Entries by Tim Theisen


Congress takes up student loan bankruptcy-discharge bill

Yesterday Senator Richard Durbin (D-IL) and Senator John Cornyn (R-IL) introduced “Fresh Start Through Bankruptcy Act”, bipartisan legislation, that will restore the ability to discharge student loans in bankruptcy. This is the first bipartisan effort in the U.S. Senate since 1998, when this discharge right was eliminated, that will provide bankruptcy relief for struggling borrowers […]

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Supreme Court declines to hear case involving bankruptcy discharge of student loan debt

In bankruptcy, student loans are not dischargeable  unless the borrower initiates and can prevail on a separate lawsuit to determine that it would be an undue hardship to pay it back. Courts have interpreted this to be a relatively high standard, virtually impossible in most cases. A separate line of litigation can involved whether the […]

What is the process for divorce in Minnesota?

The court system considers a divorce to be a lawsuit, that ultimately gets decided by a judge after a trial, if the parties cannot come to an agreement. However, over 95% of divorce cases are settled before trial. Here is an outline of the basic steps that occur in a fairly typical divorce: At the […]

Options for Chapter 13 Debtors 

Many people in an existing, confirmed chapter 13 plan have suffered a change of income, and have inquired about their options. Even debtors whose income has not been impacted have a few new options to consider.  When a chapter 13 debtor’s income decreases, we take a whole new look at their budget, and go through […]

Theisen Law Newsletter April 10, 2020

Good Friday to you! I have been trying to blog & update on these topics, so wanted to take a moment to summarize and update, since information seems to get stale after a few days. Theisen Law policies during the Stay at Home order New laws & policies for debtors in chapter 13 Relief for […]

Update on SBA grant/loans and unemployment for the self-employed

The Minnesota Department of Employment & Economic Development (DEED, or unemployment department, if you eschew euphemistic titles) recently published this article which is a fairly good update on the programs available for small businesses and the self-employed. A good idea to check on insurance coverage for interruption of business provisions. As of this morning, there […]

New Median Income Figures Go Into Effect April 1, 2020

The Department of Justice recently did its semiannual adjustments of the median income figures, which are effective in bankruptcy cases filed after April 1, 2020. The median income is an important figure, as debtors below that figure are almost always assured a chapter 7 discharge. For chapter 13 debtors, being under the median is helpful […]

SBA Grants for Small Businesses & Self-employed

A huge part of last week’s CARES legislation included relief for small businesses, including SBA grants for subsidizing payroll, rent, & utilities for 8 weeks. It starts out like a loan, but will be forgiven upon proof that you used it for those qualifying expenses. Free money! This is not an April Fool’s joke! It […]