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When You Can’t Afford Your Payments

You’ve heard it stated time and time again until it repeatedly drones in your head like a mantra; just make a budget and live within your means. At Behm Law Group we agree that everyone should live within their means and that keeping a budget makes financial sense. It sounds simple enough – just spend less than you make. But for some folks, through no fault of their own, it isn’t just that simple. What do you do when you add up all of your expenses and find your income is simply not enough? How do you decide between paying a bill, buying groceries, or getting a prescription refilled? Who can you turn to when an unexpected medical situation puts your thousands of dollars into debt? These are serious problems, but there are options you can pursue if you find yourself in these situations.

There are organizations that can negotiate with your creditors to reduce your payments and interest. However, you have to be careful that the organization you choose is legitimate. Also, depending on the amount of money you owe, the newly negotiated terms might still be more than you can afford, assuming that your creditors are willing to negotiate. While this option works for some people, it isn’t for everyone.

Another option is to file for bankruptcy. Bankruptcy might be the last thing you want to do but the only viable option available to help you emerge from beneath a mountain of debt. At Behm Law Group we understand that bankruptcy is not something you should enter into lightly. However, bankruptcy law was created for people such as yourself―people in a bad situation who need a fresh start.

No matter how frugally you live, your bills can still overwhelm you. Getting out of your financial distress is not as simple as repeating a mantra. Sometimes you need help from someone who cares. At Behm Law Group, LTD, we limit our practice to bankruptcy law. Our Minnesota bankruptcy attorneys will treat you with the respect you deserve.

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The Emotions of Filing for Bankruptcy

If you are considering filing for bankruptcy, you are most likely under an enormous amount of stress. If your situation feels hopeless, try to understand that you’re not alone. At Behm Law Group LTD, we work with people in your situation every day. Although this can be a traumatic and depressing situation, we see the difference that filing bankruptcy can make for people, not only with their finances, but also with their emotional health and well-being.

Before you file

You might be wondering how you will pay the heating bill, pay rent, make a mortgage payment, or put food on the table. Creditors are most likely making harassing phone calls from the moment you wake until you go to bed. When you do go to bed, you can’t sleep because your mind won’t quit churning in turmoil due to your financial stress.

When you file

Immediately after starting the process with a Minnesota bankruptcy lawyer, the harassing phone calls end. You can pick up the phone with the confidence that the call is from a friend or family member. This is because when you file for bankruptcy, it is illegal for debt collectors to continue demanding money from you. Not only do the harassing phone calls stop, so do the demanding letters in the mail. That source of stress disappears immediately. Life begins to look and feel normal again.

After you file

After filing for bankruptcy, most people feel a tremendous amount of relief. They know that their financial nightmare is behind them. They also feel hope. Bankruptcy law exists in order to give people just like you a second chance. At Behm Law Group LTD, we know the relief and hope that bankruptcy can bring. If you’re feeling hopeless, call Behm Law Group LTD and allow us to help assess your needs and show you how bankruptcy can help you.

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Preparing for Bankruptcy

After months or years of struggling with debt, you have decided that the only way to attain financial relief is to declare bankruptcy. By following these steps, you can ensure that the process goes smoothly from beginning to end.

Gather your financial information

Your attorney will give you a complete list of things you need to bring to your appointment. Generally this includes everything you have for financial records, such as:

  • All sources of your income
  • All records of all your debts, such as current credit card bills, medical statements, student loans, car loans, and mortgages
  • Bank statements from all of your bank accounts
  • Records of your financial assets (CDs, savings accounts, stock shares)
  • An estimate of the worth of your possessions

Financial actions to avoid during this process

Any of these activities could make your case more complicated and difficult to complete:

  • Paying-off a loan to a relative
  • Transferring cash or property to a relative
  • Using any credit if you know you’re going to file bankruptcy

Call a Minnesota Bankruptcy Attorney

Bankruptcy can be complex, and you need an experienced bankruptcy lawyer to guide you through the process. At Behm Law Group, LTD, we specialize in bankruptcy law. In fact, it’s all we do. It is possible for someone to attempt to declare bankruptcy on their own, however, we highly recommend against it. If you make an error in your case it could cost you money you simply don’t have and have repercussions for years to come. For example, if you forget to file a required form, your case could be dismissed. And even worse, you might lose the right to re-file. If your financial situation has become a nightmare and you want to see if bankruptcy is right for you, give Behm Law Group LTD a call.

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When Should I File for Bankruptcy?

While each individual’s financial situation is unique, there are valid reasons that cause one to consider filing bankruptcy. In many of these cases, this is the wisest course of action to take. This is not to say that bankruptcy is a decision that should be made lightly. A person considering bankruptcy needs to understand there are consequences to utilizing this legal strategy. However, there are also benefits to filing if you find yourself in one of the following situations.

When should you file?

  1. When you find it’s a struggle or impossible month after month to pay your bills on time. Missed payments can snowball, resulting in late fees, higher interest rates, and service/account suspension or cancellation.
  2. When you find yourself behind on mortgage payments, are considering a short sale, or are facing foreclosure.
  3. When you are spending more than you are making. If you find yourself having to use credit cards or taking out loans to pay off credit cards and other expenses, you may wish to consider filing for bankruptcy.
  4. When you are receiving calls from credit collection agencies. Prior to your information being sent to a collection agency, the creditor will often contact you directly and, given today’s economy, the creditor may wish to offer you alternative payment options. However, once the collection agencies begin calling, this may be an indication that bankruptcy is the wisest option for you.

These are just a few of the reasons why people make the decision to file for bankruptcy. If any of these apply to you, and you have questions about whether filing bankruptcy is right for you, Behm Law Group in Southern MN would be pleased to answer any of your questions at no charge.

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Post-Filing Financial Education

In 2005, congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which made major changes to existing bankruptcy law. One of these changes included the addition of a requirement that debtors receive post-bankruptcy financial education from an approved credit counselor or counseling organization. After meeting this education requirement the attendee is issued a certificate. The attendee then submits the certificate provided by the credit counselor or organization as proof they completed the course. This certificate is different from and should not be confused with the certificate provided after attending pre-bankruptcy credit counseling.

What you will learn

Post-filing education includes topics such as managing money, using credit wisely, and building a budget. You can take the course on-line, over the phone, or in person. Don’t take this requirement to mean that the bankruptcy was somehow your fault. This practical money-management information can benefit anyone, no matter what their financial situation, and serves to help and strengthen your financial future.

Cost of the course

It usually costs $50 to $100 for the course. The price depends on the counseling organization you use and where you live. The organization has to disclose the fees before you start the course. If you cannot afford the fee, you can ask the organization for a waiver.

Where to go for counseling

The Department of Justice has a list of Approved Bankruptcy Counseling Agencies. Also, a Minnesota bankruptcy lawyer can provide you with a list of credit counselors.

Help from your attorney

There are many requirements for declaring bankruptcy. Getting pre-bankruptcy credit counseling and post-bankruptcy financial education are only two of the requirements. You need an experienced Minnesota bankruptcy attorney to assist you through the process of meeting every requirement and ensure that your bankruptcy filing is successful.  At Behm Law Group LTD, we have many years of experience helping thousands of people like you. If you’re in a desperate financial situation, give us a call. We will guide you through the bankruptcy process and help you get the relief and protection you need.

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When You Need to File for Bankruptcy

At Behm Law Group, LTD, we see people from all different walks of life, and generally they have one thing in common—they’re desperate. Declaring bankruptcy is the last thing most people want to do; however, many feel that they have no choice. Perhaps you’re feeling financially stressed, maybe even desperate. Do you need to file for bankruptcy? Here are some symptoms that many people in financial distress experience and which may indicate that bankruptcy may be an appropriate option.

You’re making minimum payments on your credit cards

When you have no choice but to make minimum payments on your cards, you’re in financial trouble. The big credit card companies have structured their payments so that if you repeatedly make the minimum payment, you will never pay-off your debt. If you’re making minimum payments month after month, you’re digging a deep financial hole that only gets deeper and increasingly more impossible to escape from.

You have to borrow money to pay for basics

When your monthly financial obligations consume so much of your income that you have to borrow money to eat, you are in financial trouble. Do you need to put your utility or grocery bill on your charge card just to make ends meet? Have you maxed-out most of your credit cards and struggle to find money to buy even simple basic necessities? If this is your case, you probably never will be able to pay off your debts.

You have cut everything you can and still can’t make ends meet

You’ve tried to be as proactive as possible by cutting expenses and canceling services that other people take for granted. You dropped your cell phone service, you’ve cancelled your cable or satellite TV, you don’t have internet, and you shop for groceries only when money allows you to. Unfortunately, even though you’ve cut everything possible, your financial obligations and credit card payments are such that you still can’t get ahead. And to make matters worse, with each month that goes by, even though you’re making payments, the amount you owe is growing with each passing day.

Are you Desperate?

Declaring bankruptcy is not a financial solution to be taken lightly. However, for some people, it is the only solution. At Behm Law Group we understand the anxiety and frustration folks caught in this situation are feeling. If you are desperate and feel totally overwhelmed by mounting debt and endless calls and letters from debt collectors, call the Behm Law Group LTD and let us help you find an equitable resolution to your financial situation.

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Can I File Bankruptcy Without a Lawyer?

Simply answered, yes you can. If an individual meets the eligibility requirements of filing bankruptcy in the state they reside in, one can file bankruptcy themselves. That being said, bankruptcy laws are complex and change frequently, and the process can be challenging to navigate without guidance from an experienced bankruptcy lawyer.

If you attempt to pursue bankruptcy on your own, in addition to interpreting and understanding bankruptcy laws, individuals must gather specific required documents within defined timeframes before even filing for bankruptcy. Some of these documents are fairly easy to obtain. Others may require more in-depth research, such as requesting information from the IRS. If these requirements are not specifically followed, or if any of the documents are missing, the individual will not be allowed to file for bankruptcy.

The requirements become further complex when a spouse, family member or friend is impacted by the filing. In these cases, additional documentation is required and those friends and family members may find themselves involved in the filing.

Declaring bankruptcy can be an emotionally devastating process. Many individuals feel humiliated, defeated and overwhelmed. In such a state, the added stress of interpreting bankruptcy laws and complying with the complicated filing process can sometimes be more than a person can handle. Small mistakes during the filing process may create huge and costly complications in the future. How can you best protect yourself and your financial well-being?

At Behm Law Group, we limit our practice exclusively to bankruptcy. As experts in this field, we stay abreast of the latest developments in bankruptcy law and guide our clients through the requirements and process every step of the way. Behm Law Group understands that this is an extremely sensitive decision, one which was not made lightly, and we extend our expertise with compassion to all of our clients. To obtain more information on the bankruptcy requirements and process, please contact Behm Law Group for a free consultation.  We will answer any questions you may have and provide you with peace of mind.

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Sometimes Bad Things Happen to Good People

Few things in life can be as embarrassing as having to admit that you need to declare bankruptcy.  Maybe you associate bankruptcy with some sort of failure: be it a financial or even moral failure.

However, there are many things that can lead to bankruptcy that are not your fault such as a job loss, mounting medical bills, a lawsuit, or other types of financial hardship.

And even if you feel like it is your fault, our experience is that there are many things out of your financial control that may have led to your need to declare bankruptcy.  Many good people have had to declare bankruptcy, and declaring bankruptcy doesn’t make you a bad person.

If you are in a position where you have to declare bankruptcy, the best way to look at it, is a means to getting a fresh start in controlling and rebuilding your financial life.  It is a legal process by which you can get relief from overwhelming bills and start to rebuild your finances again.

However, bankruptcy is not something to enter into lightly.  It can be complex, and there are consequences you need to know about.  That’s why you need an experienced bankruptcy lawyer who can lead you through the maze of legal requirements you will need to navigate regarding bankruptcy law.

At the Behm Law Group, located in Mankato, Minnesota, we pride ourselves on our extensive experience and expertise in bankruptcy law and limit our practice to bankruptcy cases only.

We know that sometimes bad things happen to good people, and we’ll treat your case with privacy and respect.  We will work at your side to achieve the legal relief your case demands in order to help you attain a new and fresh start.