Can You Go To Jail For Debt?

Until the mid-19th century, many people were imprisoned for delinquent debts.  Similar to today's workhouses, you could lose your freedom until the debt was paid off.   Debtors prisons were abolished long ago, but there are still are ways that you can go to jail for unpaid debt.

If you are held in contempt of court, you can go to jail.  It’s not as hard for this to happen as you might think.  If a creditor sues you and obtains a court determination that you owe money (called a "judgment""), and you can't or won't pay, then the creditor may send you a demand for disclosure of your income, your bank accounts, and property.  Or the creditor may subpoena you for a deposition to give sworn testimony regarding these matters.  The creditor wants this information so that it knows how to garnish your wages, levy your bank accounts, and seize your property.  If you don't respond with the information, then you may receive an "order to show cause" at a court hearing as to why you should not be held in contempt of court for failing to cooperate.  If you don't then show up at the hearing with the information, the judge may enter a bench warrant for your arrest.  The purpose of the arrest warrant is not to punish you, it is to force you to give the creditor and the court the information regarding your income and assets.  It wouldn't be uncommon to be arrested on a Friday and spend the weekend in jail until you are brought before a judge on Monday to testify as to your income and property. 

If you need to file bankruptcy, save yourself a lot of misery and do it before matters reach this point. When you file a bankruptcy petition, you are protected by the automatic bankruptcy stay against collection efforts and you don't need to worry about being held in contempt of court.

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

Medical Bankruptcy

A 2007 Harvard study found that nearly 70% of bankruptcy cases are related to medical issues.  With today's high deductibles, the situation hasn't improved.   Illness can mean time off of work and reduced income.  Bankruptcy eliminates medical debt, but only the medical bills that are owed as of the date of filing your bankruptcy petition.  If you are currently running up medical bills you have a couple of bankruptcy options: You can wait until your medical problems are over and then file a Chapter 7 case.  If you can't wait that long, you can file a Chapter 13 bankruptcy case and gain protection from your creditors until you are done incurring the medical debt.  At that point, you may be able to convert your case to Chapter 7 and include all of the medical debt owed at that point.

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

HELP! I'VE BEEN SUED!

When credit cards, bank loans, medical bills and other debts become seriously delinquent, the creditors usually send them to a collection agency first.  If the collection agency can't collect the debt, then it may go to a collections lawyer who will sue to collect the debt.  You will know that you have been sued in Minnesota when you receive a Summons and Complaint in District Court or a Complaint in Conciliation Court.  

When you are served with a lawsuit, it is like a slap in the face!  Please don't panic.  There are things that you can do.  If you dispute the debt in a District Court case, you will probably need a lawyer to defend you.  If you dispute a Conciliation Court, you can go to the hearing yourself and explain your reason for disputing the debt to the judge.  If you don't dispute the debt and your debts are otherwise manageable, you could call the collections lawyer and try to make payment arrangements.  If you have other debts, it might make sense to file bankruptcy instead.  A bankruptcy will stop a lawsuit to collect a debt, even after the lawsuit has started.  If the creditor has already obtained a court judgment against you, bankruptcy can stop the creditor from ever trying to collect the judgment against you.

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

 

What’s New About Getting a Mortgage After Bankruptcy

The waiting period for obtaining an FHA or VA mortgage is two years after you receive your Chapter 7 bankruptcy discharge.  It normally takes about three months to get your discharge after we file your bankruptcy petition with the court.  However, there is a new rule that allows you to obtain an FHA or VA mortgage as little as 12 months after you receive your discharge, if you can show that the bankruptcy was caused by extenuating circumstances beyond your control and if you have since exhibited a documented ability to manage your financial affairs in a responsible manner.  

For Chapter 13 bankruptcy, it is possible to obtain an FHA mortgage after you have made one year of timely payments under your bankruptcy payment plan.  You must also have permission to enter into the mortgage loan from the bankruptcy court.

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

Discover the Difference Between “Debt Management Plans” and Filing Bankruptcy

Credit counseling companies were originally created by the banks to collect debts for them.  They offer "debt management plans" where by people can consolidate their debts and pay them off in full over a period of five years.  They try to negotiate lower interest rates for the credit cards so that they can be paid off over a reasonable period of time.

Even though they may be able to reduce the interest rates on some credit cards, the monthly payment under a debt management plan is usually larger than the combined minimum payments on all of a person's credit cards.  For this reason, debt management plans are not feasible for most people who are struggling financially.   They offer budgeting advice that can sometimes be useful.  However, the advice is frequently to get a second job (i.e., work yourself to death).   It is very difficult to get credit while you are in a debt management plan.  One couple who paid into a debt management plan came to see Minnesota bankruptcy attorney Greg Wald after they made payments under the plan for two years.  They wanted to buy a house, but the mortgage company told them they could not have a mortgage because they were still in a debt management plan.  The mortgage company told them it was too bad they didn't just file a bankruptcy instead.  The FHA will qualify people for mortgages two years after they complete a bankruptcy case.  They realized at that point that they made a big mistake and eliminated their debt immediately with a Chapter 7 bankruptcy.

Avoid a “BIG” mistake!  Contact Minnesota bankruptcy attorney Gregory Wald at (952) 921-5802 or visit them on the web at bankruptcyminn.com.  Discover the difference between “debt management plans” and filing bankruptcy before it’s too late.

Debt Management Plans VS Filing Bankruptcy

The banks have spent millions of dollars on lobbyists and were able to get Congress to pass a law that everyone who wants to file bankruptcy must first complete a briefing (counseling session) with a consumer credit counselor.  If the idea was to steer people into debt management plans, then the new law hasn't worked out well for the bankers.  Almost no one who completes the pre-bankruptcy briefing goes on to enter into a debt management plan. However, the counseling session is not all bad news. Many people do feel that they received useful information on budgeting and saving money from the counseling session.

Avoid a “BIG” mistake!  Contact Minnesota bankruptcy attorney Gregory Wald at (952) 921-5802 or visit them on the web at bankruptcyminn.com.  Discover the difference between “debt management plans” and filing bankruptcy while you are still able to make an informed decision between the two processes.

How Often Can I File Bankruptcy?

When a person has filed bankruptcy in the past, they may want to know how long they must wait to file bankruptcy again.   If a person has filed a Chapter 7 bankruptcy petition and received a discharge of their debts, they must wait 8 years before they can file another Chapter 7 petition.  However, the waiting period to receive a discharge in a Chapter 13 case after a previous Chapter 7 case is only 4 years.  Sometimes unfortunate circumstances create a need for a second bankruptcy in less than 4 years after the filing of a Chapter 7 case.   You can file a Chapter 13 case less than 4 years after filing a Chapter 7 case and receive court protection from your creditors, but you won’t receive a discharge of your debts.  It sometimes makes sense to file such a case to prevent foreclosure of a residence or to receive court protection from creditors.

The waiting period to file a Chapter 13 case after a previous Chapter 13 case is only two years from filing date to filing date.  Since the typical Chapter 13 case lasts for three years, there is rarely any waiting period for filing a Chapter 13 case after a previous Chapter 13 case.  The waiting period to file a Chapter 7 petition after a Chapter 13 petition is 6 years.

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 BankruptcyMinn.com for a consultation.

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 www.BankruptcyMinn.com

Will My Credit Be Ruined Forever If I File For Bankruptcy In Minnesota?

Bankruptcy Myths

"My credit will be ruined forever if I file for bankruptcy."
While bankruptcy does stay on your credit report from seven to 10 years (depending on which type of personal bankruptcy you file), often times your credit is even better (with time) because you've taken control of your finances and have attainable goals.

"I can get rid of all of my debt through bankruptcy."
There are certain types of debt that are not able to be discharged through bankruptcy, such as student loans (unless undue hardship is proven), criminal restitution, spousal support, and child support. Also, debts that came about as a result of some type of improper behavior (such as fraud) are deemed non-dischargeable. Certain types of taxes are not typically discharged either. For more in-depth info regarding this subject consult with a bankruptcy attorney.

"Only irresponsible people file for bankruptcy."
Even thought the economy is on the upswing, many people have been forced to file for bankruptcy due to past economic issues, whether it was job loss, divorce, injury, the cost of living, student debt, or medical bills. Today, many families with normal spending habits have filed for bankruptcy to get a fresh start.

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

Failing To Complete A Credit Counseling Course Can Ruin Your Bankruptcy Case

Did you know that failing to complete credit counseling can ruin your case? In both Chapter 7 and Chapter 13 bankruptcy, credit counseling is required. One course must be completed within 180 days before your case is filed and another must be completed before the case can be discharged.

As a rule of thumb, it's best to have the second course completed prior to the meeting of creditors. This is approximately one month after filing. If this course is not completed, it is possible to have your discharge refused.

You can find a list U.S. Trustee approved credit counseling agencies here: http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm

There are some exemptions from this requirement limited to people who are mentally ill, disabled, or on military duty in an active combat zone.

For more information regarding credit counseling courses, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802.

Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
Gwald314@msn.com

Your Health Savings Account Can Be Affected In A Minnesota Bankruptcy Case

Did you know that your health savings account can be affected in a Minnesota bankruptcy case? A federal Bankruptcy Appellate Panel upheld Minnesota Bankruptcy Judge Kathleen Sandberg's original ruling that health saving accounts (HSA's) are property of a Chapter 7 bankruptcy estate.

The case that brought this issue to the forefront is Leitch v. Christians. The debtor argued that HSA's were excluded from the bankruptcy estate because of exemptions that allow a debtor to keep "disability benefits" and "payments on account of personal bodily injury." The courts disagreed since HSA's can be withdrawn for any purpose, according to Minnesota law.

Debtors could potentially protect their HSA's under the federal "wildcard" exemption, which allows for an exemption of $12,725 worth of liquid cash assets. HSA's in Chapter 13 bankruptcies will generally remain unaffected by this ruling.

If you are considering bankruptcy in Minnesota and are concerned about your HSA funds, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 for more information specific to your case.

Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
Gwald314@msn.com

What To Do Before Considering Debt Settlement In Minnesota

If you are contemplating settling your debts with a creditor or a third party, rather than filing for bankruptcy, you may want to think again. For those who have the funds available to settle those debts, you may incur steep financial consequences.

As an example, if a debtor has $40,000 in credit card debt and has an IRA or 401(k) to draw from, withdrawing $20,000 to settle that debt could seem like a logical way to use the funds. BUT you could actually create more financial hardship as a result of a seemingly logical deed.

For starters, withdrawing money from an IRA or 401(k) will likely result in unnecessary taxes and penalties for early withdrawal. The other issue that would likely arise is the settlement of the debt. What you may not realize is that forgiveness of a debt is considered taxable income. So, the $20,000 that you thought you were off the hook for will now result in you receiving a 1099 from your creditor and paying taxes on $20,000 additional income.

Had bankruptcy been filed, most likely your debt could have been discharged without having additional financial consequences. During bankruptcy, your IRA and 401(k) could have been protected from creditors. Before considering debt settlement, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 for more information on the best options that suit your scenario.

Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
Gwald314@msn.com

Discharging Student Loan Debt In Bankruptcy

In order to discharge a student loan debt in bankruptcy, it is necessary to prove an "undue hardship". The courts have ruled that "undue hardship" means something more than "garden variety" hardship. Bankruptcy courts across the county apply different formulas when determining whether undue financial hardship exists. In Minnesota, the court uses the "totality of the circumstances" test to determine undue hardship. The court can look at many factors, such whether the debtor has made a good faith effort to make payments on the student loan, whether the debtor could make payments on an income contingent repayment plan (if available), the debtor's prospects for earning a greater wage in the future, the debtors age and health, family obligations, how much benefit the debtor received from his or her education, and the size of the loan. To find out if your student loan debt qualifies for discharge in bankruptcy, contact your local bankruptcy attorney who is familiar with the undue hardship formulas used in your jurisdiction.

Consolidating your student loan is an option that may be available to you if a discharge in bankruptcy is not able to be obtained. This is beneficial if you are having trouble making your monthly payments, and have used up your forbearances and deferments, or if you want to avoid going into default altogether. In consolidating your student loan, you would be receiving a Direct Consolidation Loan. This is a federal loan made by the U.S. Dept. of Education that would combine one or more federal student loans into one new loan.

You are only eligible to consolidate your loans if you have graduated, left school, or dropped below half-time enrollment. There must be one Direct Loan or Federal Family Education Loan Program loan that is in a grace period or in repayment. Defaulted loans are able to be consolidated, but repayment arrangements must be made before consolidating, or you must agree to repay your new consolidated loan under the Income-Contingent Repayment Plan or the Income-Based Repayment Plan.

Matters surrounding student loan debt are often complex and require the assistance of someone knowledgeable in this field. Contact Minnesota Bankruptcy Attorney Gregory J. Wald for more information pertaining to your specific student loan matter.

Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
Gwald314@msn.com

Successful People Who Have Filed For Bankruptcy

Many people have a negative connotation associated with filing for bankruptcy. That thought needs to be dispelled. Bankruptcy protection was included in our Constitution to offer relief to debtors and to provide them the opportunity for a fresh start. Bankruptcy should be considered a new beginning for your family.

Many successful people have filed for bankruptcy, only to come back better than ever. A great example is Walt Disney. Because he received a fresh start, he was able to create the Disney empire we all know today. Other examples include Donald Trump's business, Mark Twain, Thomas Jefferson, Abraham Lincoln, Henry Ford, the founders of Hershey's Chocolate and Heinz Ketchup.

Dealing with the stress and emotional strain of creditors while struggling to make ends meet can take a serious toll on your health. Your daily pressures can leave you with negative emotions because of the state of your finances. Filing for bankruptcy is a step in gaining control of your life. Bankruptcy is a positive means to financial stability, and your emotional and physical health. Contact Minnesota Bankruptcy Attorney Gregory J. Wald for more information on giving your family a new beginning.

Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
Gwald314@msn.com

Who To Call In Minnesota When You Are Harassed By Debt Collectors

Enduring harassment at home and at work by overzealous creditors can exacerbate the stress and pressure you're already feeling because of your debt. One of the many reasons people file for bankruptcy is to stop harassment from creditors.

Debt collectors have been known to make use of underhanded tactics if they believe they can get away with them. This is why it's important to know your rights when you have filed for bankruptcy.

Once you file for bankruptcy, the automatic stay goes into effect and all harassment from creditors must stop immediately. Any debts you have obtained a discharge on are not able to be collected on, ever. A discharge is a court order that says creditors cannot do any act to recover a debt that was discharged. If a debt collector contacts you by phone or mail, they are violating federal bankruptcy law as well as the Fair Debt Collection Practices Act (FDCPA).

If you are tired of creditor harassment, or if you have filed for bankruptcy and are continuing to be harassed, contact Minnesota Bankruptcy Attorney Gregory J. Wald for more information pertaining to your specific situation.

Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
Gwald314@msn.com

Do I Need To Disclose The Auto Loan That I Cosigned For In My Bankruptcy?

When filing for bankruptcy, you are required to report all of your liabilities and assets. An auto loan in which you cosigned for is considered a liability. Even if you do not possess the vehicle and the primary borrower makes all of the necessary payments, you are still liable for the loan.

During your bankruptcy, you are required to report the co-debtors on any of the debt you have. In this situation, even if the you are discharged of your obligation to repay the loan, your co-borrower will still be responsible for the debt.

It's important to know that one borrower filing for bankruptcy could constitute a default on the loan. This could result in the creditor accelerating the loan and requesting full payment against the co-borrower or repossession. However, it's more likely that the lender will allow the co-borrower to remain in possession of the vehicle if timely payments are continued to be made under the current terms.

How is the primary borrower on an auto loan affected if the cosigner files for bankruptcy?

In this situation, the primary borrower is still legally obligated to pay the balance of the loan. The bankruptcy and discharge of the consignee's obligation of the loan results in the lender being able to only pursue the primary borrower if the loan goes unpaid.

Depending on your auto loan contract, you could be considered in default once the consignee's obligations are discharged. However, it's likely that the primary borrower will keep the vehicle if timely payments are continued to be made. Most lenders do not want to repossess a vehicle if the payments are kept current.

It's important to keep an eye on one's credit report if the cosigner files for bankruptcy. If the bankruptcy is listed on the primary borrower's credit report, it is considered incorrect. This can happen and it's imperative that all three credit reporting agencies are contacted to correct this issue.

Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
Gwald314@msn.com

Minnesota Bankruptcy FAQs

What do I need to begin my Minnesota bankruptcy case? Have a detailed list of past and current debts as well as a list of assets and liabilities. Additionally, you will need tax returns for the past two years, documentation of income, recent bank account and retirement statements, proof of expenses, and identification. You will also have to complete a credit counseling course before bankruptcy can be filed.

Can a co-signer be responsible for a debt if bankruptcy is filed? Yes. The lender can demand that the co-signer make payments once the principle borrower on a loan has declared bankruptcy. However, it is possible to protect the co-signer by continuing to pay the debt after the bankruptcy case is filed.

When should I stop using my credit cards if I'm planning to file for bankruptcy? The moment you anticipate filing, stop using your credit cards because some of your purchases could be deemed fraudulent. If cash advances or certain purchases are made within 90 days of filing, the debt could possibly be excluded from your bankruptcy discharge.

Does my divorce decree protect me from creditors if my former spouse files for bankruptcy? Unfortunately, no. If you co-signed on any debt while married, creditors can demand payment from you. This is true even if the debt was assigned to your ex in the divorce decree. However, your divorce decree may dictate repercussions against your former spouse should they default on loan obligations.

Can I have my bankruptcy removed from my credit report? No. A bankruptcy will automatically fall off of your credit report within 7 to 10 years. You can request that accounts that were reported inaccurately be updated and corrected.

Do I have to include all of my accounts when I file for bankruptcy? All debts must be included in your petition and schedules. Some debts can be kept by "reaffirming" or simply continuing to pay that specific debt.

Contact Minnesota Bankruptcy Attorney Gregory Wald at 952-921-5802 for more information on these frequently asked questions.

You Must Take A Credit Counseling Course Before Filing For Bankruptcy

Before a debtor can file for bankruptcy, they must take a credit counseling course beforehand and then a financial management course before the discharge can be granted. This requirement has been in effect since 2005, when the bankruptcy code was revised. These courses are intended to educate debtors and to aid in positive financial management.

Once the course became a necessity for filing for bankruptcy and receiving a discharge, people were under the impression that obtaining bankruptcy protection became more difficult. It's really just a matter of knowing what steps to take beforehand to ensure a successful outcome.

The credit counseling course must be completed within 180 day pror to the filing of the bankruptcy petition. Be wary of just any course, not all are approved by the bankruptcy courts. Your attorney can present you a list of approved agencies to consider. Once the initial course is finished you will have to complete a financial management course after filing for bankruptcy. A certificate of completion of the second course must be filed within 45 days after the meeting of the creditors takes place. This will ensure that your discharge will go through as scheduled.

The courses may appear as just another hoop to jump through in the filing process, but many debtors that have completed it feel it was worth the undertaking in assisting them with planning a successful financial future.

Contact Minnesota Bankruptcy Attorney Gregory Wald at 952-921-5802 for information on which credit counseling agency to choose. Attorney Wald will go over the steps required to begin your bankruptcy case in order to achieve the best possible result.

Set Yourself Up For Success After Bankruptcy

Now that you've successfully discharged or restructured your debts in bankruptcy, it's time to think about your financial future. Here are some important steps to take to ensure your success:

• Compile a list of any debts that were discharged in bankruptcy. Certain debts such as student loans, child support, spousal support, and some types of taxes are not eliminated in bankruptcy cases. Be sure to pay any debts that were not discharged in a timely fashion to keep your finances in good standing.
• Keep all of your bankruptcy papers in a safe place. In the event that a creditor mistakenly attempts to collect a discharged debt, you will have proof that it was included in your bankruptcy. If you happen to lose your discharge order, another copy can be obtained from the clerk of bankruptcy court.
• Keep an eye on your credit reports after your bankruptcy. Make sure that your credit report reflects your discharged debts as having a zero balance. According to a recent government study, one in five consumers have an error in a credit report issued by a major agency.
• Since most types of liens survive bankruptcy discharges, verify the balance on any liens you may have. Know how much you owe and continue making payments on time if you wish to keep the secured property. If you fail to do so, your creditors may enforce the lien.
• Set aside money for an emergency fund. It is important to have enough money saved in case situations arise such as a job loss, car repairs, medical expenses, or other emergencies. Experts recommend having enough money saved to cover at least three months of expenses.
• Create a realistic budget. Refrain from buying things that you can't afford, or need -- Especially when it comes to using credit. Try to use cash for your purchases when possible. Don't succumb to the high interest credit card offers that you'll be getting in the mail after your bankruptcy, because there will be plenty of offers.

Setting yourself up for success after bankruptcy is important so that you don't fall into old bad habits. For more information on bankruptcy and life after, contact Minnesota Bankruptcy Attorney Gregory Wald today at 1-866-747-1130.