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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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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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Reply #1 on : Mon November 10, 2008, 21:31:52
Small Business Startup Advice
By Chad Bolinske on 25-Jul-08 09:58.Small Business Startup Advice
If you are considering starting a small business a good recommendation is finding an attorney and accountant to review the legal and financial documents before you start your small business or purchase a business. It seems that a lot of the bankruptcy work that I do comes from small business owners who did not spend any money reviewing the viability of their business before investing large sums of money to attempt to make the business work. The end result is typically a failed business with large personal guarantees on the business owner. In many cases this could be avoided by spending some money up front to determine if the business will be able to cash flow. In many cases the financial review would not be very expensive, but could save considerable money down the line. It oftentimes surprises me when someone is willing to buy a business for a great deal of money, but does not conduct any due diligence on the business. A Minnesota lawyer and accountant could accomplish this and perhaps prevent a disastrous result.
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Reply #1 on : Mon November 10, 2008, 21:31:52
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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Reply #1 on : Mon November 10, 2008, 21:31:52
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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Reply #1 on : Mon November 10, 2008, 21:31:52
Posts: 1
Reply #1 on : Mon November 10, 2008, 21:31:52