Benefiting from Bankruptcy in Windom, MN, and Recovering Your Credit After Filing

Bankruptcy in the U.S. is a system designed to pull individuals and businesses out of severe debt while resolving those debts with creditors as best as possible. In this way bankruptcy is a highly effective process for recovering from severely crippling debt and getting a fresh start financially. However, filing for bankruptcy does have its side effects despite the many advantages it provides. If you’re considering filing for bankruptcy in Windom, MN, Behm Law Group, Ltd. can help you prepare a strong case, successfully petition for Chapter 7 or Chapter 13 bankruptcy, and fully understand the results that bankruptcy brings.

 

When you choose to partner with Behm Law Group, Ltd. for your bankruptcy case, you’re choosing highly-skilled, experienced professionals who understand your need for guidance and counsel before, during, and after you file. While bankruptcy offers a viable way to work through financial difficulties, there are some negative consequences as well, and we want our clients to be aware of all the effects a bankruptcy filing can have.

 

The primary problem those who file for bankruptcy face after their case is completed is the effect it has on their credit. There’s often a certain amount of damage to your credit when you file, and although you emerge from bankruptcy relieved from debt, it may take a while to rebuild your credit.

 

Recovering your credit after you file may seem like a daunting task, but the truth is it’s entirely possible for everyone who files for bankruptcy to fix their score over time. With the advice of our attorneys you can regain control over your credit and finances even after we work with you through a bankruptcy. Rebuilding your credit simply takes time and responsible practices including:

  1. Make all your payments on time and keep clear communication with your creditors if you’re unable to meet a payment. Most lenders are understanding of extenuating circumstances and are willing to make exceptions.
  2. Keep your accounts open despite the impulse to close them all at once. Instead, work on slowly closing the accounts you no longer want over an extended period of time.
  3. Check your credit often and keep an eye out for errors you may be able to dispute.
  4. Create and follow a budget with a savings plan integrated into your monthly income and spending patterns. Our attorneys can help you build a post- bankruptcy budget that’s effective, reasonable, and long-term.
  5. Hang on to all of your bankruptcy paperwork and keep it filed in an organized, logical place. You may need this paperwork down the road for loans or mortgage applications.

 

Above all, it’s important to remind yourself that your credit will improve over time. To learn more about filing for bankruptcy in Windom, MN, and what to do after you file, contact Behm Law Group, Ltd. at (507) 387-7200 today.

First Three Critical Steps in Filing for Bankruptcy in Redwood Falls, MN

Life is full of unexpected events. When it comes to debt and financial difficulties, it’s best to deal with those life events head on. You may have accumulated debts over the years or be struggling with sudden expenses, but whatever the reasons leading up to severe debt, you don’t have to face it alone. Getting rid of debt and finding a fresh start is always a possibility through filing for bankruptcy. With the expert support and advice of Behm Law Group, Ltd. attorneys, you can file a successful petition for bankruptcy in Redwood Falls, MN.

 

When the ball gets rolling in a bankruptcy case, things are quickly resolved. If you file for Chapter 7, your debts will be discharged and non-exempt assets liquidated. If you file for Chapter 13, your adjusted repayment plan will begin, and you can start making regular payments to a chapter 13 trustee fairly quickly. However, before you can reach that point in your bankruptcy case, you must perform a few crucial primary steps.

 

Filing for Bankruptcy- Starting Gates

 

  1. Gather your financial information: To put together a bankruptcy petition for either Chapter 13 or Chapter 7, you have to gather a comprehensive inventory of financial documents. This includes filling out the necessary bankruptcy forms, listing all debts, providing income information, listing your assets and properties, and describing your monthly expenses for household needs. Behm attorneys will provide you with direction on how to put together this information to begin the bankruptcy process.
  2. Attend credit counseling: Even if you’ve completed the first step and gathered all the necessary information, you’ll still be required to complete an online credit counseling course in order to file a bankruptcy petition. You must work with a United States Trustee-approved credit counseling agency and complete the credit counseling course within 180 days of the filing of your bankruptcy petition. Behm Law Group, Ltd. can provide direction to quality, affordable online credit counseling in your area.
  3. Attend your 341 hearing: The last step to getting your case completed and obtaining debt relief is to attend your meeting of creditors (341 hearing). This meeting occurs after you have finished your filing for bankruptcy. This is not a court hearing per se where you appear before a bankruptcy judge. Rather, it is an administrative hearing where you appear before a bankruptcy trustee.  The bankruptcy trustee is a court-appointed attorney assigned to monitor, supervise and review your bankruptcy case.  You must personally attend the 341 hearing and your creditors have a right to attend if they like.  It is up to the bankruptcy trustee to review your bankruptcy paperwork and ask you questions at the 341 hearing – questions you must answer under oath and subject to penalty of perjury – to ensure that your paperwork is accurate. Part of the purpose of the 341 hearing is to ensure you’re apprised of the consequences and seriousness of filing for bankruptcy and to discuss debt reaffirmation with your attorney. During this meeting, the trustee will also make sure you’re not abusing the process of bankruptcy.

 

After these steps are completed, the next part of filing for bankruptcy —which varies depending on the chapter you file for— is getting a discharge order from the bankruptcy court which discharges the vast majority of your debts.

 

To learn more about filing for bankruptcy in Redwood Falls, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

 

Limits on Handling Medical Debt with Bankruptcy in Worthington, MN

With medical insurance getting more expensive each year and procedures becoming more technically-advanced with new equipment and medicines, individuals can easily accumulate overwhelming medical debt very quickly. While studies may debate whether severe medical debt is directly causing an increase in U.S. bankruptcies, the fact remains that it’s often a correlating problem most filers experience. Because the bankruptcy process is structured to discharge or reorganize medical debts, it’s a viable option for those who can’t pay their medical bills. With the help of Behm Law Group, Ltd., you can recover from medical debt and successfully file for bankruptcy in Worthington, MN.

Medical debt can happen gradually as chronic treatments rack up bills or all at once if an unexpected medical emergency occurs. No matter the circumstances leading up to unmanageable medical debt, those debts are treated the same in bankruptcy cases. All your medical bills are considered to be unsecured nonpriority debts in your case. To put this in perspective, your credit card debts are categorized as unsecured nonpriority debts as well.

How your unsecured nonpriority debts are handled depends on the type of bankruptcy you file for.

Chapter 13 works to reorganize debts that aren’t exempt from the bankruptcy process into a new repayment plan. Secured debts are repaid in full along with select priority debts, but your unsecured debts—like the medical bills you owe—are often only partially repaid if they’re required to be repaid at all.

Chapter 7 works to liquidate your assets to repay your creditors in return for the discharge of most debts. This discharge includes your unsecured debts and allows immediate full relief from medical bills.

Limitations on Discharges

Relief from medical bills is guaranteed if you qualify for Chapter 7 bankruptcy by passing the Means Test. All your unsecured debts will be dissolved in return for major liquidation of your assets. In Chapter 13 bankruptcy, there are some limitations on the relief you can receive for your medical bills. Because your medical debt is lumped into one category with all your other unsecured nonpriority debts, they’re all subject to the same limitation. This limit manifests as a cap on the amount you can include in your repayment plan. Currently, you may file for Chapter 13 if you have under $394,725 in unsecured debts. This amount will change in April of 2019 to meet standards of income and overall economic adjustments, but for now, you can resolve all your debts in a new repayment plan if you meet this and other Chapter 13 requirements.

 There may be some limits to the possibility of recovering from severe medical debt by filing for bankruptcy, but the majority of cases are highly effective in providing a solution for those struggling with hospital bills and more. For more information about filing for bankruptcy in Worthington, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

How Filing for Bankruptcy in New Ulm, MN Improves the Economy for All

If you’re struggling with meeting monthly payments on your credit cards, car, medical bills, and even your mortgage, you may be a candidate for bankruptcy. Bankruptcy is often negatively viewed as a social taboo, but the reality of bankruptcy is largely a positive one. Those who file for individual or business bankruptcy are offered a fresh start, and those filers actually provide positive influences on our national economy. With the help of Behm Law Group, Ltd., you can start your financial recovery today and successfully file for bankruptcy in New Ulm, MN.

The process of bankruptcy was designed to benefit all parties involved with a fair and balanced relief of debt for the filer and as much of a dividend as possible to their creditors. Administrated through government regulations and overseen by a bankruptcy trustee, the ultimate goal of offering debtors the choice of filing a bankruptcy is to keep the economy afloat.

The U.S. economy cannot function without consistent, widespread consumerism. Without spending from individuals at all income levels, our economic structure would start to collapse. In a nutshell, bankruptcy allows those who couldn’t afford to participate in consumerism because of their debt to begin supporting the economy again. This could mean an individual starts to spend money again or a business is able to continue selling its products.

The Economy Feedback Loop

Whether it’s in recession, booming, or simply stabilized, the economy works in a feedback loop. The more we spend, the more businesses can grow which creates more jobs, national income, and products to keep spending money on. If we’re unable to spend or borrow because our debts and income levels prevent us from being consumers, the more and more the economy will recede. Bankruptcy works to remedy the potential that individual consumers and businesses cannot contribute to the economic feedback loop in positive ways. Relieving debts and repaying creditors provides a viable solution to what may quickly become the main factor of a severe economic downturn.

If you’re considering filing for bankruptcy, in many ways you’ve taken the first step to supporting our national and global economies in a positive way.  When debtors balk from filing for bankruptcy because of the fees involved or how it may affect their credit, they’re in fact possibly setting up our country for even poorer financial conditions down the road.

Contact Behm Law Group, Ltd. at (507) 387-7200 today to find out more about successfully filing for bankruptcy in New Ulm, MN.

Properties Excluded from an Estate when Filing for Bankruptcy in Owatonna, MN

If you’re struggling to meet debt payments on a regular basis and have been for some time, you may find yourself in over your head financially. Fortunately, U.S. law offers a way back to the surface and an opportunity for a fresh start through the process of bankruptcy. Navigating this nuanced system alone is a large feat, but with the help of Behm Law Group, Ltd., you’ll have the guidance and support you need to file a strong, successful case for bankruptcy in Owatonna, MN.

When you choose to file for bankruptcy, the long-term benefits are numerous, and you receive certain immediate advantages as soon as you file (automatic stay, for example). However, the benefits that bankruptcy provides come with the rest of the process, including the examination of your debts and the categorizing of your properties and accounts into a bankruptcy estate.

No matter which type of bankruptcy you file for, the bankruptcy estate plays an essential part in your case. In a Chapter 7 case, the estate determines what your trustee can liquidate in exchange for your debt being discharged. In a Chapter 13 case, the bankruptcy estate can determine the structure of your debt repayment plan and the amount you will have to repay to your creditors. While most of your properties and accounts are included in the bankruptcy estate, there are some exceptions.

What’s not in the bankruptcy estate?

  1. Any property or accounts you acquired after the date you file your bankruptcy petition. Keep in mind, however, that you must notify your bankruptcy attorney of any property that you acquire within 180 days of the date that you filed for bankruptcy relief. Your bankruptcy attorney will speak with the bankruptcy trustee administering your bankruptcy case to determine whether how much, if any, of such property may be subject to seizure.
  2. Child support arrears owed to you from another party.
  3. Joint bank accounts that your name is on along with the name of some other party (if the proceeds in such an account don’t actually belong to you).
  4. Withheld wages for employee benefits and health insurance programs.
  5. Education funds that are tax deferred.
  6. Funding from tuition programs qualified under the 2005 bankruptcy act and Coverdell account—if those funds are deposited at least one year prior to filing for bankruptcy or are for the benefit of your child, stepchild, step-grandchild, or foster child. Any funds deposited two years prior to bankruptcy are exempt from your estate, and you can exempt up to $5,850 from your estate if it was deposited between the one and two-year period.
  7. Last but not least, the majority of retirement funds are exempt from the bankruptcy estate.

The process of bankruptcy is designed to give debtors recovery and relief and not to punish or leave them without anything to their name while repaying something to their creditors as best as possible. While many of your properties are included in the bankruptcy estate, you’ll still have ample opportunity to exempt and protect most of your assets.

To learn more about filing for bankruptcy in Owatonna, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

 

 

Key Factors that Affect the Repayment Plan Structure of Bankruptcy in Windom, MN

Today, Chapter 7 is the most common form of bankruptcy for both individuals and businesses. Because the Chapter 7 process is only available to those with income-to-debt ratios lower than the Minnesota median, bankruptcy is often associated with unemployment or even financial ruin. However, bankruptcy is an option to people and businesses with a wide range of incomes and debts in the form of debt restructuring—Chapter 13 bankruptcy. Behm Law Group, Ltd. offers legal advice and guidance to help you decide which type of bankruptcy in Windom, MN, would be the most beneficial to your current financial situation.

 

If you have a stable job and your debts weigh heavily enough for you to consider bankruptcy, chances are you’ll gain the most out of a Chapter 13 case. Chapter 13 bankruptcy works to structure your debts into a 3 to 5-year repayment plan that’s suited to your income. The process is designed to give your creditors as much of a return on your debt as possible without crippling your finances or severely damaging your quality of life.

 

In a Chapter 13 repayment plan, your debts are broken down into several categories based on the priority claim those creditors have on repayment. First, secured creditors are generally the creditors with property secured through a promissory note and security agreement such as mortgages, car loans, or any other debt concerning a physical property. These creditors can be repaid in different ways during your Chapter 13 plan period. In some cases, you will continue to pay these creditors directly rather than through your bankruptcy plan.  For instance, if you have a mortgage with Wells Fargo and you are current with the mortgage payments, you would continue to pay that debt directly to Wells Fargo.  However, if you are delinquent with your mortgage payments, you can pay the mortgage delinquency back to Wells Fargo throughout the 36 to 60 months of your chapter 13 plan rather than all at once.  Of course, you would still have to continue making your regular monthly mortgage payments to Wells Fargo but the delinquency owed before your case was filed would be paid back by the chapter 13 trustee with the payments you make through your chapter 13 plan.  Second, priority debts involved in the bankruptcy process (bankruptcy fees, for example) must also be paid in full.

 

You’ll also be required to repay certain debts in full regardless of any type of plan period, income, or bankruptcy you file for. These commonly include child support and alimony, most tax debts, and debts from personal injury or death you caused while operating a vehicle while intoxicated.

 

The rest of your debts will be considered unsecured or nonpriority debts, and these may be paid at a determined portion from 0% to 100%. The amount you’ll be required to repay to unsecured creditors in your Chapter 13 plan varies based on your disposable income, the exemptions you can claim, and the minimum amount those creditors would receive if your assets were liquidated in a Chapter 7 bankruptcy.

 

Overall, the amount you repay all your creditors, including priority, secured, and unsecured, depends on several financial components. Your debts and other claims you owe that factor into a Chapter 13 plan include:

 

  1. Mortgage owed and arrears
  2. Other home loans and arrears
  3. Car loans owed and loan arrears
  4. Personal property loans
  5. Debts on other property loans
  6. Alimony and child support
  7. Priority tax debts
  8. Other priority debts
  9. Death or personal injury claims against you
  10. Administrative bankruptcy fees
  11. Attorney fees

 

Some debts, like medical bills and credit card debt, may even be discharged in a Chapter 13 bankruptcy repayment plan. For more information about creditors, repayment plans, and filing for Chapter 13 bankruptcy in Windom, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

 

 

Choosing Chapter 13 when You Qualify for Chapter 7 Bankruptcy in Mankato, MN

Financial recovery through the federal process of bankruptcy is a public option for all businesses and individuals, but there are eligibility standards for any bankruptcy case. If you want to file for liquidation bankruptcy, for example, you must pass the Means Test to qualify for a Chapter 7 petition. If you’re ineligible for Chapter 7, you can choose to file for debt reorganization (Chapter 13), but even that process has certain prerequisites. With the help of Behm Law Group, Ltd., you can determine which type of bankruptcy in Mankato, MN is best for your financial situation.

The two common types of bankruptcy for individuals are Chapter 13 and Chapter 7. The former reorganizes your debts into a manageable repayment plan for a three to five-year period. The latter liquidates non-exempt assets, distributing the value of those non-exempt assets to creditors and discharging your debts in return. Which type you file for depends on two things: your debt-to-income ratio (passing the Means Test or not) and your choice.

Your Choice

If you pass the Means Test and qualify for Chapter 7 bankruptcy, you’ll have the option to choose between Chapter 7 or Chapter 13. While there are occasionally financial circumstances that force filers to stick with Chapter 7 bankruptcy, it’s likely that you’ll have a choice. Behm attorneys can help you make this choice based on several factors of your situation:

  1. Nonexempt assets: Non-exempt assets are assets that have value in excess of your applicable bankruptcy exemptions or for which there are no bankruptcy exemptions that one can utilize to protect or keep them. These assets will be liquidated in a Chapter 7 case and the sale proceeds will be used to repay something to your creditors. If you want to keep non-exempt property, Chapter 13 is the right choice for you.   As long as you pay the value of those non-exempt assets to your creditors through a 36 to 60 month chapter 13 repayment plan, you can retain non-exempt assets that you would otherwise lose in a chapter 7 liquidation bankruptcy.
  2. Car loan: If you have debt on your motor vehicles, you could have those assets taken back by the creditors who have liens on them in a Chapter 7 bankruptcy. However, choosing a Chapter 13 repayment plan could allow you to repay your car loans over time and in a more manageable way and keep your credit in a more stable position.
  3. Mortgage: Similarly, you can have equity or value in your home protected by the Homestead Exemption in a Chapter 7 case but you may be behind with your mortgage payments. In a chapter 7 case and if you wanted to eventually avoid a foreclosure proceeding, you would likely have to pay back any delinquency in full to the mortgage lender in 30 to 60 days.  However, in a chapter 13 repayment plan, you could break that mortgage delinquency up and repay it over 36 to 60 months, avoid a foreclosure proceeding and retain your home property.  You may also be able to strip off or cram down any second or third mortgages in a Chapter 13 case.
  4. Priority debts: When you file for any type of bankruptcy there are a number of debts that fall into the “priority” category. These debts cannot be discharged in Chapter 7 liquidation, but they can be integrated into a Chapter 13 repayment plan and paid off. If you want to repay debts like child support and tax debt in a structured repayment plan, choose Chapter 13 over Chapter 7.

Both chapters have their own advantages depending on your situation. To find out which type of bankruptcy in Mankato, MN is right for you, contact Behm Law Group, Ltd. at (507) 387-7200 today.

Breakdown of Payments to Unsecured Creditors for Chapter 13 Bankruptcy in Pipestone, MN

When you file for bankruptcy, the people or organizations you owe money to are broken down into several different types of creditors. Generally, these creditors are considered as priority, secured, and unsecured. Within these categories, there is a simple hierarchy: priority creditors are repaid in full, secured creditors are paid the value of their collateral after exemptions are taken into account or the collateral is surrendered back to them, and unsecured creditors are paid with varying amounts depending on your case. While these creditors are considered similarly in both Chapter 7 or Chapter 13 bankruptcy, the outcomes of their repayments are different. Behm Law Group, Ltd. offers expert counsel and support when you file for Chapter 13 bankruptcy in Pipestone, MN, to help you navigate through your creditors and case.

 

For most Chapter 7 cases, the creditors are treated based upon which debts can be discharged and which exemptions can be claimed. In a Chapter 13 bankruptcy, however, the creditors must be treated differently based on the types of debts and the significance of those agreements.

 

When a Chapter 13 case is filed, the end goal is to restructure the filer’s debts into an appropriate repayment plan. This plan provides for the full repayment of priority debts and the payment of the value of secured debts, but often offers the filer the benefit of partial repayment of unsecured debts. The creditors of unsecured debts are written into the repayment plan in two fundamental ways.

 

  1. The first basic requirement for the treatment of unsecured creditors in a Chapter 13 bankruptcy repayment plan is that they will be paid at least as much as they would if the filer had filed a Chapter 7 bankruptcy.
  2. Secondly, the filer must pay all disposable income – surplus income left over after reasonable and necessary living expenses are paid – to their unsecured creditors throughout the duration of their three to five-year repayment plan. This income amount may fluctuate throughout the plan period, and the chapter 13 plan must be updated to reflect these income changes.

 

The repayment plan period for any Chapter 13 bankruptcy case depends on the filer’s income. If your income is less than the Minnesota median of a household similar to your own, your plan will last three years. If your income is higher than the median, you must file a five-year plan. The amount you repay your unsecured creditors will also depend on how long your plan lasts. For example, if you owe an unsecured creditor $5,000 and your disposable income adds up to $100 a month, you will repay 72% of that debt in a three-year plan or repay 100% of that debt in a five-year plan. In some cases, you will repay 0% of an unsecured debt when you file for Chapter 13 bankruptcy.

 

What you repay your unsecured creditors in Chapter 13 will vary greatly depending on your income and your additional debt payments and expenses. For most filers, these debts will be alleviated at least in part. For more information about your unsecured creditors and filing for Chapter 13 bankruptcy in Pipestone, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

What Happens When Retirees File for Bankruptcy in Redwood Falls, MN

Financial difficulties can occur for any number of reasons at any time in one’s life, but with the accumulation of debt into retirement and a decrease in income, retirees are increasingly becoming more likely to file for bankruptcy. Several studies have shown that in the past twenty years, the percentage of 65 or older bankruptcy filers has increased by more than 5%, and many of these petitions outlined medical debt as the primary financial burden of senior citizens. Debts gathered over a lifetime, a drop-in income after retirement, and the issue of medical bills with increased risks of health problems in advanced age all add up to severe financial struggles for many retirees across the country. Behm Law Group, Ltd. serves to protect you throughout the filing of your bankruptcy petition and help you understand what happens when retirees file for bankruptcy in Redwood Falls, MN.

 

The common concern for retirees and senior citizens who file for bankruptcy is how it will affect their retirement funds. Fortunately, most types of retirement accounts are protected from asset liquidation in Chapter 7 bankruptcy and the amount in your fund will not affect your repayment plan in Chapter 13 bankruptcy. Protected accounts include 401(k), 403(b), 457(b), and Keogh plans. The majority of other profit-sharing or benefit plans are also protected. Funds saved in an IRA, SIMPLE IRA, SEP IRA, or Roth IRA are protected from bankruptcy with a set exemption limit. The amount you can exempt from the bankruptcy process changes as the cost of living changes.

 

Another concern for seniors and retirees filing for bankruptcy is whether their Social Security will be involved in the process or not. Social Security is protected from wage garnishments along with disability income, but when that income is deposited into your bank account, it can sometimes be subject to garnishment. However, banks are required to know if federal benefits are in your account before they can take garnishing action, and even then, a two-month value of your Social Security and other benefits are protected.

 

If you are struggling to make ends meet in retirement and face looming medical bills or other debt, bankruptcy can be a valuable option. The majority of your retirement income is protected by federal law, and your retirement funds will most likely be completely protected in the process. With the help of a Behm Law Group, Ltd. attorney, you can free yourself from medical debt, credit card debt, utility debt, property debt, personal loans and more when you file for bankruptcy.

 

Live your retirement in peace and take full advantage of your freedom free from financial stress. Contact Behm Law Group, Ltd. today at (507) 387-7200 to learn more about whether filing for bankruptcy in Redwood Falls, MN, is right for you and start your petition today.

Health Risks of Financial Stress and How Filing for Bankruptcy in Fairmont, MN Could Save Your Life

In today’s world, we face a huge amount of daily stress. From taking care of family and friends to work responsibilities and more, we all have many roles to fill. With all the pressures of the average American adult, it can seem almost impossible to cram another burden on top of all the others. However, it’s common that most are also dealing with a wide range of financial difficulties. Ridding yourself of this unnecessary stress is a real possibility. With the help of Behm Law Group, Ltd. attorneys you can successfully file for bankruptcy in Fairmont, MN, and get the stress-free fresh start you need.

Debt is one of the heaviest loads we bear. It weighs heavily on our daily activities and also impacts our mental and emotional state. Any individual can struggle with the stress that debts bear on quality of life and happiness, whether they’re responsible for a large household or just themselves.

 

The stress we experience each day has more negative health effects, both mental and physical, than many realize. Chronic stress is a real causative factor in increasing a range of health risks including heart conditions, anxiety, depression, gastrointestinal problems, weight fluctuations, diabetes, psoriasis, eating disorders, insomnia, and even cancer. Substance abuse is another common problem often caused in part by chronic stress, which leads to a wide range of additional health problems.

 

If you’re dealing with the stress of severe financial difficulties or have had difficulty in keeping up with debt payments for several months, bankruptcy might be the answer to rid yourself of debt and stress.

 

If your income is lower than the state median, you can choose to file for Chapter 7 bankruptcy. This process works to liquidate your non-exempt assets, distributing the sale value to your creditors. In return, your debts are discharged, lifting the stress of that burden.  In most cases, no assets are sold/liquidated and the only things “lost” through the procedure are one’s debts.

 

Even if your income is a little higher than the state median, you can still choose to file for Chapter 13 bankruptcy. This allows you to restructure your debts into a 3 to 5-year repayment plan that suits your current income. In this process your debts will also be discharged and you will only be required to pay back a portion.

 

Considering the severity of stress that financial difficulties can cause, using bankruptcy as a way out might save you from damaging health issues. With the help of Behm Law Group, Ltd., you can find out which type of bankruptcy is right for you and file a successful bankruptcy petition. For more information about filing for bankruptcy in Fairmont, MN, contact us at (507) 387-7200 today.