Minnesota Bankruptcy Attorney

Warren Sapp Bankruptcy

Chad — Mon, 07 May 2012 17:52:57 +0000

It seems that a few times a year a celebrity or athlete will declare a chapter 7 bankruptcy. In this case the most recent bankruptcy by a former athlete is by Warren Sapp or made around 60 million dollars during his playing career, and currently has an income of around $500,000.00 per year as a sports analyst. Some people may be wondering how he could qualify for a chapter 7 bankruptcy. The simple answer is he probably has filed a chapter 7 bankruptcy with more business related debt than consumer debt. If a persons business related debt exceeds their consumer debt, they will be eligible for a chapter 7 bankruptcy regardless of income.
This loophole was put in place to allow individuals who have started a business, accumulated debt from the business, to be able to file for bankruptcy protection to get a fresh start. Having the option to declare a personal bankruptcy after a failed business can be a big advantage when trying to start over. If you were not able to file for bankruptcy protection you may be left with debts that could not be repaid for the rest of your life. If you have a small business that failed give our office a call to see if bankruptcy is an option for you.

Gambling and Bankruptcy In Minnesota

Chad — Fri, 04 May 2012 16:29:18 +0000

I see clients everyday who have issues with gambling and may be have to file for bankruptcy protection to cover those gambling losses. In some cases these clients spend every free dollar on different forms of gambling. Some of these clients like casinos, lottery tickets, scratch offs, pull tabs, and horse racing. The problem is when people gamble more than they can afford, so it is not an enjoyable pastime, but becomes an addiction. Once people are addicted to gambling it affects every aspect of their life, including ability to save for retirement.
Our office always advises clients that if they file for bankruptcy and continue gambling the bankruptcy will just be a temporary solution to their problems. If they continue to gamble they will find the debts will continue to mount even after the bankruptcy, and the paychecks will continue to disappear a Twin Cities gambling establishments. It seems that Minnesotans already have plenty of gambling options and do not need to have the State authorize any more ways for people to spend their hard earned money gambling.

What To Look For In A Bankruptcy Lawyer

Chad — Wed, 18 Apr 2012 15:30:20 +0000

If you are thinking about filing for bankruptcy in Minnesota you need to look for the following qualities in your bankruptcy lawyer.

1. What do former clients think of the attorney? At our firm we pride ourselves on making sure our clients are happy with the outcome of their bankruptcy. While we cannot always predict what will happen in every case, we will make sure to return calls to our clients promptly and make sure they are kept informed as to the status of their case. Our office receives overwhelming positive feedback from former clients who are happy they are now debt free, and get on with their life.
2. Will an attorney be available to answer my questions? Our office makes sure to have an attorney available to answer your questions via email or phone. We make sure to return phone calls as soon as possible so clients are not left waiting for answers. Our attorneys have years of bankruptcy experience and have seen just about every possible bankruptcy scenario. If you have a bankruptcy question our attorneys have an answer. If we do not know the answer we can look it up. I had a law professor at the University of Nebraska who had been around for 40 years, and I asked him a question one day after class. His response to me was to “look it up”, I took that advice and since then I have looked up answers to legal questions on my own. I think you learn by doing the research on your own, and that is what Professor Berger was attempting to instill in his students.

3. How will I be treated by your firm? We treat every client with respect and professionalism. We want to get the work done for you in a timely and professional matter. The thing to keep in mind is that getting your bankruptcy or other legal work done in a timely matter, is a two way street. Our firm is not able to finish a bankruptcy petition by ourselves, we need and expect our clients help in getting the proper paperwork together.

4. What does your law firm expect of their clients? For the purpose of bankruptcy we expect that our clients will be honest and give us accurate answers to our questions. One of the biggest problems a person can run into with filing for bankruptcy is dishonesty. The best policy to tell your attorney everything you think is relevant, and to answer his or her question honestly. If you are not honest with your attorney, then you will not get the best possible legal advice.

5. Do you have a lot of experience filing chapter 13 bankruptcies? Our office handles a lot of chapter 13 bankruptcies per year. Given our experience we can formulate a fair plan for you to repay creditors. The issue is that our office does not control the entire chapter 13 process. We do not control the chapter 13 trustee, judge, or creditors in your case. Each of these parties has a say in your repayment plan. If is important to realize that even the best most diligent repayment plan is subject to negotiation if the trustee or creditor objects to your plan. In some situations the trustee may feel that your expenses are too high, and our office will need to work with the Trustee to resolve the dispute. If we cannot resolve a dispute, then the judge would need to decide what are fair expenses. It is important for clients to realize that they are entitled to fair and reasonable expenses, you will not be able to have the same lifestyle as before you filed for bankruptcy, because you are only paying the creditors back a portion of what they are owed.

Ultimately our firms focus is on our clients to make sure they receive excellent legal representation. We have years of bankruptcy experience and can help you get your finances in order and get on with your life.

Risting Tuition and Student Loans In America

Chad — Wed, 11 Apr 2012 14:30:30 +0000

I have recently seen articles by the Associated Press and the Washington Post writing about student loan debt. In my practice I have also seen many student loan borrowers who are unable to pay back their student loan debt, and then file bankruptcy with our office to escape their other unsecured debt. The problem is that the bankruptcy does not provide any relief in regards to their student loan obligation. In many cases my clients have more student loan debt than car loans and credit card debt combined.
At this point I can only help with the unsecured debt and provide advice on how to reduce the cost of their secured debts including cars and homes, but I would like to be able to help with the student loan debt as well. In many cases my clients would benefit from some reduction in their student loan debt after a bankruptcy. In order for this type of reduction to occur it will take an act of Congress and the President. One of the main problems with student loan debt is that it allows schools to simply increase their tuition and force students to take out ever increasing student loans. The cost of an education is increasing at a faster rate than inflation, which is a scary prospect if you have young children that you want to attend college. The schools in this country need to figure out a way to control the rising cost of education, otherwise education will only be available to the rich, and that will not help America in the long run. If we can control the cost of tuition, it would reduce the need for student loans.
On a side note it is interesting that Minnesota students can attend the University of Manitoba, University of Winnipeg, and other Canadian universities and pay very reasonable tuition rates. At present Minnesota has a tuition reciprocity agreement with Manitoba, and Manitoba provides more reasonable tuition than most Minnesota public universities. It seems like a viable option for students looking to save some money on tuition.

What Property Will I Lose in a Minnesota Bankruptcy?

Michael — Thu, 05 Apr 2012 19:41:24 +0000

Loss of personal property including: cars, houses, jewelry, and possessions, is one of the biggest fears individuals have. Many times the fear will keep individuals from filing bankruptcy when they should.

Your chance of losing any personal property in bankruptcy is rare. The bankruptcy code provides for an election of two types of exemptions in a Minnesota bankruptcy. Exemptions are what allow an individual to keep items as part of a fresh start. An example is driving a 2005 Honda Civic that is paid off. If the Honda Civic has a value of less than $3,450 the car will not count against you and nothing will be paid. Even if the car does have value over the exemption amount a “wildcard” may be used as a gap filler to make up the difference between the value of the car and vehicle exemption.

Essentially there is an exemption for all different classes of asset under 11 U.S.C. 522. Obviously exemptions are finite but most bankruptcy filer do not lose any assets and pay nothing into a chapter 7 bankruptcy.

Some examples of exemptions under 11 U.S.C. 522 are:
1. Household goods and furnishings: $11,525;
2. Jewelry: $1450;
3. Certain Retirement Accounts: $1,000,000
4. Personal Injury Payments: $21,625;
5. One Motor Vehicle: $3,450; and
6. Wildcard (gap filler): $11,975.

These amounts can change and these amounts are not all the exemptions that are available. Contact us today to determine how we can discharge your debt and protect your property.

Student Loan Collections

Chad — Tue, 27 Mar 2012 19:36:51 +0000

An article by Bloomberg outlines abuses by debt collectors who are chasing student loan borrowers. The article can be found at this link on http://finance.yahoo.com/news/obama-relies-debt-collectors-profiting-040100344.html.
The article writes about the abusive tactics collectors use when attempting to collect a debt, and also indicates that bill collectors do not tell borrowers about income contingent repayment plans that may be available to the. The reason for this is that the collectors do not get any commission if the payment is not large enough, so they will coerce individuals into payments that they cannot afford.
The moral of the story for student loan borrowers is to check out your income contingent repayment options, before relying on debt collectors to set up a payment for you. If you cannot afford rent and food for your family, you should be eligible for some relief from federal student loan. When you are taking out student loans you should stick with federally guaranteed student loans and avoid private student loans, the federal loans offer more generous repayment terms if you find yourself unable to pay back the debt. The Bloomberg article is only the tip of the iceberg when it comes to student loan debt, we will be seeing a lot of problems with student loan debt in the coming years. Congress will have to do something to help people alleviate the student loan debt, or make affordable payments on the debt, if it cannot be discharged in bankruptcy. If you are currently receiving collection calls regarding student loan debt, you need to find out if you can reduce your payments based on your income, before agreeing to a payment you cannot afford.

Minnesota Bankruptcy and Veterans

Michael — Fri, 23 Mar 2012 18:42:06 +0000

Service members endure a lot including: low pay, time away from home, long hours and stress. One of the worst things that can happen to a veteran is finding that they have accumulated debt as a result of their sacrifice. Gratefully a portion of the United States Bankruptcy Code deals specifically with veterans and their financial problems.

11 U.S.C. 707(b)(2)(D) does not allow means testing on a veteran who was either: (1) on active duty; (2) performing homeland security; or (3) for veterans who have recently ended active duty. The means test is a simple mechanical test that takes into consideration the income of the debtor, where the debtor lives and the number of individuals the debtor lives with. In the case where a debtor earns too much income the only option is a chapter 13 bankruptcy (repayment plan). Through not being subject to the means test veterans who would otherwise not qualify for chapter 7 bankruptcy can file and be rid of their debt in as little as 95 days (filing to discharge).

Veterans benefits are also protected from capture. 11 U.S.C. 522(d)(10)(b) protects benefits provided for veterans from collection by the trustee.

The key is to act fast. Factors change and any delay can result in the means test being applied against you. Contact me today to discuss how we can take the financial stress out of your life.

Student Loan Debt In Minnesota

Chad — Tue, 20 Mar 2012 14:51:09 +0000

Bloomberg reports that approximately 10% of the outstanding student loans were in default during the third quarter of 2011. This represents a lot of student loan borrowers who are struggling to pay their student loans while paying for all of the other essentials of life. I am sure if 10% of all loans are in default, a lot of other student loan borrowers are close to default. Student loan debt is currently near 1 trillion dollars in the United States.
This level of debt is a ticking time bomb that will need to be addressed through legislation, to provide some form of relief to student loan borrowers. The relief will have to include some form of debt forgiveness or the ability to discharge some student loan debt in bankruptcy. As it stands right now student loan lenders do not have any incentive to work with their borrowers, because they do not face any chance of having the loans reduced through bankruptcy. If lenders had to face some risk of their student loans being discharged they would be more likely to negotiate with individuals who are having a hard time keeping up with their payments.
I am sure some of the borrowers who are behind on their student loans are thinking they did not make the right choice when choosing to incur the debt in attending school. The people in the worst shape are individuals who went to school and are currently out of work, or not working in a field that allows them to make their student loan payments. These individuals tend to be younger and may have just graduated from their chosen school. It is also important for individuals to look closely as the value of their education and how it will impact their ability to get a job. Student loan debt does not go away, so once you incur the debt it is with you until it is paid off, unless the law governing student loans is changed.

Minnesota Small Business Bankruptcy

Chad — Wed, 14 Mar 2012 18:32:40 +0000

If you have a small business in Minnesota and need to reorganize the business or think you need a fresh start our firm may be able to help. We help small business owners in Minnesota file chapter 7, chapter 13 and chapter 11 bankruptcies. We are also able to work directly with your creditors on a loan work out or debt settlement plan if a bankruptcy is not the best option for you. In some cases all your business may need is getting rid of the debt, so that you can focus on profitability and doing the work that built your business in the first place.
I have seen a lot of clients who are spending so much time dealing with banks and creditors that they can no longer run their business. We help by being able to deal with your banks and creditors so you work on making money to pay yourself and your creditors. If you have further questions give our office a call at 952-294-0144.

Strategic Foreclosure of a House and Voluntary Surrender of a Car in Minnesota

Michael — Fri, 02 Mar 2012 15:47:34 +0000

Taking a business like approach to the decision on whether to keep your house or car is the best course of action. When I say take a business like approach I am speaking to the idea that businesses are often faced with tough decisions, but the bottom line is the bottom line. The same should be true for individuals who are filing bankruptcy or considering bankruptcy. The power of bankruptcy in Minnesota will protect the filer from any deficiency. The creditor can no longer collect against the filer. The bankruptcy will also protect the filer from any tax liability which can result from a foreclosure or from debt settlement.

Who should consider strategic foreclosure on a MN house or a voluntary surrender of a car should boil down to simple logic. First, you need a place to live and a car to get around with. Second, you need to consider the your income and your ability to pay for those items. A house payment is generally the largest payment individuals make; car payments and the associated expenses is generally the second largest payment. Third, you need to review the value of house and car versus the amount of the loan. If the house and car is underwater a decision needs to be made. An example of a house that should be subject to strategic foreclosure would be a house that is $30,000 or more underwater. The reason for this is simple, traditionally houses appreciate at a rate of about 3 percent per year. To make up the $30,000 would take years. The same goes for cars.

If you would like to discuss your financial situation please call me at 952.294.0144.