Why are Minnesotans reluctant to file bankruptcy?
In Minnesota the population is fiscally conservative by nature. As one of my law school professors aptly put it, “The worst thing you could do in the Minnesota town I grew up in was kill someone, the second worst thing you could do was not pay a debt.” Although meant as a joke because the professor represented banks in his practice, the statement has important significance. Many in Minnesota will struggle for years attempting to repay debt while soaring interest and fees continue to add up. In the process, many have borrowed from family and friends, depleted retirement and savings all in an attempt to satisfy creditors.In my years of practice, I have yet to have a potential client come into my office and tell me that they planned on being so laden with debt that bankruptcy is the only option. Many have suffered a job loss, experienced the death of a family member, have suffered a medical problem or have recently divorced. Add to these issues the fact that creditors have universally raised interest rates to 20 to 30 percent. The end result a repayment that would take a lifetime.
The biggest single mistake that potential clients make is not consulting with a bankruptcy attorney sooner. Most clients are perpetual optimists who believe that things will get better. Finances will get better, but why not start free of debt rather than by repaying inflated bills for 10 to 20 years or more? Those funds could go to retirement and savings rather than to creditors.
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