Housing Index shows improving Prices in the Twin Cities

A leading housing index shows that housing prices were up 3.3% in the Twin Cities. This is good news for my clients who are typically underwater in their houses. Hopefully the market can maintain this momentum to make buying a house a good choice again. The issue I see with my bankruptcy clients is they will need many months if not years of price gains to make up for the drop in their homes value.

How Do Clients Pay Their Bankruptcy Filing Fees?

This is one of the most common questions that I get asked when talking to clients about filing for bankruptcy protection. I have had a lot of clients say that if they had the money for the bankruptcy, they would not need to file for bankruptcy. This is not true since in most cases these clients have a debt load that they could not pay off in twenty years. The other problem is if you do not file for bankruptcy protection and just use tax refunds and 401k loans to pay back creditors you jeopardize your retirement savings and emergency savings, without making any dent in your debt. This approach just kicks the can down the road, and you will be in the same issue in the next 6 months with creditors breathing down your neck.
Our clients use several methods to pay our fee. In some cases clients are able to stop paying creditors to cover the attorney fees. In other cases they borrow the money from family or friends. In most cases the money borrowed from family or friends is the best way for them to help you out, if they just give you money to help pay your debt, that does not alleviate the problem. The other option some clients use is sell some personal possessions to cover the attorney fees. The objective after a bankruptcy is to get a fresh start, and get rid of all of the debt. We want to see our clients prosper after filing for bankruptcy, so they can save for retirement and provide for their family.

Minnesota Bankruptcy Lawyers for Chapter 13 Bankruptcy

If you are struggling keeping your home you may want to look at a chapter 13 bankruptcy in Minnesota. A chapter 13 bankruptcy will allow you to keep your home while catching up on past due payments. You may even be able to strip off your homes second mortgage. The other benefit of a chapter 13 filing is that at the end of your plan payments you will also get rid of the remaining credit card and other unsecured debt. We help clients with chapter 13 bankruptcies every day. If you have questions give our office a call.

Loan Workout in Minnesota

If you are thinking about settling your debt in Minnesota it is important to keep tax consequences in mind when you are settling the debt. In most cases you are responsible for the phantom gains from debt settlement income. A good example of this is if you owe $20,000 on a credit card debt and you settle the debt for $10,000 the creditor can and probably will send you a 1099 form for $10,000. This means that you could owe additional money for the settled debt. The other thing to keep in mind when are settling debt is that you also should look at bankruptcy to see if one option is cheaper than the other.
If you decide to settle debt it should be a business decision and it should be the cheaper alternative to bankruptcy. The nice thing about debt settlement as opposed to bankruptcy is that you do not have a trustee looking over your property and debt settlement is not public. If you are having issues with debt give our office a call at 952-294-0144.

Home Sales Prices Rising In Minnesota

A recent report showed that home sales prices have stabilized in the Minneapolis St Paul region.  It seems that we may be seeing the light at the end of a long tunnel of falling home prices.  There is no guarantee these gains will stay once the banks begin to ramp up their foreclosures following the settlement with the states.   It still seems like a good time to buy a home if you can qualify for the current interest rates and find a house at a good price.