Category: Bankruptcy Information

Donald Trump’s history with bankruptcy has been all over the news lately. It may seem odd that a high-profile name associated with wealth, apprentices, and successful business could also be associated with bankruptcy. Unfortunately, Donald Trump’s financial struggles are not uncommon and serve as proof that bankruptcy can happen to anyone.

If you’re living comfortably in the Mankato, Minnesota area, this may be an unsettling thought. There’s no need to fret, though, because many important, successful business folk have experienced bankruptcy and thrived as a result of it. Behm Law Group, Ltd. has compiled a short list of names you’ll likely recognize:

• Walt Disney – Thanks to an untrustworthy distributor, Disney’s first, Kansas City-based company went under in 1923. Just five years later, though, Disney worked his magic with a new creation: Mickey Mouse. His new company in Hollywood, California quickly bounced back from bankruptcy.
• Henry Ford – Ford proved to be his own downfall in 1901. He held his vehicles to such a high standard of perfection that, in one year, the company only made and distributed 20 cars. Only two years later, however, Ford took a new approach towards The Ford Motor Company and made it a post-bankruptcy success. 
• Milton Hershey – The Hershey company hasn’t always been a sweet success. Milton Hershey filed for bankruptcy after his businesses in Philadelphia and New York both failed, which then brought him home to Lancaster, Pennsylvania. It was here, after his bankruptcy filing, that Hershey struck gold in the form of milk-based caramels and secret recipe chocolate bars.

These famously successful business moguls prove that, no matter the circumstance, bankruptcy can happen to anyone. For each of them, though, success didn’t arrive until after they’d let go of past debts. If you like how that sounds, live in the Mankato, Minnesota area, and feel prepared to begin filing, contact Behm Law Group, Ltd. today.

 

School is about to start up in the Mankato, MN area, which means that students everywhere are looking ahead to homework and assignments. By the end of the month, they’ll be memorizing biology flashcards, solving algebra equations, and working through textbook chapters.

However, students aren’t the only ones working through chapters. At Behm Law Group, Ltd., our bankruptcy professionals are always ready to handle Chapter 7, a specific type of bankruptcy with a unique set of rules and restrictions.

If Chapter 7 is something you’d like to learn more about, take a peek at our notes. Behm Law Group, Ltd. has compiled a study guide of seven facts to know about Chapter 7 bankruptcy:

1. Q: How long does it take to file for Chapter 7 bankruptcy?
A: Typically, it takes about 3-4 months to file and obtain relief from debt.

2. Q: How long does a filing remain on my credit report?
A: A bankruptcy filing can remain for about five to seven years.

3. Q: What might I lose when filing for Chapter 7 bankruptcy?
A: It depends on each individual case but most possessions will be exempt and the exemption laws allowing you to keep property are quite generous.

4. Q: Will Chapter 7 take care of alimony or student loan debt?
A: If a debt is truly alimony, probably not but sometimes alimony is not really alimony and the right to receive it has been assigned to some other entity. In such a case, sometimes relief can be accorded. With respect to student loans, a person must go beyond the filing of a bankruptcy petition by filing an adversary proceeding against the student loan lender. Sometimes, student loans can be discharged if one can establish “undue hardship” but the process is very expensive and protracted.

5. Q: Am I able to file for bankruptcy a second time?
A: Yes! However, there are certain time restrictions involved.

6. Q: What kinds of time restrictions?
A: In most scenarios, you must wait at least six years between Chapter 7 bankruptcy filings.

7. Q: Do I still need to repay certain debts despite a Chapter 7 filing?
A: Sometimes. Certain types of debts, like some tax debts, child support or alimony obligations, aren’t generally discharged in a Chapter 7 proceeding.

Feel prepared for an exam on Chapter 7 bankruptcy? If you live in the Mankato, MN area, put down your number two pencils, throw away those test booklets, and give Behm Law Group, Ltd. a call today.

If you’re living in the Mankato, MN area, it’s likely you’ve heard plenty of jokes about Minnesotan dialects and language. There are all sorts of local idioms around these parts, from “Duck, Duck, Gray Duck” to “hot dish,” each of which belong proudly situated within the culture of Minnesota.

When it comes to the culture surrounding bankruptcy, it’s no surprise that it has a language all its own. There are all sorts of words that sound unfamiliar, even in a basic definition of what “bankruptcy” means:

“A federally authorized procedure by which a debtor—an individual, corporation, or municipality— is relieved of total liability for its debts by making court-approved arrangements for their partial repayment.”

…What?!

Including a few words from that definition, Behm Law Group, Ltd. has a list of key terms that will help you translate the language of bankruptcy:

1. Liabilities are monetary or legal obligations.
2. Debts are monetary or legal obligations that are owed.
3. Debtors can be people, partnerships, corporations, or municipalities. The debtor is the subject within a bankruptcy case, meaning they owe money or have legal obligations towards another person or organization.
4. Creditors are people or organizations that debtors owe. Typically, they are owed either money or another legal entity.
5. Assets are all forms of property held by the debtor.
6. Liquidated debts are for a specific, numerical amount. While debtors are still responsible for non-liquidated debts, their exact monetary amount is not known.

With this list of terms in your dictionary, it should be just a little easier for you to decipher the complex vocabulary within a bankruptcy filing.

Whether you speak the language of bankruptcy fluently, or you’re still a little confused, the professionals at Behm Law Group, Ltd. can help. For a clear, simple translation of bankruptcy in the Mankato, Minnesota area, contact Behm Law Group, Ltd. today.

If you’re living in the Mankato and the southern Minnesota area, this is your summer to get fit with Behm Law Group, Ltd. At Behm Law Group, Ltd, “fit” doesn’t mean low-fat smoothies, long outdoor runs, or a perfect beach body. Here, “fit” means managing personal financial fitness in order to make the best decisions regarding bankruptcy. Although you may think your finances are in shape, we’ve devised a workout plan to manage your monetary health this summer.

1. Learn the facts: Bankruptcy can happen to anyone. Did you know that over four million families filed for bankruptcy between 2008 and 2010 within the United States alone? Or that many people don’t file for bankruptcy when they should? Knowing the facts about bankruptcy is the first step to improving your overall financial health.

2. Manage your credit: Maximize your credit score by paying bills on time and tracking credit card balances. It can be easy to lose track of payments or bills, especially during summer vacations or holidays. Continued missed payments can lead to both debt and bankruptcy. Be sure to create a schedule in order to follow bill schedules, exceed minimum payments, and avoid accruing debt.

3. Boost your nest egg: Even if money’s tight, try to invest a small amount of each paycheck into a future nest egg. Anyone, whether excessively wealthy or living between paychecks, is susceptible to bankruptcy if they experience a sudden accident, financial crisis, job loss, or serious illness. It’s healthiest to prepare before disaster strikes.

The attorneys at Behm Law Group, Ltd can help get your finances back in shape. When filing for bankruptcy is the healthiest option for your finances, Behm Law Group, Ltd can answer questions, offer advice, or create a monetary workout that best suits your needs. If you live in the Mankato or southern Minnesota area, and you are ready to get financially fit, contact Behm Law Group, Ltd today.

If you’re a small business owner and you’re considering filing for bankruptcy, it’s important that you have information on which type of bankruptcy you should file for. Filing fort bankrupcy it is definitely not an ideal situation, but sometimes it’s necessary. Having the right information will help you to make the right decision so that you can begin to improve your financial situation in the most effective way possible. If you’re a small business owner in Mankato, MN, then chapter 7 bankruptcy will more than likely be the right option for you. In some cases, however, chapter 13 bankruptcy may be a more viable option.

 Let’s take a look at your options to find out which one you should choose:

 Reasons to choose chapter 7 bankruptcy:

• It will be settled much faster – Chapter 7 bankruptcy cases usually conclude in a matter of months whereas chapter 13 bankruptcy cases can take three to five years.
• It will be easier to start a new business – You can’t file bankruptcy for your business with chapter 13 bankruptcy. It would be much easier to close your current business down under chapter 7 than to try to keep it afloat while also having to deal with chapter 13 personal bankruptcy. You can deal with your debts and start a new and improved debt free business.
• You aren’t required to pay your unsecured debt – In chapter 13 bankruptcy you will be required to pay at least some of your unsecured debt in most cases. You aren’t obligated to do that under chapter 7 bankruptcy.

When chapter 13 bankruptcy may be the right option:

• You have an asset rich business – If you’re a small business owner and you don’t want your business to be shut down because it has a high amount of valuable assets that you want to keep, you should not file for chapter 7 bankruptcy. You may even want to try and settle your debts on your own and avoid filing altogether.
• You want long term protection – If you want more time to catch up on certain payments like your mortgage or car payment under the protection of bankruptcy law, then chapter 13 bankruptcy is a better option.
• You have a unique asset that you want to keep – If you have a certain asset that is not protected under chapter 7 bankruptcy but is protected under chapter 13 bankruptcy, then choose the latter.

Hopefully this information can help you make the right choice. If you’re a small business owner and are considering filing for bankruptcy or just want more information, contact the professionals at Behm Law Group Ltd in Mankato, MN. We’re here to guide you and help you build a better financial future.

 

 

 

 

 

 

 

 

 

Discussing money can be uncomfortable, so much that it’s often a taboo subject at social gatherings or holiday parties. When it comes to filing for bankruptcy in the Mankato and southeastern Minnesota area, some people may feel embarrassed or ashamed, perhaps because they believe filing for bankruptcy is an uncomfortable public admission of a difficult financial situation.

Fortunately, a recent study shows that these embarrassed individuals are in the minority. Only about one quarter of Americans believe that shame is a major disadvantage of filing for bankruptcy, which is likely because bankruptcy has become quite common within American households:

• 24% of households have considered filing for bankruptcy
• 18% of households have filed for bankruptcy
• 32% of households with children under 18 have considered filing for bankruptcy
• 25% of households with children under 18 have filed for bankruptcy

Now that bankruptcy has become a reality for more households, there are other disadvantages that outweigh embarrassment when filing. Rather than considering shame, Americans now tend to feel more concerned about fiscal, credit-based matters, such as their credit score or relationships with businesses.

Bankruptcy is not something to feel ashamed about and, fortunately, more than half of Americans agree. Fifty-five percent of those interviewed said that a major advantage of bankruptcy is getting a fresh start. Filing for bankruptcy can be a difficult decision and process, but receiving another chance at financial success is certainly an advantage.

Bankruptcy has become a personal subject for nearly one of four adults within the United States. With that statistic in mind, it’s important to find a bankruptcy specialist that appreciates your financial needs. At Behm Law Group, Ltd, we understand the importance of a fresh financial start in the Mankato and southeastern Minnesota area.

Three quarters of Americans agree—there’s no shame in asking for financial help. Call Behm Law Group Ltd. today.

When it comes to money, emotion can wreak havoc in our lives. A relative or friend uses a doleful expression to request a “loan” to stay out of dire circumstances. After a while, these “loan” requests become more frequent. Now that you’ve started a precedent, how do you stop? This same dilemma can happen with Minnesota cities just like Mankato, Owatonna, and Albert Lea. The bankruptcy attorneys at Behm Law Group, Ltd. want to illustrate a case in point.

It used to be that cities which experienced financial difficulty simply increased taxes. Then came The Depression of the 1930s. This method no longer worked.

Subsequently, a Chapter 9 municipal bankruptcy law was created. Only about half of the states in the U.S. incorporated this law into their systems according to an article by Adrian Shirk.

Since 2008, over 50 cities have filed for Chapter 9 bankruptcy; only 13 successfully. By far the largest municipal bankruptcy in the U.S. is Detroit, Michigan.

Cited Reasons for Detroit’s Bankruptcy

Detroit filed for Chapter 9 bankruptcy on July 18, 2013. To many, this result was inevitable. After reviewing Detroit’s financial history since the 1950s, reporters Nathan Bomey and John Gallagher concluded that time and time again, city leaders either refused or failed to enact tough decisions that could have staved off financial collapse.

They cited these factors as having the greatest impact on Detroit’s bankruptcy filing:

• mass departure of city residents
• sharply decreasing tax revenues
• soaring home abandonment
• billion-dollar borrowing by city leaders
• creation of new taxes
• failure to reduce expenses when necessary
• large bonuses given to workers and retirees
• failure to reduce health care benefits

All of these factors over many, many years spelled financial disaster. It seems some leaders never want to play the bad guy. In so doing, they become the bad guy anyway.

Let us explain. When people encounter difficult situations, your heart may go out to them. But, when it comes to money, a leader has to weigh the considerations of all residents. It’s not about making people happy in the short term by giving them money. It’s about how to effectively use taxpayer money to achieve the best, long-term results. This takes thorough planning, discipline, transparency, and effective communication.

A city needs to be run like a business. Leaders have to pay for street lighting, signs, police, fire, utilities, courthouses, public schools, public hospitals, parks, other public properties, and municipal salaries, benefits, and pensions.

In fact, the top two sources of municipal debt are the employee salaries and benefits of both current and retired employees.

Just like in a personal household or in another business, when income declines and expenses stay the same or increase, adjustments need to be made to stay out of debt. In a city’s case, city services suffer first. Maintenance items get postponed. Residents have to endure the new normal. City morale tanks.

Sometimes, the state offers to provide money in exchange for taking more control over the city’s budget.

Some Decisions Detroit Made After Bankruptcy

In Britain, if a city were to file for bankruptcy, everything would be liquidated. In the U.S., the counterparties have to stay as long as they are assured their debts will be paid.

This rule was fortunate for Detroit. Creditors eyed the 57,604 piece collection of artwork in the city-owned Detroit Institute of Art. Instead of auctioning everything off and losing part of the city’s culture, the collection was divested to a series of charitable trusts. For the next 20 years, the Detroit Institute of Art “committed to contribute $100 million to the city’s recovery.”

In addition, Detroit agreed to:

• restructuring labor union pensions
• utility shut-offs
• state loans

According to the Michigan Constitution, pensions can’t be cut; however, Chapter 9 bankruptcy takes precedence over this rule.

While Detroit had more than 100,000 creditors, far more than you would ever likely have, we can still learn from Detroit’s predicament.

Steps to Avoid Bankruptcy

Work to keep income greater than expenses. If circumstances change, drill down to discover the root cause, and act accordingly. Do not react emotionally or let your emotions dictate how to spend your money. At times, that can be easier said than done.

Have a financial plan. Follow your plan. Scrutinize changes. Follow up with careful decision making. Even with that, if you ever have questions about bankruptcy in Mankato, Albert Lea, or Owatonna, MN, consult the bankruptcy attorneys at Behm Law Group, Ltd.