Bankruptcy Can Be A Way Of Obtaining College Transcripts That Are Withheld For Nonpayment Of Tuition Or Loans

Bankruptcy can be a way of obtaining college transcripts that are withheld for nonpayment of tuition or loans. The filing of a bankruptcy petition creates an “automatic stay” that prevents any effort by a creditor to collect on a debt. The great majority of courts that have ruled on the issue have held that the withholding of a college transcript on account of an unpaid debt constitutes an attempt to coerce payment of the debt and is therefore in violation of the bankruptcy stay. The Bankruptcy Court in Minnesota ruled this way in the matter ofre Lanford, 10 B.R. 132 (Bankr.D.Minn.1981) At least two U.S. Circuit Courts of Appeals have also ruled this way, In re Merchant, 958 F.2d 738 (6th Cir. 1992); In re Gustafson, 111 B.R. 282 (Bankr. 9th Cir. 1990), rev’d on other grounds 934 F.2d 216 (9th Cir. 1990). As a result, it is very likely that your former school will release your transcripts voluntarily after your file a bankruptcy petition. If the school refuses to release the transcripts and the court finds that the school has violated the bankruptcy stay, the school can be sued for actual and punitive damages, including attorney’s fee and costs.

Tuition debt in most cases is not discharged (eliminated) in bankruptcy, so ultimately you may still have to pay the tuition debt. However, if you have other debts problems that bankruptcy can resolve, the release of your college transcripts may be one more reason to consider filing for bankruptcy protection.

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.

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

Once Bankruptcy Is Filed, The Trustee Will Look Into The Past 90 Days Of Spending To See If You Attempted To Defraud The System

Tis the season for giving... and racking up debt. If you're planning on filing bankruptcy after the holidays you'll want to avoid these common mistakes, it could seriously jeopardize your bankruptcy.

We all get into the holiday spirit of gift giving while failing to think of ourselves. Draining your checking account, without setting any funds aside is a huge mistake. Bankruptcy fees must be paid for in cash, not a credit card, so it's imperative that money is set aside to give you the fresh start your finances so desperately need.

Do not go on a shopping spree compliments of your credit card before filing for bankruptcy. If it looks like you were "loading up" on credit cards without intending to repay them, you might have to repay at least a portion of the funds that you borrrowed.

Never give away your assets as gifts this holiday season, or ever if you're planning on filing for bankruptcy. If you give a gift to a relative that is worth $200 or more, the trustee of your bankruptcy case may demand the return of the gift so that it can be sold and the funds distributed to creditors. In some cases, charitable contributions can also be reversed. Giving away significant assets to avoid losing them in bankruptcy is considered fraudulent. Your debts might not be eliminated in bankruptcy if you attempt this.

For answers to questions regarding your specific situation, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at BankruptcyMinn.com to set up a consultation.

Tips For Maximizing Your Budget During The Holiday Season

Thanksgiving kicks off the start of the holiday season, which also happens to be the season in which we spend the most. You may feel like it's difficult to avoid going into debt during this time, but here are some tips that will help you save money.

• Calculate a budget and stick to it. No one wants to enter the holiday season already over budget with maxed out credit cards and buyers remorse.
• Rather than sending out holiday cards, email your Thanksgiving greeting to friends and family. You will save money on postage and printing costs. 
• If you've been designated to host Thanksgiving this year, let family and friends know that you're starting a new potluck tradition. This will alleviate the cost of putting on an entire meal for everyone. This also saves time and allows you to truly perfect one dish. 
• Keep your holiday decorations simple and minimal. This will give you something to be thankful for once you open your credit card statement without the added expense. 
• Shop at wholesale stores for staple items, this can amount to hefty savings. Also, purchase generic brands when possible.
• Minimize side dishes. If you know that the cranberry sauce is barely touched each year, skip it. 
• If you're flying out of town for the holiday, choosing the right day and time to fly can save you money. Often times, flying very early on a Tuesday or Wednesday results in the lowest fares. 

Have a happy Thanksgiving! Contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 if you would like more information about your bankruptcy options.

Receive Bankruptcy Protection Protection From Creditors

We offer immediate protection from creditors upon filing your bankruptcy petition. When we file a bankruptcy petition with the court, it creates a blanket court order called an "automatic stay" against creditor collection efforts. All collection efforts will cease. We stop harassing calls from collection agencies. We can stop repossession of your car and in some cases we can obtain the return of repossessed vehicles. We can stop foreclosure to give you time to get caught up on payments. Stop the worry and the stress now.

For more information regarding bankruptcy protection, contact Bloomington 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