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Minnesota Bankruptcy
By Chad Bolinske on 02-Jul-08 13:51.Minnesota Bankruptcy Blog
If you are being called by debt collectors it may be a warning sign that you are having financial problems. It is important if you are being called by collectors to not take any advice you receive from them with a grain of salt. The collectors are not looking out for your best interests and any advice they give you will not be beneficial to your financial well being. I would also advise that you do not give them any bank account information over the phone without a written agreement specifying how much will be withdrawn from your account and on what date.
If you do not have this agreement the collector may take all the money from the account without your authorization and without your permission. If the money was taken without permission you may be able to get the funds back, but it will be a lot of work, and it could have been avoided by having a written agreement. The moral of this post is be wary when taking advice from debt collectors, and do not give out your banking information to the collector.
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Gambling and Minnesota Divorce
By Micheal Bolinske on 02-Jul-08 11:17.Gambling is an issue that is especially troubling during the Minnesota divorce process. Although gambling may have occurred during the marriage with the full knowledge of the other spouse, during a divorce the issue is sure to be brought up as a waste of marital assets. What’s more, gambling during the divorce process, may be viewed by a Minnesota divorce court as a dissipation of marital assets in violation of Minnesota Statute 518.091. The Minnesota Statute limits a party during a divorce and allows for spending of assets only for the necessities of life or for the necessary generation of income or the preservation of assets.
The two issues that arise with gambling in a Minnesota divorce are whether a party wasted the marital estate during the marriage and whether the marital estate was wasted during the divorce proceeding or in contemplation of the divorce proceeding.
As discussed previously on TheLawWay.com, a division of assets in a Minnesota Divorce, allow a Minnesota Court to award property and assets in an equitable fashion. This does not mean fifty-fifty. Arguments can be made for both parties regarding divorce that involves the issue of gambling. One party may argue but for the gambling, the marital estate would be larger. The other party would argue that the gambling was done as a hobby and in full knowledge of the non gambling spouse who did not object during the marriage. Minnesota Courts generally balance dissipation of assets during the marriage through gambling as a fairness issue. Minnesota Statute 518.58 allows a court to consider among all factors, a party’s contribution in acquiring, preserving, depreciating or appreciating marital property. Essentially, if the parties marital estate was wasted primarily based on gambling the court has the power to award a greater portion of the remaining marital estate to the non gambling spouse.
A far different scenario is gambling during the course of the divorce or in contemplation of the divorce. Parties are well advised not to gamble prior to or during a divorce. In the case of the non gambling spouse, careful records need to be kept of the gambling. The amount of losses from gambling can be included as compensation to the non gambling spouse.
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Spousal Maintenance in Minnesota
By Micheal Bolinske on 26-Jun-08 08:48.In Minnesota spousal maintenance, often referred to as "alimony" is governed by Minnesota Statute Section 518.552. The statute lists a number of factors that judges are to consider when awarding maintenance. When boiled down to their essence, the test comes down to need versus the ability to pay considering the standard of living established during the marriage. An award of spousal maintenance is most appropriate when one party has been a stay at home parent or a homemaker and the other party has been the primary bread winner. In such an instance a Minnesota Court will award either temporary or permanent maintenance. Other cases are not always so clear cut and must be reviewed on a case by case basis through application of the statutory factors.
The Minnesota Legislature in response to many appellate court decisions on spousal maintenance added a section to clarify the issue of permanent verses temporary maintenance. Currently, if there is any doubt as to temporary of permanent spousal maintenance a Minnesota Court is to award permanent spousal maintenance subject to modification. Permanent awards of alimony are most appropriate when the spouse seeking maintenance is older, dependant and the term of the marriage are long term.
Although the test for spousal maintenance in Minnesota boils down to the need verses the ability to pay. Minnesota courts in making a decision must make detailed findings on all of the statutory factors. A detailed finding can only be made by a strong case presented by an attorney with experience on spousal maintenance issues
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Personal Guarantees For Minnesota Small Business Owners
By Chad Bolinske on 25-Jun-08 11:10.I frequently encounter small business owners who have signed personal guarantees in order to obtain business credit. Many lenders require these personal guarantee agreements in order to approve the loan. Some lenders will even request a secured interest in personal belongings such as a car or home before approving loans. In many cases these personal guarantee agreements are not a good idea for the borrower. If you are starting a small business and the lender is requesting that you pledge your own assets as collateral or sign a personal guarantee you should consult an attorney to determine what rights you are signing away with these agreements.
In many cases if the business fails and is no longer to meet the obligations of the loan the lender will then turn to the individual who personally guaranteed the loan to collect the outstanding balance. This often results personal bankruptcy filing to discharge the personal obligation from the business loan. The personal bankruptcy filing could have been avoided if the personal guarantee would not have been signed. The clients who I meet who do not need a personal bankruptcy after a failed business generally are the clients who did not sign these personal guarantee agreements and did not pledge personal assets as security for the loan. Lenders will continue to request these agreements, since they help ensure payment of these small business loans. It is important to read all documents before signing, since you never know what kind of trouble you can get into with just a signature.
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Division of Debt in Minnesota Divorce
By Micheal Bolinske on 25-Jun-08 09:16.Minnesota Courts have the same powers to divide debts as they are given in division of property and assets. Review and allocation of debt is made by reviewing the underlying purpose of the debt and which party has the capacity to pay the debt.
Generally, in a Minnesota divorce courts allocate the debt with the property. If the one party receives the Porsche that same party also is allocated the debt of $50,000 that goes along with the car. An example of an exception to this rule is if one of the parties has been a homemaker or if there has is a significant difference in earnings, the other party who has the means to pay the debt may be allocated the debt while the other spouse is allocated the automobile.
Another issue that courts review during a divorce is the purpose of the debt. Specifically, was the debt for a legitimate purpose? Mortgage, credit card debt, automobile loan, or business debt so long as it adds to the marital estate as is necessary are not viewed negatively by Minnesota Divorce Courts. Minnesota Statute 518.58 allows a court to consider the contribution of each party in the acquisition, preservation, depreciation or appreciation in the amount or value of the marital property. Often at issue during a divorce is waste or dissipation of assets and the accumulation of debt that does not add to the marital estate.
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