Handling Debt Sale When Filing for Bankruptcy in Worthington, MN

When an individual or business fails to meet debt obligations without excuse, they may start to experience more aggressive collection actions from creditors. If you have been struggling to make your debt payments for several months, filing for bankruptcy might be the best option to end creditor harassment and get a fresh financial start. Behm Law Group, Ltd. provides the legal support you need when filing for bankruptcy in Worthington, MN and get optimal results in your case.

 

Generally speaking, when  filing for bankruptcy you’re immediately protected by the automatic stay for the period of time it takes to resolve your case. This means the creditors of the debts that will be handled in your case can’t perform any collection actions. However, things can get complicated when one of your creditors sells one of your debts while you’re filing for bankruptcy or in bankruptcy.

 

A creditor may choose to sell a debt to another creditor at any time, even while you’re in the middle of a bankruptcy case. A creditor might choose to sell the debt if they don’t want to wait for your bankruptcy case to be completed to see if it will get paid anything by the trustee administering your case. By selling your debt, they will receive a small immediate sum, and the buyer of the debt will stand in the place of the original creditor.

 

How does this affect filing for bankruptcy?

 

In most cases, the sale of a debt doesn’t affect your bankruptcy case. Whether you owe a debt to the original creditor or to a debt buyer, you still owe the same amount for that debt. From your perspective, it will be handled in bankruptcy as if there was never a sale. However, the original creditor or the debt buyer must notify the bankruptcy court of the sale so that the party in charge of the debt can receive payments in the event that you file for a Chapter 13 bankruptcy and are scheduled for a three to five-year repayment plan.

 

A debt sale may affect you if the debt in question is discharged or scheduled to be discharged. Because the selling of a debt included in a bankruptcy is an act that is in violation of either the automatic stay injunctive provisions of 11 U.S.C. §362 or the discharge injunctive provisions of 11 U.S.C. §524, you may need to take action if this occurs. For example, presume you have filed for Chapter 7 bankruptcy and your credit card debt was discharged in the process. Presume further that, soon after, you’re contacted by a creditor who claims they bought one of your debts and is attempting to collect payments. In this case, you should provide the creditor with a copy of the Notice of Bankruptcy Filing that was issued by the bankruptcy court when your case was commenced.  If your bankruptcy case has been concluded, you should provide the creditor with a copy of the Discharge Order that the court issued.  If the creditor continues to harass you and continues collection activities, you may be forced to contact your bankruptcy lawyer and sue the creditor in bankruptcy court.

 

The sale of a debt will often not concern you as a filer and is simply business between creditors. To learn more about this process and to receive legal support when filing for bankruptcy in Worthington, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

 

How and Why Your Case is Public When You File for Bankruptcy in Luverne, MN

If you are struggling to make ends meet, filing for bankruptcy might be an effective way to find relief from crippling debt and get a fresh start. Individuals and businesses from a wide range of financial backgrounds can find the bankruptcy chapter that suits their situations and benefit from the process of filing. Behm Law Group, Ltd. offers legal counsel and expert advice and assistance for Chapters 7, 12, and 13 bankruptcy in Luverne, MN.

 

With the help of a Behm bankruptcy attorney, you can build a successful bankruptcy petition that will offer optimal results in a liquidation or reorganization bankruptcy. While a bankruptcy is often a financial success story for most individuals and businesses, it’s important to remember that filing for bankruptcy will affect your credit score and that your bankruptcy filing will become a matter of public record.

 

Bankruptcy case information, along with virtually all other district and appellate court proceedings, is available to the public eye. Cases and most case information are offered through the government-operated system of Public Access to Court Electronic Records (PACER). These electronic records will contain details about your bankruptcy case including dates, documents, parties involved, and more. (This excludes personal information such as social security numbers, dates of birth, and financial account numbers.)

 

While it may be unsettling to individuals and businesses that bankruptcy case information is public, they can take solace in the fact that there are several roadblocks for someone attempting to access that information. For example, the PACER system requires a registration account with extensive information about the registrant, payment by page for case documents, and several other requests along the way for information about the registrant’s reason for accessing a case.

 

Because of these requirements to use the PACER system, most of the users are attorneys, bankruptcy professionals, creditors, and some large businesses. In short, you won’t have to worry about your family, friends, colleagues, or employers accessing information about your bankruptcy case. Most individual cases of bankruptcy fly far under the radar and are, generally, no longer visible on credit reports 5 to 6 years after a case is filed.

 

The ability to maintain control over your finances through a Chapter 13 repayment plan, or the fresh start a successful Chapter 7 case provides will greatly outweigh the fact that your bankruptcy case information is a matter of public record. Even the effect a bankruptcy has on your credit report should not dissuade you from filing if bankruptcy is a viable path to take.

 

To find out if filing for bankruptcy in Luverne, MN, is the right choice to remedy your financial situation or to learn more about the benefits of each bankruptcy type, contact Behm Law Group, Ltd. at (507) 387-7200 today.

 

 

 

Cancellation and Charging-Off vs Debt Discharge in Bankruptcy in Marshall, MN

When you enter into a loan agreement, it’s implied and expected you’ll repay the debt in full with interest. However, nobody is perfect. There are many life events that can affect your ability to meet debt obligations, especially when you accumulate several debts over time. If you find yourself unable to make monthly loan payments, you and your creditors are faced with how to resolve that. There are several ways creditors can try to continue collecting a debt and there are several ways for you to relieve that debt. With the help of Behm Law Group, Ltd., filing for bankruptcy in Marshall, MN, can be a viable way to resolve debt issues.

 

The three primary ways a debt issue can be resolved is to cancel a debt, charge-off a debt, or discharge a debt. Debt discharge occurs through the bankruptcy process, but certain types of debt can be cancelled or charged-off. The process of charging-off or cancelling a debt is most often done outside of bankruptcy, but it can be accomplished during a case without significantly affecting the proceedings.

 

Debt Cancellation

 

If you’re unable to repay a debt, a creditor may choose to cancel/write it off. You can negotiate with your creditors to convince them to cancel debts even while you’re in the process of filing for bankruptcy. However, you will be taxed for the amount you owed on the debt because the cancellation of the debt is considered income for tax purposes. For example, if you owed $1,000 on a debt at the time of its cancellation, you will be taxed for that amount. The exception to this is if the debt amount was $600 or less.

 

Charging-Off Debt

 

Creditors can also choose to charge-off a debt if you’re unable to repay it. In this case, the debt record is removed from the creditor’s records and the creditor can either attempt collections in-house or sell the debt to a debt buyer. By selling the debt to a debt buyer, the creditor is able to claim a tax exemption.  You still have the obligation to repay the debt but your obligation is to pay the new debt purchaser instead of the original creditor.

 

Debt Discharge

Choosing to file for bankruptcy may be a difficult decision to make, but the benefits are many. Discharging your debts through bankruptcy is the most effective way to permanently end your repayment obligations without any tax liability. If you have your debts discharged through bankruptcy, you are not taxed on any debt so discharged.   In any event, there is a specific IRS form to be excused from having to file taxes on debt discharged in bankruptcy.

 

Filing for bankruptcy gets a negative reputation, but it’s an effective legal process designed to provide debt relief to individuals and businesses struggling with overwhelming financial burdens. Cancellations and charge-offs both have many catches and will still follow you to tax season.

 

With the help of a quality lawyer, you can file for bankruptcy and successfully discharge debts for good. If you’re considering filing for bankruptcy in Marshall, MN, contact Behm Law Group, Ltd. at (507) 387-7200 for more information about working with our quality bankruptcy attorneys.

Priority vs. Non-Priority Tax Debts When Filing for Bankruptcy in Waseca, MN

The U.S. tax system is complex and affects many aspects of business owners’ and individual consumers’ finances. While intricate and sometimes invasive, taxes are a necessary part of a well-functioning government and economy. Understanding when and where taxes will come into play when you make financial decisions is important to prevent negative consequences such as tax debt. If you are struggling with tax debts along with other severe financial difficulties, bankruptcy might be the right choice. Behm Law Group, Ltd. provides the guidance and counsel you need to successfully file for bankruptcy in Waseca, MN.

 

Tax debts can be accumulated through a wide range of sources from property taxes to income taxes. When you file for bankruptcy, these debts are broken into two primary categories: priority tax debts and non-priority tax debts.

 

Priority Tax Debts

 

The majority of tax debt obligations fall under priority tax debt. This means they generally can’t be discharged the Chapter 7 liquidation process and that they must be paid in full during a Chapter 13 repayment plan. Priority tax debts include income taxes that don’t fall under non-priority requirements, property taxes incurred within a year of filing for bankruptcy, taxes you withheld or collected, some employment taxes, some excise taxes, custom duties, and penalties that have been assessed to any priority taxes.

 

If you file for Chapter 7 bankruptcy, your priority taxes will not be discharged in the process and you must repay them in full after your bankruptcy has concluded. If you file for Chapter 13 bankruptcy, your priority taxes must be included in your 3 to 5-year repayment plan and they must be fully repaid.

 

Non-Priority Tax Debts

 

Any tax debts that are considered non-priority can be discharged in Chapter 7 and Chapter 13 bankruptcy because they will be categorized and handled like all your other non-priority unsecured debts (e.g., credit cards and medical bills). Non-priority tax debts only include income tax debts if they were due at least three years prior to filing, if you filed the return for the tax debt at least two years prior to filing, if the IRS has not assessed your tax liability within 240 days of filing, and if you did not incur the tax debt through fraudulent behavior.

 

In most cases, filing for bankruptcy with the goal of discharging your tax debts can be a complicated and detail-specific process. The majority of your tax debt might not be able to be discharged in either a Chapter 7 case or a Chapter 13 case.  For example, filing for Chapter 13 bankruptcy will not result in the discharge of most priority tax debts, but you will be able to bundle those debt obligations into a manageable three to five-year repayment plan, tailored to your income, in which you will be able to pay them in full and be relieved the associated interest and penalties.

 

If you are considering filing for bankruptcy in Waseca, MN and want to learn more about how your taxes and other debts are handled, contact Behm Law Group, Ltd. at (507) 387-7200.

Judgment Liens and Handling Them With a Bankruptcy Lawyer in Fairmont, MN

Filing for bankruptcy is an option available to almost every consumer and business in the US. However, despite the layman’s access to filing for bankruptcy, the fact remains that it is a complex, highly nuanced legal process. While a debt from which a judgment lien is obtained is discharged in a bankruptcy proceeding, a judgment lien can still remain after a bankruptcy is concluded and a bankruptcy filer must take certain steps to fully remove it. This responsibility is best approached with the help of a professional. Behm Law Group, Ltd. offers the counsel of an expert bankruptcy lawyer in Fairmont, MN, throughout your petition.

 

What is a Judgment Lien?

 

In a state civil court case, after a judge or jury hands down a decision, or after a court-approved settlement, a judgment is entered by the court. As part of a typical judgment, the court orders the payment of money from one person to another. But the person who owes the money (the debtor) doesn’t always pay up. A judgment lien is one way to ensure that the person who won the judgment (the creditor) gets what he or she is owed. A judgment lien gives the creditor the right to be paid a certain amount of money from proceeds from the sale of a debtor’s property.

 

In Minnesota a judgment lien can attach to any real estate a person has an ownership interest in (farm, house, condominium, etc.).  A judgment lien is automatically entered against any real estate that a debtor (the person against whom the judgment has been assessed) owns in the county in which the judgment was awarded.  If the person owns property in another county, a creditor can take a judgment and docket or file it in that county at which time it becomes a judgment lien against any real estate a debtor owns in that county, too.  A judgment lien can last up to ten (10) years and it can remain a lien on a debtor’s real estate for that entire time.  A judgment lien can also be renewed for successive ten (10) year periods.  If a judgment lien is levied against someone’s real estate, any sale of the real estate can’t be completed unless the judgment lien is paid or expunged/removed.

 

Judgment Liens and Bankruptcy

A discharge obtained through bankruptcy nullifies the debt giving rise to a judgment lien.  However, a discharge does not require a judgment creditor to take affirmative steps to remove a judgment.  In other words, a creditor is not required to go to the county in which it obtained the judgment and ask the court to remove the judgment lien from a debtor’s real estate.  Thus, even after a bankruptcy has concluded, a judgment lien becomes a nuisance lien that still clouds title to a debtor’s real estate and prevents any sale of the real estate from being consummated.

 

In order to remove a judgment lien from the real estate, a debtor must, after the bankruptcy has concluded, file an application to discharge or expunge the judgment lien with the state court in which the judgment and judgment lien were obtained in the first place.  Generally, one can only do this with regard to a judgment lien on real estate that one owns and actually occupies as one’s homestead.  Minn. Stat. §548.181 is the statute that one must use to remove or discharge a judgment from real estate that one owns.  There is a specific protocol that must be followed.  Navigating the procedure and making sure it is done correctly is extremely difficult without the help of a knowledgeable, trained professional. With the help of Behm Law Group, Ltd. and the expertise of a Behm bankruptcy lawyer in Fairmont, MN, filing for bankruptcy can be a successful experience that offers financial recovery. We can assist you with the removal of judgment liens following the completion of a bankruptcy case.  Contact us today at (507) 387-7200 today for more information.

Understanding Bad Faith Cases When Filing for Bankruptcy in New Ulm, MN

If you are considering filing for bankruptcy, there are a number of ways you can prepare your financial situation before you file a bankruptcy petition that can help your case and bring about the best results for you. Many of these preparation techniques are acceptable methods for improving the possible outcome of your bankruptcy case—for example, choosing a certain time to file or avoiding certain financial obligations. However, there are instances when certain actions done before filing for bankruptcy or during a bankruptcy case can result in the dismissal of your case on the grounds of “bad faith.” Behm Law Group, Ltd. offers legal advice and assistance to help prevent a potential bad faith bankruptcy case when you’re filing for bankruptcy in New Ulm, MN.

While there are legitimate means of preparing for filing for bankruptcy or altering your finances to your advantage before you file a bankruptcy case, some such techniques could be considered bankruptcy “red flags” and prompt your bankruptcy trustee to determine that your case has been filed in bad faith. When you file for Chapter 7 or Chapter 13 bankruptcy, you must meet the “good faith” requirement in order to proceed. If there are aspects of your case that suggest you may be trying to take advantage of the bankruptcy system, your bankruptcy trustee or even one of your creditors could view your case as having been filed in bad faith and could ask the bankruptcy court to dismiss your case.

Examples of common actions or circumstances that could be construed as bad faith include:

  1. The filer hid certain assets, like keeping cash in a coffee jar or in a safe in one’s home, and did not disclose the cash in one’s bankruptcy petition.
  2. The filer has little to no cash flow and is not registered as being unemployed with the government (this could alert a trustee to think that there is hidden income somewhere – the trustee could conclude that you are working for cash only and not disclosing it).
  3. The filer had a job change during the bankruptcy period or recently prior to filing for bankruptcy and did not reveal an income increase to the trustee.
  4. The filer made one or more large luxury purchases prior to filing for bankruptcy (vacation expenses, electronics, and jewelry are common examples).

Another common occurrence that may lead to a dismissal for bad faith is an attempted conversion from a Chapter 13 case to a Chapter 7 case.

Chapter 7 Conversion When Filing for Bankruptcy

If a filer is in a Chapter 13 repayment plan, one may attempt to convert that case to a Chapter 7 case if one can no longer pay the monthly Chapter 13 plan payments. This can occur if the filer had a job change, experienced a temporary period where one was unemployed, or incurred unexpected large expenses. However, if the filer begins to convert a case to Chapter 7 and one’s situation improves during that time (for example, one gets a better paying job, or a family member gives one a large sum of money through inheritance or otherwise), one’s case could be dismissed for bad faith.  In short, it would be seen that one would be inappropriately trying to convert to a chapter 7 case – essentially indicating that one does not have the financial ability to make any payments to one’s creditors – from a chapter 13 case.  Given the receipt of a large sum of money from a relative or given a higher paying job, the trustee and the bankruptcy court would conclude that one would have the ability to continue making payments to one’s creditors and should, therefore, be required to stay in a chapter 13 case.

There are other examples of why your case may be dismissed for bad faith, and you can learn about all the additional circumstances that may lead to bad faith in the American Bankruptcy Institute Journal.

Find out more about filing for bankruptcy in New Ulm, MN with the help of Behm Law Group, Ltd. and contact us today at (507) 387-7200.

How a New Job Affects Chapter 7 Bankruptcy in Mankato, MN

If you’ve been struggling with extreme financial difficulties, bankruptcy is a way to find relief and recovery. If you have a low income or are unemployed, Chapter 7 bankruptcy is designed to help your situation. For individuals, Chapter 7 is the most common type of bankruptcy. It’s applicable to most situations for unemployed filers, low income filers, and high debt filers. Behm Law Group, Ltd. provides expert counsel if you’re considering Chapter 7 bankruptcy in Mankato, MN.

The most important thing to be aware of when filing for bankruptcy is that honesty counts in every aspect of your case. The U.S. Bankruptcy Courts and bankruptcy trustees are highly experienced and trained in examining bankruptcy cases and detecting mistakes and fraudulent behavior. With the guidance of a bankruptcy attorney, you can more effectively lay out your financial circumstances establishing your need for Chapter 7 relief.

Qualifying for Chapter 7 bankruptcy requires you to pass the Means Test to determine if your income is too low to make debt repayments possible. If you pass this test, your income is either lower than the state median income of a similar household size or the total amount of your debt is exceedingly high.

After you’ve passed the Means Test and qualified for Chapter 7 bankruptcy relief, you’ll begin to work through the process of discharging certain debts, exempting certain properties, and figuring out the details of your bankruptcy estate. In most cases, a filer’s job status doesn’t change during the bankruptcy process. However, there are some times during the pendency of a case when some filers have employment or other income changes.

New Income

If you have a change in employment during the pendency of your bankruptcy case, it’s likely that your income will change as well. If this happens, the best thing to do is to immediately notify your attorney. This change in income may significantly alter your case.  New income can affect your case in several ways:

  1. Your case can be converted to a Chapter 13 bankruptcy case, and you could enter a restructured debt repayment plan that could last three to five years.
  2. If you receive income from lawsuit settlements, lottery winnings, divorce settlements or if you inherit any money or property within 180 days after your case is filed, such income could be used by the bankruptcy trustee administering your case to pay your creditors.
  3. Your case may be dismissed because of your lack of disclosure of any income changes or for other fraudulent behavior.

Other sources causing an income change are also taken into account in a Chapter 7 case, and you should be open and honest about all alterations to your financial situation. For more information about filing for Chapter 7 bankruptcy in Mankato, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

Understanding the Predischarge Debtor Education Requirement for Bankruptcy in Luverne, MN

Whether you file for liquidation or debt reorganization bankruptcy, it’s likely that one or more of your debts will be discharged in the process. Discharging debts in Chapter 7 serves to simultaneously relieve debtors of unmanageable financial hardship and allow fair treatment of creditors despite a lack of full repayment. In a Chapter 13 case, certain debts can be discharged through a repayment plan. Foreseeing which debts will be discharged can be difficult, and organizing your case without the help of a professional may change that outcome. Behm Law Group, Ltd. offers legal advice and assistance if you choose to file for bankruptcy in Luverne, MN.

In addition to the many requirements involved in bankruptcy cases, filers who will have debts discharged must undergo predischarge debtor education before the bankruptcy process can be completed and before the bankruptcy court can issue a discharge order.

Predischarge Education

The predischarge debtor education requirement was established with the purpose of advising those who’ve fallen into debt and filed for bankruptcy on how to better manage their finances. This course is different from the credit counseling requirement which debtors must undergo prior to filing a bankruptcy petition. Instead, debtors must go through a predischarge education course after their petition is filed but before they’re granted a discharge on any debts.

The financial management education course must be provided by a court-approved agency within a forty-five day period after the meeting of the creditors. The course lasts around two hours and covers materials that teach debtors how to improve their financial situation after bankruptcy. Topics include effective budgeting practices, handling taxes sensibly, and other court-required material.

You’ll certify your fulfillment of the predischarge debtor education requirement with bankruptcy Form 423, and if you file a joint bankruptcy petition, you and your spouse must both take the course. Additionally, the agencies that provide the necessary predischarge debtor education course don’t have to follow the same non-profit regulations as credit counseling providers. This means you may have to pay a fee to take the required course.

If you’re contemplating filing for bankruptcy, it’s important to consider fees for requirements like predischarge debtor education and other milestones in your case before you begin. Behm Law Group, Ltd. offers assistance at every step whether you file for Chapter 7 or Chapter 13 bankruptcy in Luverne, MN. Contact us at (507) 387-7200 today for more information.

 

Risks of Filing for Bankruptcy Without a Bankruptcy Attorney in Waseca, MN

If you’re struggling to meet loan payments and bills alongside daily living expenses, bankruptcy is an option for individuals, business owners, and corporations alike. Designed to liquidate assets, discharge debts, reorganize expenses, and generally give the filer a fresh start while maintaining the fair treatment of creditors, bankruptcy in the U.S. is a process that can fix a lot more than most realize. As American citizens, our freedoms extend to self-representation in all courts of law, including the U.S. Bankruptcy Courts. Utilizing the counsel and support of Behm Law Group, Ltd.’s bankruptcy attorneys in Waseca, MN when filing for bankruptcy, however, can protect you from the potentially costly errors you may make through self-representation.

Representing yourself and filing your own bankruptcy petition is an option, but it can mean you’ll be taking many risks. At the very least, it can be difficult to reach optimal results in your bankruptcy case without the help of a trained professional.

Filing your own bankruptcy petition means you risk case dismissal or court prejudice and forgo the protection of an experienced bankruptcy attorney.

Mistakes When Filing for Bankruptcy:

Mistakes on the required paperwork are the most common reasons a case is dismissed. Gathering the necessary information about household or business income sources, debts, loans, assets, properties, and expenses can be a difficult process. Bankruptcy attorneys have the knowledge, experience, and resources to put together a flawless petition with no room for inaccuracies. Self-representation, on the other hand, offers countless opportunities for small mistakes that may lead to case dismissal. Misrepresentation of finances can appear as fraudulent and can provide a basis for the court to reject your bankruptcy petition.

Protection When Filing for Bankruptcy:

One of the roles of a bankruptcy attorney is to provide legal protection for clients. Business or individual, all filers may be experiencing aggressive collection action from lenders. The automatic stay in a bankruptcy case halts collection action for a period of time, but some creditors may petition the bankruptcy court for the lifting or termination of the automatic stay for certain debts. If approved, those creditors can collect or repossess collateral. A bankruptcy attorney can protect a client from harassment and aggressive actions by creditors, collection agencies, debt collectors, and any other lenders before the automatic stay is lifted.

Above all, a bankruptcy attorney offers expertise, experience, knowledge, and legal protection. Forfeiting your right to attorney protection and guidance may result in a less than successful bankruptcy case.

We’ll take a critical part in creating a positive outcome for your case from beginning to end. Relieve the stress of managing your own bankruptcy case and eliminate risks of failure. Contact Behm Law Group, Ltd. today at (507) 387-7200 for more information about working with an expert bankruptcy attorney in Waseca, MN.

 

 

Limitations of the Automatic Stay When You File for Bankruptcy in Windom, MN

Whether you file for Chapter 7 liquidation bankruptcy or Chapter 13 debt reorganization bankruptcy, you benefit from the immediate action of the automatic stay as soon as your bankruptcy petition is filed. The automatic stay is a wonderful tool designed to prevent creditors from collecting on debts that may be discharged or restructured during the bankruptcy process. It also prevents collections and blocks harassment from your creditors during the period of your bankruptcy case. If you’re struggling financially, the short-term effects of the automatic stay and the long-term effects of bankruptcy as a whole might be a viable option for recovery. Behm Law Group, Ltd. offers legal advice and assistance when you file for bankruptcy in Windom, MN.

The automatic stay provides a wide range of advantages (link to blog post “The Power of Automatic Stay When You File Bankruptcy in Fairmont, MN”) along with its ability to prevent your creditors from collecting debt payments during the stay period. In addition to the many ways the automatic stay can help you, however, there are some things it cannot do, including:

1. Halting certain lawsuits.

Lawsuits that affect minors (i.e. children of the parties involved) are protected against most financial proceedings, including bankruptcy. For example, the automatic stay cannot stop a lawsuit that involves paternity or child custody tests, nor can it stop a lawsuit that attempts to modify, collect, or confirm child support payments.

2. Halting certain tax requirements.

The automatic stay can’t alter or prevent IRS tax audits or issues regarding tax deficiency. Additionally, the automatic stay cannot prevent the IRS from demanding your tax returns and demanding payment for taxes owed.

3. Halting wage garnishment for pension loan repayment.

If you took out a loan from your retirement pension, the automatic stay doesn’t stop the garnishment of your income (including wages, salary, commissions, bonuses, and any other sources of income) for the repayment of that loan. This is the only condition where the automatic stay is not effective in preventing wage garnishment.

4. Halting criminal sentence proceedings.

If you’re in the process of undergoing criminal proceedings involving debt, or otherwise, the automatic stay is only able to impact the conditions of your sentence that involve debt repayment. The automatic stay does not change the parts of your sentence that involve community service, therapy, jail time, or other requirements.

Despite the many advantages of the automatic stay, these situations remain unchanged during the stay period when you file for bankruptcy. Additionally, if you’ve filed for bankruptcy the previous year, the automatic stay period will end after 30 days, unless you can prove the need for an extension.

If you’re considering filing for bankruptcy in Windom, MN, and want to learn more about how the automatic stay can apply to your situation, contact Behm Law Group, Ltd., at (507) 387-7200 today for more information.