I am honored to announce that I have been asked to join a distinguished panel of attorneys to discuss issues that arise when bankruptcy and divorce collide. (ChatGPT came up with the clever title “Untangling the Knot".) BankruptcyInstituteBrochure
When Legal Matters Become Personal
Chapter 13
Consumer debt continues to grow
A recent Star Tribune article indicates that Minnesotans have an average of $63,000 of debt per capita (which includes mortgages). As a bankruptcy attorney, we definitely saw a lull with all of the moratoriums on student loans, garnishment, foreclosures and evictions,...
Top bankruptcy law firms hit $2500/hour billing mark
Don't let the headline alarm you! We do mostly consumer bankruptcies, usually on a flat fee, and even though I put many hours into each case, most of our cases are less than $2500 fee for everything. This article indicates that in some major Chapter 11 cases, such as...
Foreclosures start creeping up
After many states, including Minnesota, imposed moratoria on foreclosures following the onset of the pandemic, combined with other federal programs pausing the need to make ongoing payments, foreclosures have started increasing. Foreclosures are still hardly seen,...
Student Loan Discharges in Bankruptcy Complete First Year
The Department of Education recently announced a successful first year of its new program, loosening the standards it uses in determining whether to oppose people seeking an “undue hardship” of their student loans, once they have filed for bankruptcy. The Biden...
New state law bars hospitals from collecting on debts until they first try charity care
A law that went into effect November 1st, requires hospitals to apply discounts, and inform patients of charity care, before sending unpaid bills off for collections. It seems intuitive that hospitals would be motivated to do this, if there is an easy way for them to...
Smaller medical bills are more likely to be sued out than large ones
A recent study commissioned by the State Bar association showed that smaller medical debts are more likely to be pursued than larger debts. The article goes on to surmise that because they are so small, people don't fight them, and that there is a disproportionate...
What are cramdowns in Chapter 13 bankruptcy?
Chapter 13 helps provide individuals a structured way to repay their debts over time. Within Chapter 13 bankruptcy, there’s a powerful tool known as the “cramdown” that filers can take advantage of. Understanding the intricacies of cramdowns in Chapter 13 bankruptcy...
What is a reasonable car payment?
Even before recent double digit inflation and doubling of interest rates, we were starting to see seven-year car loans being the norm. For years, a reasonable car payment was $4-500, but now the average is $725. This article posits that there is a 20/4/7 rule, which...
More states require Financial Literacy Courses
It seems ironic that nobody needs to attend a budgeting class in order to go into debt, but in order to file bankruptcy and get out of debt, a person does need to attend a budgeting class. A recent article indicates that more and more states are now requiring...