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.

Top Three Causes of Bankruptcy in Waseca, MN

Over 700,000 cases of bankruptcy have been filed each year since the 2008 market crash. Though this number has decreased since its peak in 2010, there are still thousands of cases filed across the country.

 

If you’re struggling to meet monthly debt payments, it may be time for you to consider joining others who have used bankruptcy as an effective debt relief option and gain long-term financial wellbeing. With the help of Behm Law Group, Ltd. you can navigate the nuanced waters of bankruptcy in Waseca, MN and file a successful case for Chapter 7, Chapter 12, or Chapter 13 bankruptcy relief.

 

Bankruptcy is a process designed to support debtors, lenders, and the economy as a whole. Different systems of bankruptcy have been in place for centuries, and today’s U.S. Bankruptcy Court has several types of bankruptcy chapters established to treat individual and business debts.

 

For individuals filing for bankruptcy, the system provides solutions for the most common causes of their financial struggles. For many individuals, there are three primary sources that push them to the point of filing for bankruptcy.

 

  1. Medical Bills: Because the U.S. doesn’t provide national healthcare coverage, privatized health insurance companies are the only option for the majority of individuals. Because health insurance providers are private companies, they can be very expensive. In addition to this, medical care itself is very costly, from general check-ups to serious surgeries. For those who can’t afford health insurance, it’s nearly impossible to pay for any medical treatments. Several studies show that accumulated medical bills or sudden expenses are the number one cause of bankruptcy in the U.S.
  2. Unemployment: While the government provides support for the unemployed via unemployment compensation, it’s often not quite enough to make ends meet. Long-term unemployment will almost certainly create a situation of severe debt, especially if the individual has mortgages, credit card debt, or car loans to repay. Chapter 7 bankruptcy is designed to help those without a steady income resolve debts that they cannot pay while unemployed.
  3. Divorce: The combination of legal fees, emotional turmoil, increases in living expenses, and a decrease in income as a result of divorce can all create a situation of financial struggle. The cost of divorce is high just in terms of court fees and legal representation, often meeting a minimum of $2,500. In addition, you lose the income of your ex-spouse, and your living expenses may actually increase. All of this makes divorce a main cause of bankruptcy, especially if the couple was facing financial struggles prior to the split.

 

If you’re considering bankruptcy for any of these reasons and more, you’re not alone. Choosing to take the next step and starting a bankruptcy petition will take you down a path to long-term financial stability. To learn more about bankruptcy in Waseca, MN, 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.

Why Many Local Restaurants File for Chapter 7 Bankruptcy in Jackson, MN

Running a business is a difficult endeavor, especially if it’s a young company. Maintaining a steady income and company growth means battling on several different fronts and working through many different expenses. Not only do the local economy and your business marketing endeavors affect your business standing, but also the national and even global economy play a role as well. Additionally, some businesses are even more difficult to run than others. Restaurants, for example, are notoriously difficult to maintain successfully. Behm Law Group Ltd. has helped many people work through a Chapter 7 bankruptcy in Jackson, MN, and the surrounding area.

 

If you find yourself facing a business bankruptcy after your restaurant becomes impossible to maintain, you’re not alone. Every year, many restaurants close due to bankruptcy, each case with its own unique set of circumstances. Despite the differences among cases, we can often highlight several common factors that played a part in the situation leading up to a bankruptcy.

 

Common Factors Playing a Part in Bankruptcy

 

  1. Capital: Restaurants require a lot of capital to operate. Not only does this include expensive kitchen equipment, restaurant-specific building systems, staff facilities, a large supply of furniture, registers/accounting systems, uniforms, and many other concrete items, they also include a range of food types with varying shelf lives. Building maintenance and restaurant operations are more expensive than almost any other service company.
  2. Licensing and Property: Liquor licenses, health inspections, zoning laws, rent, property taxes, and many other restaurant requirements are sky-high for restaurants. With the food service industry booming in the United States, state and municipal governments put restrictions on opening restaurants with these licensing and property expenses. In addition, federal health and food safety certification requirements put further strains on business incomes.
  3. Market Saturation: Another effect of the booming restaurant industry is market saturation. Restaurant customers are picky and they are eager to try new things and they are constantly demanding newer options and better quality. This results in a restaurant market that is highly saturated with many different types of restaurants that provide stiff competition to anyone else trying to make a living in the area. All of this means it’s extremely difficult to succeed based on market saturation alone, let alone in addition to other obstacles.

 

All these factors make restaurants a unique business in the fact that they are more difficult to run and more likely candidates for bankruptcy than most other companies.

 

Restaurant owners who file for Chapter 7 bankruptcy will face the good and bad of their situations. Chapter 7 works to liquidate some business assets in exchange for the discharge of debts, including mortgages, personal loans, equipment debts, and more. However, in many cases, this discharge comes with the reality of having to close down operations. It’s not impossible to reopen a restaurant again in the future, but for the time being, filers usually shut down their businesses.

 

If you are considering filing for Chapter 7 bankruptcy in Jackson, MN, contact Behm Law Group Ltd. at (507) 387-7200 to learn more about restaurant bankruptcy cases.

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.

 

Rebuilding Your Business or Starting Fresh after Bankruptcy in Marshall, MN

Owning and operating a business is a difficult endeavor, no matter how small that business is. This is why many businesses find themselves in a financial situation that is less than desirable. If your business is facing debts you’re unable to repay, filing for bankruptcy may be your saving grace in preventing further struggles down the road. With the help of Behm Law Group Ltd., you can file a successful case for bankruptcy in Marshall, MN, and even rebuild your business and your credit after your bankruptcy case is concluded.

 

Business bankruptcies vary depending on the legal status or structure of the business. Any corporations, LLCs or other business formats that have a separate legal and financial standings from their owners typically can file for Chapter 7 or Chapter 11. On the other hand, sole proprietorships and partnerships are directly tied to the owners’ personal assets and personal debts/liabilities, which means they can file for Chapter 7 or Chapter 13.

 

For all types of businesses, the Chapter 7 process works in the same way to liquidate business assets (properties, accounts, etc.) in exchange for the discharge of debts. In any Chapter 7 business case, the business is typically closed when the case is completed.

 

Though Chapter 11 and Chapter 13 work similarly to reorganize business debts into a manageable repayment plan, there are some differences. For small businesses, Chapter 13 is often ideal for many reasons. Learn more about the benefits of Chapter 13 here.

 

No matter what type of bankruptcy you file, your business can face a range of challenges down the line. From shutting down your business completely to severely lowering your credit standing, bankruptcy can force significant alterations or changes but those alterations or changes, in most cases, are both rehabilitative and beneficial long-term. It’s absolutely possible to rebuild your business and your credit after filing for bankruptcy relief, whether this means starting anew or rebuilding through a debt repayment plan. Every case is different, but there are some strategies that every business owner can do to rebuild after a bankruptcy filing:

 

  1. Change the way you budget. Something led to your business bankruptcy, and whether that was caused by your actions or by external reasons over which you had absolutely no control, you can make changes in your budget to prepare for challenging financial times. Creating a conservative spending and generous saving plan is often a vital step.
  2. Focus on rebuilding your credit. When your credit is good, your business can use that advantage to expand, which in turn, opens many other doors. Your credit will take a hit after bankruptcy, but you can take small actions to slowly rebuild it. Take care to pay all bills on time, meet your debt requirements, communicate often with your creditors and stay away from just paying the monthly minimum payments.
  3. Consider separating your business finances from your own. When you can (i.e., have the funds and are not on a Chapter 13 debt repayment plan), establish your business as a corporation or LLC (not a sole proprietorship or partnership) to protect yourself from any financial issues.

 

To learn more about how to rebuild your business and your credit after filing for bankruptcy relief in Marshall, MN, contact Behm Law Group Ltd. at (507) 387-7200 today.

 

 

Five Things You Might Not Expect About Bankruptcy in Windom, MN

Because the average individual is not an expert on the legal nuances of bankruptcy, it’s understandable that most people use the internet as a guidebook for the process. While there are a few accurate sources of bankruptcy information online, there are also a lot of myths and general misinformation.

 

When it comes to correct and reliable information, nothing beats a professional opinion. Behm Law Group, Ltd. provides that expert opinion. If you’re considering filing for bankruptcy in Windom, MN, or the surrounding area, Behm Law Group, Ltd. can offer advice and more throughout the process.

 

You can find much about the basics of bankruptcy online, but the basics aren’t quite enough to file a successful case and see it through. Bankruptcy is an old practice, going back to ancient times, though it has evolved over time. Today, bankruptcy has many conditions that can change the course of a case, making it one of the most nuanced legal processes.

 

Because of this complexity, there are many unexpected things about bankruptcy, even as a nationwide occurrence. For example:

 

  1. About 1 in every 70 households file for bankruptcy each year. If you look at your community based on this information, it’s possible you may know someone who is working through bankruptcy.
  2. Almost 50% of households in the U.S. spend more than half their yearly income and have up to $15,000 in credit debt. This addition of credit debt to an already common pile of debts including student loans, mortgages, car loans, and more has led to a rapid increase in the number of consumer bankruptcies per year.
  3. The vast majority of people who file for bankruptcy relief don’t lose any property and only lose their debts.  The bankruptcy exemptions that are available to you to protect your property are typically very generous.  The bankruptcy exemptions you can use and the limitations of those bankruptcy exemptions vary from state to state.  Generally, you must reside in a particular state for two (2) full years before filing a bankruptcy case in order to use or benefit from the bankruptcy exemptions of that state.
  4. The amount of average debt per bankruptcy case has increased over in the past 10 years. An American Bankruptcy Institute report released in 2009 showed that cases averaged $100,000 in debt for individual bankruptcies alone. Business bankruptcies had even greater debt averages per case. This shows there is a notable increase in the time households and businesses are barely making ends meet before filing for bankruptcy.
  5. Bankruptcy has increasingly affected those with a college education as tuitions rise. Each year, college tuitions increase to match the growing inflation our economy experiences. Student loans must be listed, like any other creditor, in the bankruptcy process but they are generally difficult to get discharged, except under specific circumstances.  Student loan debts, in combination with the weight of others, still significantly contribute to bankruptcy filings, however.

 

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