Welcome To The MN Bankruptcy Blog

Inside you will find over 500 helpful articles discussing the Chapter 7 & 13 Bankruptcy Process and other solutions for difficult financial situations.

You can search for specific topics or just click around. If you can't find what you're looking for here or in our FAQs please Send Us A Message

What Happens When You File Bankruptcy: Pre-Bankruptcy Activities

Posted by Wesley Scott on May 23

The 2005 bankruptcy reform act significantly changed parts of the pre-filing process. Supposedly, banks approached then-President George W. Bush about such a measure shortly after he took office in 2001. But because of the proposal’s harshness, he said he would not sign it until his second term. The 2005 law made a number of changes which were designed to make it harder to file Chapter 7. These changes are outlined below.

Other parts of the pre-filing process are unchanged. That include the initial consultation with your Minnesota bankruptcy attorney. At Kain & Scott, we believe in very thorough consultations which review all your bankruptcy and non-bankruptcy debt relief options. An extensive consultation also helps clients understand what happens when they file bankruptcy. That is a tremendous advantage for everyone.

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Everything You Need To Know About Chapter 13 Bankruptcy

Posted by Margaret Henehan on May 18

Most Minnesota families live hand to mouth. Almost half of the households in America cannot cover a $400 emergency expense. Most secured debt payments, like rent, mortgage, or auto loans, are three or four times that amount. In other words, just one missed installment can mean a world of hurt. Most people lack the means to make catchup payments.

Most moneylenders begin adverse action, including the dreaded acceleration notice, after just two or three missed payments. An acceleration notice demands the entire loan balance immediately; the lender will no longer accept partial payments. In situations like this, a federally-guaranteed debt repayment plan is probably your best option. Almost everything you need to know about a Chapter 13 bankruptcy is described below.

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Here's What You Need To Know About Chapter 7 Bankruptcy

Posted by William Kain on May 17

Many Minnesota families have excessive credit card debts. Making matters worse, according to one estimate, 60 percent of cardholders struggle just to make the minimum payment. So, every month, the family goes deeper into debt. This downward debt spiral quickly becomes overwhelming.

Many “debt consolidation” firms only make empty promises. But there is a federal debt relief program that’s designed to do away with excess debt and give Minnesota families a chance to start over. But bankruptcy is a very big decision. Before you file your voluntary petition, it’s important to know everything about Chapter 7 bankruptcy.

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Would Bankruptcy Affect My Partner In Minnesota?

Posted by William Kain on May 14

Most likely, bankruptcy would affect a business partner. However, the effects are almost all positive.

Sometimes, liquidating a failing business is the best course of action. This issue is very common, as only a small percentage of new businesses survive past the first five years. A failed business does not necessarily mean that you and your partners are poor planners or businesspeople. It just means that, for whatever reason, a particular concept did not work out.

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Minnesota Bankruptcy: What Else Should I Know? (Part 3)

Posted by William Kain on May 4

In my last two blogs, I’ve written about some unexpected consequences that some of our clients experience as a result of filing a bankruptcy case.  These surprises come from different areas - from the fact that ACH payments can be discontinued to the fact that a lapsed car insurance policy can result in a safe driver being dropped into the risk pool when a new auto-owners policy is taken out.  This week I’ll continue to write about expecting the unexpected as a result of filing a bankruptcy case.

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Would Bankruptcy Affect Your Job in Minneapolis?

Posted by William Kain on May 3

Absolutely not. Financial problems are so common that they touch almost everyone. Many people live paycheck-to-paycheck. So even a slight income disruption or a small unexpected expense is often devastating. One in four Minnesotans worry about money so much that they have PTSD-like symptoms. That figure is self-reported, so the actual number may be even higher.

In other words, if financial problems could affect your job, many of us would be out of work. That’s simply not a workable environment, so bankruptcy discrimination is illegal.

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Will Bankruptcy Remove Liens in Minnesota?

Posted by William Kain on May 3

Bankruptcy gives fresh starts to distressed debtors. But it uses the least restrictive means to accomplish this goal. Property rights are sacred to many people in America, and that includes a contract between a debtor and a creditor. So, bankruptcy does not interfere with that contract.

Instead, a bankruptcy discharge removes the debtor’s legal obligation to repay debt. It does not affect the collateral consequences. Assume a judge discharges past-due university tuition. The school cannot do anything to collect the amount owed. However, it can withhold the student’s transcript until the debt is paid or otherwise resolved. A bankruptcy judge does not have the authority to order the school to release the transcript.

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Minnesota Bankruptcy: What Else Should I Know? (Part 2)

Posted by William Kain on May 1

Last week I started writing about the collateral events in a bankruptcy case that can confuse, concern or surprise bankruptcy debtors.  I looked specifically at the fact that many creditors will automatically discontinue ACH automatic withdrawals out of the bank accounts of bankruptcy debtors and that many creditors will disable a bankruptcy debtor’s ability to pay bills online (by the way, many pay-by-phone services are discontinued, also).

This week I will write about some other “surprises” that debtors can find in a bankruptcy case.

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Posted by Wesley Scott on May 1

So, last we spoke, we spoke about Mary’s account being frozen. The creditor had frozen Mary’s 12k 401k loan proceeds and Mary had come in to see me about what her choices were to resolve her debt problem.

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Posted by Wesley Scott on April 27

There are 3 mistakes you should avoid when filing bankruptcy in St Paul, Minnesota. These mistakes have to do with representation in a bankruptcy or a lack thereof. At Kain & Scott, we are Minnesota’s oldest bankruptcy law firm. We have seen a thing or two and we would recommend you avoid the mistakes we have seen others make. For example-

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Posted by Wesley Scott on April 26

Welcome to Woodbury, Minnesota’s best bankruptcy law firm, Kain & Scott. Why Kain & Scott? Good question. We wrote the book, “Filing Bankruptcy Sucks, Your Lawyer Should Not!” We wrote the book because we were frustrated by how Minnesota bankruptcy guests were being treated. Well, let’s break it down, why is Kain & Scott Woodbury, Minnesota’s best bankruptcy law firm? I will give you 5 reasons:

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Posted by Wesley Scott on April 26

The following is based on a true story. The names I use are fictional but the story is real. Mary came into see me about her account being frozen by one of her creditors. Mary had just taken a loan out from her 401k and the 12k in proceeds were in her bank account when the unthinkable happened- the creditor placed a levy on the account and froze 12k. Now, to say this was not good timing is an understatement. Mary is an RN but she was off work for several months due to medical complications. She was not entitled to short term disability and so she was taking the 401k loan out to help her and her husband survive the time when she was out of work.

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Will Bankruptcy Clear All Of My Debt?

Posted by William Kain on April 23

Technically, the answer to this question is “yes.” However, there may be some debt that you do not want bankruptcy to clear.

There’s a significant difference between secured and unsecured debt. Secured debt includes things like home mortgages and auto loans. If the debtor violates the security agreement, the moneylender has the right to repossess the collateral. That right remains in place whether the debtor files bankruptcy or not. Unsecured debts are things like credit cards and medical bills. As outlined below, these debts sometimes have collateral consequences as well. But in most cases, they are quite limited.

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Everything You Want To Know About Filing Minnesota Bankruptcy

Posted by William Kain on April 19

One of the most common questions that I get from clients after we’ve gone through the process of preparing a bankruptcy case for filing at Kain & Scott is “what else should I know?”

It’s a perfectly understandable question - our clients have been with us at every step of the process of preparing their bankruptcy petition, schedules and statements.  They’ve spoken with us at the initial stage, where we put together a “game plan” for addressing their financial problems. They’ve been with us as our assistants verify the facts of their case to make sure the information that is on the petition and schedules filed with the court is complete and accurate.  And they’ve sat in with the lawyer on their case to make sure, as the lawyer and clients review the petition and schedules together, that the lawyer is satisfied that there are no legal issues that will create complications in the client receiving a bankruptcy discharge. We process a lot of information, together.  But many clients want to be sure that they’ve been fully informed as to what will happen when their case is filed and what they can expect after filing and after they receive their discharge.

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Posted by Wesley Scott on April 18

It is odd that I have to say this, but if a Minnesota resident intends to file for bankruptcy in Minnesota, choose a Minnesota BASED law firm. Why do I say this? Because there are out of state law firm’s soliciting Minnesota residents to file bankruptcy using an out of state law firm- some of who refer you back to a Minnesota lawyer who doesn’t have the same bankruptcy experience many other Minnesota bankruptcy attorneys have.

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