In our day-to-day practice at Kain & Scott, our attorneys will typically field a few contacts every month from business owners who are financially stressed. The business owners typically have this, or a variation of this question: my business is in financial trouble, should the business file a bankruptcy? It’s such a simple, and such a common question. One of the reasons the United States has a bankruptcy law is to provide a safety net from small business owners - to allow the business owners to take financial risks without having to worry about financial ruin if the business experiences significant reverses. But while the question is simple, the answer is usually at least a little complicated. Let’s look at the factors that should be considered in making a decision as to whether to have a business file a bankruptcy case.
Our Minnesota guests are proof. Proof of what? Proof that Kain & Scott has an antidote for anxiety caused by overwhelming debt. How do I know this to be true? Because our guests say it all the time. It goes something like this- I was so nervous about bankruptcy and my debts before I met with Kain & Scott, and then once I met with the people at Kain & Scott, my anxiety went away and I felt like I could get through this with their help!
Legally, people in Minneapolis can file bankruptcy as many times as necessary. There are no filing limits. Multiple filings do have some adverse consequences, as set out below. However, this fallout is not as bad as some people think it is.
Besides, if properly done, bankruptcy is usually a once-in-a-lifetime proposition. A voluntary petition is a fresh start in almost every sense of the phrase. Actor Gary Busey, who is well-known for his “Buseyisms,” may have put it best in the wake of his own 2012 filing. He described bankruptcy as Bringing A New Knowledge Regarding Understanding Past Tribulations Concerning Yourself. That’s a very long way of saying that you have the power to reverse your financial fortunes, even though the filing itself was probably not your fault.
Bankruptcy is an investment for our clients. When finances are tight, anything is a significant investment. But the investment always pays off. The amount of money the client pays is nearly always inconsequential when compared to the tens of thousands of dollars of debt that is discharged. Furthermore, bankruptcy gives Minnesota families a fresh financial start. That’s something which is almost literally priceless.
I know that customer service sounds like a cliché, but it happens to be highly relevant. I know, every Minnesota bankruptcy law firm says they have excellent customer service or treats their clients well, blah blah blah. The problem is these statements don’t always square with what is said about them in Google reviews or by former employees in Glassdoor reviews.
How does one go about choosing a Minnesota bankruptcy law firm that is kind, helpful, professional, and has exceptional customer service? Spend your time researching different firms and reviewing lots of google reviews. Today, I want to discuss two things you should avoid when hiring a Minnesota bankruptcy law firm.
Most of the time, it is a wonderful thing to have equity in your home. There is a sense of pride in it and it can be considered an investment that will someday pay off. Sometimes, though, the fact that you have equity in your home is like blood in shark infested water. If you have an unsecured debt (such as a credit card) that went unpaid and a creditor received a judgment, that creditor could put a judgment lien on your home. That means if you sell your home, that creditor could get a portion of the equity in your home. Is there any way to protect the equity in your home in Walker, Minnesota? Do you have any options for getting rid of the debt and the lien? How do you fix this and get your life back?
One of the reasons people file bankruptcy cases is to preserve vehicle ownership. If the client has a car loan, a chapter 13 case in which the terms of the vehicle loan can be re-set to make the payment more affordable is often attractive. Or some clients prefer the liquidation approach of a chapter 7, in which other, unsecured debts are discharged, thus freeing up money in the monthly budget to make the car payment easier to afford.
As a Bankruptcy Attorney in Maple Grove, I hear it all the time- I want to file a Chapter 7 Bankruptcy, not anything else. Chapter 7 Bankruptcy, referred to as a “liquidation bankruptcy” or a “fresh start bankruptcy” is a four-month process where at the end of the process most unsecured debt is discharged, wiped out, tax free! Of course, there are many clients who do fit squarely within the parameters of a chapter 7.
Last week I started writing about the outcomes experienced by persons who file a
Chapter 7 Bankruptcy case. There are legal, financial and emotional consequences to filing bankruptcy, and last week I wrote about the legal consequences of filing bankruptcy. There’s plenty to write about on this topic - this week I will continue to look at the legal outcomes of filing a chapter 7 case.
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