a budget, you’re noting goal-post numbers that haven’t occurred yet. Here, you’ll want to document all of your actual expenses each month. Then compare and analyze those numbers with your budgeted items. If any problem areas are edging you toward bankruptcy, you’ll be forewarned.

4) Either spend less or earn more. Behm Law Group, Ltd., realizes this can be easier to write than to do. Basically, be determined to spend less than what you earn. If you don’t like that constraint, then find a way to increase your income in 2015.

5) Spend wisely. After your essential living expenses are covered, spend any remaining money wisely. Perhaps some could be saved or invested. You could consider any monies saved to be an investment in yourself and your family. Is each purchase contributing toward your goals, or deviating from them? You decide.

Mankato residents: we hope these tips will spur you on to greater financial freedom and independence in 2015!

How is Bankruptcy Like a Hockey Game?

Behm Law Group discusses bankruptcy with an analogy every Minnesotan will understand.

When fierce competition strikes in a hockey game, the puck goes wild. It’s slammed, bounced, struck, whipped, and even coddled by players striving to obtain that coveted goal. As a hockey fan myself, I stay riveted to my seat, especially when the home team scores!

Sometimes you  feel like that hockey puck when life’s circumstances catapult you in directions you never anticipated. Only this time, it isn’t a game. Bankruptcy never is. I would never treat it as such either.

You see, when you consult with me or Isabelle, you become part of our home team at Behm Law Group, Ltd. We specialize in bankruptcy. That doesn’t mean we don’t know how you feel or understand what you are experiencing. We’ve had many bankruptcy clients in Mankato, MN over the years. We’ve heard similar stories throughout.

Behm Law Group, Ltd. will treat your experience as the unique story that it is, and stand by you throughout the entire process. Your circumstances are unique to you. Mankato, this means, as bankruptcy attorneys, we owe you a professional, courteous solution that works for you.

Bankruptcy law can be complex, especially for the uninitiated. At Behm Law Group, Ltd., we can break it down for you, so you can understand your options without the complicated legal jargon. We aim to work with you, not to alienate you.

It’s no fun feeling like creditors are brutally and continuously bashing you against the boards or slapping you about like a helpless hockey puck. Although you may find yourself in unfavorable circumstances even with bankruptcy, you have rights. Give Behm Law Group, Ltd., the chance to explain what those rights are.

As bankruptcy attorneys, we have witnessed other Mankato clients overcome bankruptcy. They have treated bankruptcy as the temporary setback that it is. Once overcoming this setback, they have gained a fresh start in life. So can you.

The game of life certainly doesn’t feel like much of a game, unless things are going well. Let’s keep the hockey puck on the ice rink where it belongs. Consult Behm Law Group, Ltd. Together we can put bankruptcy in its place.

The Creditor/Debtor Relationship in Mankato, MN Bankruptcy

Behm Law Group helps Mankato, MN bankruptcy filers deal with creditors.

When you pay off your credit card bills and loans promptly, life sails along smoothly. You’re in charge. No head-in-the-hands posture for you.

When unexpected circumstances rip your life apart and you have to file for bankruptcy in Mankato, Minnesota, you could find yourself in an adversarial dance with one or more creditors. No, running away, while tempting, won’t get the bills paid. The bankruptcy attorneys at Behm Law Group, Ltd., want to call your attention to 11 U.S.C. Sec. 525. It essentially states that if you have completed bankruptcy or have your debts discharged in bankruptcy, a creditor may not legally continue to pursue you for collections. Furthermore, after you have filed for bankruptcy, a creditor may not sell your debts to “debt purchasers.” If a creditor violates these rules, you can sue and get a judgment for monetary damages awarded against the offending creditor.

Bankruptcy law in Mankato, MN stipulates you need to account for your debts; however, the law is not arbitrary in how this is done. You needn’t succumb to verbal abuse or overly aggressive tactics by creditors.

Behm Law Group, Ltd. specializes in bankruptcy. We can get you from devastated to optimistic for the future. Bankruptcy may be a roadblock, but it’s temporary. We can help you navigate through the legal complexities you should never try to learn on your own.

Mankato, one way to stay in charge is to carefully consider each and every purchase. Err on the side of saving too much rather than not enough. The bankruptcy attorneys at Behm Law Group, Ltd. know this is easier said than done, especially after disaster has struck. This financial philosophy is still sound, however. It takes 21 days to create a habit. Habits don’t discriminate. That 21 days works for financial habits, too.

Just like any other specialized helpers you can think of, Mankato, bankruptcy attorneys help, too. Let Behm Law Group, Ltd., earn the right to be your firm of choice.

Inheriting Money & Bankruptcy in Mankato, MN

Behm Law Group explains what happens to inherited money when you file for bankruptcy.

Sometimes, one unfortunate outcome of the holidays is financial hardship. With an unknown future, you’re not sure whether or not to file bankruptcy. Consult with Behm Law Group, Ltd., to discuss your options. Residents of Mankato, MN: if your final decision is to file bankruptcy, we’ll walk you through the steps you need to take and inform you of what you can expect.

Let’s say that you have no foreseeable income. You file for bankruptcy. Then a relative unfortunately passes away, and you inherit some money. Can you keep that money, Mankato? The bankruptcy attorneys at Behm Law Group, Ltd., want you to be aware of the bankruptcy law regarding the inheritance of money:

Under 11 U.S.C. 341 and 521, if a person files for bankruptcy relief and then inherits money or property or receives a life insurance payment or a payment on a divorce property settlement within 180 days after the bankruptcy filing, any such money or property becomes property of the person’s bankruptcy estate and can be used by the bankruptcy trustee to pay that person’s creditors.

This means that within six months of the bankruptcy filing, that money may not necessarily be yours to keep, depending on the amount of your outstanding debt and the amount of the inheritance. With less than two months to affect any changes in the 2014 taxes you will pay at the end of the year, an inheritance received before 1/1/2015 could potentially change your taxes due. Mankato, the bankruptcy attorneys at Behm Law Group, Ltd., are getting a bit technical with you. We give you this information to provide you food for thought. Of course, there are more details to cover. We’d be more than happy to discuss any particulars on bankruptcy. Bankruptcy is our specialty, and we have many years of experience and expertise.

Receiving an inheritance doesn’t always mean someone has passed away. Suppose you’re named on a trust. The terms of the trust state you will receive money on a specific date. That would also constitute an inheritance for Mankato residents.

As you can see, nuances and other interpretations exist. We don’t expect our fellow Mankato, MN residents to become experts at bankruptcy law. But, we want you to understand some parameters, so you can make an informed decision. We’re the bankruptcy attorneys at Behm Law Group, Ltd., and we’re at your service. Happy Holidays!

“Cramdown” Under Chapter 13 Bankruptcy in Mankato, MN

Behm Law Group provides bankruptcy assistance for residents of the Mankato area.

When traveling somewhere, many people cram all sorts of necessaries in their suitcases. The idea is to compress space, yet take what you want. Under 11 U.S.C. Sec. 1322 and 1325, when applied to Chapter 13 bankruptcy cases, a cramdown of a vehicle debt conveys a similar meaning.

Let’s consider one example for folks in Mankato, MN. The bankruptcy attorneys at Behm Law Group, Ltd., would like you to imagine you take out a vehicle loan for $20,000.00 at 20% interest, and this loan becomes effective more than 910 days before filing for bankruptcy relief. At the time of the bankruptcy filing the vehicle is only worth $10,000.00. In a Chapter 13 bankruptcy case, you could cramdown the $20,000.00 debt to the present $10,000.00 value of the vehicle. In addition, you could cramdown the interest rate from 20% to 5%. Now, instead of paying the vehicle lender, you pay the Chapter 13 trustee the $10,000.00 at 5% interest. This means that you are no longer paying the vehicle lender directly.  Rather, the chapter 13 trustee pays the vehicle lender with the payments you make to the chapter 13 trustee but pursuant to the modified terms as denoted above.  At the conclusion of the Chapter 13 bankruptcy, you would get the vehicle title. You would have effectively crammed down or decreased the amount of your vehicle debt.

But, wait! Don’t rush out to buy a vehicle using Chapter 13 as a strategic maneuver just so you can decrease the amount of your vehicle payments, Mankato, Minnesota. The bankruptcy attorneys at Behm Law Group, Ltd., recognize there are stipulations for who can file for a Chapter 13 bankruptcy. You may or may not qualify. You would still need a source of income to make payments under Chapter 13.

A cramdown is just one feature of a Chapter 13 bankruptcy. Of course, Chapter 13 isn’t the only type of bankruptcy either. Mankato, MN, feel free to call the bankruptcy attorneys at Behm Law Group, Ltd., if you are experiencing financial difficulties. We’d be more than happy to discuss your options with you.

Bankruptcy Law Regarding Spousal Debts for Mankato Residents

Behm Law Group helps clients balance bankruptcy and divorce spousal debts.

According to Minnesota bankruptcy law, Chapter 7 bankruptcy differs from Chapter 13 bankruptcy in the handling of spousal debts during a divorce. Chapter 7 bankruptcy is for a liquidation of debt. Chapter 13 bankruptcy is for a reorganization of debt. Therefore, under Chapter 13, debts assigned to spouses in divorces are discharged. Under Chapter 7, that is usually not the case.

For Mankato residents, that means if a husband is ordered in a divorce decree to pay a $10,000.00 Discover Card debt that is in both spouses’ names with the other spouse being held harmless, the hold-harmless obligation to the other spouse cannot be discharged in a Chapter 7, but may be discharged in a Chapter 13. The bankruptcy attorneys at Behm Law Group, Ltd., state that if that same husband files for Chapter 7 bankruptcy, and Discover Card pursues the ex-wife to collect on the debt, and she pays something toward that Discover Card bill, then the husband is liable to the ex-wife for what she had to pay Discover Card. This is because the divorce decree held her harmless in that obligation. Had the husband filed for Chapter 13 bankruptcy, however, he could have gotten that obligation discharged as well.

Generally, debtors use Chapter 13 when they have enough equity in their secured assets to make this path worthwhile. These debtors must have a regular source of income and be able to make payments on any instituted Chapter 13 plan. The Chapter 7 option leads to a clean slate where heavy debt is eliminated, and none of it needs to be repaid.

This is just a snapshot of the decisions Mankato residents contemplating divorce need to make. The bankruptcy attorneys at Behm Law Group, Ltd., can help you navigate the bankruptcy laws affecting your situation. You see, bankruptcy is our specialty.

Divorces are difficult enough without adding confusion over how to handle debt. Make your transition to single life smoother by considering the options with Behm Law Group, Ltd. We can map out a plan together. Mankato, MN bankruptcy may not have been your initial goal, but if it becomes your reality, we have you covered.

The bankruptcy attorneys at Behm Law Group, Ltd. offer personal, practical bankruptcy advice in a non-threatening, compassionate manner. Call for a consultation today.

Mankato Residents: Is Bankruptcy Delaying Your Career Aspirations?

Behm Law Group understands the struggle between making money and following your dreams.

How many Mankato residents are avoiding bankruptcy by doing anything and everything, except what they are best at? What you are best at many times comes so easily to you, but you think you were destined to do something else. Sometimes what you are best at is what you should be doing. The bankruptcy attorneys at Behm Law Group, Ltd. specialize in bankruptcy, because that’s what we do best.

We understand that sometimes, in this game of life, dreams have to be delayed a bit. But, don’t delay indefinitely. In fact, study your niche skill while you are working at that have-to job. Mankato residents, along with many others, fear bankruptcy. That’s normal. If you take the time to hone your gift and plan your course of action to give that gift of skill income potential, you won’t need that have-to job any longer. For now, you will be earning money by doing what you like to do. What is wrong with that? The more you enjoy what you do, the more ideas you will have on how to grow and to learn more. Behm Law Group, Ltd. can attest to that.

Find your niche, and you find your voice. Find your voice, and you discover your purpose. Purpose leads to potential. Potential maximizes dreams, but remember, nothing is perfect in this world. As a Mankato resident, if you find yourself facing bankruptcy along the way, turn to Behm Law Group, Ltd. It doesn’t mean your dream is dead. It means it needs a different path. The bankruptcy attorneys at Behm Law Group, Ltd. want to help you discover that optimal path. One bump in the road doesn’t signify the end. It only makes the trip more exhilarating. As long as you learn and grow along the way, nothing should be able to stop your momentum.

Momentum equals small steps as well as huge leaps. Mankato residents, embrace your niche skills, and command your place in the world. The bankruptcy attorneys at Behm Law Group, Ltd. have experienced momentum. We also understand devastation. If you fall into bankruptcy, we’ll give you a hand. We can hardly wait until you get to the forward momentum part. Cheers!

Don’t Want to Think About Bankruptcy This Christmas? Practice Some Smart Spending

Behm Law Group encourages Mankato residents to keep a budget and stick to it to avoid financial hardship this holiday season.

Christmas, you say? It’s not even Halloween yet! We know. The bankruptcy attorneys at Behm Law Group, Ltd. want Mankato residents to plan ahead for the holidays. You will likely buy at least one Christmas present this year. Try not to make it an impulsive purchase. Expenses add up fast with impulsive buying, especially when you use your credit card.

This year, take the time to plan ahead. Decide the number of presents you will buy as well as the maximum dollar amount for each. Stick to your plan. Be alert to sales, and buy those items well before Christmas. Then, when everyone else is scrambling at the last minute and crowding the stores, you can relax, for that task has already been accomplished. No matter how much those holiday ads tug at you, resist the urge. Stick to your dollar limit. Maybe reward yourself with a walk in the park or with special family time with your loved ones. Behm Law Group, Ltd.’s attorneys value that special time, too. You can never spend too much time with loved ones. Cherish the memories, we say.

Just think, Mankato, you can avoid bankruptcy more easily by adopting stricter financial habits year-round. Just because you avoided an impulsive spending spree by the year’s end doesn’t mean you should switch gears for those other months. Regularly keeping your debt low will eventually become a habit you can be proud of.

Don’t promise to buy anything for anyone that is more than you can afford. Instead, try giving that person a special experience, with or without a small gift. Usually, experiences with sentimental value can mean more than some expensive gift anyway and, above all, show you truly care.

If Mankato, MN residents keep their Christmas debt low, they will be less likely to require the bankruptcy attorneys at Behm Law Group, Ltd. However, if overwhelming debt and financial struggles become the Scrooge of your holiday, please give us a call. Behm Law Group, Ltd. will help you turn that debt and specter of financial stress into the Ghost of Christmas Past.

A House Fire Can Lead to Bankruptcy: Fire Safety Tips for Mankato Homeowners

A house fire can produce devastating financial hardship. Follow these tips to protect your Mankato home from a fire.

Halloween can be great fun. Costumes and trick-or-treating cultivate grand memories. Two caveats are in order. First, watch those candles. Who hasn’t put candles in carved-out pumpkins or even on the windowsill? If left unattended, flaming candles can lead to large fires. Behm Law Group, Ltd. recommends either using flameless candles or monitoring the flames of the other variety. What Mankato, MN resident wants to experience bankruptcy due to fire devastation?

Please, enjoy the holidays. Just be careful. Depending on your insurance coverage, you may or may not be unscathed when an accident occurs. Even if the flame doesn’t touch a flammable object, the freshly melted wax is hot. Does the wax drip on wood, for instance? Not a good scenario. If need be, snuff those flames to prevent them from getting too hot. You can always re-ignite candles during dinnertime for that soft, flickering glow. Of all the things that could cause bankruptcy, Behm Law Group, Ltd. would hate for the cause to be a preventable accident.

Did you know, Mankato residents, that kitchen fires are one of the leading causes of destructive fires in the home? When you are making those gooey, spooky delicacies, be mindful of what you’re doing. Don’t keep the oven on when not in use. Don’t put something flammable on top of or in a hot oven. Attend to any appliance that’s in use. Bankruptcy in Mankato, MN is not fun. It’s even less fun when you know it could have been prevented.

Behm Law Group, Ltd. suggests you don’t light candles when you are tired. Once you sit or lie down after a hard day’s work, the lure to sleep can be overpowering. You wouldn’t want to awake to a burning home. Use caution. Be safe. Keep your home intact and bankruptcy at bay.

Sleep deprivation works against you when cooking, too. You thought you turned the burner off. But, then, maybe not. Don’t be caught off guard. Who wants to cook when tired, anyway? The bankruptcy attorneys at Behm Law Group, Ltd. wouldn’t. If you do happen to have an accidental fire, and bankruptcy looms in Mankato, contact Behm Law Group, Ltd. We can help you through the fright and fear of a ghoulish bankruptcy. Let us do our “tricks” and treat you with the dignity and respect you deserve. And, above all else, have a safe holiday!