Category: Bankruptcy

The effects of the coronavirus pandemic on the global economy have been rapidly and frighteningly apparent. With stay-at-home orders and nonessential operation shutdowns now in place, many businesses have experienced layoffs, requested extensions on payments, and filed for government aid. Despite the large-scale federal stimulus package distributed after the CARES (Coronavirus Aid, Relief, and Economic Security) Act, hundreds of businesses of all shapes and sizes are still struggling. In the coming months, many companies will find themselves in dire financial conditions with no sign of improvement through an economic upturn. If you own a small business and are struggling even with the help of federal and state stimulus loans, filing for bankruptcy can help. With the advice and protection of Behm Law Group Ltd., you can file for small business bankruptcy in Jackson, MN, and receive relief from past and present debts.

Though the impact on the economy will affect everyone, the projection of a sharp increase in small business bankruptcies in the next year will disproportionately change the financial standings for a few industries.

Restaurants: The shutdown of nonessential businesses has had a severe impact on the food industry and restaurants in particular. The majority of all restaurants have shut down completely, while a few others are getting by via curbside and delivery services. Family-owned restaurants are having an especially difficult time, and hundreds will file for bankruptcy relief before the pandemic ends.

Luxury Stores: Boutiques, gift shops, and other luxury retailers are also having a hard time getting through the recession caused by the pandemic. Consumers dramatically limit spending on luxury goods when budgets get tight. That decrease in spending may last a long time, as past recessions have shown us, and for luxury retail business owners, bankruptcy may be the only way to survive.

Independent Oil Operations: Large oil and fossil fuel processors may have a good chance of getting through this time of extreme travel bans, but smaller independent companies may not survive. Oil costs are the lowest they’ve been in the last 10 years and demand continues to decrease. For owners of smaller oil processors, filing for bankruptcy may be the best way to protect themselves and their creditors.

Small Airlines: Despite multiple sources of federal support, small airports and airlines may have a hard time getting through the recession caused by the pandemic. With unsaturated airways and restrictions on air travel, most independent or privatized local airline companies have shut down completely. Increases in travel won’t pick up for some time, and it will be an uphill battle to return to pre-pandemic operations.

If you own a small business and are struggling to make ends meet during the coronavirus pandemic and its resulting recession, bankruptcy might be the right choice for you. To learn more about filing for bankruptcy in Jackson, MN, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.

Despite many best efforts from national and local governments, banks, and other financial support providers, the global economy is struggling in the current recession caused by COVID-19. If you’re seeing the effects of this recession, you are not alone. Unemployment funds provide some support, but for many, that income doesn’t fill every budget need. Those who are finding it difficult to meet monthly debt payments have several options available to them. With the help of Behm Law Group Ltd., you can learn how bankruptcy and other options of debt management in Mankato, MN, are valuable tools you can use to your advantage during times of financial stress.

While filing for bankruptcy may be one of the most legally dramatic options available to you in comparison with many other methods of debt management, it may also be the most effective because it is permanent and binding. Bankruptcy helps thousands of U.S. citizens and businesses recover from moderate to severe debt each year. If you file for bankruptcy, you will either have:

• Your debts discharged in exchange for the liquidation of non-exempt assets, or
• Your debts reorganized into a three to five-year repayment plan suited to your income and providing more favorable payment terms.

Both of these bankruptcy options are effective in their own ways, depending on the situation of the filer. If you aren’t ready to file for bankruptcy, or if it doesn’t make sense for your debts, there are other ways you can manage your debts and find relief. Some common methods include:

Loan modifications

Unlike many other ways of working out debts with your lender, loan modifications are a permanent change to debt terms. If you are able to work out a loan modification with your creditor, there will be one or more requirements altered in your payment plan. Your creditor may allow an interest rate reduction or convert a variable rate to a fixed rate. A creditor might also forbear a portion of the principal amount. This means that amount will be set aside before the monthly payment rate is calculated, which lowers the per-payment rate, but does not reduce the loan total.

Non-bankruptcy repayment plans

If you have been unable to make a debt payment for some time, you may be able to work out a repayment plan with your lender for the delinquent amount you owe. This repayment plan will likely spread the amount you owe from past payments evenly over future payments. Typical repayment plans only span three to six months, however.  Lenders very rarely extend payment plans beyond three to six months.

Forbearance agreements

Forbearance agreements are similar to both loan modifications and repayment plans, but they typically occur before you are delinquent on a loan. You can request a reduction or pause on payments for a short time and work out a way to repay the amount you owe from that time.

All these options of debt management in Mankato, MN, are short-term. If the recession continues, and you still cannot meet debt payments, bankruptcy is always an available and permanent option. To learn more about bankruptcy, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.

There is no denying the impact the COVID-19 outbreak is having on the worldwide economy. As we all reel around a difficult financial time in this recession, many small business owners are asking how they can work through the devastating effects on the economy and come out on the other side as a still functioning operation. Many businesses may have even gone through the 2008 recession and found that there are some tricks to staying solvent. One option that’s always available to sole proprietorships and partnerships is debt relief through Chapter 13 bankruptcy. If you are struggling to meet debt payments in Pipestone, MN, during this time, Behm Law Group Ltd. can help you work through a Chapter 13 reorganization case to receive long-term debt relief that will likely support you to the end of this recession.

Even though we are at the beginning of what will likely be a long recession, it’s not too early to think about your options for debt relief, especially if you already have a difficult time meeting monthly financial requirements. While there are ways to protect your income and business operations during this time—protecting cash flow, limiting purchases, restricting your budget, and formatting marketing plans around the crisis—these actions are sometimes not enough. Many industries will be significantly impacted by the effects of the COVID-19 shutdowns, and amid such long-term desperation, filing for bankruptcy can be a rational, intelligent choice.

Chapter 13 bankruptcy can be filed if you or you and your business partner are personally responsible for business debts. This is often the case with small businesses because the cost of becoming incorporated typically outweighs the protection it provides. When you file for Chapter 13, your business debts and personal debts will be included together in a repayment plan lasting three to five years. This repayment plan will be overseen by a chapter 13 trustee and organized to fit your current financial situation.

If you are personally liable for your business debts, the only way you can keep that business running through a bankruptcy is to file Chapter 13. This process requires you to repay your priority and secured debts under adjusted terms that are more favorable to you.  Also, your unsecured debts will generally not receive any interest and will typically only be paid a percentage of what you owed when your case was filed. While some might consider filing for bankruptcy to be a dramatic decision, the fact is that Chapter 13 bankruptcy helped thousands of small businesses weather the 2008 recession and emerge with their businesses still intact. Thanks to the help of Chapter 13 repayment plans, small businesses can work through this difficult time just as successfully as in the 2008 recession.

You don’t have to be one of the many small businesses that will sadly have to close doors within the next few years due to the financial stress of the coronavirus. Resolve your debts with Behm Law Group Ltd. today. Contact us at (507) 387-7200 or stephen@mankatobankruptcy.com for more information about Chapter 13 debt relief in Pipestone, MN.

Bankruptcy is not for everyone and anyone who practices bankruptcy law responsibly and ethically will not try to “sell” someone on the process.  It is appropriately viewed as a last resort.  It is not something to be afraid of but it needs to be approached with a degree of healthy respect.  There is, however, no denying the significant impact the COVID-19 outbreak is having on global, national, and local economies. With the dramatic rise and fall in demand of various goods and services, the temporary closure of many operations, travel bans, trade constriction, and the detriment of the virus itself, the economy may be looking at numbers even worse than the housing crisis of 2008.

Many economic experts projected from the beginning of March that businesses of all shapes and sizes would be impacted by the damages wrought during the COVID-19 outbreak. If you are a local business, you may not be alone if you’re considering filing bankruptcy to find debt relief. With the help of Behm Law Group, Ltd., you can find protection and long-term debt relief in Waseca, MN through Chapter 7 or Chapter 13 bankruptcy.

Whether you file for Chapter 7 or Chapter 13 will depend on several things. First, only sole proprietors or partnership companies in which the owners are personally responsible for business debt may file for Chapter 13 reorganization bankruptcy. The process of Chapter 13 bankruptcy restructures business and personal debts together into a manageable repayment plan lasting a three- to five-year period depending on your debt and income. If you qualify for Chapter 13, you can maintain business operations and slowly repay your debts on terms that are more favorable to you.

If you don’t qualify for Chapter 13 or if you can accept that your business may have to be closed down, you have the option to file for Chapter 7 bankruptcy.  This process will liquidate your non-exempt assets in exchange for the discharge of debts. While you might not be able to keep your business running, you will likely be able to protect and retain things like your home and car and other necessary assets from liquidation.  In chapter 7 bankruptcy, the exemptions allowing you to protect and retain assets are quite generous.  In the vast majority of cases, people are able to keep all of their assets and the only things that they lose are their debts.

A comprehensive outlining of what is happening to the economy throughout the COVID-19 outbreak was done by the Center for Strategic & International Studies (CSIS). This informational article describes the impact COVID-19 has had through the very beginnings of the global outbreak on the economy including the drop in exports out of China, the fall of tourism, the demand for sanitary products, and much more. If you’re seeing an impact on your business operations due to the coronavirus and trickle-down global effects, you’re walking a fine line with practically every other business in the world. Relief from that impact can be found in bankruptcy.

To learn more about finding debt relief in Waseca, MN through bankruptcy, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.

If you’re struggling with a heavy debt load or an income that doesn’t make ends meet every month, you aren’t alone. Many individuals like you can find debt relief and can resolve troublesome financial issues for the long term with the help of bankruptcy. The two main chapters of bankruptcy, Chapter 7 and Chapter 13, offer debt relief options in the form of debt discharge in exchange for asset liquidation of non-exempt assets or as a reorganization of debts into a repayment plan. To determine if filing bankruptcy is the right choice for you, and to decide which chapter you should file under, Behm Law Group Ltd. offers expert legal guidance and comprehensive bankruptcy assistance in Redwood Falls, MN.

Bankruptcy is a highly complex and nuanced legal process that can be very difficult to navigate without the right knowledge and tools. Because of this, filing for bankruptcy with the support of an attorney is the best possible option for any filer. However, many filers have difficulty finding the money to hire a lawyer and they, sometimes, must find their own way through the filing process. In the scenario of helping to find an attorney who may agree to accept lower attorney’s fees, one of the best resources you can use is your local legal aid office.

Legal aid offices provide public, and sometimes free, legal information and support services. You can find a legal aid office/legal clinic near you through the American Legal Services Corporation. Legal aid offices are set up as a nonprofit, being largely donation- and volunteer-based programs. Participating lawyers and other legal professionals, as well as counselors and social workers, establish a system that can provide protection in some ways for those unable to completely afford legal representation, but primarily the organization operates as a resource of legal information.

If you plan to file for bankruptcy and you’re having trouble finding the money to hire an experienced bankruptcy attorney, you can turn to a local legal aid office for some direction.  Because bankruptcy can be a highly nuanced and complicated process, most legal aid offices do not have attorneys who handle bankruptcy cases.  However, many private attorneys may be affiliated with a legal aid office.  Attorneys who are affiliated with legal aid offices may agree to accept lower fee amounts for people who seek assistance through the legal aid office.  In order to possibly qualify for lower fees, you may have to undergo a screening process with the legal aid office and with an affiliated bankruptcy attorney.  In order to obtain assistance with the attorney’s fees, you really must, in good faith, not have any other options.  If you receive tax refunds or have a relative who can financially assist you, or have a life insurance policy or a 401(k) plan that you can borrow against, you typically will not qualify for lower bankruptcy attorneys’ fees through the legal aid office.  Generally, all of the basic information you’ll need to file a bankruptcy case can be available through the legal aid office, including information about:

1. Pre-bankruptcy requirements
2. Documents included in your petition
3. How to find and fill out all the necessary paperwork
4. How to pay and/or waive bankruptcy fees
5. What debts you can have discharged or reorganized
6. What assets you can protect from liquidation
7. Post-petition requirements
8. Overall court process

Certain more unusual or complex information may also be available, but you may find it difficult to know what to ask for that will be relevant to your specific situation.

If you are able to afford legal representation, it is generally recommended that you do so. Legal aid offices cannot always give information that will be helpful in the face of changes in your case. Each bankruptcy case is unique, and certain circumstances may cause unforeseen difficulties after you file a petition. Additionally, legal aid offices cannot protect you from creditor judgments or other obstacles that may arise throughout your case, whereas such assistance is available with the help of an experienced bankruptcy attorney.

To learn more about legal aid offices and bankruptcy assistance in Redwood Falls, MN, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.

In the first part of this blog, we covered what debt relief options the 2020 CARES Act (Coronavirus Aid, Relief, and Economic Security Act) offers for mortgages, student loans, car loans, and property tax debts. This CARES Act, put into place on March 27th, 2020 in response to the novel coronavirus pandemic, establishes several rules and options for individuals facing extreme difficulties concerning income, debts, and state lockdowns.

As we work through this global recession, it’s important to remember that there are many options available to you for debt relief. One tool that is always available to you is to file bankruptcy. While this may seem like a drastic move, Behm Law Group, Ltd. has seen many clients use bankruptcy as a positive way for debt relief in Luverne, MN, especially in trying times like these.

During the period the CARES Act will be in place, there are additional options for debt relief on top of bankruptcy.

CARES Act Provisions, Continued

• Credit Card Debt: Most major credit card providers are offering relief for their customers during this time. This includes credit line extensions, payment skipping, and forbearances. Talk to your bank to see how they can work with you if you’re unable to make credit card payments. Many banks and credit unions are also offering financial aid resources and loans for individuals and businesses while we get through this recession. This includes help for local businesses offered through the U.S. Small Business Administration (SBA).
• Utilities and Others: More and more states are beginning to put suspensions on utility shutdowns and waive late fees. If you’re unable to make utility payments on time, the CARES Act and your state government’s own orders may protect you from late fees and from having your water, gas, and electricity cut off. On top of this, most phone and internet providers are waiving late fees and/or postponing shut offs due to missed payments. Some internet providers are also supplying free services to new customers or unlimited periods for existing customers.
• Stimulus Check: The most direct source of assistance the CARES Act will provide is a stimulus check for each eligible citizen. Individuals with an incomes under $75,000 will receive a check of $1,200. Taxpaying families will receive an additional $500 per dependent under the age of 17. Spouses who file joint tax returns will receive $2,400. Individuals with incomes over $75,000 will receive smaller checks, reduced by 5% of their income over $75,000 (e.g.  income of $80,000 = stimulus check of $950).

The stimulus check and other relief options that the CARES Act puts into place during this trying time are established with the goal of protecting U.S. citizens from severe debt and the hopes that our economy will be cushioned in some ways from the worsening of the current recession.

To learn more about your options for debt relief in Luverne, MN, and filing for bankruptcy, contact Behm Law Group, Ltd. at (507) 387-7200 today or stephen@mankatobankruptcy.com.

In the face of the deadly coronavirus contagion and the significant effects that the spread will continue to have on the global economy, the U.S. government took some extreme cautionary measures. In addition to declaring a national emergency and deploying Federal Emergency Management Agency (FEMA) and National Guard relief, the federal government passed the CARES Act (the Coronavirus Aid, Relief, and Economic Security Act) on March 27. This act provides financial support to individuals struggling with little to no income during these uncertain times. The act may help to an extent, but the longer the pandemic continues, the harder it will be for many to keep making ends meet. If you are unable to make debt payments each month, you can find other sources of debt relief in Marshall, MN. With the help of Behm Law Group Ltd., you can use bankruptcy as one option to secure debt relief and long-term financial stability.

Bankruptcy can seem like a drastic option, even for those struggling significantly, but it’s a government-sanctioned process that has helped countless millions of individuals and businesses find their way through a recession like the one we, as a country, are working through now. The CARES Act offers some more immediate options for debt relief to all individuals as we continue to work through state lock-downs.

CARES Act Provisions

• Mortgages: Anyone struggling to meet monthly mortgage payments has options for relief. Many homeowners are eligible for forbearances that provide short-term relief of their mortgage debt. This means you may skip some payments and spread the amount skipped throughout future payments. You may also be able to make a lump sum payment on missed payments later. In addition, many major mortgage providers—including Freddie Mac, Fannie Mae, VA-guaranteed, FHA-insured, and some federally backed lenders—have an imposed 60-day moratorium on foreclosures.
• Student Loans: The CARES Act effectively suspended all collection activities and interest accrual on federal student loans for the next six months (until September 30, 2020), and these suspensions will be applied automatically. This act also suspends the reporting of negative credit information on credit reports, wage garnishments, and other collection actions on behalf of student loans during the national emergency.
• Auto Loans: While there are no official federal rules with the CARES Act, many auto lenders are providing leniency to debtors. If you are struggling to make payments on your car loan, contact your loan provider. There is a good chance you’ll be able to delay payments or make other debt payment modifications.
• Property Tax: Those with property tax debt or who are facing foreclosure because tax debt delinquency might be able to take advantage of a moratorium many counties are implementing. That moratorium varies by county, so check with your county treasurer’s office for more information.

In the second part of this blog, we’ll cover the additional resources the CARES Act offers for debt relief in Marshall, MN, during the coronavirus pandemic. To learn more about the options bankruptcy provides, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.