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Alternatives to Bankruptcy

By Micheal Bolinske on 03-Nov-09 11:53. No one wants to file bankruptcy.  On a daily basis I have individuals and couples that come into my office to discuss bankruptcy as a final option.  Even when these potential clients come in to discuss a bankruptcy many are still convinced that some other remedy may exist for their financial problems.  For the individuals who have recognized that there is a financial problem early some meaningful alternatives exist.  For the individuals who have struggled for years, borrowing from family and friends, transferring balances from one credit card to another and using retirement and savings to temporally pay down the credit cards, bankruptcy is the only option.

For those in the first category credit counseling, bill consolidation, and out of court settlements may be a viable option.  In future blogs I will discuss the benefits and pitfalls of each of these alternatives to bankruptcy.

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Anonymous
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Debt Wealth Overwhelming
Reply #2 on : Sat October 10, 2009, 18:40:06
Currently have several S-corps. One of which has created the bulk of our debt load. We need to continue in business, but most of our assets are clear & free of loans. Chapter 13 will not work, for we have no discretionary income to speak of. I have spoke with several people and need to make a decision promptly. We keep paying the credit card pymts - but it seems to be mostly by just creating yet a new debt. Would we loose are business asset if file Chapter 7. Should I just stop paying our credit cards? My bank lines are tied to my checking accounts, etc, and I really need to keep using them to run the company. Should I add a minor to the bank accounts? I do know this bankruptcy must take place. HELP!!
Doug
Posts: 2
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Re: Blog
Reply #1 on : Mon November 10, 2008, 21:31:52
I have recently separated from my wife, she served me with papers for an OFP and it has been over two weeks since I have seen my two year old son. Today we went to court on the OFP and the whole thing got dropped but she still refuses to let me see my son. So my question is: I have equal rights to see him, What do I have to do to see him? How can I see him?
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Credit After Bankruptcy

By Chad Bolinske on 03-Nov-09 10:18. If you have filed for bankruptcy and want to improve your credit score you need to do some of the same things that create a good credit score in the first place.  

1.  Pay your bills on time:
2.  Make sure you are not using all of your available credit:
3.  Take out a secured credit card to begin building your payment history:
4.  Check your credit report and correct inaccurate information.  

In many cases individuals credit scores actually increase after filing for bankruptcy.  If you follow the above steps you can increase your credit score. 

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Anonymous
Posts: 2
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Debt Wealth Overwhelming
Reply #2 on : Sat October 10, 2009, 18:40:06
Currently have several S-corps. One of which has created the bulk of our debt load. We need to continue in business, but most of our assets are clear & free of loans. Chapter 13 will not work, for we have no discretionary income to speak of. I have spoke with several people and need to make a decision promptly. We keep paying the credit card pymts - but it seems to be mostly by just creating yet a new debt. Would we loose are business asset if file Chapter 7. Should I just stop paying our credit cards? My bank lines are tied to my checking accounts, etc, and I really need to keep using them to run the company. Should I add a minor to the bank accounts? I do know this bankruptcy must take place. HELP!!
Doug
Posts: 2
Comment
Re: Blog
Reply #1 on : Mon November 10, 2008, 21:31:52
I have recently separated from my wife, she served me with papers for an OFP and it has been over two weeks since I have seen my two year old son. Today we went to court on the OFP and the whole thing got dropped but she still refuses to let me see my son. So my question is: I have equal rights to see him, What do I have to do to see him? How can I see him?
Link:

Wells Fargo

By Chad Bolinske on 15-Oct-09 11:40.  

It has recently come to my attention that Wells Fargo is freezing customer accounts after they file for bankruptcy protection.  If you have any bank accounts with Wells Fargo, I would close the account and open an account with another institution.  Wells Fargo seems to be serving as custodian of money that does not belong to them, and violating the automatic stay imposed by the bankruptcy court.  It seems that a class action lawsuit may be in order to get Wells Fargo to stop this egregious practice.  

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Anonymous
Posts: 2
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Debt Wealth Overwhelming
Reply #2 on : Sat October 10, 2009, 18:40:06
Currently have several S-corps. One of which has created the bulk of our debt load. We need to continue in business, but most of our assets are clear & free of loans. Chapter 13 will not work, for we have no discretionary income to speak of. I have spoke with several people and need to make a decision promptly. We keep paying the credit card pymts - but it seems to be mostly by just creating yet a new debt. Would we loose are business asset if file Chapter 7. Should I just stop paying our credit cards? My bank lines are tied to my checking accounts, etc, and I really need to keep using them to run the company. Should I add a minor to the bank accounts? I do know this bankruptcy must take place. HELP!!
Doug
Posts: 2
Comment
Re: Blog
Reply #1 on : Mon November 10, 2008, 21:31:52
I have recently separated from my wife, she served me with papers for an OFP and it has been over two weeks since I have seen my two year old son. Today we went to court on the OFP and the whole thing got dropped but she still refuses to let me see my son. So my question is: I have equal rights to see him, What do I have to do to see him? How can I see him?
Link:

Bankruptcy and Retirement

By Chad Bolinske on 14-May-09 15:01.

A bankruptcy filing should be considered when all of your disposable income is going to pay unsecured creditors (credit cards, medical debt, unsecured personal loans). Many clients think they can dig out of the hole that was created with these loans. Oftentimes the individuals are just paying interest and fees on the cards, and will need to make payments for ten years or more just to pay off the balance. By making all these payments individuals are not saving for retirement.

What ends up happening in many cases is that people struggle for years making payments on the unsecured debt, and wind up with no savings of any sort for retirement, when they are thirty, then forty, then fifty, and eventually they reach retirement age with no savings. This can be solved if individuals would address their debt issues early. The debt issues can be resolved by filing for bankruptcy or negotiating the debt. Once the unsecured debt has been discharged the person can begin to save for the future. The earlier people are able to get rid of the unsecured debt, the better off they will be in the future. In many cases the longer a person waits to consult a bankruptcy attorney, the worse their situation becomes. The absolute worst mistake is to use exempt retirement funds to pay down unsecured debt without consulting an attorney to determine if you have other options.

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Anonymous
Posts: 2
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Debt Wealth Overwhelming
Reply #2 on : Sat October 10, 2009, 18:40:06
Currently have several S-corps. One of which has created the bulk of our debt load. We need to continue in business, but most of our assets are clear & free of loans. Chapter 13 will not work, for we have no discretionary income to speak of. I have spoke with several people and need to make a decision promptly. We keep paying the credit card pymts - but it seems to be mostly by just creating yet a new debt. Would we loose are business asset if file Chapter 7. Should I just stop paying our credit cards? My bank lines are tied to my checking accounts, etc, and I really need to keep using them to run the company. Should I add a minor to the bank accounts? I do know this bankruptcy must take place. HELP!!
Doug
Posts: 2
Comment
Re: Blog
Reply #1 on : Mon November 10, 2008, 21:31:52
I have recently separated from my wife, she served me with papers for an OFP and it has been over two weeks since I have seen my two year old son. Today we went to court on the OFP and the whole thing got dropped but she still refuses to let me see my son. So my question is: I have equal rights to see him, What do I have to do to see him? How can I see him?
Link:

Dealing with Allocation of Debt in a Minnesota Divorce

By Micheal Bolinske on 13-May-09 14:23.

Dealing with Allocation of Debt in a Minnesota Divorce

During a marriage, in good economic times, many couples manage debt and are able to keep current on debt payments. Often, a job loss, medical problem or the beginning of a divorce will tip the balance and the debt begins to pile up. Debt has become a more prevalent issue in divorce given that we are now in the midst of a recession.

During the divorce, dealing with debt is often a much more difficult issue than allocating assets. Individuals can often agree that he gets the boat she gets the car, however, the same individuals will begin pointing fingers for joint unsecured debt because it is hard to remember what was purchased when and who made the purchase. Typically if a car is allocated to a party the same party will pay the car payment because the car is secured. Credit cards and other unsecured debt is more difficult because the debt may relate to vacations, out to eat meals, and personal items with small value. Add to the mix, how the debt is to be repaid on a single income and you have a scenario that can create a War of the Roses.

In certain instances married couples who are able to cooperate are advised to complete a bankruptcy discharge prior to filing for divorce. The bankruptcy discharge can remove one of the sticking points of a divorce. For those couples who are not able to cooperate in a joint bankruptcy an individual bankruptcy after the divorce may also be helpful.

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Anonymous
Posts: 2
Comment
Debt Wealth Overwhelming
Reply #2 on : Sat October 10, 2009, 18:40:06
Currently have several S-corps. One of which has created the bulk of our debt load. We need to continue in business, but most of our assets are clear & free of loans. Chapter 13 will not work, for we have no discretionary income to speak of. I have spoke with several people and need to make a decision promptly. We keep paying the credit card pymts - but it seems to be mostly by just creating yet a new debt. Would we loose are business asset if file Chapter 7. Should I just stop paying our credit cards? My bank lines are tied to my checking accounts, etc, and I really need to keep using them to run the company. Should I add a minor to the bank accounts? I do know this bankruptcy must take place. HELP!!
Doug
Posts: 2
Comment
Re: Blog
Reply #1 on : Mon November 10, 2008, 21:31:52
I have recently separated from my wife, she served me with papers for an OFP and it has been over two weeks since I have seen my two year old son. Today we went to court on the OFP and the whole thing got dropped but she still refuses to let me see my son. So my question is: I have equal rights to see him, What do I have to do to see him? How can I see him?
Link:

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