In previous posts I discussed some of the distinctions between Chapter 7 and Chapter 13 bankruptcy. The means test is an important element to both Chapter 7 and Chapter 13 bankruptcy (unless you are exempt from the means test). If you do not pass the means test, you will not qualify for a Chapter 7 bankruptcy. The means test determines …
In a previous post, I stated that many people who are considering bankruptcy are hoping to file a Chapter 7 bankruptcy. A Chapter 7 bankruptcy isn’t the best fit for all bankruptcy filers, though. In this post I will explain the basics of a Chapter 13 bankruptcy. There are similarities between Chapter 13 bankruptcy and …
In Minnesota, Minnesota Statute Section 518.18 provides the law for changing a child custody order. The easiest way to modify a child custody order is by agreement. In other words, if both parents agree to change custody, it is going to be much easier to get an order from the Court that changes custody. Many times, though, …
How do I change a Minnesota child custody order? Read More »
Entering into a contact agreement prior to an adoption finalizing can be quite emotional. In some cases adoptive parents (who may already have the children living with them) have felt pressured to sign the contact agreement that is presented to them without seeking legal counsel. Signing a contact agreement without seeking legal counsel can be …
If you are a stepparent and want to adopt your stepchild, it is possible to do so. The easiest, most straightforward way to do so is when you have the agreement of the biological parent to consent to the adoption. For example, if you are a stepfather and you want to adopt your stepson, the …
If both parents agree that changing custody and/or parenting time is in the child’s best interest, then the parents will want to formalize that agreement and submit it to the Court for the Judge to sign and enter as an Order. This formal document is a “Stipulation and Order.” Sometimes parents might not think it’s …
Changing custody or parenting time when both parents agree Read More »
In a previous post, I talked about getting divorced in Minnesota when you and your spouse are in agreement on all terms of your divorce. If you aren’t able to reach an agreement, then you are likely going to have a contested divorce. That does not mean that you have to be in court forever. …
I offer an affordable flat fee rate for couples who are divorcing in Minnesota and who have reached agreement on all issues in their divorce case. I also offer a similar flat fee rate in uncontested custody cases. A lot of people wonder if they have to go to Court in order to get divorced. …
It is not uncommon for couples who are contemplating marriage to enter into an Antenuptial Agreement (commonly referred to as a “prenup” or a “prenuptial agreement”). Minnesota law allows parties to enter into an antenuptial agreement. If a party is considering entering into an antenuptial agreement, the parties should each consult with an attorney as …
Most people who come into my office with questions about bankruptcy and resolving their debts are familiar (on some level) with Chapter 7 bankruptcy. For most people who are considering filing bankruptcy, a Chapter 7 bankruptcy is the goal. A Chapter 7 bankruptcy is sometimes called a “liquidation bankruptcy” but the reality is that generally …
Choosing between Chapter 7 and Chapter 13 bankruptcy: liquidation and exemptions Read More »
When a married couple is divorcing in Minnesota, their divorce decree must resolve the issue of property division. All assets and debts of the parties must be divided between the parties. Minnesota law requires that there be a “just and equitable division” of the parties’ marital property. In addition to determining the values of the parties’ …
What do you do if you cannot afford to pay your creditors back in full, but it also doesn’t make sense to file bankruptcy? For example, if you owe $2,000 to a creditor, but you can’t afford to pay them in full – what do you do? In that situation, it really wouldn’t make sense to file …
In Dakota County (and many other counties in Minnesota), if you or your spouse have filed for divorce and opened a court file, but you have not yet reached agreement on all issues of your divorce, your first court date will likely be the Initial Case Management Conference (ICMC). You might be wondering what will …
Initial Case Management Conference in Dakota County Read More »
Even if you and your spouse have reached an agreement on all the terms of your divorce, it is still important to consult with an attorney. On many occasions, I have consulted with someone who has reached an agreement with their spouse on many of the terms of their divorce, but they have forgotten about a couple …
If my spouse & I agree on all the terms of our divorce, do I still need a lawyer? Read More »
When potential clients ask me questions about filing bankruptcy, one of their first few questions to me usually has to do with whether they can keep their car if they file bankruptcy. In order to answer that question, I need to get more information from them: 1) What other assets do they have? This will …
If I file bankruptcy in Minnesota, can I keep my car? Read More »
It’s pretty common for bankruptcy attorneys to hear the following from our potential clients: I need to file bankruptcy. I can’t afford to pay my creditors. How can I afford to pay for a bankruptcy attorney? Everyone’s situation is different, but here are some ways that people are able to afford to hire a bankruptcy …
In a previous post, I discussed the unfortunate fact that your divorce decree will not change your contract with your creditors. In other words, if you and your ex-spouse were both jointly liable on a Visa credit card, the divorce decree saying that your ex-spouse is liable for the debt owed to Visa does not …
How to resolve joint debts and protect yourself in a divorce Read More »
Often times, a divorcing couple will have several creditors to whom they owe money. For example, let’s say the divorcing couple has the following consumer debts: – Target credit card $1,000 – Chase credit card $3,000 – Capital One credit card $4,000 In this case, the divorcing couple has $8,000 worth of consumer debt. For …
It is very common for people in dire financial situations to borrow money from relatives or friends. A lot of times, Debtors feel nervous about not paying back their relatives or friends before filing bankruptcy. If a Debtor pays back a relative or friend before filing bankruptcy, they could very likely end up regretting that …
Preferences and Why You Shouldn’t Pay Back a Relative or Friend Before Filing Bankruptcy Read More »
In a consumer bankruptcy case, a person’s gross income is used to calculate whether the debtor is above or below the median income for means test purposes. People often confuse gross and net (or “take-home”) income, and that is understandable, because most people’s household budgets operate according to their take-home pay. However, when you are …
Median Income and the Means Test: Gross Income vs. Net Income Read More »
In 2005, BAPCPA (Bankruptcy Abuse Prevention and Consumer Protection Act) was passed. One “fun” part of BAPCPA is the application of the means test in a consumer case. If your household income (for the last 6 months before you file your bankruptcy petition) is below the median income for your household size in your state, then …
One common issue in a bankruptcy case is whether the person filing bankruptcy will be able to keep their tax refund (many times it’s a refund that they haven’t yet received). Depending on what assets you have and which exemptions you are using (Minnesota state exemptions or the Federal exemptions) you may be able to …
It is quite common for prospective clients to call my office and tell me that they are considering taking out a loan from their retirement account, or withdrawing money from their retirement account, in order to pay some of their creditors. I’ve also had people hire me to file their bankruptcy a year or so …
When I meet with people who are going through a financial rough patch, they are usually concerned about the possibility of their wages being garnished. In Minnesota, garnishment is governed by Minn. Stat. § 571.71 et seq Generally garnishment occurs after there has been a judgment, but garnishment is authorized without a judgment in certain …
If you or your spouse may file bankruptcy after you divorce, it is important to know how bankruptcy affects some common issues in divorces. Prior to 2005, a debtor who was able to show an inability to pay for property settlement debts was able to have those debts discharged in a bankruptcy. This is no …
How Does Bankruptcy Affect Divorce-Related Debts? Read More »
If a divorcing couple decides that they need to file for bankruptcy, they have two more decisions to make: (1) Should they file before or after they divorce? (2) Should they file jointly? If the couple is filing for Chapter 7 bankruptcy and their debts are joint debts, it usually makes sense from a financial …
Minnesota Bankruptcy and Divorce: When to File Bankruptcy Read More »
When a homeowner is worried that they might lose their house to foreclosure, they are usually also worried about whether their state is a “recourse” or “non-recourse” state. In a non-recourse state, if the funds from the sale of the mortgaged property (the house) are not enough to cover the outstanding debt (the amount the …
As I discussed in my posts about the different options for homeowners in “underwater” mortgages, Minnesota allows for deficiency judgments in some cases. See Minn. Stat. § 582.30. If your house is going into foreclosure, or you think that you may have to short sale your house, please consult with an attorney about it. There …
Deficiency Judgments after Foreclosure in Minnesota Read More »
If you are struggling to pay your mortgage due to a job loss or transfer, illness, or change in life circumstances (such as a divorce), you may not be able to save your house if you are in an underwater mortgage. Homeowners are “underwater” or have negative equity if they owe more on their mortgages …
Options for Homeowners in Underwater Mortgages: When You Can’t Save Your House Read More »
What do you do if you can’t sell your house for the amount that you owe on the mortgage? When you owe more than your house is worth, you are considered to be “underwater” or “upside down”. Another name for this situation is “having negative equity”. This post is the first of two about homeowners …
Options for Homeowners in Underwater Mortgages: Saving Your House Read More »
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