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When You Can’t Afford Your Payments

You’ve heard it stated time and time again until it repeatedly drones in your head like a mantra; just make a budget and live within your means. At Behm Law Group we agree that everyone should live within their means and that keeping a budget makes financial sense. It sounds simple enough – just spend less than you make. But for some folks, through no fault of their own, it isn’t just that simple. What do you do when you add up all of your expenses and find your income is simply not enough? How do you decide between paying a bill, buying groceries, or getting a prescription refilled? Who can you turn to when an unexpected medical situation puts your thousands of dollars into debt? These are serious problems, but there are options you can pursue if you find yourself in these situations.

There are organizations that can negotiate with your creditors to reduce your payments and interest. However, you have to be careful that the organization you choose is legitimate. Also, depending on the amount of money you owe, the newly negotiated terms might still be more than you can afford, assuming that your creditors are willing to negotiate. While this option works for some people, it isn’t for everyone.

Another option is to file for bankruptcy. Bankruptcy might be the last thing you want to do but the only viable option available to help you emerge from beneath a mountain of debt. At Behm Law Group we understand that bankruptcy is not something you should enter into lightly. However, bankruptcy law was created for people such as yourself―people in a bad situation who need a fresh start.

No matter how frugally you live, your bills can still overwhelm you. Getting out of your financial distress is not as simple as repeating a mantra. Sometimes you need help from someone who cares. At Behm Law Group, LTD, we limit our practice to bankruptcy law. Our Minnesota bankruptcy attorneys will treat you with the respect you deserve.

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Preparing for Bankruptcy

After months or years of struggling with debt, you have decided that the only way to attain financial relief is to declare bankruptcy. By following these steps, you can ensure that the process goes smoothly from beginning to end.

Gather your financial information

Your attorney will give you a complete list of things you need to bring to your appointment. Generally this includes everything you have for financial records, such as:

  • All sources of your income
  • All records of all your debts, such as current credit card bills, medical statements, student loans, car loans, and mortgages
  • Bank statements from all of your bank accounts
  • Records of your financial assets (CDs, savings accounts, stock shares)
  • An estimate of the worth of your possessions

Financial actions to avoid during this process

Any of these activities could make your case more complicated and difficult to complete:

  • Paying-off a loan to a relative
  • Transferring cash or property to a relative
  • Using any credit if you know you’re going to file bankruptcy

Call a Minnesota Bankruptcy Attorney

Bankruptcy can be complex, and you need an experienced bankruptcy lawyer to guide you through the process. At Behm Law Group, LTD, we specialize in bankruptcy law. In fact, it’s all we do. It is possible for someone to attempt to declare bankruptcy on their own, however, we highly recommend against it. If you make an error in your case it could cost you money you simply don’t have and have repercussions for years to come. For example, if you forget to file a required form, your case could be dismissed. And even worse, you might lose the right to re-file. If your financial situation has become a nightmare and you want to see if bankruptcy is right for you, give Behm Law Group LTD a call.

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Top 10 Bankruptcy Do’s and Don’ts for Those Contemplating Bankruptcy

If you are contemplating filing for bankruptcy relief, you need not be afraid of the bankruptcy process.   However, the filing of a bankruptcy should not be perceived as being “easy.”  In short, serious problems may arise if you do not approach the process with due care and respect.   There are some things that you want to avoid which could make the process a lot more complicated than it needs to be.  Conversely, there are things that you can do that could make the process a lot more simple and uncomplicated.

TOP 10 BANKRUPTCY DON’TS

1.  Don’t transfer or give any of your property to friends or relatives.

2.  Don’t “pay off” any debt to any friend or relative thinking that you then will not have to include that person in your bankruptcy.

3.  Don’t pay off  friends’ or relatives’ debts for them.

4.  Don’t sell any of your property for less than its fair market value.

5.  Don’t invest any of your limited time, energy and resources with any so-called “debt settlement companies” who will only take your money and make false promises about being able to “settle” with your creditors.

6.  Don’t incur new debt on your credit cards and do not use them to gamble at casinos or otherwise.

7.  Don’t rely on or put faith in much of your own research that you may have done on the internet because a lot of the information is just flat wrong, even from the sites of attorneys who claim to be “experienced.”

8.  Don’t believe the threats and fear-mongering collection agents and creditors may be giving you because they can’t do what they may be threatening at all or for a very long time.

9.  Don’t cash in life insurance policies or 401k plans to pay off or pay down creditors.

10. Don’t use one credit card to pay off another or to pay your taxes.

TOP 10 BANKRUPTCY DOS

1.  Do retain a qualified and truly experienced bankruptcy professional and thoroughly investigate anyone whom you are considering hiring because there are a lot of attorneys who are actually very new to the practice of bankruptcy law but who purposefully misrepresent themselves as “experienced” or “highly qualified.”

2.  Do make sure that all of your state and federal tax returns have been filed.

3.  Do disclose ALL of your property for your attorney and expect your attorney to explain why you need to disclose ALL of your property and how you are to disclose it in your bankruptcy petition and related schedules.

4.  Do understand that bankruptcy is nothing to be afraid of but that it merits a very healthy respect because the bankruptcy petition and related schedules that you complete with your attorney are not just “forms”; rather, they are legal pleadings that you and only you sign subject to penalty of perjury.

5.  Do expect your attorney to be knowledgeable about the bankruptcy process, to be able to thoroughly explain the bankruptcy process to you, to timely answer all of your questions, to return your telephone calls and to get you through the bankruptcy process with as little disruption to your life as possible.

6.  Do disclose ALL of your creditors, including student loans, friends and relatives, criminal fines, overdraft fees, medical bills, tax debts, child support debts, past due utility bills and ALL other creditors and all other parties who MAY have any legal claims against you, such as via a motor vehicle accident or damage to property.

7.  Do maintain documentation concerning your debts and assets including, but not limited to, billing statements, state and federal tax returns, mortgages and vehicle purchase agreements,  title certificates for your vehicles, boats, ATV’s, etc., deeds and property tax statements concerning land in which you may have an ownership or possessory interest, 401k statements, life insurance policies, savings bonds, homeowners insurance policies, divorce decrees, and jewelry appraisals.

8.  Do understand that bankruptcy DOES nullify or discharge your legal and contractual obligations to pay most of your creditors’ claims but that it DOES NOT necessarily make your debts go away or disappear and that some claims, such as criminal fines, survive bankruptcy.

9.  Do accept the reality that sometimes people can and do lose property in bankruptcy but that this is the exception rather than the rule.  Sometimes the loss of property is unavoidable and one must accept that but keep in mind that a truly competent bankruptcy professional can minimize such a consequence and can even, sometimes, prevent it from happening.

10.  Do consult with parents or friends or relatives (you do not have to tell them why) about whether they have listed you in a will or put your name on their land or on any of their bank accounts.

Keep in mind that you WILL  get bankruptcy relief as long as you follow the road map which is the bankruptcy code.  Your case will be approved as long as you are honest and forthright in your bankruptcy petition and related schedules.  The key to a successful bankruptcy proceeding is to disclose, disclose, disclose in your bankruptcy petition and related schedules and to testify truthfully at your bankruptcy hearing.   Know that bankruptcy may not be right for everyone.  Sometimes, the best option is not to file a bankruptcy at all.  However, hiring a competent and qualified bankruptcy professional will make all the difference.  Any truly skilled professional will help determine whether the bankruptcy process could be either a benefit to you or a nightmare.

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Sometimes Bad Things Happen to Good People

Few things in life can be as embarrassing as having to admit that you need to declare bankruptcy.  Maybe you associate bankruptcy with some sort of failure: be it a financial or even moral failure.

However, there are many things that can lead to bankruptcy that are not your fault such as a job loss, mounting medical bills, a lawsuit, or other types of financial hardship.

And even if you feel like it is your fault, our experience is that there are many things out of your financial control that may have led to your need to declare bankruptcy.  Many good people have had to declare bankruptcy, and declaring bankruptcy doesn’t make you a bad person.

If you are in a position where you have to declare bankruptcy, the best way to look at it, is a means to getting a fresh start in controlling and rebuilding your financial life.  It is a legal process by which you can get relief from overwhelming bills and start to rebuild your finances again.

However, bankruptcy is not something to enter into lightly.  It can be complex, and there are consequences you need to know about.  That’s why you need an experienced bankruptcy lawyer who can lead you through the maze of legal requirements you will need to navigate regarding bankruptcy law.

At the Behm Law Group, located in Mankato, Minnesota, we pride ourselves on our extensive experience and expertise in bankruptcy law and limit our practice to bankruptcy cases only.

We know that sometimes bad things happen to good people, and we’ll treat your case with privacy and respect.  We will work at your side to achieve the legal relief your case demands in order to help you attain a new and fresh start.