Category: Bankruptcy Attorneys

The days leading up to making a decision to file for bankruptcy relief can be utterly chaotic. Filing for bankruptcy can be very stressful and scary because bankruptcy is highly nuanced and many people, including many attorneys, don’t have a working understanding of the process. With Behm Lawn Group , bankruptcy attorney on your side, you can navigate the particulars of bankruptcy in Mankato, MN and know that you’re making the best possible decisions for you and your financial future.

Bankruptcy Attorney can Help You Consider Bankruptcy

Deciding that it’s time to consider bankruptcy can feel devastating. For many, the decision is preceded by months or even years of intense financial and emotional stress. In many cases, many people invest years of hard work to try and earn enough to avoid having to consider bankruptcy.  Considering whether to file for bankruptcy relief and, after due consideration, going through the process doesn’t have to be overwhelming. While bankruptcy law can be complex, a qualified bankruptcy attorney can help walk you through the legalities of completing the process and guide you into a new, much less stressful future.

Increase Chances of Success

It’s important to understand that even if you think you have a clear-cut case, hiring a bankruptcy attorney to help you figure out a plan will increase your chances of success. Plus, having a seasoned professional who specializes in bankruptcy law can help you establish peace of mind and stability throughout the entire process. When everything else feels uncertain, having someone on your side who is very familiar and comfortable with the process can make a huge difference.

A major benefit of having an expert bankruptcy attorney is having someone familiar with all the paperwork, documents, and record-keeping necessary to reach a successful arrangement. No matter how organized you are as an individual or business owner, knowing exactly what forms and documents you need to present can strengthen your case and give you a better idea of what to expect going forward.  Missing necessary paperwork can weaken and complicate your case.

Rather than leaving anything to chance or simply a lack of expertise, a bankruptcy attorney can provide the support you need to file a bankruptcy that appropriately fits your financial circumstances. With the support of Behm Law Group on your side, you don’t need to be an expert in bankruptcy law in order to successfully file for bankruptcy relief and obtain a true financial fresh start. Our bankruptcy attorneys will walk you through your bankruptcy step-by-step and ensure that you find a financial balance that will allow you to move forward in your financial life. Mankato, MN residents in need of a bankruptcy consultation can contact us today at (507) 387-7200 or visit our website for more information.

If you’re struggling to meet debt payments and are considering filing for bankruptcy to receive long-term debt relief, it’s important to take into account how difficult the process might be. If you have several debts that are secured by some of your property, the bankruptcy process may quickly become complicated. For any given bankruptcy case, the levels of complexity often warrant the guidance and assistance of a bankruptcy attorney. Largely due to the nuances of the bankruptcy code and federal regulations in addition to state rules, the help of a bankruptcy attorney in Windom, MN, can be critical in filing a successful case.

Bankruptcy Attorney

Both the bankruptcy code and the federal bankruptcy rules dictate how a case will be processed in any given state. The state bankruptcy laws also play a large part, but the foundation of every case is determined by federal bankruptcy code itself.

Bankruptcy Attorney help with the Code

The core foundation of the structure of bankruptcy is the bankruptcy code. The bankruptcy code lays out how each specific area of any case will be treated, depending on several factors such as chapter, income, debt amount and types, and exemptions claimed by the debtor. These are just a few of the circumstances that attorneys must consider as they review any case. In basic terms, the bankruptcy code determines:

1. who can file
2. which chapter they can file for
3. the responsibilities of the filer
4. the role of the trustee
5. what properties will be exempted or liquidated
6. which debts are discharged
7. which debts are excepted from discharge
8. how creditors place a claim on the debt
9. which order creditors are repaid in (i.e. priority debts come first)
10. the differences in process of each chapter

The bankruptcy code decides what structure your case will take. Federal regulations are used to implement the bankruptcy code.

Federal Bankruptcy Rules

The federal bankruptcy procedural rules augment the bankruptcy code and help bankruptcy cases move through the process smoothly.  The rules listed here are a basic description of how each step of the process creates a comprehensive system that is flexible to each case, no matter the conditions.

Rules:

• 1002: This rule of commencement starts the case with a petition filing and a chapter determination.
• 1005: This rule designates the caption of the petition, including the location and name of the court and the name of the filer.
• 1006: Fee of filing is determined by this rule, including bankruptcy fees, waiver forms, or installment payment applications.
• 1007: This rule determines important documents including lists, schedules, statements, time limitations, and other forms.
• 1008: This is usually the final rule to consider. It processes any final verifications needed of the petition and accompanying documents.

Summary

If you need a bankruptcy attorney in Windom, MN, to file for bankruptcy or if you would like additional information on the bankruptcy code, the bankruptcy process and the federal rules of bankruptcy procedure, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.

 

 

Using bankruptcy to permanently resolve common debts like credit cards, medical expenses, mortgages, car loans, personal loans, and even tax debts can be an effective, yet complicated process. Bankruptcy law is nuanced and shifts in the way it handles the financial situations presented in each petition on a case-by-case basis. There are two types of individual consumer bankruptcy, Chapter 7 and Chapter 13. Chapter 7 works to discharge debts in exchange for non-exempt asset liquidation. Generally, filers can protect their assets like their house, car, furniture, and appliances from liquidation with the available exemption allotments provided either under the bankruptcy code or under Minnesota state law.  Chapter 13, on the other hand, reorganizes debts into a manageable repayment plan. Secured debts (vehicle loans, mortgage delinquencies) will generally be repaid under much more favorable terms that are adjusted to your monthly income and monthly reasonable and necessary living expenses.  Generally, unsecured debts are only partially repaid 0-50%.  The chapter 13 plan lasts three- to five-yeas. All your disposable income (monthly income not needed for your reasonable and necessary living expenses) will go towards making monthly plan payments to the chapter 13 trustee. If you’ve considered either of these bankruptcy options, Behm Law Group, Ltd. can help. With a Behm bankruptcy lawyer in St. Peter, MN and the surrounding area, you can receive guidance, support, and legal protection throughout your case.

Benefits of Having a Bankruptcy Lawyer

Not only does a bankruptcy lawyer essentially construct your petition with you, walk you through pre- and post-bankruptcy requirements, and represent you during your bankruptcy hearing, the lawyer is also there to support you even after your case has ended. If you file for Chapter 13 bankruptcy, your attorney will help you work through any changes in income or living expenses or plan adjustments throughout the three to five-year repayment period.

Chapter 7

If you file a Chapter 7 case, your attorney will help you work through any issues that might necessitate the reopening of your case. There are several reasons why a Chapter 7 case might have to be reopened even after you have received your discharge order and your case has been closed for several months or even several years.

Bankruptcy Lawyer Can Help With Harassment

1. There are additional properties or assets that need to be disclosed in the bankruptcy paperwork that were not listed when the bankruptcy case was filed.
2. The attorney for the filer needs to add creditors that may not have been included when the bankruptcy case was filed.
3. The attorney for the filer needs to sue a creditor who may be harassing the filer and not respecting the discharge injunctive mandates of 11 U.S.C. § 524.

Some case re-openings are beneficial to the filer, such as:

1. They need to add a debt they forgot to list in their petition.
2. They forgot to disclose an asset that could result in the revocation of their discharge if discovered.
3. They want to file a motion to avoid a judgment lien.
4. They want to request the court to punish discharge violations by aggressive creditors.
5. There are other mistakes they need to correct in their petition.

Other case re-openings are advantageous to your creditors or the court, including:

1. Some party discovered assets that were not initially disclosed which could provide significant value for creditors.
2. Creditors were prejudiced because they weren’t notified of a bankruptcy proceeding.
3. Any other material or mistakes significant to your case were discovered.

If your case is reopened for any reason, the protection and assistance of a bankruptcy attorney will help you receive the most favorable outcome. To learn more about filing with a bankruptcy lawyer in St. Peter, MN, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.

If you’re facing debt you know you can’t repay and it’s so severe it significantly damages your standard of living, you might find permanent relief with a bankruptcy filing. When you file for any type of individual consumer bankruptcy, your creditors will have the automatic stay preventing them from collecting on your debts.  For the time that your bankruptcy case is pending, the automatic stay is maintained. This means that bankruptcy can be one of the most effective ways to prevent foreclosures, utility shut-offs, wage garnishments, evictions, and other consequences of having delinquent debts. For individual consumer bankruptcy, the timeline can be as short as a few months or as long as five years. It all depends on what chapter you file for and your own financial situation. With the help of a Behm Law Group, Ltd. bankruptcy lawyer in Mankato, MN and the surrounding areas, you can build a strong case for your bankruptcy and find long-term debt relief.

Stop Creditor Collection

If you’re in a situation where you need to stop creditor collection or foreclosure activities immediately and you can’t wait through the typical time it takes to prepare a complete bankruptcy petition, you can file something called a “skeletal” or emergency bankruptcy. This kind of filing goes through the online court system just like a normal bankruptcy filing and it often only takes a few minutes. An online skeletal petition will immediately prevent your creditors from taking further collection actions because the automatic stay injunctive mandates of 11 U.S.C. § 362 will be immediately imposed against them.

Emergency Bankruptcy

A skeletal or emergency bankruptcy petition is not a different kind of bankruptcy.  Rather it is only the very first part of the bankruptcy pleadings you must file and it is incomplete.    A skeletal or emergency bankruptcy petition consists of the basic bankruptcy petition (which includes personal identity information, the chapter you’re filing, and general information), the names, addresses, and contact information for all your creditors, a certificate of your completion of credit counseling, and your B121 form.  A skeletal bankruptcy will also require payment of the bankruptcy fee or the request of a waiver.

Time Limits

After your skeletal or emergency petition is filed, the bankruptcy court will issue an order giving you fourteen (14) days to file the remaining fifty-plus pages of your bankruptcy petition paperwork.  If the remaining paperwork is not filed within fourteen (14) days, your bankruptcy case will be dismissed.  The automatic stay will also be terminated and your creditors will be able to resume collection activities against you.  However, the bankruptcy court will grant an extension of the fourteen (14) day period upon your timely request.

Bankruptcy Lawyer

Filing any case without the help of a bankruptcy lawyer can be difficult due to the nuances and complexities of the bankruptcy code and the rigorous paperwork requirements. Because the process of filing a skeletal or emergency bankruptcy is subject to strict timelines, it can be even more challenging to file without professional assistance.

When you work with a Behm Law Group, Ltd. bankruptcy lawyer in Mankato, MN and the neighboring areas for your skeletal/emergency or regular case, you can count on our guidance and protection to take you from start to finish of your bankruptcy. Contact us today at (507) 387-7200 or stephen@mankatobankruptcy.com to learn more.

In the southern Minnesota, Behm Law Group, Ltd. is a law firm that devotes its practice exclusively to bankruptcy cases.  Stephen J. Behm is also a certified consumer bankruptcy specialist certified by the American Board of Certification.  We provide representation and guidance for Chapter 7, 13, and 12 cases.  If you’re struggling with debt, bankruptcy is often an effective option for long-term debt relief and financial stability and financial rehabilitation.  Although it helps thousands of Americans get back on their feet financially each year, bankruptcy can still be a complex and nuanced legal process. While it’s possible to file without an attorney, it’s not something we recommend. The help of a Behm Law Group bankruptcy lawyer in Owatonna, MN and the surrounding areas can be critical in navigating the bankruptcy code and filing a successful case.

Behm Law Group, Ltd. is a family-owned law firm with the best interests of all our clients always at the forefront. Our attorneys are skilled in helping people facing many different kinds of financial circumstances. Stephen J. Behm has worked with clients in the local region for twenty-three years, supporting those struggling with accumulated or sudden debt. Our goal as bankruptcy lawyers is to work our clients through a bankruptcy case from start to finish as quickly and as stress-free as possible.

When we hear back from previous clients about their experiences with a Behm Law Group bankruptcy lawyer, we hear a lot of the same great feedback. At Behm Law Group, the peace of mind of our clients is always something we are concerned about and try to promote and improve.  We understand that filing for bankruptcy can be a scary process.  We work hard to be direct with our clients and to apprize them of what they need to do and what documentation they need to produce to get through the bankruptcy process as efficiently and with as little disruption to their lives as possible.  However, we also remain sensitive to our clients’ fears and insecurities about the process.

These terms come up the most frequently from our past clients:

• Professional: Our attorneys have the education, legal training, and expertise to handle even the most difficult bankruptcy cases. Behm Law Group is also a law firm that many other legal professionals in the area will contact for advice and guidance on financial and bankruptcy court matters. Both our clients and the legal community can rely on our professionalism and experience.
• Direct: We don’t beat around the bush with our clients. Instead, we believe in delivering an honest evaluation about a case while remaining kind and sensitive to our clients’ worries and fears.
• Fast: Depending on the chapter filed, our attorneys will work to complete a case from start to finish as efficiently and as quickly as possible without compromising the quality of results for our clients.
• Knowledgeable: Our staff is proficient in handling a range of financial circumstances with sensitivity to the different life circumstances of all our clients.
• Understanding: We’ve worked with those struggling to meet debts while also handling many life stresses. From raising children as a single parent to facing unemployment, we are empathetic to all client situations throughout a bankruptcy.
• Caring: Not only do we wish to see our clients safely through a bankruptcy process with long-term stability for the future, but we also truly care about the emotional and mental well-being of our clients and we care about our community as a whole.

When you choose Behm Law Group, Ltd. for your bankruptcy lawyer in Owatonna, MN, you can trust us to guide you from start to finish in any case. To learn more about our services, contact us today at (507) 387-7200 or stephen@mankatobankruptcy.com.

 

Bankruptcy is a court administered legal process that almost always requires the support of a bankruptcy lawyer to be done correctly. Like most other legal processes, you can represent yourself in a case, but bankruptcy is a complex and nuanced procedure, and having the support of a bankruptcy lawyer will vastly improve your chances at filing and completing a successful case. In the United States, 8-10% of individuals filed a bankruptcy case without the help of a lawyer, and only around 2% of those cases were successfully completed. Compared to the 60% success rate of attorney represented cases, it’s undeniable that the guidance and support of a bankruptcy lawyer is crucial despite the modest costs involved. At Behm Law Group, Ltd. we can give you the protection and legal advice of an expert, skilled bankruptcy lawyer in Mankato, MN.

Specialize in Chapter 7,12, and 13

Our firm specializes exclusively in Chapter 7, 12, and 13 bankruptcy matters. We work primarily with both individual filers and businesses. As bankruptcy attorneys, we understand the financial difficulties clients are facing, but our guidance and protection is well worth the modest costs. Our assistance can actually save you time, stress and further legal costs.

What We Do

Behm bankruptcy lawyers help you build your bankruptcy case every step of the way, from determining what chapter to file to preparing paperwork and finalizing case details, to providing protection even after your case is closed if aggressive creditors continue to pursue you. This includes:

1. Taking into account your current income-to-debt ratio and payments you may be delinquent with, such as mortgage payments or vehicle loan payments, to determine if Chapter 7 liquidation or Chapter 13 reorganization will be effective for you.
2. Case preparation such as helping you with the Means Test, valuing your property so you can correctly disclose your assets to the bankruptcy court, guiding you with what exemptions to choose in order to protect your property, and helping you with budgeting and the planning of your finances after your case is closed.
3. Working with the bankruptcy trustee and the bankruptcy court during the processing of your case, including completing all your paperwork and providing correct documents to the bankruptcy trustee, helping you prepare for your bankruptcy hearing, protecting you from creditors that may ignore the injunctive mandates of the automatic stay, negotiations with creditors you want to continue working with on reaffirmation agreements, and helping you create and propose an acceptable and effective Chapter 13 bankruptcy plan .
4. Supporting you even after your case is closed with protection from creditor harassment and helping you make chapter 13 repayment plan adjustments when your financial circumstances change.

Even if your debts and financial circumstances appear to be simple, a bankruptcy lawyer will still play an essential role in helping you file a successful case, avoid the possible dismissal of your case, and protect you from aggressive creditors. To learn more about how a bankruptcy lawyer in Mankato, MN is worth the fees involved, contact Behm Law Group, Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com

Even if you’re facing severe financial difficulties, the social stigma around filing for bankruptcy can get in the way of making decisions that will positively affect your circumstances in the long term. But, getting past the negative social ideas around filing for bankruptcy might be the best choice you can make for your household’s financial health and overall quality of life.

 

The debt relief that bankruptcy provides alleviates the burden of unpaid bills and loans, prevents creditor harassment, stops foreclosure, and eliminates wage garnishment. Despite the truth that bankruptcy will damage your credit score temporarily, once your case is closed, you can start with a fresh financial slate where a lowered credit score might not even matter.

 

If you’re considering filing for bankruptcy, Behm Law Group, Ltd. can guide you through the process and help you begin your path to credit repair in Marshall, MN and the surrounding areas.

 

Though its damage to your credit score is far outweighed by its benefits, filers should keep in mind their standing after their case is closed. Filers with good credit scores will experience a significant drop after filing for bankruptcy, but those with a poor score will only see minor changes. Even though your score drops when you file, the post-bankruptcy period is an ideal time for effective credit repair.

 

In addition to having an opportune moment for credit repair, filers will most likely still be able to get loans of necessity after their case is closed despite a score drop. Credit card loans are often the easiest lines to open after filing, but other important loans like mortgages and car loans are also possible.

 

Credit Cards: Credit card companies will jump to offer you lines of credit if they know you’ve just finished a bankruptcy case. Because you won’t be allowed to file another case any time soon, they know you won’t be able to discharge any debts you rack up on their cards. Those who have just filed for bankruptcy should be wary of extreme interest rates, high annual fees, and potential hidden charges.

 

Auto Loans: Even if you have a large dent in your credit score after filing, you’ll probably still be able to get a reasonable car loan. However, most of these loans will come with poor loan terms and excessive interest rates. Autocreditexpress.com is a service available that helps you determine if you’re eligible for better car loans other than those offered by “bottom feeder” creditors.

 

Mortgages: For the most part, you’ll have to wait two to four years after your bankruptcy case is closed to be eligible for conventional mortgages. FHA loans might be available to those still in their Chapter 13 bankruptcy repayment period or to those two years after their Chapter 7 case is closed. While these are minimum periods, many filers will have to wait longer to get a mortgage depending on the lender and their current finances.

 

To learn more about bankruptcy and credit repair in Marshall, MN, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.

If you’re struggling to make monthly debt payments, you’re not alone. Especially after the impacts the coronavirus pandemic made on the U.S. economy, thousands of American households are finding their finances catastrophically impacted. Despite all the changes the pandemic forced on our country, there is still an option that has always been there for those who cannot repay their debts: bankruptcy. While bankruptcy is sometimes cast in an unfavorable light, it’s actually a process that has helped many debtors regain long-term financial stability. However, the process of filing a bankruptcy petition can be complicated, and the handling of debt in any given case is nuanced. Because of this, the help of a bankruptcy attorney can be key to filing a successful case. At Behm Law Group Ltd., we offer comprehensive legal services, including protection and guidance for those looking for an expert bankruptcy attorney in St. Peter, MN, and the surrounding area.

Filing for any type of bankruptcy comes with a set of requirements and thorough examination of the filer’s financial records. This includes detailed paperwork and documentation of debts, income sources, and properties. It also includes a set of pre-bankruptcy requirements that almost every filer must satisfy before his or her petition is even set into motion. The guidance and support of a bankruptcy attorney can help prevent many common reasons that could cause the dismissal of your bankruptcy case.

The help of a bankruptcy attorney can prevent case dismissal due to:

1. Failure to attend credit counseling: Every filer is required to attend a credit counseling session within 180 days before the filing of his or her bankruptcy petition. A bankruptcy attorney can help you find a court-approved credit counseling agency so you can attend the 60- to 90-minute session at your convenience.
2. Intentional or unintentional fraud: If you’re planning on committing bankruptcy fraud, forget about any credible attorney helping you in that effort. Filers attempting intentional fraud will likely have their cases denied and could even be criminally prosecuted. However, there are occasions in which a filer is well intentioned, but because of mistakes on his or her petition paperwork, there is no actual fraud committed.  A bankruptcy attorney will, for the most part, put your paperwork together for you, ensuring accuracy and helping to prevent mistakes that might lead to your case being dismissed.
3. Ineligibility for Chapter 7 bankruptcy: Because Chapter 7 bankruptcy is reserved for those with an income below the state median income for a similar household, there are many filers that won’t qualify for that chapter. While a bankruptcy attorney can’t make you qualify for chapter 7 bankruptcy if you do not pass the Means Test, the attorney can help you organize your paperwork, review your monthly income and expenses, and help you file a Chapter 13 bankruptcy case in which a reasonable three to five year repayment plan is proposed.

Both Chapter 13 and Chapter 7 bankruptcies are nuanced processes that can vary greatly from case to case. Take advantage of the skill and protection that a bankruptcy attorney in St. Peter, MN, and the local area can provide you, and contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com today.

 

The difficulties of the coronavirus pandemic and a changing economy are still affecting all American citizens, and those effects come with significant financial struggles for many. The initial boost of stimulus checks, federal additions to state unemployment benefits, and room for accommodation on debt payments helped many stay out of bankruptcy throughout much of 2020. Without those benefits, pressure for unemployed households, business owners, and even those with steady incomes is projected to create a surge in bankruptcies in 2021.

 

While it’s possible to file for bankruptcy relief without legal protection and guidance, it’s always beneficial to take advantage of the skills and expertise of a bankruptcy attorney. With Behm Law Group, Ltd., you can expect comprehensive protection and expert advice with a Behm bankruptcy attorney in Worthington, MN and the surrounding areas.

 

Behm Law Group, Ltd. is the only law firm in south central and southwestern Minnesota practicing in bankruptcy cases exclusively. Behm bankruptcy attorneys will work with you from the start to the finish of your case, guiding you through the highly nuanced bankruptcy legal process. We work with individual consumers, business owners, and family farmers filing for Chapter 7, Chapter 13, or Chapter 12 bankruptcy.

 

Filing for bankruptcy, even when there isn’t a global pandemic going on, can be difficult. The bankruptcy code can be complicated and the process of filing is nuanced, requiring filers to meet strict specifications and requirements. If you’re thinking about filing for bankruptcy relief, it’s highly recommended that you seek out the advice of a trained bankruptcy attorney.

 

This coming year, however, might make the bankruptcy process even more difficult and intricate due to added laws regarding COVID-19 and care packages. The question of how different incomes are treated in any bankruptcy will involve additional income sources established in response to the coronavirus, such as potential future stimulus checks and additional state and federal unemployment income.

 

Household conditions directly impacted by the pandemic will also be taken into consideration when a bankruptcy case is filed. This may include how medical debts are treated or whether filers’ health conditions caused by COVID-19 infections could be handled as a disability or as an undue hardship.

 

With 2021 starting a new presidential term as well, it’s difficult to predict how bankruptcy law might change in the near future. The slightest changes could affect how a case is handled and may even prevent a filer from qualifying for bankruptcy relief. At Behm Law Group, Ltd., we expect 2021 to have extremely high bankruptcy rates and we expect that there may be many changes to the bankruptcy code, making it more crucial than ever to seek the help of an experienced bankruptcy attorney.

 

To learn more about our services as a law firm and to locate an experienced bankruptcy attorney in Worthington, MN, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.

In the previous Parts 1 and 2 of this blog, we covered what bankruptcy fees you will be required to pay if you file, and what an attorney may cost as well as why it costs this much. In Part 3, the final section, we cover ways for you to pay those costs and what you can do if you are truly unable to pay certain required costs. If you are considering filing for bankruptcy, you need to understand the fees you’ll have to cover and what the full cost of a bankruptcy case of any chapter may be. Behm Law Group Ltd. provides expert bankruptcy assistance in New Ulm, MN, and the surrounding area.

 

While there are many costs involved in the bankruptcy process, and we understand that attorney fees can seem daunting, there are many ways of covering those costs.

 

How to Pay

If you can, you’re certainly able to pay bankruptcy fees and attorney costs with one lump sum. However, some people are not able to pay the fees and costs in full and all at once. This makes perfect sense since they are in dire financial circumstances that are requiring them to file for bankruptcy debt relief in the first place. For those who cannot afford the fees and attorney costs up front, there are other ways to pay.

 

1. Payment plan: If you are filing for Chapter 7 bankruptcy, you can generally set up a payment plan for the attorney’s fees and court costs. An installment plan can be established as long as your fees are paid in full before your petition is filed and in a minimum of four installments.  Any bankruptcy attorney who is decent and worth hiring will not agree to file your bankruptcy case and then agree to accept monthly payments from you.  Such an arrangement is highly irresponsible and unethical because the same attorney helping you through your bankruptcy would become one of your creditors.  Also, any credible attorney worth hiring would not expect you to ask a friend or relative to sign a personal guarantee for the payment of your attorney’s fees and costs.  Such an arrangement is also highly unethical and extremely inappropriate because it allows the attorney to legally pursue the friend or relative if you fail to pay.  Such an arrangement essentially allows the friend or relative to be drawn into your financial vortex of misery and that is simply not right.
2. Waivers: For the bankruptcy court filing fee, you can request a waiver of the requirement to pay it. To qualify for a waiver, your income must be 150% under the federal poverty line and you must not be able to pay the court filing fee in an installment plan.  However, bankruptcy courts are generally extremely reluctant to grant such waivers because the bankruptcy court filing fees help fund the entire bankruptcy system from bankruptcy judges to bankruptcy court law clerks to bankruptcy court staff and more.
3. Pro bono: Attorney costs can be high for those who are unable to meet the basic bankruptcy fees, but there are some lawyers who occasionally set aside time in their schedules to offer legal aid for free to those who truly cannot pay the attorney’s fees and costs themselves or are unable to rely upon other resources such as friends and relatives.
4. Legal aid: Government legal aid is offered nationally for individuals who cannot afford an attorney. While these legal aid offices provide guidance and important information, not all of them will offer bankruptcy filing assistance.
5. Friends and family: When all else fails, most filers can turn to their loved ones for financial support. Keep in mind that family debts must be disclosed in your bankruptcy if there is a legal contract or other official documentation or even if there is a non-written expectation that you should pay them back.
6. Borrowing from a 401(k), IRA or Life Insurance Policy:  Sometimes people can borrow against their retirement plans or cash value life insurance policies to acquire the necessary funds to pay their bankruptcy attorney’s fees and bankruptcy court filing costs.
7. Employer Provided Legal Insurance Plans:  As part of a benefits package for their employees, some employers offer legal insurance plans such as ARAG Legal Insurance.  Typically, legal insurance plans will pay up to $2,000.00 towards bankruptcy attorney’s fees.  However, you must still pay the bankruptcy court filing fee of $335.00 for a chapter 7 case or $310.00 for a chapter 13 case.

 

Some filers also sell some of their possessions that will be exempt from the bankruptcy process, such as electronics, antiques, furniture, jewelry, and so on in order to pay for their attorney’s fees and bankruptcy court filing costs.

 

Filing for bankruptcy should be the opposite of a financially crippling experience. Because of that, there are many ways to pay the required fees and to get legal aid. To learn more about receiving bankruptcy assistance in New Ulm, MN, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.