WHY YOU SHOULDN’T DIY FILING YOUR OWN BANKRUPTCY
As we traverse these unprecedented times, we may face a reduction in cash flow and increased debt, eventually leading to insurmountable financial hardship. The only option to receive some monetary relief would be to declare bankruptcy. Although, due to the cash crunch, you may decide to save on lawyer’s fees and file the petition yourself, which is technically possible. However, bankruptcy is a legal process that can result in a catastrophic situation if not carried out correctly. Therefore, if you’re planning to handle the adverse financial situation yourself, we recommend that you take a few minutes to understand why you shouldn’t DIY filing your own bankruptcy. 1. Complex forms You will need to locate, download, and complete the official bankruptcy forms, together with the Minnesota variants. You will also have to gather your payment advice slips, tax returns, legal descriptions and understand your assets. It can all be time-consuming if you’re starting from scratch. 2. Loss of assets One serious hazard you may face is the loss of assets if you choose the wrong set of exemptions. Most exemptions let you protect (or keep) your property, but the trustee can take some of your property if you select the wrong set of exemptions. 3. Debt issues In a worst-case scenario, you can mess up the case so badly that you may not be entitled to a discharge of your debt. It means that you will still be liable to pay your creditors. Do things right – Hire a professional! A professional bankruptcy attorney can help you avoid some of the most common (and not-so-common) pitfalls when facing financial distress. Fees can vary from lawyer to lawyer. For example, I charge $1600 for an “ordinary” bankruptcy which is a competitive rate, when you consider what I could save for you and your family. So, if you need assistance with bankruptcy, then contact Sam Calvert, Attorney at Law. I’m an experienced bankruptcy attorney and lawyer in St. Cloud, Minnesota that has helped many individuals or small businesses over the years to protect their assets. I was formerly a member of the private panel of bankruptcy trustees for chapter 7 and chapter 12 trustees. Today, I’m a Real Property Specialist, certified by the Real Property Section of the Minnesota State Bar Association. My practices include real estate, bankruptcy, chapter 7 bankruptcy, chapter 13 bankruptcy, chapter 11 bankruptcy, business bankruptcy, and bankruptcy litigation. I also undertake wills and estate planning for clients. My services are available across Saint Joseph, Sartell, Sauk Rapids, Saint Stephen, Saint Cloud, Gilman, Rice, Holdingford, Stearns County, St. Joseph, Waite Park, Avon, Albany, Freeport, and Richmond, Minnesota, to name just a few places. To learn more about my services, please click here or get in touch with me by clicking here.
BANKRUPTCY CAN REINSTATE A SUSPENDED DRIVER’S LICENSE
Over the years I have had several clients whose driver’s license was suspended because of unpaid judgments from having an accident when driving without insurance. (Note: I do not recommend driving without insurance!!!) Not having a drivers license is terrible, because almost everyone uses a car to get to work. If you can’t work, you don’t earn money; if you don’t earn money you can’t pay your bills. If you have such a judgment on your record, Minn. Stat. 171.182 provides that your judgment will be suspended on account of the judgment until it is paid. In order to avoid having your license suspended, you usually have to get auto insurance and set up a payment plan for the judgment for the damages caused in the accident. If the judgment is large, or just too large for your budget, or if you fail to set up a payment plan with the judgment creditor, the judgment creditor reports you and your license is suspended until the judgment is paid or expires. But, if the accident which led to the judgment was not a result of DUI (alcohol or drugs or “another substance”), and if the injury was not intentional, filing bankruptcy will help you get your driver’s license back. This is because the bankruptcy will wipe out the judgment. If you have this situation, call me to discuss whether bankruptcy may help you get your license bank. I’m at 320-252-4473.
COMMON MISTAKES PEOPLE MAKE WHEN FILING FOR BANKRUPTCY
Bankruptcy can be challenging for anyone, no matter the circumstances. There are a series of requirements and tasks that people have to get through. They have to make sure that they have all the necessary documents and paperwork. If they do not, they have to work on creating or compiling it. Additionally, there are several legal requirements that they have to get through, especially if there are clients or other investors. The rules vary in terms of the number of people involved, based on whether you file as an individual, business or large company. Bankruptcy for an individual and a company is not the same but does follow a similar framework, so it makes sense to talk to an expert to learn your next steps. One of the challenges when filing for bankruptcy is that no one sees it coming, so they do not expect it. Additionally, most people do not know anything about the process, so they have no idea about the changes they should make to get through it. The most relevant requirement is to have a lawyer who worked on some of these cases in the past. They should be from the industry and know the ins and outs of the trade. Finally, they should be proactive about the process because there are deadlines for some of the requirements, and companies have to make sure they have their documents submitted at the right time. With so much uncertainty about the process, we thought we should assist people and companies with their understanding of when and why they should file for bankruptcy. We put together a list of the most common mistakes they make when working on the process. The idea is to avoid them so they can get through without having any additional struggles. 1. Waiting too long to file for bankruptcy People cash in their retirement savings, borrow from relatives, and put a second mortgage on their home before they just accept the fact. They use this money to continue to pay credit cards in a desperate attempt to stay afloat. Eventually, they drain their retirement accounts, run out of relatives to borrow from, run through all the money from their second mortgage. Then they realize that their situation is hopeless, and then they come to see me. If they had come earlier, they could have kept their retirement account, wouldn’t owe their relatives money and would have a better position in their home. 2. Paying friends just before filing for bankruptcy There is nothing illegal, immoral, or fattening in paying a relative. BUT, the bankruptcy law says that if you pay an “insider” (a relative or friend) as much as $600 within a year before you file bankruptcy in a consumer case, the trustee can go back to the person you paid and get the money back from that person. The trustee doesn’t care who you pay AFTER you file your case, so pay people like your mom that $1000 AFTER filing your case, never before! 3. Listing only some of your creditors Many people think that bankruptcy is just for credit cards, but bankruptcy will discharge all sorts of debt. You can discharge all costs and back utility bills, unpaid rent, debts to your chiropractor, cell phone charges and other similar expenses when you file for bankruptcy. You cannot discharge a few specific bits of your debts, which is why we talk about your bills. 4. Believing that bankruptcy will ruin your credit forever Bankruptcy will be on your credit report for up to ten years, but I see people getting perfectly routine home loans and other credit within a few years after filing for bankruptcy. It would be wiser to admit to bankruptcy and move forward from there. We notice many people and companies delay the process thinking that they would get through when they have well past the point of return. Connect with the right team of people to get through and receive the advice you need. If you are looking for a bankruptcy attorney or a lawyer in St. Cloud, Minnesota, you should get in touch with Sam Calvert, Attorney at Law. I am open to representing people in financial distress and individual or small businesses. I am a Real Property Specialist, certified by the Real Property Section of the Minnesota State Bar Association. It would be beneficial to work with a lawyer who would hold your hand through the process so you do not have to worry about much else. I offer a wide range of services, and you can click here if you want to get a better understanding of the ones that might benefit you. If you want to get in touch with me or think I can assist with a requirement or want a better understanding of the work that I handle, please click here.
I WAS HACKED!
Like lots of people, I have an Amazon account. And in that Amazon account I had a credit card listed as for payments. When I looked at my credit card statement last month I noticed a charge for $299.00. I did not remember what I bought for $299.00, so I tried to figure out what it was. I looked at my order history and did not see having purchased anything for $299.00. Then I tried to call Amazon. Surprise! Their phone number is NOT prominently displayed on their website. I eventually stumbled across an order for “gift cards”. Well I knew I had not purchased any gift cards for $299.00, so I realized that was the fraud. Turns out someone in Delaware bought a gift card and then used that gift card to buy an Oculus headset and have it delivered to himself. Ouch. (And by the way, Jeff Bezos, owner of Amazon, if you’re reading this: It was really not obvious how to find that charge. As I mentioned, it was NOT in my list of regular orders. I just tried to re-create the search and I think Amazon erased it.) When I confirmed to myself that the mysterious charge was fraudulent, I contacted my credit card company; they very nicely “stopped payment” on the $299.00. The credit card company cancelled that card and sent me a new one. As a backstop, I added to my Amazon account a feature that to complete an order Amazon texts me a six digit number that I must enter in order to complete the purchase. So: Two morals to this story. First, look at your credit card statements and track down charges you don’t recognize. Second, promptly dispute charges that you don’t recognize. You can do this yourself, of course, so you don’t need to call me about this. But if I can help with other legal problems, call my office at 320-252-4473.
HELP YOUR CHAPTER 13 PLAN SUCCEED
If you are in a chapter 13, here are some pointers that will help your case succeed. 1.You can make your plan payment several ways. If your trustee is Kyle Carlson, you can make your plan payments in several different ways. You can make make one-time or automatic monthly payments from your checking or savings account online. The link can be found at http://carlsonch13mn.com. There is a $1.50 service fee per transaction. You can also pay by phone (1-888-548-0787). You can mail paper payments to a lockbox in Chicago; however, the trustee will not take personal checks. You can also set up wage withholding through the court. Similar options are available if your trustee is Greg Burrell –you can find the link at https://www.ch13mn.com; however, Mr. Burrell’s office will also set up automatic debits from your checking account. 2.You can track payments. You can sign up with the National Data Center (NDC) for free. Go to their website – www.ndc.org –and create an account and a password. You will need your bankruptcy case number, your trustee’s name, the last four digits of your Social Security number, and the list of creditors from your case. Once you have set up the NDC account you can check on your case. You can see if the trustee has received your payment, what creditors have been paid, and how much they have been paid. Did I mention that it is free? 3.Remember that the trustee wants copies of your tax return every year. Every spring the trustee will want a copy of your tax returns, state and federal. This is for two reasons: a) the plan will call for you to give the trustee refunds over $1,200.00 for a single person or $2,000.00 for a couple. (This does not include Earned Income Credit or Working Family Credit); b) the trustee wants to know if your income has gone up a lot. If it has increased, the trustee may ask the court to increase your plan payment. We can argue with the trustee that your expenses have eaten up the increase. 4.Let me know about changes. If your income falls or your expenses increase, we may be able to amend your plan. Importantly, if you can’t make your plan payments, call me. We may be able to amend the plan. It is better to amend the plan rather than let the roof cave in on you and have the case be dismissed. 5.Keep track of your house payments and your plan payments! If you miss your mortgage payments, the mortgage company will bring a “motion for relief from stay” to ask the court to permit the mortgage company to foreclose on your house. They will add $1,000 or so to your debt, so insult to injury. It is really tough when you say you have made your payments but the mortgage company says you haven’t. Likewise, if the trustee says you have missed payments the trustee will bring a motion to dismiss your case. So – keep careful track of your payments so we can show the mortgage company or the trustee that you are current. 6.Keep your contact information current. A chapter 13 plan lasts at least three years, often going to five years. Stuff happens and we may need to get in touch with you. And the court and trustee need to be able to get in touch with you. So, if you move, if you change email addresses, if you change phone numbers, let me know! You can reach me at 320-252-4473.
A BEGINNER’S GUIDE TO FILING FOR BANKRUPTCY
If you find your debt becoming overwhelming and don’t believe you can pay them, filing for bankruptcy will give you debt relief and a second chance for a fresh new start. However, if you do not know the process, it might be difficult to file for bankruptcy. Generally, filing for bankruptcy allows you to catch up on your debt at your own pace, without letting go of your home or car and avoiding foreclosure. You will need to follow a payment plan laid out by the court and pay back your debt to the best of your abilities. But first, you must consult a professional who specializes in bankruptcy before proceeding with the bankruptcy process. Sam Calvert, Attorney at Law, can help you with the bankruptcy process and prepare you for any negative consequences. To give you a basic background about this legal process, I have put together a Beginner’s Guide to filing for bankruptcy. Getting Started Hire professionals: An experienced bankruptcy attorney will help you navigate the system easily, and be able to predict the outcome clearly, and help you protect your assets. They will also ensure information is being filed correctly so as to avoid any confusion or refiling. Next Steps List all of your creditors: Listing all of the items you own is important, but so is listing the names of people you owe money to. For a list of your creditors, you can pull a credit report from annualcreditreport.com for free, and it should show most of your big national creditors. You can even get a transcript of your tax return from the IRS for free using form 4506-T. Be accurate: Being accurate is vital in terms of identifying your creditors. I am not so concerned about getting the debt amount right to the last penny, but I care whether you owe Capital One or Discover or Wells Fargo Visa. It is both hazardous and not necessary to hide assets or give them away before filing bankruptcy. Advice From The Pros Filing for bankruptcy is a process: Bankruptcy is a work-intensive process, so make sure to gather your records and be organized. List out debts, assets, income, and expenses. This gives the professional who is helping you and the court a better understanding of your situation. For a complete understanding of bankruptcy, get a hold of a professional to help you out with this financial chapter. For a bankruptcy law firm in St. Cloud, Minnesota, reach out to Sam Calvert, Attorney at Law. My goal is to exceed your expectations and put your needs first. Bankruptcy is a complex process that shouldn’t be handled alone. I have years of experience and expertise to help you out of this legal situation and make an informed decision. Visit my website here to learn more or contact Sam Calvert, Attorney at Law, today.
WHEN BANKRUPTCY IS THE BEST OPTION
Bankruptcy isn’t the end of the world. It may even be good for you. Bankruptcy stops collection calls, lawsuits and wage garnishments. It erases debt. And despite what you’ve heard, bankruptcy may help your credit scores. Read More Original Article Source Credits: NerdWallet , https://www.nerdwallet.com/ Article Written By: Liz Weston Original Article Posted on: Oct 21, 2020 Link to Original Article: https://www.nerdwallet.com/article/finance/bankruptcy-best-option
“FRAUDULENT CONVEYANCE” — SOUNDS BAD, RIGHT?
The Bankruptcy Code defines “fraudulent conveyance” as a transfer made within 2 years before the date of the filing of the petition, if the transfer was made with actual intent to hinder, delay, or defraud any creditor, OR if person making the transfer received “less than a reasonably equivalent value” and was insolvent when the transfer was made. (This is a little abbreviated). Minnesota law refers to this as a “voidable transfer”, which may sound less scary, but the statute of limitations is longer. The roots of fraudulent conveyance law go back to 1571 — the time of Queen Elizabeth I of England (really!). The classic example of a fraudulent conveyance is that Bob is being sued because his business went under and in order to protect his 40 acres of hunting land in Cass County, he deeds it to his brother Ted without getting any payment. Another example is that Bob sells the 40 acres of hunting land to his brother Ted for $5,000.00. On the surface that looks okay, but it turns out that the land was actually worth $50,000.00. In effect, Bob has made a gift to Ted of $45,000.00. A bankruptcy trustee (or, outside of bankruptcy) a creditor can go to court and have the transfer reversed. Fraudulent transfers can a be unintentional. For instance, in a case called DeGiacomo v. Sacred Heart University, Inc., parents paid $64,000+ to a college to cover the tuition bill for their daughter, who was over age 18 at the time. A court of appeals held that the payment was a fraudulent conveyance, because the parents were insolvent when they paid the college. These situations are why I ask if you have transferred something to a relative or friend in the past. If I know about the transfer before you file bankruptcy, we can evaluate the situation. As always, if I can help you deal with your debts, call me at 320-252-4473.
BASICS OF THE BANKRUPTCY SCHEDULES
Bankruptcy schedules aren’t a timeline of how a bankruptcy will progress. They’re forms, like the schedules you might add to your tax return if you have any unusual sources of income or you want to itemize your deductions. You must provide information on all aspects of your financial life on these forms, from debts, property, and income to expenses. Read More Original Article Source Credits: The Balance , https://www.thebalance.com/ Article Written By: David Haynes Original Article Posted on: April 18, 2021 Link to Original Article: https://www.thebalance.com/basics-of-the-bankruptcy-schedules-316222
CAN PERSONAL LOANS BE INCLUDED IN BANKRUPTCY?
Personal loans from friends, family, or employers fall under common categories of debt that can be discharged in the case of bankruptcy. A discharge releases individual borrowers from the legal obligation to pay previously existing debts. Other types of dischargeable debt include credit card charges, accounts from collection agencies, medical bills, past due utility bills, and dishonored checks and civil court fees not deemed fraudulent. Read More Original Article Source Credits: Investopedia , https://www.investopedia.com/ Article Written By: Barclay Palmer Original Article Posted on: Jun 28, 2021 Link to Original Article: https://www.investopedia.com/ask/answers/112615/can-personal-loans-be-included-bankruptcy.asp