What Debt Relief Is Right For YOU?

December 1st, 2011

Money problems play havoc present a wise range of problems for many people.  Financial pressures not only can prevent a person being effective at work, but also cause collateral problems. The result of these money problems is that a debtor may find that he or she wants a fresh start to get free of debt.   There is a common solution that is proposed by friends and relatives to a person who is experiencing  financial problems.  That solution is for the person to declare  bankruptcy. Notwithstanding to commonality of this advise the question still remains, is Bankruptcy for right for you?. The reality is that each person must examine his or her own financial situation to determine what must be done to clear it up. A debtor who is searching for a resolution to financial pressures needs to examine his or her financial situation in an objective manner. This means not only gathering all of the financial information, organizing it and analyzing it, but learning all available options to resolve outstanding financial difficulties. A first step is to gather the following:

  1. All income documentation for the past six months including not only pay stubs, but also any other financial assistance provided to the consumer as well as all income from other sources for both the debtor and his or her spouse.
  2. A complete list of all monthly expenses.
  3. A list of all secured debt such as mortgage and/or automobile payments.
  4. The past due amounts, if any, on all secured debt.
  5. All income from investments, interest, dividends, pensions, retirement income, social security benefits, disability benefits, unemployment compensation, worker’s compensation, child support, alimony or spousal maintenance.
  6. All business income. This should include gross receipts from the operation of the business, the cost of goods sold as well as all business expenses.
  7. Contributions to household expenses and income from others, such as spouses, partners, roommates, family members and others who contribute to the debtor’s income and/or expenses, whether they reside with the debtor or not.
  8. The debtor’s household size including all persons currently residing with the debtor such as the debtor’s spouse, if any, children, other family members such as parents, brothers, sisters, other relatives, roommates, significant others, partner and other household members.

If the debtor is married and his or her spouse resides elsewhere, then information about the spouse’s income and expenses will be needed as well. After all of the information has been gathered and reviewed it is a sound idea to consult with a licensed lawyer who can go over the facts with you and provide information on available debt relief. At that time there can be consideration of whether the debtor qualifies for Chapter 7 bankruptcy or Chapter 13 bankruptcy. The means test may be used to evaluate the qualification of a consumer for bankruptcy. This review of eligibility covers a consumer’s financial ability to deal with his or her current financial circumstances.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.

Factors Leading To Consideration Of Bankruptcy

February 20th, 2011

There are many factors to be considered in regard to a debtor’s situation before deciding to pursue a bankruptcy. Some of the salient factors regarding the debtor are all available income, ownership of a homestead, all non-homestead significant assets, dollar valuation for all the assets including the homestead, the secured debts, the unsecured debts, the total number of debts, the total in dollars of all debts, how far behind the debtor is on payments due on debts, the ability of debtor to meet monthly payment on debt, any co-debtors, major assets of the debtor, whether an asset is security for a debt, the desire of a debtor to discharge or pay back debt, whether the debtor faces any immediate threat such as foreclosure, repossession, garnishment or other legal action. All of the facts and documents reviewed must be considered in light of applicable bankruptcy law to determine whether a debtor qualifies for bankruptcy protection.  A debtor interested in gathering information on pursuing bankruptcy can consult with a Minnesota bankruptcy attorney who can do a bankruptcy evaluation with the means test.

This blog does not intend to give legal advice and does not do so.  The reading of this blog does not establish an attorney-client relationship or substitue for consulting with a licensed lawyer.

We are a debt relief agency.  We help people file for debt relief under the bankruptcy code.

Real Estate Debt Problems

February 18th, 2011

Real estate debt related problems are not uncommon.  They can take many different forms from simply being behind on mortgage payments to complicated multiple real estate holdings that have huge amounts of money owed on them.  It is not unusual for people to complain that they are upside down on their land holdings or in other words they owe more on the real estate that it is worth if sold on the market.  The problem with being upside down on a home is especially distressful to many people since  their home is the largest investment they will ever make.   They sometimes cannot afford to make payments on it yet cannot sell it and get enough money to pay off existing debt on it.  The problem is further compounded by fearing that if they lose their house they will not only have credit problems but no where to live.   Sometimes people experiencing real estate problems fail to seek out legal advice in a timely manner.  Bankruptcy relief that will help real estate debt problems may be available for eligible debtors.  Similarly some people fail to get legal help before buying real estate only to later learn that there are problems with owning it.  Since real estate for many people is  their largest investment it is important not to put it in jeopardy or run the risk of future problems by failing to take the necessary steps to protect that asset.  Whether a person is  selling real estate, buying real estate, leasing real estate or has problems related to real estate it is a sound idea to get legal advice from a licensed lawyer.  Homeowners or commercial real estate owners often procrastinate in attending to growing debt on real estate until faced with  losing it in foreclosure.   A more useful approach is to get legal assistance to stop the loss of a home or real estate before foreclosure.  Prompt attention to dealing with real estate problems may lessen the chance that it will be lost in foreclosure and in some instances provide a person a chance for a new beginning.

This blog is not intended to give legal advice and does not do so.  Reading this blog does not crete an attorney-client relationship or substitute for consulting with a licensed lawyer.
We are a debt relief agency.  We help people file for relief under the bankruptcy code.

Bankruptcy Fears

February 18th, 2011

Fears based upon misconception can keep debtors from pursuing bankruptcy relief.  This is does not have to be the case.  A person interested in pursuing debt relief should gather and carefully study accurate information related to debt resolution.  It is dangerous to base a decision on rumor or misconception.  For example, people who are considering bankruptcy sometimes express great fear that if they file bankruptcy it will require them to attend a meeting of creditors.  The assumption is that this meeting is something to be greatly feared.  The reality is that a 341 hearing in bankruptcy otherwise known as a meeting of creditors is an important part of the bankruptcy process.  This bankruptcy hearing can be dealt with in a straightforward manner by a debtor who makes sure to file full and accurate information on his or her bankruptcy.  So what is this meeting of creditors?  After a bankruptcy has been filed a notice of the commencement of the debtor’s bankruptcy will go out.  The notice sets forth information to the creditors that a bankruptcy has been filed by the debtor with appropriate warnings related to continued collection efforts.  A meeting of creditors will be scheduled. The trustee, debtor and his or her lawyer should attend that meeting. It is not mandatory that creditors show up for the meeting and many times they do not attend it. At the meeting the debtor should expect to answer questions for the trustee. Some of the relevant questions that may be asked are related to proof of identification, employment status, inquiries about handling of financial matters, property ownership, and any pre-bankruptcy petition transfers by the debtor of money or other property interests and verification that the debtor has read the U.S. Trustee’s statement of information that was made available to the debtor.   Similarly many other fears when carefully examined in light of reality fade.   Debtor’s should not be dissuaded from pursuing debt relief based upon rumor or misconception.   A person interested in gathering accurate basic bankruptcy information can consult with a bankruptcy attorney who can go over avenues for debt relief and provide legal advice.  Each debtor’s situation should be individually reviewed and evaluated to determine qualification for relief in bankruptcy.

This article does not intend to give legal advice or does it do so.  The reading of this article does not establish an attorney-client relationship or substitute for consulting with a licensed lawyer.

We are a debt relief agency.  We help people file for relief under the bankruptcy code.

Want To Declare bankruptcy?

February 16th, 2011

Some people mistakenly believe that all they have to do to end debts is declare bankruptcy.  This simply is not so.  Bankruptcy is a legal process that has specific requirements that must be met.  Not everyone who is deep in debt is automatically eligible for bankruptcy relief under current law.  The Bankruptcy Abuse Prevention and Consumer Protection Act, also known as BAPCPA and passed in 2005, established a means test to help debtors determine if they qualify for bankruptcy eligibility. The purpose of this test is also to determine who may be able to repay some of their debt and who will need many of their debts to be discharged.  However, the bankruptcy means test is not just a matter of plugging in numbers. It requires careful calculations and thorough analysis of your financial situation.  There must be a through and complete evaluation of a debtors situation including money owed, expenses, assets earnings and income from all other sources to determine whether a person can qualify for bankruptcy.   This process can be daunting so it can be very useful for a debtor to have professional assistance from  an experienced Minnesota bankruptcy attorney.  A consumer can  meet and discuss relevant facts related to a his or her qualifications for filing bankruptcy in Minnesota.

This blog is not intended to give legal advice and does not do so.  The reading of this blog does not establish an attorney-client relationship or substitute for consulting with a licensed lawyer.

We are a debt relief agency. We help people file for relief under the bankruptcy code.

Home Business Creating Financial Difficulties

February 6th, 2011

Consumers may be driven into declaring bankruptcy by many different types of financial difficulties.  One of these difficulties may be stuck with a home business that does not earn sufficient income to warrant the time and expense to run it.  A home business can be a drain on a person’s resource.  Before starting a home business it is important to do a thorough cost benefit analysis of it.  It is also important to keep in mind that there are unscrupulous entities that take advantage of potential home business owners by offering financial traps under the false guise of a business opportunity.  This type of deceptive home business program often promises for the home business owner to make huge profits working just part-time.   Carefully investigate before buying a business program the seller’s credibility, the success rate in the past of people buying the business plan, complaints that have been filed against the seller, how much money it will cost to get started, what the potential exposure to claims against the home business owner if the program is not as represented, how much time will need to be invested weekly to do business, how much time it will take monthly to run the business, what the monthly cost will be to do the program, what are your expected monthly earnings from the business, what insurance costs there may be to run the business, what licenses may be required, what bookkeeping is required, what legal requirements must be met, legal expenses and what paperwork will be required to sign to start this business.  If a consumer is already stuck with a home business program that is a huge drain he or she should contact a Minnesota attorney to evaluate the situation to see what can be done to address the problem.  An experienced Minnesota attorney may be of assistance in a number of ways including the potential for civil litigation or debt relief.   If the consumer has been a victim of fraud or breach of contract and has moved within applicable time limits he or she may be able to pursue a claim against the seller.  There may also be another type of legal help available for a home business program that is a financial drain through bankruptcy if the debtor is eligible under prevailing law.  It is a sound idea to consult with a Minnesota lawyer to find out what legal assistance may be available to help when faced with business and/or debt related problems.

This blog is not intended to give legal advice and does not do so.  Reading this blog does not establish an attorney-client relationship nor is it a substitute for consulting with a licensed lawyer.

We are a debt relief agency.  We help file for bankruptcy relief under the bankruptcy code.

Trying To Preserve Home Ownership

February 5th, 2011

During rough financial circumstances some  people skip making a mortgage payment to use the money for some other matter or just cannot afford to make a payment.  No matter what the reason skipping mortgage payments can be a recipe for severe financial problems.  It not only puts a debtor behind in paying off a home but hurts his or her credit.  The result of this loss of credibility is to move him or her closer to facing the threat of losing a home in foreclosure.  Some people ignore this danger and just refuse to recognize the danger until they get notice of foreclosure.  Other people worry about it a great deal of the time but still do nothing to correct the problem.    Some homeowners believe that the loss of his or her home  is inevitable so that there is nothing that can be done about it.  Some people even have the misconception that if they file for bankruptcy they will automatically lose their home.  None of these approaches are likely to lead to preserving the ownership in a home where the required payments on a mortgage have not been done. Whether a consumer does nothing about losing a home because they are paralyzed with fear or put off trying to proceed with a bankruptcy out of the fear that it would bring about an automatic loss of their home, it is not the appropriate way to look at the situation.  Consumers should in a timely manner review all available avenues for debt resolution.   Each homeowners situation calls for its own evaluation of what is the best way to handle debt problems.  A homeowner who has mortgage payment difficulties should have a comprehensive debt appraisal done of his or her financial picture to determine whether he or she may be able to keep ownership of a home subsequent to filing for bankruptcy relief.  It is a sound idea for homeowners to contact a Minnesota law firm to set up an appointment to meet with a Minnesota bankruptcy attorney who can provide potential legal help.  Prompt legal attention to dealing with debt problems may lead to a greater chance to preserve home ownership.

This blog is not intended to give legal advice and does not do so.  The reading of this blog does not establish an attorney-client relationship or substitute for consulting with a licensed lawyer.

We are a debt relief agency.  We help people file for debt relief under the bankruptcy code.

Losing Property For Failure To Make Required Payment

February 5th, 2011

Losing property for failure to make require payments is a common concern of debtors.  People who have bought property on installment payments face serious consequences such as repossession if they do not make all required payments.  Debtor who do not make payments on time often face multiple legal problems at the same time including civil litigation, repossession, replevin, garnishment and foreclosure. Some debtors ignore the fact that they are behind in payments while others day dream that they will hit a jack pot and pay off all their debts.  Neither approach may be helpful in keeping a creditor from taking property by repossession.  A sound idea when there is a concern about losing property for failure to make payments is to see a Minnesota lawyer who can provide debt relief information.  At that time the debtor can explore bankruptcy alternatives.  If he or she is qualified for bankruptcy there can be a discussion of suitability of proceeding for debt relief under Chapter 7 or Chapter 13 of the bankruptcy code.

The information you obtain in this article is not, nor is it intended to be, legal advice. The reading of this article does not establish an attorney-client relationship.  This article is not a substitute for consulting with a licensed attorney.  You should consult an attorney for advice regarding your individual situation.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.

Facing The Loss of Property Through Repossession

February 5th, 2011

People who are deeply in debt often miss installment payments on property that they have acquired.  When a debtor fails to pay all required payments on property they have purchased there is the potential for the creditor to pursue repossession as a recourse for non-payment. Repossession is commonly explained as an occurrence that happens when a creditor takes back property because the buyer has not made all required payment.  This taking back of property can be a tremendous financial jolt to a debtor.  It often happens because a debtor has missed required payment on an installment agreement to purchase property.  This failure to pay may be based on a number of reasons including just not having enough money to pay all necessary bills, unfair practices of a lender and/or investments turning bad.  Money related problems can have a negative effect on a person’s life in many different ways.  Rather than despair over the threat of repossession a person should move assertively forward to address the problem by seeking a resolution.  Discussing financial issues with an experienced licensed debt relief lawyer may help relieve anxiety and provide a start to possibly resolving  not only the threat of losing property to repossession but overall debt difficulties..

The information you obtain in this article is not, nor is it intended to be, legal advice. The reading of this article does not establish an attorney-client relationship.  This article is not a substitute for consulting with a licensed attorney.  You should consult an attorney for advice regarding your individual situation.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.

Discrimination can cause Financial Difficulties

January 19th, 2011

People can experience severe financial difficulties for many different reasons.  One of the more egregious causes of financial problems is  illegal discrimination.   People who are looking for employment and people who are employed may find that there income is damaged because of employment discrimination.  This discrimination can negatively impact a person not only financially, but emotionally.  Discrimination in employment matters includes age, race, gender, sexual preference and religion.   People  often find that they are discriminated against by employers causing them to have financial difficulties.   This abusive discrimination by employer’s can harm an employee’s productivity, initiative, earning capacity, self-image, reputation and emotional state of mind. It may take the form of out of discrimination failing to give a  worker adequate job responsibilities, demotions, lack of promotions, unfair criticism and offensive discriminatory remarks by other employees.  In some situations employers use pre-textual acts to force a victim of discrimination out of his or her job.  Having to put up with illegal discrimination on a regular basis either in looking for a job or on the job can be intimidating, exhausting, emotionally damaging, and can have long-term effects on a person’s health, career, and life.  Workers do, however, have a legal right to be free from  illegal discrimination and do not have to tolerate it.  The law protects workers from illegal discrimination. People who believe they have been the victim of unlawful discrimination should move in a timely manner to get relief. A worker who is the victim of  illegal discrimination can seek legal help from a Minnesota lawyer who can advise him or her on potential avenues of  relief from illegal employment discrimination.  If an a person also is experiencing severe financial difficulties he or she can consult with a Minnesota bankruptcy attorney who can go over bankruptcy alternatives.  It is important when a person has more than one legal problem to coordinate all legally related activities.  In setting up an appointment with a Twin Cities law firm to see a Minnesota attorney it is important to let the firm know all types of legal services that a person may be interested in exploring.  At a meeting with a bankruptcy lawyer a consumer can get a bankruptcy evaluation that includes the means test.  A qualified debtor can go over the suitability of pursuing a Chapter 7 or Chapter 13 bankruptcy.  Debtor’s should not hesitate to discuss bankruptcy with a Minneapolis bankruptcy attorney or St. Paul bankruptcy attorney because of misconceptions.  There are a number of  bankruptcy myths that are not true, but if believed may keep an eligible debtor from getting needed relief.  Prompt attention to getting legal assistance can lead a person to potentially getting a fresh start.

The information you obtain on this blog is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation.  Reading this blog does not create an attorney-client relationship.

We are a debt relief agency.  We help people file for relief.