The Role of a “Bankruptcy Estate” When Filing for Bankruptcy in Worthington, MN

In every type of bankruptcy case, whether a Chapter 7 case or Chapter 13 case, a separate, distinct legal entity called the “bankruptcy estate” is created by operation of 11 U.S.C. §541 of the bankruptcy code.  This “bankruptcy estate” is in fact a separate, legal being from the person filing for bankruptcy relief.  When a bankruptcy case is filed, all a filer’s property is thrown into the bankruptcy estate.  In other words, when a person files for bankruptcy relief, all of that person’s property actually belongs to the bankruptcy estate.  However, the drafters of the bankruptcy code did not want a person to emerge out of the bankruptcy process completely destitute and without any property to reorganize. Therefore, the bankruptcy code provides for various value allotments or value limitations called bankruptcy exemptions that allow a filer to reclaim property back out of the bankruptcy estate and retain it.  In most cases, a person’s bankruptcy exemptions will be sufficient to allow one to retain all of one’s property.  If you are thinking about filing for bankruptcy in Worthington, MN, Behm Law Group, Ltd. provides legal advice and assistance throughout the process.

Chapter 7 Estate: If you qualify for Chapter 7, the bankruptcy trustee appointed by the bankruptcy court to administer your bankruptcy case will review all of your property in the bankruptcy estate and analyze whether some of the property will not be able to be protected with your bankruptcy exemptions.  To the extent that some of the property can’t be protected with your bankruptcy exemptions, that property will be labeled “nonexempt”, and the trustee will be able to sell it and distribute the value to your creditors.

Chapter 13 Estate: Chapter 13 bankruptcy is designed to restructure your debts into a manageable payment plan that lasts three to five years. The bankruptcy trustee, you, and your lawyer will work together to draft a repayment plan that the court will approve. A feasible plan is determined by your types of debts, your exemptions, and the value of the property in your bankruptcy estate.

What Makes Up the Bankruptcy Estate?

The property included in a bankruptcy estate is determined by Section 541 of the bankruptcy code. Although each bankruptcy case and each bankruptcy estate is different, the bankruptcy estate can be comprised of the following:

  • Real estate properties
  • Motor vehicles and vehicles of trade
  • Personal property items (clothing, jewelry, appliances, etc.)
  • Financial accounts
  • Security deposits
  • Properties loaned to another party
  • Wages, commissions, tax refunds, and other sources of income to which you are entitled
  • Income from rented properties
  • Asset value appreciation
  • Applicable community property
  • Applicable payments made to creditors before filing for bankruptcy
  • Property acquired within 180 days of filing for bankruptcy

Because these exact properties can vary from case to case, it may be difficult to determine which assets are exempt from your bankruptcy estate and which will not be exempt.

If you are considering filing for bankruptcy in Worthington, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today to learn more about the different chapters of bankruptcy and how your bankruptcy estate may be determined.

Filing for Bankruptcy in Luverne, MN, Before or During the Holiday Season

The holiday season is a time spent with family and friends, giving gifts, and attending festive gatherings. It’s also a time when the entire country greatly increases its spending. The pressure of spending more money during this time can place undue stress on those struggling with debt or going through a bankruptcy proceeding. However, the holiday season is actually the best time to file for bankruptcy. Behm Law Group, Ltd.  offers legal advice and assistance if you’re considering filing for bankruptcy in Luverne, MN, this holiday season.

It may seem counterintuitive and in un-holiday-like spirits to file for bankruptcy during this time of cheer and abundance, but because of the timeline involved, filing before December 31st may be your best option.

There are several reasons why you may benefit from filing for bankruptcy before December 31st, and some are directly linked to what happens during the holidays. For example:

  1. Christmas or year-end bonuses give you an overall increase in your income. These bonuses are considered verified parts of your total income, and they are subject to scrutiny in your bankruptcy case.
  2. Gifts as cash or check are also added into your gross income, even though they are personal non-employment related transactions. These gifts from family and friends can be considered as income in your bankruptcy case.

This change in your income comes into play when you complete the Means Test. To qualify for Chapter 7 liquidation bankruptcy, you must satisfy the Means Test, meaning your income must be lower than the state median for a similar household size. The slight increase in your income during the holiday season might be the difference between filing for Chapter 7 and being forced into Chapter 13.

The timeline for the bankruptcy Means Test takes into account the last six months of your income. However, the six-month period prior does not end directly on the date you file for bankruptcy relief. Instead, if you file your petition on or before December 31st, the six-month period ends at the end of November. This means that the income as calculated for the preceding 6 months (June – November) would be less for purposes of completing the Means Test, giving you a better chance of qualifying for Chapter 7 bankruptcy.  If you were to file bankruptcy after December 31st, all of the income you would receive in December from bonuses, profit sharing, commissions or gifts would be included in the 6 month look-back period (July – December).  Your income could be artificially inflated by these sources such that you would not satisfy the Means Test and you would have to file a chapter 13 bankruptcy.

If you’re considering filing for bankruptcy in Luverne, MN, the date you file may affect your petition. For more information about bankruptcy and the Means Test, contact Behm Law Group, Ltd. at (507) 387-7200 today.

Understanding Fraudulent Behavior When Filing for Bankruptcy in Windom, MN

Bankruptcy relief is a very powerful remedy.  Quite literally, with a few exceptions, all of your legal, contractual obligations to pay debts are discharged and nullified.  Creditors can never pursue you for collection on those debts.  If you do everything that is required by the bankruptcy code and the associated bankruptcy rules, the debt relief you receive is a certainty.  When you choose to file for bankruptcy relief, no one comes to your house to see what you have and take inventory of your assets.  However, the benefit of bankruptcy relief is only for the “honest but unfortunate debtor”.  In other words, you must be completely forthright and honest in disclosing and listing all of your assets and all of your creditors. You’ll be required to review your bankruptcy petition and related schedules with your bankruptcy attorney and you will be required to sign off on them under oath and subject to penalty of perjury.  One way a bankruptcy case can be rejected is if one intentionally fails to list all of one’s assets and creditors.  Another way a bankruptcy case can be rejected is if one is sloppy and negligent in preparing and reviewing one’s bankruptcy petition and schedules.  Mistakes and errors in one’s sworn bankruptcy petition as a result of sloppiness or inattentiveness to necessary details can be often construed as an intentional failure to list one’s assets and creditors.  If one intentionally fails to list one’s assets and creditors or if mistakes are made due to one’s sloppiness in preparing a bankruptcy petition, one could be accused of bankruptcy fraud and the bankruptcy court could completely deny one’s bankruptcy relief.  If the supposed fraud is serious enough, one could even be prosecuted, fined and incarcerated.  Behm Law Group, Ltd.  offers expert legal advice and assistance to help you avoid conduct or mistakes that could be construed as fraudulent behavior when you file for bankruptcy in Windom, MN.

With the help of an experienced bankruptcy attorney, it’s much less likely for someone filing for Chapter 7 or Chapter 13 bankruptcy to commit unintentional fraud. When you choose to complete your bankruptcy petition without professional assistance, your chances of making serious mistakes—an occurrence that can come in the form of providing inaccurate information on your bankruptcy forms and schedules, failing to attend required meetings/hearings, failing to undergo credit counseling prior to filing, or several other rare circumstances—are increased.

In addition to the several reasons you can accidentally commit fraudulent behavior on your bankruptcy petition, there are many ways one can commit willful bankruptcy fraud.

Willful Fraud

If you file a bankruptcy petition with clear fraudulent intentions, our attorneys will decline to work with you. For example, if your situation reveals that you’ve committed any of the following actions, we will not represent you:

  • Created false documents
  • Failed to list all assets
  • Withheld or destroyed documents relevant to your case
  • Hid a property transfer, including personal gifts of property that may be involved in your bankruptcy case
  • Bribed or paid-off a creditor, lender, or other party to hide information pertinent to your case

In more common circumstances, filers who willfully commit fraudulent behavior may have done the following:

  • Provided inaccurate income and expense information in a Chapter 7 or Chapter 13 case or prior to filing for bankruptcy relief or when submitting credit applications to creditors from whom one may have sought a loan
  • Purchased various items, such using credit cards to engage in gambling activities, not identified as “necessities” prior to filing for bankruptcy.
  • Writing personal or business checks while planning to file for bankruptcy in a short period (i.e. writing a bad check)

If you have engaged in any of these or like activities, you must fully disclose every detail to your bankruptcy attorney before you elect to file for bankruptcy relief.  Such conduct could be a basis for a finding of bankruptcy fraud.  Indeed, bankruptcy may not even be an appropriate remedy for you to pursue.  If you’d like to discuss filing for bankruptcy in Windom, MN, and take full advantage of the debt relief benefits provided by the bankruptcy code, contact Behm Law Group, Ltd. at (507) 387-7200 today.

Avoiding Dismissal With Prejudice With the Help of a Bankruptcy Attorney in Fairmont, MN

In the wonderful world of the freedom of the United States of America, it’s always optional to take advantage of the help that a trained and experienced lawyer can provide. Since the Gideon v. Wainwright case in 1963, the US courts will appoint a publicly funded attorney in criminal cases to defendants who can’t afford their own. That being said, any person in any type of US legal case can also choose to represent oneself in court.

However, just because one can, doesn’t necessarily mean that one should. Criminal cases aside, there are countless opportunities for those attempting to represent themselves to make a legal a misstep. At Behm Law Group, Ltd., we emphasize the importance of taking advantage of the legal support and counsel that an experienced bankruptcy attorney in Fairmont, MN, can offer throughout your bankruptcy case.

Aside from the difficulty of managing your own bankruptcy petition while working through the day-to-day demands of your personal and financial life, the actual requirements of filing for bankruptcy from start to finish can be nuanced, exacting and rigorous. The help of a bankruptcy attorney can truly change the outcome of your case, whether you intend to liquidate in a Chapter 7 or reorganize in a Chapter 13. One of the dangers you may face if you choose to file without a bankruptcy attorney is the possibility of your case being dismissed with prejudice by the U.S. Bankruptcy Court.

There are several reasons your bankruptcy case may be dismissed with prejudice, and many of them involve fraudulent behaviors—intentional or unintentional.  “Dismissed with prejudice” means that you would be prohibited from filing for bankruptcy relief again for a certain period of time.

  1. Lying and being wrong: One of the most common reasons bankruptcy cases are dismissed with prejudice is that the court finds the filer has lied (or been inaccurate) about some information involving one’s debts or one’s overall financial situation. If you intend to file without a lawyer, you risk case dismissal with prejudice from certain inaccuracies on your bankruptcy forms and schedules, but this is easily avoided with the help of a bankruptcy attorney.
  2. Disobedience: In circumstances where a filer has appeared to willfully disobey a court order, one’s bankruptcy case can be dismissed with prejudice. This can include obstruction or hindrance of your creditors’ rights, which is a situation you may accidentally create.

A bankruptcy case is never black and white. The gray area involved in a case is best navigated with the help of a bankruptcy attorney. The implications of a dismissal with prejudice can affect your legal and personal life in extremely negative ways.

Taking advantage of the professional counsel and legal advice a lawyer can provide is critical if you’re considering filing for bankruptcy. For more information about our expert bankruptcy attorneys in Fairmont, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

Bankruptcy in Owatonna, MN, Since 2005

As with all departments of US legislation, bankruptcy is an ever-changing legal process. Because the status of finances and the economy are rapidly transforming with the development of new technology, new energy, and new ways to spend, save, and make money, the laws that govern how debt is handled must change accordingly. Since 2005 the laws, standards, and procedures of bankruptcy have changed significantly. If you’re considering filing for bankruptcy in Owatonna, MN, it’s important to understand how bankruptcy law works today. Behm Law Group, Ltd. provides the legal advice and assistance necessary to successfully navigate bankruptcy.

The most recent changes made to bankruptcy law came in 2005 when Congress amended the bankruptcy code for purposes of determining how consumer households file for Chapter 7 bankruptcy and how Chapter 13 repayment plans are structured. These changes included the following.

Means Test and Income Measurement

 Before the 2005 overhaul, individual filers could choose the type of bankruptcy that worked best with their situation (in their or their lawyer’s opinion). This allowed filers with high incomes to benefit from Chapter 7 bankruptcy in a way that was perceived to be unfair to creditors.  Namely, Congress believed that people with higher incomes could enter into a Chapter 13 repayment plan and pay at least something to their unsecured creditors. Today, all filers are required to take the Means Test to analyze their income for the 6 month period prior to the month in which their bankruptcy petition is filed. The bankruptcy code requires an attorney to add up all of a filer’s gross income for the pre-bankruptcy filing 6 month period and then determine an average.  Then, the bankruptcy code requires an attorney to multiply the average by 12 to determine what a filer’s yearly projected income is and analyze it against the state average income for a household of the filer’s size.  If the filer’s income is in excess of the state average income for a household of the filer’s size, then the person would probably have to file a Chapter 13 instead of a Chapter 7.  For instance, presume a single person needs to file for bankruptcy relief and that he or she earned gross monthly income of $5,000.00.  Presume further that the state average income for a household of 1 in Minnesota is $52,785.00.  The bankruptcy code would require the attorney to add up the $5,000.00 for the preceding 6 months which would be $30,000.00.  Then, the bankruptcy code would require the attorney to determine the monthly average which would be $5,000.00 ($30,000.00 divided by 6).

Next, the bankruptcy code would require the attorney to multiply that average by 12 which would be $60,000.00 to determine the filer’s yearly projected income.  Since the $60,000.00 would exceed the state average income for a household of 1 in Minnesota of $52,785.00, the filer would probably be required to file a Chapter 13 bankruptcy because he or she would not have passed the Means Test.  The monthly income average is measured against some expenses and payments of some debts, so it’s still possible for filers with a high income to qualify for Chapter 7. If a filer doesn’t qualify for Chapter 7 and must instead file for Chapter 13, the expenses of a household are still subtracted in the total of disposable income that must be used to repay creditors through a Chapter 13 repayment plan.

Credit Counseling

Another notable change made with the 2005 bankruptcy overhaul was the requirement of all filers to undergo credit counseling before a petition is filed. The United States Trustee office must also approve the counselors who offer this service. This is necessary requirement irrespective of whether you file for Chapter 7 or Chapter 13 bankruptcy. A counselor may offer an advisable repayment plan in cases of Chapter 13 bankruptcy, but filers are not obligated to follow those plans.

These changes made in 2005 were also accompanied by several other minor details but overall, they were designed to create a situation of fairness for all parties involved in a bankruptcy case. For more information about the changes made or for help with filing for bankruptcy in Owatonna, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

The Difference Between Disposable Income and Discretionary Income During Your Repayment Plan With Chapter 13 Bankruptcy in Windom, MN

A common misconception about bankruptcy is that it’s a financial endgame, halting aspects of your economic and personal life.  With Chapter 7, however, your finances are given a fresh start, free from most debts you faced before filing. With Chapter 13 your options are even broader to keep your life as unaffected as possible throughout the case. When you file for Chapter 13 bankruptcy in Windom, MN, especially with the help of Behm Law Group, Ltd., you can easily integrate your bankruptcy case and repayment plan into your everyday finances.

Chapter 13 bankruptcy is designed to offer you a fresh way to handle your debts while keeping the situation fair to you and your creditors alike. With the system of reorganizing your debts that Chapter 13 provides, you can keep your financial situation manageable and still provide your creditors with the debts they are owed. During the structuring of a Chapter 13 repayment plan, your income is broken down into two basic types: discretionary and disposable.

Disposable Income

With any household, certain amounts of the total income from wages are taken automatically from paychecks and salaries as income taxes. After income tax requirements are met, remaining net income values are considered disposable income. This income can be used for any household necessities and payment obligations such as loan installments and rent.

Discretionary Income

After all household necessities and financial obligations outside of income taxes are met, the remaining income amount is considered discretionary income. This amount can be used to save, spend, or invest based on the household choices.

For example, if you make a salary of $85,000 and you file “Married Joint” on your tax forms, you will have an income tax percentage of 7.85% in the state of Minnesota. That means you will have a disposable income amount of $78,327.50. If you take 75% of that to pay bills, purchase food, fill your gas tank, and meet any other debts and tax requirements, you will have a remaining discretionary income of $19,581.87. You can choose to save, spend, or invest that amount as you wish.

Discretionary vs. Disposable in a Repayment Plan

These described options for disposable incomes and discretionary incomes are viable in a household that is not currently filing for Chapter 13 bankruptcy. How these incomes are treated in a household working through a Chapter 13 repayment plan period are very different. After income taxes and basic household necessities are met, your discretionary income is considered your only disposable income. In a Chapter 13 repayment plan, you must dedicate all your remaining disposable income to paying back your unsecured creditors.

To determine what your disposable income amount may be and to find out more information about the structure of repayment plans with Chapter 13 bankruptcy in Windom, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

Judgment Creditors and Your Assets with Chapter 7 Bankruptcy in Mankato, MN

If your debts and financial obligations put you in a position where you may qualify for Chapter 7 bankruptcy, it’s important to consider that option before one or more of your creditors place a judgment against you in court. If you stall in meeting debts payments but refuse to use bankruptcy options to recover from heavy financial obligations, your creditors have options to take matters to court. At Behm Law Group, Ltd., we encourage you to use the system set in place by the United States Congress to your advantage and file for Chapter 7 bankruptcy in Mankato, MN, if you qualify before your debt obligations lead to a more drastic situation.

Bankruptcy is a complex system of laws in place designed to protect debtors from being unable to resurface from drowning debts. However, that system is also designed to protect creditors, and it offers them several ways of regaining debts owed to them from debtors who do not or cannot meet scheduled payments. One of those options is by acting as a judgment creditor to use the courts approval in regaining what is owed to them.

What is a judgment creditor?  

If your creditor files a successful lawsuit against you and receives a money judgment, that creditor becomes a judgment creditor. Creditors cannot place judgment against secured debts, but any unsecured debts and nonpriority debts are susceptible to a judgment creditor. That title allows a creditor to find information about your assets and offers them more collection techniques than a normal creditor. A judgment creditor can forcibly take up to 25% of your net wages, collect from your bank account and other deposits, repossess certain items such as motor vehicles, and place liens against your properties and assets.

How do they gain information about your assets?

If your creditor has kept records of your debt to them over time, it can often be simple for them to find out what assets and properties you hold. Loan applications to your creditor, for example, give information about your name, address, employer, and certain asset information. The DMV can also provide information to judgment creditors about your registered vehicles including boats, cars, and recreational vehicles. Any real estate you own can also be easily searched on public online records.

If you’re struggling with multiple debts, it may be just a matter of time before your creditors file judgments against you. Filing for bankruptcy before then might save time and money and reduce the stress of legal action taken against you. For more information and to find out if you qualify for Chapter 7 bankruptcy in Mankato, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

The Rise of Consumer Bankruptcy in Owatonna, MN, During the Summer

Bankruptcy in the U.S. has a number of seasonal patterns that have existed for years. These patterns show an increase or decrease in the rates of bankruptcy for consumer households and businesses depending on the status of the economy and certain other events—for example, tax season sees an annual increase in bankruptcy cases during April. For the times of year when bankruptcy becomes more likely an option for individuals and businesses, Behm Law group, Ltd. can help. Our experienced bankruptcy attorneys provide legal advice and assistance to those considering filing for bankruptcy in Owatonna, MN.

In comparison with the last few years, bankruptcy rates have shown an unusual increase in filings during June and July of 2017. The numbers in record showed around a 16% increase in bankruptcy cases from the same time the previous year. These additional cases include both consumer and business bankruptcies.

Though there is no exact pinpoint cause of this abnormal increase in bankruptcy rates, there are several economic conditions that have accumulated against individuals and businesses. These circumstances have pushed those considering bankruptcy into deeper and deeper financial struggle.

From dipping storefront stability due to an ever-growing online shopping market affecting businesses, to changing interest rates and debt treatment affecting most consumers, there is a wide range of aspects to take into account when understanding why bankruptcy is growing.

Although it seems dangerous for so many US businesses and households to rely on bankruptcy relief all at once, it remains a viable option for those struggling with debts and difficult financial obligations. With the help of Behm Law Group, Ltd. attorneys, small businesses and individuals can benefit from choosing to file for Chapter 7 liquidation or Chapter 13 reorganization bankruptcy.

Long-Term Benefits of Bankruptcy

  • Debt relief is the main benefit from filing for bankruptcy. If your debts are treated with Chapter 7, there are several debts you will not have to pay back, and if your debts are treated with Chapter 13, you’ll have a chance to restructure your repayments into a manageable plan in which you pay only small parts of your debts.
  • Credit relief is also a viable long-term option for those with completed bankruptcy cases. Although your credit will not reflect positive changes immediately, you can begin to rebuild your credit over time without the negative impact of accumulated debts.
  • An overall fresh start is possible with bankruptcy, and despite the disadvantages that bankruptcy may pose, the immediate and long-term advantages outweigh the economic damages that may affect you.

If you’re considering filing for bankruptcy in Owatonna, MN, this summer, or in the near future, our attorneys can be key in helping you put together a successful case. For more information, contact Behm Law Group, Ltd. at (507) 387-7200 today.

When Things Aren’t Straightforward During a Petition for Bankruptcy in Luverne, MN

Preparing for bankruptcy requires a significant amount of paperwork for the filer. The forms, schedules, and other paperwork involved in a bankruptcy petition are necessary to determine how your case will be handled. Filling out any of this information about your financial situation incorrectly can drastically impact how well a bankruptcy case can go. Behm Law Group, Ltd. provides important legal advice and assistance for those struggling financially. If you’re considering filing for bankruptcy in Luverne, MN, our bankruptcy lawyers might be your key to a successful case.

When you file for bankruptcy, you must list all of your debts in your bankruptcy paperwork. This includes mortgage debts, vehicle loans, tax debts, student loans, old utility bills, debts to friends and relatives, among others.  These claims of debt are often straightforward for individual consumer bankruptcy cases, but in some cases, claims can be more complicated. If your debts depend on several past actions or disagreements, they may fall into the categories of contingent, unliquidated, or disputed. 

Contingent Claims: When the amount of your claim depends on a pending event or decision, it is considered contingent. Cosigners on secured loans often face contingent claims when filing for bankruptcy because the principal signer is responsible for the debt until that signer defaults their claim.

Unliquidated Claims: In cases of unliquidated debts, a claim exists on paper, but its amount has yet to be determined. This often includes claims involved in pending legal cases such as lawsuits and insurance claims. Debts owed to your lawyer involved in pending cases are also considered unliquidated claims.

Disputed Claims: Whenever you and your creditor disagree on the amount or even the existence of a debt, it is a disputed claim. This can include personal debts, mortgages, and car loans, but it can also include tax debts in dispute with the IRS.

Finalized claims can be resolved during your bankruptcy case, but the end result depends on a number different aspects of your financial situation. For example, liens, creditor decisions, and the determination of pending events will all affect how your claims are decided.

For more information about how your claims will be handled during your case, contact Behm Law Group, Ltd. at (507) 387-7200 today. Our experienced lawyers can be the key to helping you prepare for bankruptcy in Luverne, MN.

Understanding Unsecured Debt and How It’s Treated During Bankruptcy in Windom, MN

In most cases of consumer bankruptcy, the debts accumulated will be partially made up of unsecured debts. Whether this means the filer has a large amount of credit card debt or simply a significant amount of personal loans, if you’re struggling with your debts, unsecured or otherwise, bankruptcy might be the right option for you. Behm Law Group, Ltd. can help you understand how your unsecured and secured debts are treated differently when you file for bankruptcy in Windom, MN.

Unsecured debts are treated differently in both Chapter 7 bankruptcy and Chapter 13 bankruptcy. The type of bankruptcy case you file under will decide the outcome of how unsecured debts change the way your bankruptcy case is handled.

What is Unsecured Debt?

There are many kinds of debt that fall into the category of unsecured debt. The most common of these is credit card debt, but several other types of debt many people encounter in life are also considered unsecured. The fundamental definition of unsecured debt is any debt that doesn’t use a tangible property as collateral. Any debt that involves a property, such as a home or a motor vehicle, is considered secured debt and is treated differently in both Chapter 7 and Chapter 13 cases.

Some other examples of unsecured debt include:

  • student loans
  • utility bill debts
  • income tax debts
  • personal loans not involving property
  • medical bills
  • pending court judgments
  • and, of course, credit debts in all forms

How are Unsecured Debts Treated?

In a Chapter 7 case, your unsecured debts will most likely be entirely discharged. There are, however, exceptions to this. For example, student loans are not subject to the general discharge granted in Chapter 7 or Chapter 13 cases.  In order to get student loans discharged, one must start an actual lawsuit against the student loan creditors and ask the bankruptcy court to specifically discharge the student loans. In a Chapter 13 case, the way your unsecured debts are paid in your chapter 13 repayment plan and how much of those debts are paid depends on the amount of disposable income you have.

If you’re considering bankruptcy because of your accumulated unsecured debts, contact Behm Law Group, Ltd. for legal advice and assistance. For more information about filing for bankruptcy in Windom, MN, contact us today at (507) 387-7200.