Friday, February 28, 2014

The Problems That Occur When Filing Bankruptcy Without An Attorney


Filing for bankruptcy can be a daunting and emotionally draining experience. Going it alone will only make the task even more monumental. It doesn't have to be so bleak though. Sometimes in life we need a reboot, if you will. Many of great financiers, moguls, and millionaires alike have filed for bankruptcy. As well have average salary earners, college students, contract holders et al. The point is, at one time or another many of us have been "in over our heads".

Once you file the petition there are a number of documents you must submit to the court and your Trustee within specific time frames. Failure to comply may cause your case to be dismissed. Unfortunately, if you file without an attorney, there is no one who will tell you what has to be filed and when. Which is why whenever dealing with anything above parking ticket a lawyer is your best course of action.

The Bankruptcy Court sends out a notice of your bankruptcy filing to all of the creditors listed in your schedules. This notice advises the creditors that you have filed for protection, which chapter you filed and advises them that an "automatic stay" is in effect, preventing creditors from pursuing any further efforts to collect the debt. This would include staying a foreclosure sale, wage garnishment, and even a civil court proceeding or trial. Criminal cases are not stayed, nor are child support hearings.

For more information regarding bankruptcy, chapters, filing, or simply answering any questions you may have, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at for a consultation.

Wednesday, February 26, 2014

There Are Strict Laws In Place That Limit What A Creditor Can And Cannot Do When Seizing Your Vehicle

What Rights Do I Have When Facing Vehicle Repossession?

Getting behind on your credit card payment can be a hassle but when you go into arrears on your car payment, your life can be drastically interrupted. Whenever you enter into a lease/credit agreement with a finance company, they have the right to recover their property, any time of day or night and still invoice you for the balance due on the loan as well as late fees and towing fees. Pretty harsh huh? However, there are strict laws in place that limit what a creditor can and cannot do when seizing your vehicle.

What Can Creditors do

According to state law, and likely the contract you signed while purchasing the vehicle, your creditor can legally seize your vehicle when you default on your loan. The seizure can legally occur immediately. The contract between you and your creditor will usually define "default", but it normally means a failure to make timely payments. One missed payment may be just enough, but typically not. This is because your creditor can agree to accept a late payment or can change the payment date, however this may change the terms of your original contract. These changes can occur by speaking with the creditor, by writing, or by the creditor simply accepting multiple late payments without objection.

When default occurs, state law may permit the creditor to repossess your vehicle at any time of the day - even in the middle of the night while you sleep. Creditors do not need to give proper notice, and may come on to your property to repossess.

What Can't They Do?

Creditors cannot "breach the peace" while confiscating your vehicle. Examples of breaching the peace violations can be using force or threats of force to repossess, seizing your vehicle over protest, or removing it from a closed garage.

If a breach of peace is committed when your vehicle is repossessed, you can be entitled to money damages or your creditor may be required to pay a penalty. Importantly, your creditor may also lose the right to enforce a deficiency judgment against you. A deficiency judgment is the difference between the remaining amount on the loan and the resell amount obtained by the creditor.

If you or someone you know has had their vehicle repossessed or is facing repossession, call us now. There are limited, but effective actions that can be taken such as bankruptcy, that allow you to keep your vehicle. Remember, time is of the essence. Once they've repossessed your vehicle you have ten days to pay the debt. In some cases the creditor may even refuse the payment and keep your vehicle. Eventually they will sell it and reduce it from the debt you owe them. Don't let it get to this.

For more information regarding your specific situation, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at for a consultation.

Tuesday, February 4, 2014

How Can I Afford To File For Bankruptcy When I'm Already Short On Funds?

It costs money to hire an attorney and pay a court filing fee. How can you pay for your bankruptcy case when you are already short on funds? Some of the best bankruptcy attorneys offer a free half hour consultation so that you can learn your options. If bankruptcy is not the best option for you, the attorney may be able to suggest other options, such as debt settlement or loan modification.

For a Chapter 7 case in Minnesota, the attorney’s fee must normally be paid in full before the bankruptcy case is filed. However, some attorneys are willing to accept installment payments over several or more months. When the fees are paid in full, the case is filed. May people use income tax refunds. Some people borrow the funds from friends or relatives. The attorney may be able to accept a credit card payment from a friend or relative.

If you file for Chapter 13 bankruptcy, you can pay all or most of the attorney’s fee through the debt consolidation plan over a period of three to five years. Chapter 13 does not require full payment of debts, so the payment can be affordable.

If you have some questions about bankruptcy, the law firm of Gregory J. Wald will answer your questions with a free consultation. Call us at 952-921-5802 or send us a message at