Rising costs and declining insurance benefits continue to plague many Americans. Even a run-of-the mill medical event can generate huge bills. A catastrophic injury, chronic illness or major surgery can bring much worse.
Minnesota residents who are considering filing Chapter 7 bankruptcy should understand certain important facts about it. The chapter is available for both individuals and businesses, and while it can provide financial relief and a fresh financial start, people should understand other potentially negative impacts it can have.
Minnesota reality TV fans might be interested in knowing the latest cast member from Bravo's "Real Housewives" franchise to have filed for bankruptcy at some point. As one of several women starring in the show "Real Housewives of Potomac", 36-year-old Robyn Dixon was once married to former NBA player Juan Dixon and is known to have filed for Chapter 7 bankruptcy in September 2013.
A Minnesota political consultant has had his bankruptcy process put on hold while the possibility that he has hidden assets is investigated following a phone call to his bankruptcy trustee from a neighbor. The man has more than $1 million in debt, and a large portion of it is the result of civil suits with neighbors.
Mixed martial arts fans in Pennsylvania may be interested to learn that the man who coaches champion UFC fighter Ronda Rousey has filed for bankruptcy. Edmond Tarverdyan, who has been Rousey's coach since she entered the UFC, filed for Chapter 7 bankruptcy in Los Angeles on July 29. In the filing, Tarverdyan claimed that he had no income and was more than $700,000 in debt.
Deciding whether or not to file for bankruptcy could be tough to do for some Minnesota consumers, especially if they do not know all of their options. If they do decide to file, there are also consequences of which they should be aware.
Minnesota residents may be familiar with the fact that 50 Cent is filing for bankruptcy. However, most people may not be aware of the fact that he is filing under Chapter 11. This is a step that most corporations take when trying to reorganize their debt, and it appears that he will propose a plan to restructure his obligations while continuing his business operations.
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.