December 2014 Archives

Reorganizing debts through Chapter 13 bankruptcy

In Minnesota, a Chapter 13 bankruptcy may be used to help debtors voluntarily reorganize their debts. This allows people to shrink their monthly payments and develop a plan to have the debts paid in full in a matter of just a few years. In addition to addressing concerns about credit card balances and other unsecured debts, a Chapter 13 may also be used to address amounts owed for federal income taxes. However, there are key limitations and requirements that people attempting to file should be aware of.

Seizing property through unsecured loans

Some readers from Minnesota may wish to learn more about the actions available to unsecured debt collection agencies. Collection agencies working with a secured debt generally have the option of seizing assets such as homes in order to procure payment, but this option is not immediately available if the debt is unsecured. However, collection agencies working with unsecured debt may nevertheless be able to compel forfeiture in some cases.

How to halt a foreclosure

Minnesota homeowners facing foreclosure should not give up hope of keeping their home. In many instances people can stop or delay the process. The important thing to remember is not to panic. There are several creative solutions that could save a home depending upon one's financial situation and lender.

Debt relief and Chapter 7 bankruptcy

When people in Minnesota are struggling under the burden of unmanageable debt, they may not know what to do in order to obtain some relief. Such debt can result from unexpected illnesses, unemployment and overspending with credit cards and lines of credit. No matter how the debt ballooned, reaching solvency can involve either negotiating with creditors or filing for bankruptcy.

Creditor harassment and debt collection

When Minnesota residents deal with debt collectors, they are entitled to certain legal protections. Some people may assume that debt collectors routinely engage in harassment and threatening behavior. However, many of these behaviors are actually prohibited by law. The Federal Trade Commission uses the Fair Debt Collection Practices Act to protect consumers from harassment by debt collectors. This Act applies to all kinds of debts, including credit card debt, medical payments and car loans. However, it does not apply to debts that are the result of operating a business.

Prescott Pearson & Tande, PA
443 Old Highway 8 Northwest, Suite 208
New Brighton, MN 55112

Toll Free: 888-366-0827
Phone: 651-968-8096
Fax: 651-633-7562
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