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If Detroit Can Do It, So Can You | Mankato, MN Bankruptcy

Behm Law Group, Ltd. provides bankruptcy attorneys in Mankato, MN and surrounding areas

Late in May, the City of Detroit made the case for its bankruptcy restructuring plan via a court filing, an event made all the more surreal since Detroit is the only United States city to ever file for bankruptcy protection. As bankruptcy law goes, it doesn’t get much bigger, or unusual, than this.

Just consider that the city argued it has the legal justification to transfer ownership of the Detroit Institute of Arts to a third-party non-profit organization. That’s right; a city is in jeopardy of losing a museum due to bankruptcy. Most individuals have to worry about losing a vehicle through bankruptcy, but the City of Detroit is trying to figure out a way to keep its museum intact. Talk about pressure.

Or, consider that the City of Detroit has been arguing that its pension annuity payments are “excessive” and those excessive pension distributions are tantamount to a Ponzi scheme. It takes a certain astonishing level of systemic financial mismanagement to refer to your city’s own pension system as a Ponzi scheme.

Not surprisingly, the City of Detroit is facing considerable pushback as it makes its legal case for the justifications surrounding its bankruptcy filing, but it should prove fascinating to watch as it unfolds.

Thankfully, individual bankruptcy filings don’t entail nearly the same seemingly impossible legal hurdles the City of Detroit faces, although individual bankruptcies can be incredibly daunting in their own right.

While chances are you won’t be trying to save your own personal museum from being liquidated to appease creditors, you will want to protect some of the most personally meaningful items and property, and that’s incredibly important to you.

Behm Law Group  understands how stressful individual bankruptcy can be, and we’ll work to ensure your bankruptcy journey is as smooth and efficient as the law allows. Our professional and knowledgeable bankruptcy attorneys have helped countless clients just like you to navigate the incredibly confusing bankruptcy landscape.

You don’t have to, and shouldn’t, go through a bankruptcy ordeal on your own. If you reside in Mankato, MN or anywhere in Southern Minnesota, and you require bankruptcy guidance, contact Behm Law Group today. We’ll be alongside you every step of the way to successfully guide you through this complicated process.

And, if you do happen to have a museum you’d like to hold on to, we’ll see what we can do about that, too.

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Let Behm Law Group Help You with Bankruptcy Problems in Mankato, MN

Behm Law Group | Bankruptcy Attorneys in Mankato, MN

You never know when you will be faced with navigating the maze of bankruptcy laws.  All it takes is for one very expensive medical bill to give you a financial headache.  We recommend you contact the best bankruptcy attorneys in Mankato, Minnesota, Behm Law Group Ltd., to ease the pressure.

Have you ever wondered how the term bankruptcy originated?  The exact origin is a bit unclear.  Perhaps it was derived from banco rotto, or “broken bank” in Italian.  In Medieval Italy, bankers transacted their business on benches.  When one could no longer lend or fulfill commitments, the bench was broken to display the banker’s inability to continue negotiating.

The bankruptcy attorneys at Behm Law Group want to help you from sliding into a morass of financial ruin, and we won’t use scare tactics.  We are honest, yet concerned and friendly, and are glad to answer any questions you may have. Behm Law Group specializes in bankruptcy law, whether it’s Chapter 7 or Chapter 13.  We are willing to meet with you when it’s convenient for you:  evenings, weekends, or at your home.

Instead of endlessly worrying, contact Behm Law Group.  The issues surrounding bankruptcy law can be complex.  We can simplify it for you, so you can better understand what your options are.

Whether you are accumulating massive medical debt, credit card debt, or other unforeseen expenses, call the bankruptcy attorneys at Behm Law Group in Mankato, Minnesota, to see how you can best resolve your dilemma.

 

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How Natural Disasters Influence Bankruptcy Claims in Mankato, MN

Filing for Bankruptcy in Minnesota | Tips from Behm Law Group, Ltd.

Since Hurricane Katrina, there have been changes and adjustments to bankruptcy laws. This is especially important for people that have been the victim of a natural disaster and lost all of their possessions and potentially their income. With the recent tornadoes and weather events in the South, Behm Law Group, Ltd. wanted to revisit the nuances of bankruptcy for disaster victims.

When an enormous weather event, such as Hurricane Katrina, strikes, the government may relax some of the laws associated with bankruptcy. In the instance of Katrina, the strict rules of Chapter 7 bankruptcy were relaxed to take into account the increased expenses and loss of property and income that disaster victims and their families experienced. Chapter 7 bankruptcy allows for debts to be completely erased. If the looser rules were not put into place after such large events, some families with higher income than the state’s median may have to repay their debt over a five year period.

Of course, these exceptions are due to extreme cases, like natural disasters and other events that impact an entire geographic area. It is still applicable to residents of Minnesota that sometimes experience tornadoes and flooding statewide.

To help you navigate the intricacies of bankruptcy law, call Behm Law Group, Ltd, your local bankruptcy attorneys based in Mankato, Minnesota. Filing for bankruptcy, whether Chapter 7 or Chapter 13 is never an easy decision, and it certainly isn’t a simple process. We are here to help you through the hardest times in your life, whether they are naturally occurring or caused by a natural disaster.

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Bankruptcy and Your Credit Score

How does bankruptcy affect your credit score? Behm Law Group Ltd. explains.

It should go without saying that filing for bankruptcy can carry with it certain consequences. While bankruptcy protections are in place to relieve many of the burdens of crushing, intolerable debt, filing for bankruptcy can impact your life in many ways over the next several years.

Perhaps most notably is the impact bankruptcy will have on your credit score. Following a bankruptcy, it’s still possible to obtain credit cards and loans. However, creditors will sometimes ask that you have a co-signer (someone with good credit who will assume responsibility for the debt with you). People who file bankruptcy will have the bankruptcy reflected on their credit histories anywhere from 1 to 7 years, irrespective of whether one files a chapter 13 bankruptcy or a chapter 7 bankruptcy. Both types of bankruptcy will reflect the same on credit histories. Sometimes people who have filed for bankruptcy relief or who have gone through a foreclosure will have to wait 3 years after the bankruptcy or foreclosure to qualify for a home mortgage through Freddie Mac or Fannie Mae.

While bankruptcy can negatively impact your credit history—which may not have been too great to begin with—you can start to repair your credit history almost as soon as you complete your bankruptcy process. Be sure to accurately and honestly reflect your bankruptcy situation. Potential creditors will want that information noted up-front so they can assess your credit risk. To most creditors, a bankruptcy filing simply represents a point in time. To them, the time predating the bankruptcy filing represents a time full of economic chaos and incredible financial uncertainty. The time after a bankruptcy filing represents financial order and economic balance. Most creditors will work with you following a bankruptcy because they know that they will not have to compete with pre-existing bankruptcy creditors for your payments because those creditors will have been discharged; they know that they will be first in line. Also, they will know that you will not be able to file for bankruptcy relief again for several years. They know that they could pursue collection action against you for several years if you do not pay them.

Unsecured credit after bankruptcy can be obtained. However, to improve your credit, you should look to secured credit, if possible, by placing money in the bank that’s equal to or more than the credit limit you’re looking to secure. Putting money away for a secured loan or credit can be challenging, particularly following bankruptcy, but the goal is to repair your credit history as much as possible and getting a secured line of credit is a good way to do it.

Any student loans you have will likely not be discharged through bankruptcy, so those debts will remain and they can be a ticking time bomb to your credit history if they go unpaid. Pay them on time, and pay over the minimum payment when possible, because that will likewise improve your damaged credit history.

There are companies that specialize in repairing credit history and credit scores, but they can be very expensive, and they’re not all reputable. In fact, some even engage other people who voluntarily allow the companies to “ghost” credit histories. The companies do not engage in identity theft. However, some people with good credit will, for a fee, allow credit repair companies to use their good credit standings and “ghost” those good credit standings for people with poor credit histories. Do your research before approaching a credit repair outfit but the best course may be to just stay away from them.

The bankruptcy attorneys at Behm Law Group Ltd. are experts at advising how best to rebuild your credit history following bankruptcy, and we’re happy to guide you accordingly. If you’re facing a bankruptcy situation of your own, Behm Law Group Ltd. can provide expertise in guiding you through the process and explaining what you can expect following filing for bankruptcy. We proudly serve Mankato, MN, and all of Southern Minnesota. We stand ready to help you through your stressful financial ordeal. Give Behm Law Group Ltd. a call today!

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Defining “Undue Hardship” – Bankruptcy Law in Mankato, MN

Mankato, MN Bankruptcy Law with Behm Law Group, Ltd.

Generally speaking, discharging student loans via bankruptcy can difficult endeavor. However, when you’re facing outright bankruptcy—which can be challenging and stressful enough—it can’t hurt to explore all your options. It may surprise some people to learn there is a section of the Bankruptcy Code (11 U.S.C. Sec. 523[a][8]) which addresses student loans specifically. It basically states: “Student loans can be discharged as long as one can show that excepting [excluding] such debt from discharge (debt relief provided through bankruptcy) would impose an undue hardship on the debtor and the debtor’s dependents. Behm Law Group, Ltd. provides professional bankruptcy counsel in Mankato, MN in your time of need.

The key term here is “undue hardship,” a term which only government lawmakers could conjure that sounds ridiculously simple.  However, what constitutes “undue hardship” is a very factually intensive inquiry.  In order to establish “undue hardship”, one must review all of the circumstances surrounding someone’s financial situation.  Serious medical conditions, job losses, the likelihood of being able to get higher paying employment and one’s other living expenses and sources of income are only a few factors that need to be considered.  Discharging student loans in bankruptcy can be done and, indeed, has been done in many cases.

One example of a fact substantiating “undue hardship” is to show you’ve incurred a disability since graduating from college that prevents you from being able to realistically carry out the necessary tasks that are part of any job aligned with your college degree. Let’s say you graduated with a degree in astronomy that requires you to look through a telescope, but after graduating you became permanently blind. You may be able to show and convince a bankruptcy judge that this constitutes “undue hardship.”

If you’re filing for bankruptcy protection, and you’re interested in exploring whether you qualify for a student loan bankruptcy discharge, you should seek out professional bankruptcy counsel. In Mankato, MN and the surrounding communities, Behm Law Group, Ltd. should be your first point of contact when considering your bankruptcy options. We have highly trained bankruptcy attorneys with extensive experience when it comes to making sense of the Bankruptcy Code and how it applies to our clients’ unique situations.

Let us guide you through the bankruptcy process. We know how bankruptcy law works and how it can work for you. Contact Behm Law Group, Ltd. today to discuss your bankruptcy options.

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Beware Fraudulent Transfers | Bankruptcy Law Tips

Minnesota Bankruptcy Lawyers at Behm Law Group Ltd.

If you wish to keep your friends and family members in your good graces, don’t attempt to transfer property to them if you anticipate filing for bankruptcy within the next two years and they don’t pay you a reasonable market value for the property. Embarking on such a path may be considered fraudulent and could result in your friends or relatives being sued to give up that undervalued property. They’d be out whatever money they paid you plus the property they thought was theirs.

According to 11 U.S.C. Sec. 548, a bankruptcy trustee can sue individuals who purchased property, such as a vehicle, from the debtor who received substantially less than equivalent return value. Therefore, if a debtor sold a vehicle or similar property worth, say, $15,000, to a friend or family member, but only received $3,000 in compensation, and that transfer took place within two years before the debtor filed bankruptcy, the trustee could sue to reclaim that property in order to sell it for a more accurate market value. The trustee would then take that increased capital and distribute it evenly among the debtor’s affected creditors.

To avoid this potentially embarrassing fraudulent transfer situation, make sure you enter into financial agreements with friends or relatives by asking for a reasonable market value. This is especially important if you’re selling property when you’re under extreme financial duress that could lead to a bankruptcy filing in the near future.

The Bankruptcy Code can be extremely difficult to understand, especially when delving into the more arcane language and clauses that are best left to bankruptcy law professionals. Behm Law Group Ltd. serves Mankato, MN, and surrounding communities, and our bankruptcy expertise is at your disposal to help you successfully emerge from the stressful experience of filing for bankruptcy protection.

To better navigate this somewhat obscure bankruptcy side road, our professional team of bankruptcy attorneys at Behm Law Group Ltd. is available to assist and advise you. Contact Behm Law Group Ltd. today and begin your personal journey out of debt.

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Know Your Preferences: Bankruptcy Assistance in Mankato, MN

Mankato, MN Bankruptcy Attorneys at Behm Law Group, Ltd.

If you made a credit card payment of more than $600, and within 90 days—the preference period—of that payment you filed for bankruptcy, your bankruptcy trustee can request to reclaim that payment.

Don’t get too excited, however, because you won’t be getting that money back. Rather, your bankruptcy trustee will take that reclaimed payment and divide it evenly among the original creditor and all other similarly situated creditors.

Confused? You’re not alone. But Behm Law Group Ltd., can help you understand even the most arcane nuances of bankruptcy law. In the meantime, some background detail:

This section of the Bankruptcy Code (11 U.S.C § 547) deals with the fair and equal treatment of all unsecured creditors, although the original creditor from which the payment was reclaimed may not agree it’s all that fair.

This preferential payments to creditors clause understandably causes some consternation among creditors who must return payments and in turn receive a smaller amount, but it’s intended to ensure all creditors involved receive at least some amount of compensation back from the debtor.

Under the Bankruptcy Code, a debtor is assumed to have been insolvent during the 90 days prior to the debtor filing for bankruptcy. All debtor-to-creditor transfers and payments—over $600—made during that 90 day period are therefore considered suspect.

To learn more about this Bankruptcy Code clause, or for more information about bankruptcy law in general and your bankruptcy options in particular, contact Behm Law Group, Ltd. We have a professional and knowledgeable bankruptcy attorney team who serves Mankato, MN and the surrounding communities. Learn about your bankruptcy options and rights today.

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Is Your Home Secure During Chapter 7 Bankruptcy?

Minnesota Bankruptcy Attorneys at Behm Law Group, Ltd.

One of the biggest fears people have about filing for bankruptcy is the belief that they will lose their home if they file. It’s a valid concern, but it’s a consideration that can be rather complicated and depends on your particular situation as well as the law as it applies from state to state.

When it comes to Chapter 7 bankruptcy, your home is generally considered “safe,” provided you’re current and up-to-date on your mortgage payments. Further, if you owe more on your mortgage than your home is actually worth, there’s no value or money readily available to the trustees by selling your home, something to keep in mind when considering Chapter 7 bankruptcy.

Declaring Chapter 7 bankruptcy does offer certain protections, but it’s important to remember that ultimately your mortgage lender still holds a security interest on your loan. Stay on top of your mortgage obligations, and you’ll be in a much better position to keep your home during Chapter 7 bankruptcy.

As with all bankruptcy laws, home security during bankruptcy carries a laundry list of legal stipulations and “legal speak” that’s best handled by the professionals. However, your home does carry with it certain bankruptcy provisions that you shouldn’t cast aside without proper consultation.

Behm Law Group, Ltd. specializes in bankruptcy protection for your home and other secured assets. If you’re located in Mankato, MN or Southern, MN or surrounding areas, and you’re facing bankruptcy and all the uncertainty it entails, you should call upon the bankruptcy attorneys at Behm Law Group, Ltd. to discuss your bankruptcy options. Don’t lose sleep about losing your home for one more night. Contact Behm Law Group, Ltd. today.

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Minnesota Bankruptcy Advice- Are Student Loans Eligible for Discharge?

Tips from Minnesota Bankruptcy Attorneys- Behm Law Group

Student loans are generally understood to be “exempt” when it comes to bankruptcy protection. If you have student loans, you are required to pay them back in full, and the federal government has put rules into place to ensure that debt is collected. There are provisions that can help ease student loan debt, but the burden of proof is on you to prove you are in a position that makes it practically impossible for your to pay your loan. Filing for bankruptcy in Minnesota is a viable option. The Minnesota bankruptcy attorneys at Behm Law Group offer advice on how to navigate these tricky waters.

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Student loan debt is a huge concern nationwide. As college tuition continues to skyrocket, hundreds of thousands of graduates and perhaps their parents are saddled with debilitating student loan debt that can equal or exceed the price of most starter home mortgages. Private and federal student loan debt exceeded credit card debt in 2010, hit the $1 trillion mark in 2011, and as of this year stands at $1.2 trillion dollars. Meanwhile the economy is struggling to regain past employment levels and starting wages are generally lower, leaving college graduates with burdensome debt and little opportunity to get back on track.

Up until 1976 all education loans could be discharged through bankruptcy. That year the bankruptcy code was changed which disallowed college or government loans to be discharged during the first five years of repayment. After five years of payment the loans could be discharged though bankruptcy or if “undue hardship” was being experienced by the borrower. In 2005 Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act which gave further protections to student loans, both federal and private, from bankruptcy protection.  The only “door” left open for bankruptcy protection was if the borrower could demonstrate to the court that repayment of the student loan would cause an “undue hardship.”

Undue hardship can be exceptionally difficult to prove. Just the simple fact that you don’t have the funds available to pay your loan generally does not qualify as undue hardship.

Navigating through this complicated legal landscape is something best left to a professional bankruptcy attorney. Though full bankruptcy protection is still far from an attainable goal regarding most student loan debt, legal avenues do exist for at least a partial discharge of the overall debilitating debt burden that’s all too common for today’s college graduates.

Behm Law Group, Ltd. employs a professional team of bankruptcy attorneys who can help you through the daunting legal world of bankruptcy protection. With our years of dedicated training in the field of bankruptcy we can advise you about your student loan debt options and whether or not you meet the demanding criteria for having your student loans discharged through bankruptcy.

Serving Mankato, MN, and surrounding areas, Behm Law Group, Ltd. is available to help clients maneuver their way through financial difficulty and avoid the stress and uncertainty of unnecessary, burdensome debt. Contact Behm Law Group, Ltd. to discuss your bankruptcy options.

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They Are Not on Your Side- Credit Cards Can Lead to Bankruptcy

Considering bankruptcy in Minnesota? Behm Law can help.

Commercials for big credit card companies make it look and sound like their only intent is provide you with an easy alternative to cash or checks to help all your “wants and needs” come true. The commercials show happy people buying bag-loads of goods at high-end stores, retiring to a beach-front home, or treating friends to an expensive dinner at a pricey restaurant. But are they really on your side? Are they really there to help you make your dreams come true? A look at their net incomes give you a glimpse of what they’re really out to do, and who truly benefits from their services.
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One recognizable company, Capital One, which gets half of its income from credit cards, reported a $1.1 billion net income for third quarter, 2013. Think about that—$1.1 billion in one quarter. The biggest credit-card issuer, American Express, reported a $1.37 billion net income for third quarter, 2013. Wells Fargo, the largest U.S. home lender, reported a third quarter net income of $5.58 billion. One thing is certain; these companies can’t achieve net incomes in the billions of dollars each quarter by giving money away. They make their exorbitant profits by charging high interest rate
s, massive late fees, and ridiculous overdraft fees. In other words, they lure you with friendly promises of luxury and convenience, and then snag you with highly predatory interest rates and insurmountable fees and penalties.

Credit card companies love to advertise “easy, affordable” credit. But, when times get tough and you’re financially struggling, they can make resolving your financial hardships unbearable and hopelessly unaffordable. Have you been entrapped by the large credit card companies? Is your income being sapped by high-interest payments? Are you over your head in debt? If so, do everything you can to get out of their snare. Your financial future depends on it. But if you are in so much financial trouble you cannot escape on your own, bankruptcy might be your only option. To see if bankruptcy is the right solution for you, call the personal bankruptcy attorneys at Behm Law Group Ltd. Unlike the big credit card companies, we really are there for you.