Bankruptcy Attorneys Representing Mankato, MN
At Behm Law Group, Ltd., we are proud members of the Mankato area, and we aim to better our community by representing local residents in chapter 7, chapter 13, and chapter 12 bankruptcy cases. We’re local attorneys at law who care about the Mankato community, and we’re here to help you.
Living in the Mankato area since 1998 and 2003, respectively, Stephen Behm and Isabelle Lewis-Behm are passionate about protecting the people of our community. Stephen’s experience ranges from practicing as a part-time public defender with the Fifth Judicial District Public Defender’s Office to working with a variety of law firms where he focused exclusively on bankruptcy law, including chapter 7, chapter 13, and chapter 12 bankruptcy cases.Meanwhile, Isabelle had the amazing opportunity to work as Assistant County Attorney with the Blue Earth County Attorney’s Office. She and Stephen met at a Fifth Judicial District bar luncheon; they married in 2005 and are proudly raising their three children in the Mankato area. Stephen and Isabelle are season ticket holders for MSU-Maverick men’s and women’s hockey and football.
Understanding Your Bankruptcy Options in Mankato
Chapter 7 Bankruptcy in Mankato, Minnesota Chapter 7 bankruptcy is sometimes referred to as “liquidation bankruptcy” or “straight bankruptcy.” It is the most common form of bankruptcy and the type most people think of when they hear the term. In a successful Chapter 7 bankruptcy proceeding, a bankruptcy discharge order is issued. A discharge order from the bankruptcy court nullifies your pre-bankruptcy contractual obligations to pay creditors. Your debts are discharged, and you are relieved of the financial burden of paying those debts.
What Property Can You Keep in Chapter 7? Typically, people do not lose property in this type of bankruptcy because there are a number of bankruptcy exemptions to protect their personal property from creditors. Usually, this includes retaining your house mortgage and car loan as long as your payments are current. The mechanism for resolving debt in Chapter 7 is that a bankruptcy trustee collects and sells all non-exempt assets and then distributes the cash to your creditors.
Chapter 7 Eligibility Requirements To qualify for Chapter 7 bankruptcy in Minnesota, you must pass the means test, which compares your household income to the state median. If your income is below the median or you pass the means test calculations, you may be eligible for Chapter 7 relief.
What Debts Can Be Discharged? Chapter 7 bankruptcy can eliminate most unsecured debts including credit card balances, medical bills, personal loans, utility bills, and certain judgments. However, some debts cannot be discharged, such as most student loans, child support, alimony, recent tax debts, and debts incurred through fraud.
Timeline for Chapter 7 Bankruptcy Most Chapter 7 cases in Mankato are completed within 3-6 months from filing to discharge, making it one of the fastest ways to obtain debt relief.
Chapter 13 Bankruptcy in Mankato, Minnesota
Chapter 13 bankruptcy is sometimes referred to as “wage-earner bankruptcy,” “debt repayment bankruptcy,” or “debt reorganization bankruptcy.” The bankruptcy court is presented with a plan for the incremental repayment of a portion of your debts. The period for repayment is usually 3 to 5 years. Only a percentage of the debt is paid in Chapter 13, not the entire amount.
How Chapter 13 Works Monthly payments are made to a bankruptcy trustee. The monthly payment amount is determined by you and reviewed by the chapter 13 trustee. Each month, the bankruptcy trustee will split up your monthly payments among your creditors. During this time, creditors cannot repossess your property or garnish your wages. These arrangements allow more time for creditors to be repaid than might otherwise be available.
Your Chapter 13 bankruptcy plan sets forth the amount of each monthly payment. Creditors cannot demand more than what is specified in the plan. No interest is paid during this period, and there are no late fees. Payments are applied directly to the principal owed.
Benefits of Chapter 13 Bankruptcy Chapter 13 offers several advantages: you can stop foreclosure and catch up on missed mortgage payments, prevent vehicle repossession, eliminate second mortgages in certain situations, and reorganize secured debts like car loans with potentially better terms. It also allows you to keep all your property, including non-exempt assets that would be lost in Chapter 7.
Who Should Consider Chapter 13? Chapter 13 is ideal for individuals with regular income who are behind on mortgage or car payments, have non-dischargeable debts they need time to repay, have income too high for Chapter 7, or want to protect valuable non-exempt property.
Chapter 12 Bankruptcy for Mankato Area Farmers
Chapter 12 bankruptcy was specifically designed for family farmers and fishermen facing financial difficulties. This chapter provides a streamlined process tailored to the unique financial circumstances of agricultural operations in southern Minnesota.
Advantages for Family Farmers Chapter 12 allows family farmers to reorganize their debts while continuing to operate their farms. It offers more flexibility than Chapter 13, with higher debt limits and terms designed around seasonal farming income. Farmers can propose repayment plans lasting up to 5 years and may be able to reduce certain secured debts to the current market value of the collateral.
Common Reasons Mankato Residents File Bankruptcy
- Medical Debt Unexpected medical emergencies and ongoing healthcare costs can quickly overwhelm even financially stable families. Medical bills are one of the leading causes of bankruptcy filings in Minnesota and can be discharged in both Chapter 7 and Chapter 13 bankruptcy.
- Job Loss or Income Reduction Losing employment or experiencing a significant reduction in income can make it impossible to keep up with existing debt obligations. Bankruptcy provides a fresh start when circumstances beyond your control have affected your ability to pay.
- Divorce Divorce often leads to financial strain as households split assets while maintaining similar debt levels. The division of property, legal fees, and transition to single-income living can make bankruptcy necessary for a fresh financial start.
- Foreclosure Prevention If you’re facing foreclosure on your Mankato home, Chapter 13 bankruptcy can stop the foreclosure process and allow you to catch up on missed mortgage payments over time while keeping your home.
- Credit Card Debt High-interest credit card debt can spiral out of control, especially when minimum payments barely cover interest charges. Bankruptcy can eliminate these unsecured debts and provide relief from overwhelming balances.
- Business Debt Small business owners in Mankato who have personally guaranteed business debts may find themselves personally liable when a business struggles. Bankruptcy can provide relief from both business and personal obligations.
The Bankruptcy Process: What to Expect
- Initial Consultation During your free initial consultation with Behm Law Group, we’ll review your financial situation, discuss your goals, and explain which bankruptcy chapter best suits your needs. We’ll answer all your questions and provide honest guidance about your options.
- Credit Counseling Requirement Before filing bankruptcy, you must complete a credit counseling course from an approved provider. This can typically be completed online within a few hours. We’ll provide you with information on approved providers.
- Preparing Your Bankruptcy Petition We’ll work with you to gather all necessary financial documentation, including income records, tax returns, property valuations, debt information, and expense records. Our team handles all the paperwork and ensures everything is filed correctly with the U.S. Bankruptcy Court.
- Filing Your Case Once your petition is complete, we file it electronically with the bankruptcy court. This filing immediately triggers the automatic stay, which stops most collection actions, lawsuits, foreclosures, repossessions, and wage garnishments.
- The 341 Meeting of Creditors Approximately 4-6 weeks after filing, you’ll attend a Meeting of Creditors (also called a 341 meeting). This is a brief meeting where the bankruptcy trustee asks questions about your financial situation under oath. We’ll prepare you thoroughly for this meeting and attend with you.
- Debtor Education Course After filing but before receiving your discharge, you must complete a debtor education course. Like credit counseling, this can be completed online through an approved provider.
- Receiving Your Discharge In Chapter 7, you typically receive your discharge 60-90 days after the 341 meeting. In Chapter 13, you receive your discharge after completing your 3-5 year repayment plan. The discharge eliminates your legal obligation to pay discharged debts.
Why Choose Behm Law Group for Your Mankato Bankruptcy?
Exclusively Focused on Bankruptcy Law
Unlike general practice attorneys, we focus exclusively on bankruptcy law. This specialization means we have deep expertise in all aspects of Chapter 7, Chapter 13, and Chapter 12 bankruptcy cases.
Local Knowledge and Relationships
As longtime Mankato residents, we have extensive experience working with local bankruptcy trustees, creditors, and the U.S. Bankruptcy Court. This local knowledge benefits our clients throughout the bankruptcy process.
Personalized Attention
We treat every client as an individual with unique circumstances. You’ll work directly with experienced attorneys, not paralegals or support staff, throughout your case.
Transparent, Affordable Fees
We offer clear, upfront pricing with no hidden fees. We also provide flexible payment plans to make quality bankruptcy representation accessible to those who need it.
Comprehensive Service Area
While our office is conveniently located in downtown Mankato, we serve clients throughout southern Minnesota including Waseca, Fairmont, Austin, Albert Lea, Blue Earth, St. Peter, Madison, Marshall, Redwood Falls, Worthington, Luverne, Granite Falls, Ivanhoe, Windom, Jackson, Pipestone, and communities along the South Dakota border.
Frequently Asked Questions About Bankruptcy in Mankato
Will I Lose Everything If I File Bankruptcy?
No. Minnesota has generous bankruptcy exemptions that protect most property.
The vast majority of our clients keep their homes, vehicles, household goods,
retirement accounts, and other essential property.
Can Bankruptcy Stop Wage Garnishment?
Yes. Filing bankruptcy immediately stops wage garnishments through the automatic stay.
Any wages garnished within 90 days before filing may potentially be recovered.
Will My Employer Find Out About My Bankruptcy?
Your employer will only be notified if they’re a creditor or if wages are being garnished.
Otherwise, bankruptcy filings are public record but not typically monitored by employers.
Can I Keep My Car If I File Bankruptcy?
In most cases, yes. If you’re current on your car loan and the vehicle’s equity
is protected by exemptions, you can keep your car by continuing payments.
In Chapter 13, you may even be able to reduce your loan balance or interest rate.
How Long Does Bankruptcy Stay on My Credit Report?
Chapter 7 bankruptcy remains on your credit report for 10 years from the filing date.
Chapter 13 bankruptcy remains for 7 years from the filing date.
Can I File Bankruptcy on Some Debts But Not Others?
You must list all debts when filing bankruptcy, but you may voluntarily repay certain debts
after discharge. You can also reaffirm secured debts like car loans or mortgages.
What Debts Cannot Be Discharged in Bankruptcy?
Certain debts are non-dischargeable, including most student loans, recent income taxes,
child support, alimony, debts incurred through fraud, criminal restitution,
and debts not listed in your bankruptcy petition.
How Often Can I File Bankruptcy?
Generally, you must wait 8 years between Chapter 7 filings, 4 years between a Chapter 7
and a subsequent Chapter 13, and 2 years between Chapter 13 filings.
Contact Our Bankruptcy Attorneys in Mankato, MN Today
The offices of Behm Law Group, Ltd. are conveniently located at 424 Park Lane, Suite 1, in Mankato, Minnesota. We are in downtown Mankato three blocks south of the YMCA and two blocks north of Sibley Park.
We at Behm Law Group, Ltd. assist people and businesses seeking to file chapter 7, chapter 13 and chapter 12 bankruptcy from all over southern Minnesota including, but not limited to, Waseca, Mankato, Fairmont, Austin, Albert Lea, Blue Earth, St. Peter, Madison, Marshall, Redwood Falls, Worthington, Luverne, Granite Falls, Ivanhoe, Windom, Jackson, and Pipestone, and along the South Dakota border. If you are considering bankruptcy, allow us to be the attorneys who help you through this difficult time. Filing for bankruptcy isn’t easy, but we’re here to help.
