Protect Yourself from Discrimination Against Bankruptcy Filers

When discrimination makes the news, people pay attention. We all like to think we are fair-minded individuals. Even fair-minded individuals have differences of opinion. If it weren’t for these differences of opinion, we probably wouldn’t need a set of laws to follow. But, we do. The Mankato bankruptcy attorneys at Behm Law Group, Ltd., want you to be aware of the following:

“No. 11 U.S.C. sec. 525 prohibits governmental units and private employers from discriminating against you because you filed a bankruptcy petition or because you failed to pay a dischargeable debt.”

You have rights. It can be heart-wrenching and embarrassing enough to admit you need to file for bankruptcy, let alone having everyone else constantly remind you. Now you know there are rules on how others can treat you.

Of course, you still have obligations to fulfill. A bankruptcy plan can detail how and when those obligations are met. Looking at the bigger picture, you will have to own how you got to this point. If you don’t recognize why you had to file for bankruptcy, you may end up repeating this scene in the future.

For your own self-worth and knowledge, really dig deeply. If you have poor financial habits, take steps to change them. Don’t buy things you don’t need. Shop around to minimize costs for what you need. Save for inevitable surprises that might disrupt your cash flow.

Keeping your focus and energy directed toward positive steps will diminish any hurt and embarrassment you feel. You can’t change what has already happened. You can change how you deal with your dilemma though.

Forward momentum will catapult you past the bad feelings toward the good ones. Your positive action will result in the bankruptcy becoming a distant memory. Good habits will help keep you solvent in the future.

Those who have to file for bankruptcy relief have the power to change their outcomes for the better. We know what you want. Bankruptcy is all that we do. In Mankato, MN, call the bankruptcy attorneys at Behm Law Group, Ltd., to discuss the how, why, what, wherefore, and when of bankruptcy law today.

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.

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.

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.