Handling Social Security Overpayments Through Bankruptcy

If you’re retired or disabled, you’re most likely receiving social security payments from the U.S. Social Security Administration (SSA), and it may also be likely that those checks are your main source of income.

If you’re struggling with debts and on a strict budget, you may need to find debt relief through filing for bankruptcy. If you do choose to file for bankruptcy, you can find guidance and protection with the help of Behm Law Group, Ltd. Our attorneys can help you build a strong case and file a successful bankruptcy in New Ulm, MN.

When you file for bankruptcy relief, all your financial information is pertinent to the trustee assigned to your case. This might even include overpayments made through the social security system.

 

SSA Overpayments

When the SSA issues checks, there are occasions when they make an overpayment to a retired or disabled individual. You may not even be aware of that overpayment, and you may never be unless the SSA requests a repayment of that overpayment or if you file for bankruptcy. In the event you file for bankruptcy, these overpayments are considered debts you owe back to the SSA. While this seems unfair, these debts can still be discharged in the bankruptcy process.

 

Overpayment Debt

If you file for Chapter 7 bankruptcy, your debts will be discharged in exchange for the liquidation of your non-exempt assets. Most government debts, like unpaid taxes or criminal fines are not subject to discharge. However, SSA overpayment debts can be discharged and most likely will be because they are treated as unsecured debts, just like your credit card and medical debt.

If you file for Chapter 13, an overpayment debt will only have to be repaid partially, depending on how large your chapter 13 plan payments are. The amount you’ll have to repay will be included in a three-to-five-year repayment plan along with the rest of your reorganized debts.

 

Discharge Objection

The SSA can object to the discharge of your overpayment debts if they can prove you are abusing the system or committing fraud. For example, if you’ve provided false information on your case documents or SSA applications, your discharge may be rejected.

If you’re unable to make a repayment to the SSA on the grounds of overpayment debt, contact Behm Law Group, Ltd. today for more information about filing for bankruptcy in New Ulm, MN, at (507) 387-7200.

Filing for Bankruptcy Again: Waiting Periods and Other Important Details

If you’re working through a difficult financial time, you may have begun looking for debt relief options already. Certain debt relief options might be more useful to you than others, depending on your situation. However, keep in mind that any kind of relief is a difficult, complex process. Because of this, it can be extremely helpful to work through a debt relief process like bankruptcy because the debt relief you obtain is certain and permanent and legally enforceable against your creditors. When you choose to file for bankruptcy in Mankato, MN, Behm Law Group Ltd. provides the support and guidance you need to build a strong, successful case with long-term beneficial results.

Many people won’t experience a bankruptcy, but for those who do, they will find that it affects their lives in many ways. If filers finish their case, but later find themselves in a similar financial situation, they have the option of filing for bankruptcy relief again.

Sometimes, people will encounter difficult and unavoidable financial troubles after having already filed for bankruptcy relief.  Repeat bankruptcy filings are allowed by the bankruptcy code. The requirements for debtors to file another bankruptcy case largely include waiting periods between the dates of filing of the respective bankruptcy cases.

Waiting Periods for Individuals

There are two types of bankruptcy that individual, wage-earner consumers typically file:

  • Chapter 7 (liquidation bankruptcy): For debts discharged in exchange for non-exempt asset liquidation during a Chapter 7 case, the waiting period until you can file for a second chapter 7 bankruptcy is eight (8) years. For example, if someone files for Chapter 7 bankruptcy relief on August 8, 2010 that person would have to wait until August 9, 2018 to be able to file another chapter 7 bankruptcy case.
  • Chapter 13 (reorganization/partial-payment bankruptcy): Any debts discharged or repaid in a three- or five-year Chapter 13 repayment plan have a waiting period of two (2) years. This theoretically means you could qualify for a second Chapter 13 case while you are still making payments in your first chapter 13 case.  Theoretically, you, could be in repeat chapter 13 bankruptcy for years.  Most chapter 13 bankruptcy cases last three (3) years.  For instance, if one files for chapter 13 bankruptcy relief on August 8, 2010, one would be done with that case roughly by August 8, 2013.  Immediately thereafter, one could qualify for and file a second chapter 13 bankruptcy case.
  • Chapter 7 (liquidation bankruptcy) After Having Filed a Chapter 13 (reorganization/partial-payment bankruptcy): If someone has filed for chapter 13 bankruptcy relief and has completed their chapter 13 plan and received a discharge, one can subsequently file a chapter 7 bankruptcy case if one needs to do so.  The time period between such filings is six (6) years.  So, if someone files for chapter 13 bankruptcy relief on August 8, 2010, one could file a chapter 7 bankruptcy proceeding August 9, 2016. 
  • Chapter 13 (reorganization/partial-payment bankruptcy) After Having Filed a Chapter 7 (liquidation bankruptcy): If someone has filed for chapter 7 bankruptcy relief and has received a chapter 7 discharge, one can subsequently file a chapter 13 bankruptcy case.  The time period between such filings is four (4) years.  So, if someone files for chapter 7 bankruptcy relief on August 8, 2010, one could file a chapter 13 bankruptcy proceeding August 9, 2014.

While no one actually wants to file for bankruptcy again, sometimes one can encounter life hardships and financial difficulties that are simply out of one’s control.  Many people have to file for bankruptcy relief a second or, even, third time.  Medical emergencies which may not be fully covered by insurance, the death of a spouse resulting in only one (1) household income source where two (2) household incomes are necessary to cover daily living expenses and natural disasters which may destroy homes where insurance coverage is insufficient are just a few examples of how people may have a need to file for bankruptcy relief a second or third time.  

To learn more about filing for bankruptcy in Mankato, MN, contact Behm Law Group Ltd. today at (507) 387-7200.

Mortgage Options and Rebuilding after Bankruptcy in Luverne, MN

Owning a home is a big goal for individuals and families alike. In today’s world, however, buying a home is a difficult process that requires both good credit and a steady income. Unfortunately, those are conditions that many U.S. citizens don’t have in their lives. For many, the prospect of a mortgage isn’t even on the table. Those struggling with severe debts in addition to having a low income don’t have the option to buy a house unless they seek debt relief and take positive action to turn around their finances. Filing for bankruptcy is one option available to anyone qualifying, and with the help of Behm Law Group Ltd., you can file a successful case and begin rebuilding after bankruptcy in Luverne, MN.

 

Bankruptcy filing is generally offered to most individuals as a Chapter 7 liquidation or Chapter 13 reorganization process. This means your debts will either be discharged in exchange for asset liquidation of your non-exempt assets or reorganized into a repayment plan lasting three to five years and suited to your income. No matter which type of bankruptcy you file for, you’ll receive the benefits of debt relief and likely have long-term stability if you are wise with your finances.

 

While one effect of bankruptcy is debt relief, the other is a hit to your credit. The benefits of bankruptcy are not outweighed by the negative effects on your credit, but it is something you will have to deal with after you file. When it comes to buying a home, for example, you will face varying waiting periods before you can be approved for a mortgage.

 

Chapter 7 Bankruptcy

After you file for Chapter 7 bankruptcy, you will have to wait two years until you can be considered for Federal Housing Authority (FHA) loans. Any other private, conventional mortgage company requires a four-year wait period until it will consider you as a borrower. An FHA loan is offered through a system designed to help consumers struggling to get loans because of poor credit, bankruptcy filings, or other financial problems. FHA mortgages have lower down payments and lower credit score requirements.

 

Chapter 13 Bankruptcy

If you file for Chapter 13 bankruptcy, you will have a two-year waiting period for FHA loans if you have made consistent payments on your chapter 13 plan. However, if you have made consistent payments on your chapter 13 plan for one full year, you may apply for an FHA mortgage consideration with the added recommendation and explanation of your case from your bankruptcy trustee.

 

For conventional loans, that waiting period is two years after the chapter 13 repayment plan is finished and the case is officially closed. If your case is dismissed for any reason, that waiting period is extended to four years.

 

Rebuilding after Bankruptcy

No matter which type of bankruptcy you file for, getting a mortgage afterward requires patience and intelligent planning/management of your finances. To learn more about filing for and rebuilding your credit after bankruptcy in Luverne, MN, contact Behm Law Group Ltd. at (507) 387-7200 today.

 

Where Things Happen When You File for Bankruptcy in Pipestone, MN and the Surrounding Area

If you’re struggling to meet your debt payments month to month, it may be time for you to consider options for positive debt relief. One of the best long-term options available for individuals struggling with debt is bankruptcy. Bankruptcy is a complex, nuanced legal process that’s difficult to work through without guidance, but with the help of Behm Law Group, Ltd. attorneys, you can build a strong case for Chapter 7 or Chapter 13 bankruptcy in Pipestone, MN. Our attorneys will help you move through the bankruptcy process with confidence and expert advice at each step of the way.

 

Bankruptcy is highly nuanced and requires extensive financial documentation and participation from all parties involved. The participation involved means meetings and other requirements that you, as the filer, must perform. The locations of these meetings vary depending on where you live. For Pipestone, MN residents and those in the surrounding area, these locations and meetings include:

 

  • Attorney Meeting: If you choose to partner with Behm Law Group, Ltd, your attorney meeting will take place in Pipestone, MN at one of the rooms in the Pipestone County Courthouse. Our office is located at 403 South Broad Street in Suite 60, Mankato, MN, but we can and do meet with prospective clients anywhere. If you’re unable to meet with us in person, we can also meet over the telephone and maintain contact via email.
  • 341 Meeting: A meeting of the creditors, also known as the 341 meeting, is required participation for you where you and your lawyer meet with the chapter 7 bankruptcy trustee that the bankruptcy court assigns to review your bankruptcy case. The meeting takes place after you file your petition. In this meeting, the bankruptcy trustee will ask a series of questions about your debts, assets and petition overall. For Pipestone residents and those residing generally in the Pipestone area, your 341 meeting will take place in Mankato, MN at the U.S. Post Office building, if you file a chapter 7 bankruptcy petition.  The Mankato Post Office building is located right across the street from our office.  If you file a chapter 13 bankruptcy petition, the 341 hearing will be conducted in the large conference room in the lower level of the Redwood County Courthouse in Redwood Falls, MN. If you live elsewhere in Minnesota, this list of 341 meetings by county will tell you what location the meeting will take place. Learn more about the 341 meeting here.
  • Bankruptcy Court: The U.S. Bankruptcy Court operates at a national and state level. Each state has various locations of court branches that serve different regions. Minnesota has bankruptcy courthouses in Minneapolis, St. Paul, Duluth, and Fergus Falls. While bankruptcy filers will only have to meet at the courthouse to deal with rare and unusual conditions in their case, there are occasions in which you may have to travel to the court nearest to you. For Pipestone residents any issues that would need to be addressed by the bankruptcy court would be handled at the St. Paul courthouse.
  • Credit Counseling: Another requirement of bankruptcy is credit counseling. Filers must conduct a credit counseling course, either online or in person, within 180 days prior to filing their petitions. There are many court-approved credit counseling agencies in the Pipestone County region and surrounding areas, and you can easily find one suited to your schedule and location. The United States Department of Justice provides a search engine system to find local, approved credit counseling agencies here.

 

To learn more about filing for bankruptcy in Pipestone, MN or to get started on your case today, contact Behm Law Group, Ltd. at (507) 387-7200.

Understanding the Rise of Bankruptcy in Windom, MN and Nationwide

Filing for bankruptcy is a valuable way to finding long-term debt relief for either an individual or a business. If you’re struggling with your finances and find it difficult to meet debt payments each month, you may benefit greatly from filing a bankruptcy petition.

 

Taking positive steps to work through a bankruptcy case can secure a financial future and stabilize your life in many ways. Behm Law Group, Ltd. can provide the support, guidance, and legal protection you need to build a strong case for Chapter 7 or Chapter 13 bankruptcy in Windom, MN and get the results you need for long-term financial wellness.

 

The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13. Chapter 7 is also the most common type for businesses of all sizes. This chapter works to liquidate your non-exempt assets (properties and accounts) in exchange for the discharge of the majority of your debts.

 

Chapter 13, on the other hand, reorganizes your debts into a repayment plan customized to your income. This repayment plan lasts three to five years, and it may discharge a large percentage of your unsecured debts (i.e. credit card debt and medical bills).

 

If you do plan to file for bankruptcy, you’ ll not be alone among U.S. citizens. In fact, there has been a recent increase in bankruptcies across the country. While the rate of bankruptcy is still far below recession levels, there is an unmistakable uptick. The American Bankruptcy Institute recorded a 3% increase in bankruptcies from July of 2018 to July of this year, projecting a total of 796,000 cases compared to last year’s total of 777,000.

 

In contrast to this increase in bankruptcies, there has been a national average increase in minimum wages and an overall decrease in unemployment. So, why are there more bankruptcies?

 

The fact is that U.S. debt is incredibly high right now. The recorded debt for total consumer households is at $14 trillion, with credit card debt at $1 trillion. For perspective, the total debt of the 2008 recession was $1 trillion less than today’s debt. Unfortunately, on top of their debt, many individuals are still spending recklessly. Businesses and consumers alike are suffering from the national debt, as all economic conditions ripple through the U.S. financial systems. To learn more about these circumstances, explore the New York Post’s coverage.

 

You may find yourself in dire straits, financially speaking, from accumulated or sudden debts, and this may be a result of actions in or out of your hands. No matter how you got here, bankruptcy is available to you as an effective debt relief option.

 

To learn more about filing for bankruptcy in Windom, MN and the surrounding area, contact Behm Law Group, Ltd. at (507) 387-7200 today.

How Minimum Wage Can Affect Bankruptcy in Fairmont, MN and Across the State

State economies are affected by a range of factors, both within the state itself and by national or global determinants. The condition of a state economy will have its own impact on the cost of living, availability of jobs, wages, and more. Minimum wage is directly affected by the state economy, which means it should change over time to accommodate employees fairly.

 

Any changes to minimum wage will impact workers and employers alike, though this effect may manifest in many different ways. For some employers, an increase to minimum wage may stretch their finances to a breaking point. If a recent change in minimum wage, in addition to other factors, has led your small business into dangerous financial waters, Behm Law Group, Ltd. can help you file for bankruptcy in Fairmont, MN.

 

In January of 2019, Minnesota raised the minimum wage by 2.16% to a rate of $9.86 per hour for large employers and $8.04 per hour for small employers (and for underage employees). This change in minimum wage reflects the nearly annual changes in inflation, which means it will have positive and negative effects to all parties involved.

 

For employees, the increase in pay will have a very positive impact on their lives. For employers, on the other hand, even a small increase in minimum wage can impose a much higher cost of worker compensation.

 

For large employers, this increased expense doesn’t usually create a serious impact, but small businesses can take a hit. Businesses established as a sole proprietorship or a partnership in particular will have a harder time compensating for minimum wage increases over time because the owner’s personal debts include all their business debts.

 

If you own a small business as a sole proprietorship or partnership and are struggling with the changes to minimum wage in addition to other expenses, Behm attorneys can help you petition for Chapter 13 or Chapter 7 bankruptcy relief.

 

Chapter 13 bankruptcy provides a debt reorganization plan that gives you a three to five-year repayment period and discharges portions of your debts. This type of bankruptcy also allows you to keep your business running with long-term stability.

 

Chapter 7 is a bankruptcy process available to all types of businesses, big or small. This chapter works to discharge debts in exchange for the liquidation of non-exempt assets. It’s one of the most effective bankruptcy processes in terms of concretely resolving debts, but it could require you to shut down your business for the foreseeable future.

 

Owning and operating a business is a difficult profession, and it can quickly become more difficult with small changes like the increase in minimum wage this year. If you’re considering filing for bankruptcy in Fairmont, MN to find debt relief for your business, contact Behm Law Group, Ltd. at (507) 387-7200 today.

How Filing for Personal Bankruptcy in St. Peter, MN Affects Your Community

If you’re struggling to meet monthly debt payments and feeling the weight of your financial difficulties, it may be time for you to consider some form of debt relief. For many individual consumers and businesses, filing bankruptcy is a highly effective form of debt relief that provides long-term beneficial results.

 

It’s true that bankruptcy has some negative side effects, specifically to your credit, but the advantages far outweigh these effects in the vast majority of cases. Filing may be your ticket to a better financial situation that lasts the rest of your life. With the help of Behm Law Group, Ltd. bankruptcy attorneys, you can determine which type of bankruptcy in St. Peter, MN is right for your situation, and you can put together a successful case that gives you the best results possible.

 

Bankruptcy is a legal process designed to help debtors and creditors alike. It’s a system that recognizes the situation that debts have put filers in but also understands that creditors deserve some kind of recompense for debts owed. This balance of treatment to creditors and debtors that bankruptcy creates is because it’s structured on a nuanced, complex system intertwined into the economic structure at all levels. This means that, overall, bankruptcy provides a support system for every party involved  including borrowers, lenders, and all other financial people/organizations at every financial level.

 

If you choose to file for bankruptcy, the following parties will be affected (not including you and your creditors), both directly and indirectly:

 

  • Family/Friends: Both emotionally and financially, your friends and family may be affected by your bankruptcy. This may appear in several ways depending on your situation. First and most directly, any personal loans you owe to family and friends may be discharged or reorganized into a repayment plan, making whichever loved one that gave you the loan into a creditor involved in bankruptcy. This can put serious stress on a personal relationship, but in addition to this, your loved ones will most likely be made aware of your financial status.

 

  • Local Economy/Government: In many ways, even one bankruptcy affects a municipal government and, in turn, a local economy. No matter the size of your rural or urban area, citizen finances are tied together, which means a bankruptcy in the area will reflect on the local economy. Your bankruptcy may be one of few, but more bankruptcies mark a potentially struggling economy and a local government that will have increasing difficulties in supporting its community. This system is all cyclical, but bankruptcy plays a part in returning that cycle to a positive side.

 

Bankruptcy can also affect the global economy in ways as well, but like many other financial matters, everything occurs on a gradual and cyclical scale.

 

To learn more about filing for bankruptcy in St. Peter, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

 

Understanding and Navigating What You Might Face after Filing Bankruptcy in New Ulm, MN

Life has its ups and downs, which is a cliché, yes, but clichés are often rooted in simple truths. While some individuals and businesses won’t experience as extreme a financial event as bankruptcy, it certainly affects those who do file in many ways. The emotional and mental stresses of financial struggles aside, bankruptcy has its own effects on a filer’s life before, during, and after a case is closed. If you are considering filing bankruptcy in New Ulm, MN, Behm Law Group Ltd. can help you build a strong petition, meet pre-bankruptcy requirements, follow through with your case, and complete the process successfully with as little stress as possible.

 

Behm attorneys are skilled, knowledgeable, and experienced in handling a wide range of Chapter 7, Chapter 13, and Chapter 12 cases, and we have the means to protect and help you through your entire case.  After a bankruptcy is completed, however, you may face a few challenges.

 

As with people who have not filed for bankruptcy relief and who may have bad credit, there are three instances when bankruptcy filers can be discriminated against.

 

  • Loans: Your post-bankruptcy credit scores will not be what they were pre-bankruptcy. Your scores will take a hit, but you can still build up your score over time. Despite this, you may have a hard time getting new loans after filing. Lenders can turn you down for loans or charge higher interest rates on an accepted application. If you are in a credit counseling program, you may experience difficulties getting financing as well.   Many people who file for bankruptcy relief may actually have great credit scores.  However, they are typically unable to do anything even with great credit scores because their debt to income ratio is so skewed.  Simply put, any great credit scores are entirely illusory because people simply have too much debt already and they do not have sufficient income to materially reduce that debt.  Creditors will not make further loans to you when they see that your income is insufficient to pay and materially reduce the debt that you already have.  After a bankruptcy is completed, you may have a poor credit score but, paradoxically, you may be more credit worthy than you were before.  In many ways, bankruptcy “leans you up” debt-wise because you get rid of most, if not all, of your debts.  In many ways, you are like Pinocchio because you don’t have any “debt strings” or you have a lot less of them.  Additionally, you will not qualify for bankruptcy relief again for several years.  Oftentimes, creditors, even the ones you may have included in a bankruptcy case, see this and they are incentivized to work with you again.   They understand that they would get to be first or second in line to get paid by you after a bankruptcy instead of being tenth or fifteenth in line to get paid before a bankruptcy filing.  They also understand that they could garnish your wages and levy on your bank accounts if you don’t pay them and that you would not be able to do anything about it because you would not qualify for bankruptcy relief again for several years.  Therefore, even after a bankruptcy filing, creditors often consider you a very attractive credit risk.

 

  • Employment: Unfortunately, private employers can pass judgment on your application if they know you have filed for bankruptcy or see that you have a lower credit score than other applicants. Most employers wouldn’t want to hire people who are handling a personal issue as significant as bankruptcy or poor finances as there is a chance the financial issue will affect their job performance. Being open and straightforward with employers can help you get through this prejudice, but sadly, it won’t always help them ignore your circumstances.  However, this also happens frequently with people who have poor credit scores and who haven’t filed for bankruptcy relief.  Often, potential employers will see that your situation is more manageable and secure after a bankruptcy than it was before and that you have been freed of the mental anguish and emotional stressors that you had before.  They know that they will not be served with a garnishment summons on your wages because your debt issues have already been taken care of.

 

  • Renting: Like lenders and employers, landlords may also tend to discriminate against potential renters based on their credit scores or recent bankruptcy cases. Understandably, landlords need tenants to pay rent on time. This means they may place judgment on potential renters based on their credit scores. In the eyes of a landlord, it’s simpler and easier to judge based on credit scores than the many other factors that could be involved.

 

In general, you can avoid these post-bankruptcy issues, but if you do experience them, there are ways to navigate these difficulties. To learn more about the process of filing bankruptcy in New Ulm, MN, and life after filing, contact Behm Law Group Ltd. at (507) 387-7200 today.

 

When and Why Bankruptcy Might Be Your Best Option for Debt Relief in Worthington, MN

In today’s fast-paced consumer world, it might seem easier than ever for businesses to thrive. Despite the increased spending most individuals and households have been doing, especially since the advent of online shopping, many businesses are still struggling with the debts that have existed for years on top of the new financial obligations of the technological age.

 

Debts like building mortgages, equipment expenses, online hosting subscriptions, credit card readers, licenses, and more are all part of running a typical business today. Because of the additional expense that technology requires and the high cost of owning a business, it’s not unexpected that most would benefit greatly from debt relief. Behm Law Group, Ltd. can help you determine if filing for bankruptcy is a form of debt relief in Worthington, MN, that’s right for your situation.

 

Bankruptcy as a form of debt relief can be highly effective for businesses in many different financial situations, but it’s not always the right option. In some cases, filing for bankruptcy may be more detrimental because of the effect it has on your credit and the potential loss of some of your business or personal assets, especially if you want to keep your business operating as usual.

 

Considerations for Debt Relief from Bankruptcy

Often, however, businesses considering bankruptcy at all will likely benefit greatly from the process. To understand if you should think about bankruptcy as a viable option, there are several red flags that can give you an idea of your business’s financial standing:

 

  1. Long-Term Standing: If your income-to-debt ratios show that even a long-term income wouldn’t be sufficient to rebalance your budget and cash flow your business, bankruptcy might be the right choice. Revenue is something that fluctuates throughout the year for every business, but if your bad month turns into a bad quarter, year, and so on, your long-term standing is precarious, if not nonexistent.
  2. At-Risk Assets: If your business is a sole proprietorship or a partnership, as many small businesses are, your personal assets may be at risk if you’re unable to repay your business debts. Creditors can take action to seize your personal property as well as your business assets to repay your debts. If you file for bankruptcy, you can halt any collections with the power of the automatic stay injunctive mandates of 11 U.S.C. §362.
  3. Other Options: There are options outside of bankruptcy that may provide the debt relief you need. Debt consolidation or settlement, negotiating with creditors, and other options may be more suitable to your situation than bankruptcy. However, non-bankruptcy options are often uncertain and precarious because your creditors are not required to work with you and they’re not required to stop collection efforts while you’re trying to work with them.  So-called “debt consolidation companies” who advertise very aggressively on the internet and who purport to deal with your creditors on your behalf are especially troubling.  They have no special influence or legal authority over your creditors and they can’t make your creditors do anything at all.  Often, the only parties who benefit from such non-bankruptcy “debt consolidation plans” are the debt consolidation companies themselves.  Often, people will pay into these plans for months and years only to have their creditors garnish their wages and freeze their bank accounts anyway.  Often, people will not be able to get the money back that they’ve paid to a debt consolidation company because the contracts they sign with such companies provide that the payments first go to satisfy the fees charged by the company before anything gets paid to creditors.  If you’ve considered all other options and still aren’t finding the relief you need, it may be time to think about bankruptcy.
  4. Post-Filing Plan: If you’ve considered bankruptcy and find you’re able to picture filing and establishing a long-term plan, it’s likely you can gain many benefits from filing a bankruptcy case. Behm attorneys can help you build your case and create a post-filing plan for reorganization after bankruptcy is concluded.

 

If you’re looking for debt relief in Worthington, MN, and are considering bankruptcy, contact Behm Law Group, Ltd. at (507) 387-7200 today to learn more.

Voluntary vs. Involuntary Case Dismissals When Filing Bankruptcy in Luverne, MN

Across the U.S., individuals and businesses are filing bankruptcy each month. Not only is the process of bankruptcy designed to help filers come back from severe debt as well as sometimes give creditors some financial return, it also provides a system of balance for the economy. If you are considering filing bankruptcy in Luverne, MN or the surrounding area to discharge your debts, you are contributing to the health of the economy of your community, Minnesota, and the U.S. as a whole.

Because bankruptcy was designed to help debtors, creditors, and the economy alike, bankruptcy law has complex, strict legal boundaries that can be difficult to navigate without the help of an experienced professional. Behm Law Group, Ltd. provides the advice and guidance required to file a successful case as an individual or as a business.

Filing bankruptcy is one of the few legal processes that individuals or businesses can take on without representation. Utilizing the skills of an attorney, however, is highly recommended because of the intricate nuances of bankruptcy law. When filing bankruptcy, every case can have unique and unexpected conditions. Navigating through these conditions without an expert’s advice often results in a case being dismissed or property being permanently lost.

When it comes to case dismissals, the guidance of an attorney can help you avoid involuntary dismissals or, in certain situations, receive a voluntary dismissal.

Filing Bankruptcy: Types of Dismissals

Involuntary Dismissal

If your case doesn’t meet the requirements of the bankruptcy code, you could face an involuntary case dismissal. This occurs most commonly when forms and documents are missing or are inaccurate or if the filer fails to meet pre-bankruptcy requirements. Other reasons your case may be dismissed include failure to make alimony or child support payments during your case period (including the three to five years of a Chapter 13 repayment plan), failing the Means Test if you plan to file Chapter 7, failure to pay court fees, lack of a credit counseling certificate, and more.

 

Voluntary Dismissal

There are many occasions when a filer may request dismissal on a voluntary basis. In some cases, it can be difficult to convince the court to grant the dismissal, and a bankruptcy lawyer can be key to petitioning for and processing the dismissal in these conditions. Dismissal of a Chapter 7 case, for example, is rare. The court will only grant a voluntary dismissal if your creditors will not receive any compensation or benefit from the liquidation of your assets (i.e. it’s not in your creditors best interests). Dismissal from a Chapter 13 case is much more attainable. Typically, the court cannot hold you to a repayment plan against your will, and you can file a dismissal request to end your case whenever you want. However, this does allow creditors to have the automatic stay lifted and resume debt collection activities.

 

To learn more about dismissals and why an attorney is important when filing bankruptcy in Luverne, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.