Bankruptcy – An Incessant Problem

Bankruptcy is one of the vibrant terms used in the Financial Industry. A large number of multinational companies, domestic corporate houses take up loans from various financial institutions, private and nationalized banks or individuals either for business expansion and development purposes or for personal. On the other hand besides companies, there are individuals who pick up personal loans from these institutions for personal acquisitions. These loaning companies offer loan amounts on credit at varying rates of interest that are required to be paid within a stipulated time frame. These rates of interests are exorbitantly high and extremely steep. The interest rates coupled with the principal amount become an insurmountable problem when it is time for repayment of the debt amount. When the loan amounts become heavy, it often becomes difficult for the debtor to repay these amounts to the creditors by the stipulated time schedule.

Crisis Situation

The situation of bankruptcy is more evident in developing countries where there is an economical crisis and is entirely dependent on the prevalent market conditions. The problem of bankruptcy emerges prominently in countries where there is widespread recession. The state of recession adversely affects the economy of the country as the whole which results in a large number of companies becoming penniless and are encumbered by financial crises and reduced to penury. It is the bankruptcy law of the country which comes to the rescue of the beleaguered companies and individuals which offer a respite from the repayment of the debts to the creditors.

Professional Advice

It would be pertinent to mention that prior to filing a petition of bankruptcy in court, an individual or a corporate house seeks professional help from an authentic Minnesota bankruptcy lawyer who is able to provide his expertise in obtaining a declaration of bankruptcy from the court. The Minnesota bankruptcy attorney is competent to offer his advice in the matter as he is well acquainted with the laws of the land. While there are several companies in the state of Minnesota, yet Bolinske and Bolinske who are Attorneys at Law having offices in various parts of the city of Minneapolis are well equipped to handle bankruptcy cases with all their ability. It is easy to reach them through their website www.bolinskelaw.com.

Questions Concerning Bankruptcy

Explain Pre-Bankruptcy Credit Counseling?

• The Pre-Bankruptcy Credit Counseling or Budget Briefing is an analysis of your existing financial situation along with a study of factors leading to this condition, counsel about options to bankruptcy, and assists in formulating a plan in response to the financial situation to prevent any more debt. The counseling usually lasts 60 to 90 minutes. A non-profit credit-counseling agency permitted by the U.S. Trustee's Office can provide bankruptcy counseling which is mandatory before filing for bankruptcy suggest Minnesota bankruptcy attorney.

Explain Post-Bankruptcy Debtor Education Course?'

• The Post-Bankruptcy Debtor Education Course or Debtor Education by default consists of written instructions and information on budget making, managing money, sensible credit usage, and consumer guidance in duration of at least two hours. An agency approved by the U.S. Trustee’s Office can provide the course. File the certificate of completion before the 45th day after the creditors meeting or 341 meeting for Chapter 7 cases. Chapter 13 cases should file the certificate no later to the date - of the last payment under the repayment plan or the date of the filing of a Motion for a Discharge.

'How much do these services cost?'

• Pre-Bankruptcy Counseling costs $29 per household, Post Bankruptcy Debtor Education is $29 per household, Post Bankruptcy Debtor Education Home Study Course is for Individuals $49.00 and Joint $69.00

'How long are the certificates good for?'

• The Pre-Bankruptcy Counseling Completion Certificate remains applicable for 6 months or 180 days from the date noted on your certificate.

'What information do I need before beginning the course(s)?'

• Pre-Bankruptcy Counseling require documentation of - Monthly household income, Monthly household expense, Complete Asset information including real-estate, vehicles, savings, 401k, IRA’s and etcetera, also Unsecured debt (credit cards, personal loans) and Secured debt (mortgage, car) having creditors name and current balance.
• Post-Bankruptcy Debtor Education needs documents of Bankruptcy case number and District of bankruptcy filing obtained from your Minnesota bankruptcy attorney.

Minneapolis bankruptcy lawyer advices only Credit Counseling agency approved by the Executive Office for the United States Trustees (EOUST) can issue Pre-Bankruptcy Counseling Certificates complying with the bankruptcy code. After being certified for completion of the course by a counselor, the certificate of completion is sent to you.