Lien Avoidance vs. Lien Stripping When Filing for Bankruptcy in Waseca, MN

Anyone struggling to meet monthly debt payments has more options than just slipping deeper beneath the water of financial difficulties. Instead of facing the stress of debt and the emotional toll it creates, those working through financial troubles can find relief within the government sanctioned process of bankruptcy.

 

If you think bankruptcy might be right for your financial circumstances, Behm Law Group, Ltd. can provide professional guidance and support. When you choose to file for bankruptcy in Waseca, MN, as an individual or business, you can gain the benefits of a debt treatment process that will lift the stress of a heavy financial burden.

 

When you file for bankruptcy, you may have many different types of debts to your name. Broadly speaking, the types of debts included in the bankruptcy process are generally secured and unsecured. Your secured debts are tied to or secured by an item of property or real estate, and it’s almost certain that the property or real estate will have liens attached to them.

 

Liens are tied to property loans like mortgages, car loans, and other commonly secured debts that are arranged through lending companies. These liens give the lenders the right to repossess or foreclose on the properties tied to the debts until the debtor pays the debts or the debts are discharged. In the bankruptcy process, mortgage liens can be stripped or avoided, depending on the situation.

 

Lien Avoidance in Chapter 7 Bankruptcy

When you file for Chapter 7 bankruptcy, you’re entering into a liquidation process that works to provide your creditors the value of your non-exempt property in exchange for debt relief. You can protect your properties from liquidation with your available bankruptcy exemptions, however. If there was a lien on a piece property, claiming the exemption is not considered lien avoidance.  Your available bankruptcy exemptions allow you to protect the equity – the value of an item of property above the debt you may owe against it – in your property.  Sometimes, you can avoid a creditor’s lien in full or in part regarding a certain piece of property and use your bankruptcy exemptions to protect the equity you gain from such lien avoidance.  In order to avoid a lien on property, a secured creditor’s lien must be a non-purchase money lien.  This means that the creditor did not give you any financing for the purchase of the subject asset itself.  For instance, if a creditor gives you a loan for home improvements and you give that creditor a lien or security interest in your furniture or a vehicle, farming equipment or some other assets, that creditor has a non-purchase money lien as to those items because it did not give you a loan to purchase them.  Rather, the creditor gave you a loan for some purpose that was completely unrelated to the assets on which you allowed the creditor to have a lien.  Presume that One Main Financial gave you a $10,000.00 loan for home improvements and further presume that you granted it a security interest in your furniture, appliances, and your car.  In a bankruptcy proceeding, you could avoid the entire $10,000.00 lien on those items and use your bankruptcy exemptions to protect the resulting $10,000.00 equity you would then have as a result of having avoiding the lien.

 

Lien Stripping in Chapter 13 Bankruptcy

If you file for Chapter 13 bankruptcy, your debts are reorganized into a manageable repayment plan lasting three to five years. If you have multiple mortgages on your property, you may be able to strip off second and third mortgage liens, if there is no value or equity to the real estate above and beyond the first mortgage.  If the amount of the first mortgage is greater than the value of your home, you’re considered “upside down” on that mortgage debt, and you can strip the junior liens away.

 

To learn more about the different types of bankruptcy chapters and how your liens are handled when you file for bankruptcy in Waseca, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

What You Can Learn from Public Listings of Bankruptcy in New Ulm, MN

In the U.S., the majority of court cases are put on public record. This includes all bankruptcy filings which are often listed in local newspapers and are always available on the government-administered online database PACER (Public Access Court Electronic Records). The listings available on PACER are not easily accessed by any individual, but they are available to bankruptcy attorney, creditors involved in bankruptcy proceedings, bankruptcy trustees and bankruptcy judges.

 

If you’re struggling to meet debt payments and think that bankruptcy might be right for you, it’s important to understand why and how your case may be listed publicly and could be accessed by a limited number of parties. If you are considering filing, Behm Law Group, Ltd. can provide the guidance and assistance you need when working through bankruptcy in New Ulm, MN.

 

Bankruptcy is given a poor image both in financial and social terms, but the fact is that it’s a vital process for those who are unable to recover from severe debt. For many, bankruptcy is the best way to debt relief and long-term financial recovery.

 

Those planning on filing for bankruptcy can learn some of the basics of the process just from looking at listings local to their area. If your local newspaper lists monthly bankruptcies, it’s likely they will be written out like this:

  • Name of filer
  • Name of any joint filers
  • Address of filer
  • Chapter they filed
  • Date they filed
  • Their assets
  • Their liabilities

 

This is what you can learn from this listing:

  • The name of the filer may tell you if it was a business or individual.
  • The joint filer names tell you that either a spouse or a business partner filed jointly.
  • Their address tells you what region they filed in, and may give you some more information about the financial demographics of that area if there are multiple bankruptcy filings. If you live in the same region, it may give you some peace of mind to know you’re not alone.
  • The chapter they filed for will give you an idea of the bankruptcy process (i.e. whether it was liquidation or reorganization).
  • The date they filed may give information about fluctuations of increases or decreases in bankruptcy cases throughout the year.
  • Their asset amount tells you how much their properties and accounts were worth. This includes physical property, bank accounts, stocks, retirement funds, and any other sources of income.
  • Liabilities represent a blanket term for debts and other unpaid financial obligations. This amount tells you just how much debt might have been resolved through bankruptcy, and it gives you a good comparison of asset to debt ratios.

 

Overall, public postings of local bankruptcy cases give you a great way to compare your own situation with those who found recovery through the bankruptcy process. Generally speaking, Minnesota newspapers choose not to list local bankruptcy filings.  However, newspapers in North Dakota and Iowa do choose to list local bankruptcy filings.  For many reasons, including the possibility of identity theft, newspapers are becoming much more circumspect about listing local bankruptcy filings.  If you believe filing for bankruptcy in New Ulm, MN, might be the right choice for you, contact Behm Law Group, Ltd. at (507) 387-7200 today.

Long-Term Financial Effects of a Government Shutdown and Getting Help from a Bankruptcy Attorney in Marshall, MN

Starting in December of 2018 and ending more than a month later, the recent government shutdown was the longest in U.S. history and impacted more government employees across the country than any other shutdown before. The ripple effects of the shutdown grew by the day and had severe effects on many employees’ finances. The lack of income for government departments, programs, organizations, and employees alike caused, for many, a rapid decline into debt.

 

If you were affected financially by the recent government shutdown and are facing unmanageable debts because of this, filing for bankruptcy is a viable option to receive government-sanctioned debt relief. Behm Law Group, Ltd. can help you file a strong case with the guidance and counsel of an expert bankruptcy attorney in Marshall, MN.

 

Reports of shutdown-related debts and expenses have come from all kinds of sources. All types of government employees suffered financially from the shutdown. A month without a paycheck can lead quickly to all kinds of poor financial conditions simply due to an inability to pay bills. Government employees found that they were unable to make payments on a wide range of common bills or debts including:

 

  • medical bills and health insurance
  • utilities, including water, electricity, and gas
  • rent or mortgage
  • car payments or car repairs
  • automotive and related insurance
  • life insurance
  • retirement plans
  • student loans
  • credit cards
  • taxes

 

Businesses and organizations that relied on government funding also suffered badly, and the individuals employed by these businesses and organizations experienced a range of difficulties such as not receiving a paycheck and benefits or being laid off. Though the shutdown only lasted for a month, the long-term effects will last for years. Recovery from unexpected, sudden, and complete cutoff from an income and government support for an unknown amount of time is still causing a real struggle today for many U.S. citizens and businesses.

 

In comparison with the 2013 government shutdown, for example, the recovery process has proved to be more difficult and longer simply due to the suddenness, time frame, and nature of the 2018-2019 shutdown. The lack of structure and planning in this recent shutdown created an outcome resembling an economic recession that was crammed into a 30-day period.

 

In times like these, it’s important to remember that consulting a bankruptcy attorney is a real option that you should consider seriously. If you were unable to pay your bills because of the government shutdown and are still trying to overcome the negative effects, bankruptcy may provide realistic, long-term recovery from debt.

 

To learn more about filing for bankruptcy and how an expert bankruptcy attorney in Marshall, MN, can help you get back on your feet after the shutdown, contact Behm Law Group, Ltd. at (507) 387-7200 today.

Guidelines and Limitations of Chapter 13 Bankruptcy in Windom, MN

Chapter 13 bankruptcy is a format of debt reorganization most common for individuals and some types of businesses. Overseen and administered by a standing bankruptcy trustee, a Chapter 13 case takes secured, unsecured, and priority debts and alters them into a consolidated repayment plan that lasts three to five years depending on the debt amount of the filer. If you have a steady income and want to protect your assets from the liquidation that could occur in a Chapter 7 case, Chapter 13 may be the best choice for you. With the guidance of Behm Law Group, Ltd., you can successfully file for Chapter 13 bankruptcy in Windom, MN and obtain long-term debt relief.

 

While Chapter 13 is a highly effective bankruptcy option for people in a broad range of financial situations, it has limitations and guidelines like any other type of legal process. The most basic of these limitations decides who can and can’t file.

 

Who can file?

  1. Individuals:
    1. For an individual to qualify for Chapter 13 bankruptcy, they must have a steady income that allows for reasonable and necessary expenses for living to be factored out of their repayment plan while still meeting monthly payments.
    2. They must have undergone credit counseling within 180 days prior to filing.
    3. They cannot have secured debts exceeding $1,184,200 or unsecured debts exceeding $394,725.
    4. They must have filed all of their income tax returns for the past four years prior to filing.
    5. They cannot have filed a Chapter 13 case within the past two years or a Chapter 7 case within the past four years.
    6. They cannot have filed and had dismissed another bankruptcy case within the last 180 days.
  2. Spouses:
    1. Spouses can file a joint Chapter 13 case involving both of their debts and combined incomes if they have also met all the requirements listed for individual filers.
  3. Businesses:
    1. Some businesses are eligible to file for Chapter 13 bankruptcy. Specifically, those whose owners are personally liable for the business debts.
    2. This includes sole proprietorships and business partnerships.

 

Other limitations and guidelines of Chapter 13 bankruptcy outline the repayment plan itself.

What is an accepted repayment plan?

  1. For a filer’s repayment plan proposal to be accepted by their trustee and the court, it must meet specific requirements designed in fairness to creditors.
  2. In their repayment plan, a filer must be able to repay allowed secured creditors’, under adjusted loan terms/conditions, in full over a three to five-year period.
  3. Their priority debts such as tax debts, child support debts, alimony, criminal fines, etc., must be included in the plan and must be repaid in full over a three to five-year period.
  4. Unsecured debts must be repaid the value of the filer’s non-exempt assets that would have otherwise been liquidated in a Chapter 7 process.   This is informally referred to as the “Best Interests Test”.  For example, if a filer would have non-exempt assets totaling $10,000.00 in a hypothetical Chapter 7 case, the filer must pay that amount over a three to five-year period to their creditors in a Chapter 13 case.

 

While there are many guidelines to follow and limitations to adhere to in the process of Chapter 13 bankruptcy in Windom, MN, it’s undeniable that it has been an effective treatment for a wide variety of debtors. To learn more about the process or to get started, contact Behm Law Group, Ltd. at (507) 387-7200 today.

 

Rising Debt in the Growing Season Increases Cases of Chapter 12 Bankruptcy in Mankato, MN

Ever since people have learned to grow plants and care for livestock, farming has proved to be one of the most difficult occupations in which to make money. Because farming is so dependent on natural conditions, it’s inevitable that it is often filled with hardship. In today’s global economy, and in the face of changing environmental factors, farming has become a harder way to make a living than ever before. If you are struggling to support your farm, you are not alone. With the help of Behm Law Group Ltd., you can decide whether filing for Chapter 12 bankruptcy in Mankato, MN, is the right choice for you, and work through the process with our guidance and support.

 

Chapter 12 bankruptcy is specifically designed to treat the financial conditions of a family farmer. Like Chapter 13 and Chapter 11, this process reorganizes your debts into a manageable repayment plan overseen by a bankruptcy trustee. This allows you to keep your company and property stabilized until your debts are repaid under adjusted or modified loan terms. If you have a difficult few years, Chapter 12 can be a critical option for keeping your family farm running.

 

The problem many farmers have struggled with in the last twenty years is a lack of demand. Farmers can grow more corn and soybeans than ever before thanks to GMOs and pesticide technology. While crop demand increased with production until recently, it has now started to drop in comparison with the supply ratio. Due to this, farmers are seeing decreasing income in response to the time, hard work, and cost of crop production.

 

Reflecting the difficult times farmers are currently facing across the country, Minnesota has seen a rapid increase in the number of Chapter 12 cases, especially during the spring growing season. Spring is the time of year when income from the previous season is most important to be able to get a new crop in the ground and established for the coming months. If you have struggled to make ends meet in the previous year and have seen a decrease in demand for your supply, you may be facing an even lower return in this new season.

 

This cycle starts to resemble a spiraling out of income and a loading on of debt for farmers. A demand for crops that cannot match the supply grown causes a lower income for farmers. This lower income prevents them from paying necessary costs-of-living and farming expenses, and results in more debt, more loans taken out, and in the long term, a higher risk of bankruptcy.

 

Despite this negative cycle we are currently seeing for Minnesota farmers, the possibilities that Chapter 12 bankruptcy offers are a silver lining that, not only allows farmers to keep their businesses running and resolve debt, but also provides a long-term solution for unbalanced supply and demand. To learn more about how filing for Chapter 12 bankruptcy in Mankato, MN, can help farmers with unmanageable debt, contact Behm Law Group Ltd. at (507) 387-7200 today.

 

Consequences of Asset Hiding When Filing Bankruptcy in Jackson, MN

If your debts are severely affecting your quality of life or the function of your business, it may be the right choice to look for realistic debt relief options. While some debt relief options are possible in negotiations with creditors and third parties, filing bankruptcy offers truly permanent, court enforced/sanctioned solutions for debt relief. When you find yourself looking for answers in a complicated financial world, Behm Law Group, Ltd. can provide all the assistance and guidance you need when filing bankruptcy in Jackson, MN

 

Bankruptcy resolves in several ways depending on the type of chapter you qualify for:

  1. If you’re an individual filer or a business with debts that outweigh income, you can qualify for Chapter 7 bankruptcy. This process works to liquidate your non-exempt assets in exchange for the discharge of your debts.
  2. If you don’t qualify for Chapter 7, you can qualify for Chapter 13 as either an individual filer or as a business. This process works to restructure your debts into a manageable repayment plan lasting three to five years. A similar process some businesses can choose instead of Chapter 13 is Chapter 11, which works very large businesses and individuals with very high incomes and very large amounts of debt.
  3. Finally, family farmers and fishers have a specialized bankruptcy process through Chapter 12. This is also a repayment plan structure, but it is designed to be processed in an expeditious legal protocol that is uniquely tailored to the specialized nature of the filer.

 

No matter what type of bankruptcy you file, there are certain parts of the process that are the same in all chapters. One major consistency between every single case that has ever been and will be filed is that the filer must be completely transparent about their finances.

 

Transparency about your finances, whether you’re filing as an individual or as a business, includes providing information to the court about your debts, income, living expenses and assets/properties. Failing to provide this information can result not only in your case being dismissed but also in having accusations of fraud leveled against you. You sign your bankruptcy paperwork under oath and subject to penalty of perjury.  One common type of bankruptcy fraud is asset hiding.

 

If you hide your assets, you can expect several consequences in your bankruptcy case, all negative:

  1. Your debts connected to that asset won’t be discharged because it’s impossible to treat a property secured debt in bankruptcy without revealing the asset.
  2. Discharges provided in your case may be revoked when the asset is inevitably revealed.
  3. If you file for bankruptcy in the future, previously hidden debts cannot be discharged.
  4. If you commit fraud, you can be sued and even face criminal charges with hefty fines or jail time attached.

 

If you’re planning on filing bankruptcy in Jackson, MN, contact Behm Law Group, Ltd. today at (507) 387-7200 to learn more about how our attorneys can help and for comprehensive counsel throughout your case.

Building Business Up Again after Filing for Chapter 7 Bankruptcy in New Ulm, MN

Businesses may thrive or fail for a wide range of reasons in a nuanced and ever-changing economy. If you are struggling with a failing business, you should never feel shame in seeking debt relief. Instead, understand that you are taking assertive action to protect yourself, any other parties involved, and even your business itself in some cases. One common and highly effective debt relief option available to all kinds of businesses is bankruptcy. With the guidance and counsel of Behm Law Group Ltd., filing for Chapter 7 bankruptcy in New Ulm, MN, can be a positive, long-term solution for your finances.

 

While it’s true that the majority of Chapter 7 business bankruptcy cases end with the closing of the company, there are some businesses that can maintain their functioning after filing.

 

Businesses that stay open after liquidation include those that:

  1. Do not themselves own the assets needed for business operations (i.e. the assets are actually owned and have always been owed by the individuals who own and operate the business); and
  2. The total value of assets owned by the business is less than the total amount of debt owed by the business, particularly debts owed to creditors who have security interests in and to the business assets.

 

In the case that you can keep your business open after Chapter 7 bankruptcy, however, it may become increasingly difficult to maintain production/services and revenue. For those who would be unable to continue operating their business even while meeting the above condition, and for the remaining majority of business owners whose businesses close after liquidation, don’t despair. There is still hope you may be able to reopen your business in the future or start a new business successfully.

 

Starting Afresh

While it may be difficult, starting a new business after filing for Chapter 7 bankruptcy is entirely possible. Being fully prepared for the obstacles you might face is the best course of action if your end goal is a long-term business operation.

 

  1. You may have challenges getting loans and business credentials in general. It is hard but not impossible to gain business credit after a business you have already been affiliated with has filed for bankruptcy relief.
  2. The best way to improve your chances of gaining business credit is to create a detailed, strong business plan with both short- and long-term structure.
  3. Another way to improve your chances of a successful business is to partner with someone who has good credit and is ready to support you in the face of lenders.
  4. Finding investors with reputable backgrounds (friends and family included) to support your business in the beginning stages is often an effective way to navigate through and around the credit structure system.
  5. Many local banks and credit unions provide financing programs for those individuals and businesses who have worked through a bankruptcy case in their community. Finding organizations that are willing to support your endeavors with goodwill is also a viable option.
  6. Depending on the nature of your business and your community, you can also find a wide range of grants, financing, and crowd-sourced funding that are provided to many starting business owners.

 

If you are hesitating to file for Chapter 7 bankruptcy in New Ulm, MN, because of a concern for business closure or other difficulties beyond, contact Behm Law Group Ltd. at (507) 387-7200 to learn more. There is life after bankruptcy, both for the individual and the business!

The Basic History and Purpose of Bankruptcy Law, and Why You Need a Bankruptcy Attorney in Mankato, MN

 

The concept of bankruptcy as a form of debt relief has been incorporated into governments across the world for centuries. These past formats of bankruptcy law have each altered the way we view debt and come together to form the way the U.S. Bankruptcy Court outlines and administers a bankruptcy case today. Though the United States is a young country relative to most of the world, the system of bankruptcy in the U.S. has seen a rapid succession of changes within the last 200 years.

 

Today, bankruptcy is designed to pull debtors out of crippling debt and help them recover in the long-term from financial difficulties. If you’re struggling to make monthly debt payments, filing for bankruptcy and working with a bankruptcy attorney might be the right choice. With the help of a Behm Law Group, Ltd. bankruptcy attorney in Mankato, MN, you can navigate the bankruptcy process and file a successful case.

 

Bankruptcy may seem like a bailout system that’s too good to be true for debtors. “A way to get rid of most of your debts for good, and the government says it’s OK?” If you’re considering bankruptcy, you might be wondering: what’s the catch? The fact is that bankruptcy is not as black and white as it’s often painted to be. There are advantages and disadvantages to both the debtor and creditor involved. Despite the fact that there are insular ups and downs affecting the debtor and creditors, some may question why the government has created opportunities for debt relief at all.

 

Why does it exist?

In a nutshell, bankruptcy exists to help the national, state, and municipal economy. A healthy economy relies on consumers to buy products just as much as it relies on commercial enterprises to source and sell those goods. If individual debtors are unable to pay their debts, they are equally unable to contribute to the economy as consumers. Likewise, businesses who are struggling to cover their debts have a rapidly-lessening ability to produce and sell goods. Bankruptcy exists superficially, in the best way possible, to protect debtors and give them the relief they need, and fundamentally to support a growing, healthy economy.

 

Why do I need a bankruptcy attorney?

While it’s true that individuals and businesses can work through a bankruptcy case on their own, it’s also undeniable that bankruptcy law is incredibly nuanced and poses difficult tasks and questions at every stage. The experienced counsel of a bankruptcy attorney is critical to reaching a successful outcome in the majority of cases largely because each case is so unique. A bankruptcy attorney can provide protection, guidance, and expert assistance in any bankruptcy case.

 

If you’re finding hardship in debt and finances, bankruptcy may be the right path to take. To learn more about filing and the role of a bankruptcy attorney in Mankato, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

Navigating through Bankruptcy Delays with the Help of a Bankruptcy Attorney in Marshall, MN

Bankruptcy can be a highly effective way to find the financial relief you need for long-term stability. It can also be one of the most emotionally difficult legal processes you ever go through. Because bankruptcy is such a legally-nuanced process, it can be one of the most trying court-administered procedures for individual consumers to face—especially if they choose to start a case without the help of a knowledgeable bankruptcy attorney. If you are struggling to meet debt payments, but are hesitating to take the leap into filing for bankruptcy for fear of the difficulty and emotional toll it may take, it may be time for you to seriously think about how a lawyer can help. Behm Law Group Ltd. provides the legal counsel, advice, and comprehensive guidance you need from a bankruptcy attorney in Marshall, MN, and the surrounding area if you plan to file.

Whether you choose (and qualify for) Chapter 7 liquidation bankruptcy or decide to restructure your debts into a three- to five-year repayment plan with Chapter 13 bankruptcy, Behm attorneys can navigate each step of the process as well as advise you on the best bankruptcy choice before you even have to make a decision. When you enter a bankruptcy case, lots of information is thrown your way. While this can be overwhelming, our bankruptcy attorneys are here to tell you what everything means and how to proceed.

One part of bankruptcy many past filers have found difficult to work through is the occasional delay the court may have to pause action on your case.

 

Delays

Bankruptcy case delays occur for a number of reasons, some of which may be your responsibility and some of which may not. While there are many types of delays to a case that can occur out of unusual circumstances, the most common types of delays include:

  1. Missing information: If you have information the court needs that is not a part of a standard petition, your case may be put on delay while you gather the necessary documents and during the court’s review of them.
  2. Creditors’ requests for information: If creditors request information about your case, the court may put a pause on the proceedings until the creditors are informed in full.
  3. Creditors’ claims: Sometimes, creditors may have grounds to claim an asset is their property or that their debt is non-dischargeable. This may occur for a wide range of reasons, but if it does, it’s incredibly important to have the protection and assistance of a bankruptcy attorney.
  4. Your income: If you have initially filed for Chapter 7 and your income changes before you start your case (with a new job, for example), the court may delay your case while it decides whether you qualify for a Chapter 13 bankruptcy.

 

If you are considering filing for bankruptcy, don’t underestimate the necessity of a bankruptcy attorney in Marshall, MN, and the surrounding area. Contact Behm Law Group Ltd. at (507) 387-7200 to learn more today.

Secured Tax Debt and Filing for Bankruptcy in Worthington, MN

Around this time of year, we all take a look at our past 12 months of finances. Filing taxes forces us to recount our incomes, debts, and overall monetary matters. On top of all our typical credit card debts, medical bills, car loans, and other debts, we can all be susceptible to tax debts.

 

If you’re struggling to pay tax debts in addition to meeting your other debt obligations, it might be time to look at debt relief options. When the point comes where your debts are severely affecting your quality of life, it’s important to take positive action to find balance for your finances. With the help of Behm Law Group, Ltd., you can gain the many advantages that debt relief through filing for bankruptcy in Worthington, MN provides.

 

Filing for bankruptcy can help you resolve many types of debt in two ways: discharge or reorganization. If you file for Chapter 7 bankruptcy, the majority of your debts will be discharged and you can claim exemption amounts to protect your property from liquidation. With a steadier income, you can choose to file for Chapter 13 bankruptcy and have your debts reorganized into a repayment plan limited to three to five years, and some of your debts will be discharged at 0-100%.

 

While many debts are discharged and reorganized in the process of bankruptcy, there are some priority debts that are exempt from all types of bankruptcy cases. For many, this includes tax debts. Some tax debts can be discharged in Chapter 7 bankruptcy or included in a repayment plan under Chapter 13.

 

Though some tax debts are not discharged through the bankruptcy process, there are other tax debts that can be treated in bankruptcy, including income tax debts secured by the government. Put simply, secured tax debts are debts that the IRS has placed a lien on your property to protect their right to repayment. This typically occurs when a debt has been left unpaid for an extended period or when the government foresees your inability to pay a tax debt.

 

Liens on tax debts turn into levies when collection action is taken. You can prevent collection action by filing for bankruptcy and getting an automatic stay placed on all creditor action – including the IRS. Additionally, you may be able to completely dissolve the lien and the debt in your bankruptcy case. In fact, most secured tax debts that qualify for the bankruptcy process can be resolved with the best outcome for you.

 

Understanding the difference between priority and non-priority tax debts is important for all bankruptcy cases that involve tax debts in any capacity. If you suspect or know for sure your tax debt is considered a secured debt by the IRS, contact Behm Law Group, Ltd. at (507) 387-7200 to learn more about its treatment in bankruptcy. If you’re ready to start filing for bankruptcy in Worthington, MN today, the advice and assistance of Behm attorneys is important to building a successful case.