Many people who are considering filing for bankruptcy are afraid of losing any of their assets, but there is perhaps no greater fear than the fear of losing your house. If you have owned your home for a significant amount of time, it may be a greater emotional fear than losing other assets, as the memories you create in your home are intertwined with the property itself.
Business owners can find themselves in tough financial situations and wondering where to turn for help. If you are the sole proprietor of a business who is struggling with debt, it is common to have questions. Can I file for bankruptcy? Will the creditors finally leave me alone? Can the business survive?
Filing for bankruptcy will have an immediate negative impact on your credit score, but the long-term effects could be positive if you follow a few simple guidelines.
On June 1, the Supreme Court ruled that junior mortgages could not be stripped during a Chapter 7 bankruptcy if the owner was underwater on the property. The ruling further clarified that this was the case so long as the loan was secured by the home and the claim was allowed under bankruptcy law. It is expected that this ruling will help mortgage lenders who are junior lien holders.
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.
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.
Individuals in Minnesota who are facing educational debt may think that private student loans cannot be discharged in a bankruptcy. However, this is not always the case.
The housing collapse that undermined real estate markets across Minnesota has spawned some tough questions about bankruptcy law and underwater second mortgages. In Bank of America vs. Caulkett, the lawyer for the lender argued that a bankruptcy should not allow someone's second mortgage to be discharged even if the property's current value could not possibly recover any money for the lender.
Some residents of Minnesota may wonder what creditors are allowed to take when an individual files for bankruptcy. Although bankruptcy laws may vary in each state, there are some issues that should be considered in order to avoid problems.
Filing for bankruptcy can be a smart move for many people in Minnesota who have more debt than they can afford to pay back. In 2012, more than 1.2 million people in the United States filed for bankruptcy as a way get a fresh financial start. Before making the decision to file for bankruptcy, a person should carefully evaluate their financial situation.