May 2015 Archives

Verdict serves as a warning to debt collectors in Minnesota

A Missouri woman was awarded $83 million by a jury who found that she was wrongly harassed over a debt that she did not owe. The woman was taken to court by Portfolio Recovery Associates LLC after the company claimed that she had a past due credit card debt of $1,000. However, the debt actually belonged to a man in the same area with a similar name.

Supreme Court rules for debtor in bankruptcy case

Minnesota residents considering a bankruptcy filing may be interested in a May 18 decision by the U.S. Supreme Court regarding how funds are distributed when a Chapter 13 bankruptcy is converted to a Chapter 7 bankruptcy. The case in question concerns a Texas man who sought the return of funds that had been garnished from his paycheck but not yet distributed by the Chapter 13 trustee. The unanimous Supreme Court decision overturned a ruling by an appeals court and ordered that the money be returned to the man.

Why Chapter 7 bankruptcy may be a good idea

Many Minnesota residents struggle with high unsecured debt loads and may wonder the best way they can take care of the balances owed. While conventional wisdom indicates that people should do such things as consolidate or settle their debts, paying them off over a five-year period, doing that may not actually make the most financial sense.

Chapter 13 bankruptcy and old debt

Minnesota residents who are considering filing Chapter 13 petitions may want to take note of two recent decisions that arose out of Chapter 13 bankruptcy cases. In both, the courts ruled that creditors holding old debt that was beyond the statute of limitations were able to file proof of claims with the bankruptcy court because the debtor did not object to the filing of the claims.

Filing for Chapter 13 bankruptcy

Debtors living in Minnesota may benefit from understanding more about obligations mandated by undertaking Chapter 13 bankruptcy. This form of bankruptcy is designed for debtors who have a regular income. These debtor are afforded three to five years to pay off all or a portion of what is owed. In order to qualify for Chapter 13 bankruptcy, debtors are required to develop a repayment plan that can be approved by a bankruptcy judge.

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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