Minneapolis Bankruptcy Law Blog

Is your debt due to your health?

Too much debt and not enough income is a recipe for financial disaster. While at one time or another, your bills were much less and your income much higher, lately, it seems like you can no longer hold everything together.

There are myriad reasons why you may find yourself considering filing for bankruptcy. It is often the last resort for many as they struggle to climb out of debt. When you step back to assess how you got here, do you find that it was one event or a string of bad choices? Many people cite medical issues as the top cause of bankruptcy. Learn how this happens, and if there is anything you can do to avoid the same fate.

How to recognize debt settlement scams

As someone facing increasingly overwhelming debt, you may be willing to do just about anything to help dig yourself out of the hole and regain control over your financial affairs. You would be wise, however, to think twice before agreeing to work with a debt settlement company that promises to settle your debts for far less than you owe. In some cases, these “companies” are little more than predatory scammers

Usually, debt settlement agencies are for-profit entities. While not all of them are bad or unethical, some make false promises that could potentially land you in even more financial trouble than you face now. Therefore, before you decide to work with one, you must recognize and understand the risks involved in doing so.

How safe are bankruptcy alternatives?

You may be unhappy at the prospect of bankruptcy due to fear, shame and other negative emotions. The truth is that bankruptcy is more beneficial than you think, offering asset protection, debt reduction and an end to creditor harassment. However, you may still want to consider other options first to see which approach is best for you.

Some of these are safe, but others are risky. As you consider alternatives to bankruptcy, carefully weigh the pros and cons of each to ensure you help your situation instead of harm it.

3 bankruptcy facts that may prove helpful

You may feel helpless in the battle against personal debt. The pressure is starting to impact your marriage, job and mental health. When you finally consult with someone in Minneapolis about relief, bankruptcy looks like your best option.

The bankruptcy process may appear scary, particularly if you have very little knowledge about it. Not understanding what may happen to your property, retirement funds and bank account is something that weighs on your mind. While not a comprehensive list, these three bankruptcy tidbits may aid in boosting your confidence in the process.

Will people know if you filed for bankruptcy?

Filing for bankruptcy does not carry the same connotation it did decades ago. Now it is so common that most people know at least a few friends who have gone through the process. According to the United States Bankruptcy Court in the State of Minnesota, 5,868 people have already filed for bankruptcy in 2019 alone, so chances are good that well over 10,000 people will file before the end of the year. 

Plenty of people require bankruptcy to take care of medical or credit card debt. Although it is common in today's world, many people still feel a level of shame in having to go through it. You may fear that your friends, coworkers and family members will find out. While it is possible that they may eventually learn about it, you do not have to worry. 

Key bankruptcy exemption facts

As people begin to recognize bankruptcy as a financial tool, more people begin to utilize it. However, there is still some confusion about the bankruptcy process

Particularly in regards to exemptions in bankruptcy, many people subscribe to certain misconceptions. To avoid falling into that category, understand a few key facts about bankruptcy exemptions.

Make a Chapter 7 bankruptcy work for your business

In the past, many people viewed bankruptcy as a taboo topic; however, it is now growing in popularity. The bankruptcy process can prove to be quite beneficial for various people.

In particular, the Chapter 7 bankruptcy process can be helpful to certain business owners. To take full advantage of the benefits of this option, it is important to understand key aspects of a Chapter 7 bankruptcy.

Retirement funds are not always exempt in bankruptcy

After your divorce, your portion of the marital debt, along with the new strain of living on a single income, may have you feeling overwhelmed. Perhaps you have considered using your half of your spouse's 401(k) you received in the divorce to pay off the debt. However, your employer does not offer retirement, and you need that money for your future.

There are federal laws that protect 401(k) plans and other employer-sponsored retirement accounts from creditors. Before you breathe a sigh of relief, you should know there are exceptions, and your retirement award may not have the same protections as your spouse's plan.

5 common causes of business bankruptcy

Running a business is not easy or straightforward. You constantly need to adapt to changes and figure out how to grow. Unfortunately, not all companies succeed. You may find yourself among the many businesses that go bankrupt.

According to Business Insider, business bankruptcies are on the rise. There are so many reasons why you may find yourself considering bankruptcy for your company. Here are some top factors that lead to businesses declaring bankruptcy.

What kind of property can you exempt in a bankruptcy?

You no doubt have certain assets you wish to protect from creditors when you file for bankruptcy; property such as your home, your car or certain household goods.

There are many more possibilities for bankruptcy exemptions. There is no Wild Card option in Minnesota, but you can choose to use either federal or state exemptions.

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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