Todd is a fearless litigator and brings an enhanced focus on debt collection defense and FDCPA work to Friedman Iverson, as well as bringing his litigation chops to beef up our auto fraud work.

Todd is from Superior, WI, played first-string quarterback at Macalester, and now lives with his wife and three kids in South Minneapolis. He still keeps up a blog reporting on consumer law issues here.

The post Welcome to our new attorney Todd Murray appeared first on Friedman Iverson.

1. You get in touch. Give us a call at 612-564-4025. We can often get you in the same or next day. Your first meeting will be about an hour long. As soon as you decide to hire us, we spring into action, organizing your paperwork and preparing your case. At this point, you can send your debt collectors directly to us—no more endless phone calls.

2. We prepare your case. It generally takes us three weeks to file your bankruptcy petition—a collection of relevant documents and an asset inventory. Once we file your case, collection activity—such as letters, calls, lawsuits and foreclosures—stops immediately. As we prepare your case, we help you choose the best type of bankruptcy for your unique situation—Chapter 7 or Chapter 13.

3. We help you choose what type of bankruptcy is best for you. 

• You might choose Chapter 7 if: 1) Your expenses are way higher than your income, leaving nothing extra to pay your debt; 2) You don’t own a home, or if you do, you’re up to date on your mortgage payments; 3) You don’t own many valuables.
• You might choose Chapter 13 if: 1) You can afford to repay some of your debt, but not all of it; 2) You’re behind on your mortgage or you’re underwater with a second mortgage; 3) You have valuable assets, such as home equity, that you want to hold onto.

4. Will I have to go to court? In bankruptcy, you generally don’t have to go to court. Instead, you meet with a bankruptcy trustee a month after your filing date. The trustee evaluates your financial situation. We make sure you’re well prepared, and we’ll be by your side to make sure it all goes smoothly.

5. Finishing your case in Chapter 7. Chapter 7 usually lasts three to four months. Your bankruptcy is typically completed 60 days after meeting with the bankruptcy trustee. Once your case is finalized, your debts are wiped out forever.

6. Your Chapter 13 payment plan.  In Chapter 13, you’ll make monthly payments for three to five years to pay off your debt. We’ll be your lawyers the whole time, in case you need help or your financial situation changes. Once you make your last Chapter 13 payment, your remaining debts are wiped out.

7. Rebuild credit. People who put in some effort to rebuild their credit after bankruptcy can usually make their score rise a lot faster than people who just wait for their credit to fix itself. We meet with all our clients free of charge after the bankruptcy is over to see how we can help clean up your credit report and give you tips for building new credit.

The post The bankruptcy process in Minnesota appeared first on Friedman Iverson.

Photo by Daniel Moyle

In an earlier post, we wrote about how we price our Chapter 7 cases. One of the first things a potential client wants to know during a consultation is how much bankruptcy costs. Obviously, every case is different, but here’s a rough version of how we price cases in Chapter 13.

1. You pay a flat fee out-of-pocket. When you’re in financial trouble, you want predictability. You don’t want your lawyer to run up the bill on you. That’ why we quote you a flat fee at the beginning of the process, and that’s what you pay. No fine print, no hidden fees. We agree on it at the start so you can plan for the expense.

2. You don’t need to pay your whole fee upfront in Chapter 13. Unlike Chapter 7, in a Chapter 13 case we don’t need the whole bankruptcy fee up front. In fact, in many cases Chapter 13 costs less upfront than Chapter 7–some people even opt for Chapter 13 because of our flexible pricing. We generally require a minimum of $1,000 before filing in a Chapter 13, but this  can depend on your case.

3. We can get the rest of our fee out of your creditors’ pockets. In Chapter 13, we can apply to the court for our remaining fee. Because this comes out of the Chapter 13 payments you’re already paying, in most cases it doesn’t cost you an extra dime. In fact, if you’re looking for an extra way to stick it to your creditors, here it is. The money we receive from the Chapter 13 payments would have lined their pockets if we hadn’t applied for it. Our total fee comes out to $2,500 for below-median income cases, $3,000 in above-median cases, or greater if we can prove to the court that it was necessary to charge more.

4. The filing fee. In a Chapter 13 case, there is a court filing fee of $281 and mandatory credit counseling fees (for our clients, credit counseling runs around $68 for a single filer or $87 for joint filers). You pay those fees to us and we forward them as needed.

And remember–you may not want to bargain-hunt on bankruptcy. The best lawyers will quote you a fair price, but the worst ones will probably discount their fees to try to take business from the good ones. You want a lawyer who’s experienced enough to understand a lot of the tricks and traps of bankruptcy. You also want someone who’ll be available to answer your questions, and won’t blow you off because they’re too busy with all their other cases. And you want someone who’s willing to use the bankruptcy law creatively to help you improve your situation. As it happens, we know a couple of guys who fit the bill pretty well.

The post What does Chapter 13 bankruptcy cost? appeared first on Friedman Iverson.

The original law was scheduled to expire at the end of 2012, making it much harder for homeowners facing foreclosure. If the foreclosure happened in 2013, the homeowner could get slammed with tax liability for the foreclosure, adding insult to injury.

As part of last week’s fiscal cliff deal, the Act was extended through 2013. So this time you can credit Congress for doing something right, and the extension was even passed (almost) on time.

So if you’re going to get foreclosed on, it might be smart to do this before the end of the year.

The post Foreclosure tax relief extended through 2013 appeared first on Friedman Iverson.

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1. What’s a bankruptcy meeting of creditors? A meeting of creditors, sometimes called the “341 meeting,” is a requirement of bankruptcy. In most bankruptcy cases, you do not have to appear in court. You go to a meeting of creditors instead. In most cases, the meeting is just a formality, but it’s important to prepare either way.

2. When is the meeting? Usually three to five weeks after you file your bankruptcy case.

3. Who shows up at the meeting? The bankruptcy meeting of creditors happens in public, so other bankruptcy filers and attorneys will be there. There is also the bankruptcy trustee, who conducts the meeting. The judge is never at the meeting of creditors.

4. But it’s called the meeting of creditors. Won’t my creditors be there? Creditors show up VERY rarely to these meetings. In the last 100 cases we’ve been involved in, a creditor has shown up only once, and we totally expected it and prepared for it. Credit card companies, car lenders and mortgage companies almost never show up.

5. What do I need to bring? This is important. The meeting will be canceled and rescheduled if you don’t bring proof of ID and social security number. You’ll also need your most recent paystub and all bank statements covering the date of filing. We’ll ask you for all this stuff way before your meeting so we have backup copies in case you forget.

6. How long does the meeting take? The trustee usually schedules five cases every half hour. So your meeting should take more than a few minutes, unless we’ve told you that your case is complicated. But if that’s the case we’ll make sure you’re well prepared.

7. What should I wear? Just dress like you would to a meeting at our office. There’s no need to dress up, just dress neat (and don’t overdo it on the bling–if you come in looking like a zillionaire, people will wonder why you’re filing bankruptcy.)

8. What will the trustee ask me? Here are a few questions the trustee is likely to ask:

• Is this your signature on the petition and schedules? Did you read the petition and schedules before you signed them? Is the information true and complete?
• Have you listed all of your assets on the schedules? Are you a co-owner of any property with anyone else? (e.g. family cabins)
• Do you expect to come into any money, such as an inheritance?
• Does anyone owe you money?
• Have you paid any creditors in the last 90 days, other than minimum payments?
• Are you a party to any lawsuits you haven’t identified in your schedules?
• Are you owed any domestic support? Do you owe domestic support?
• Have you transferred any property to anyone in the last year? Is anyone holding property for you?
• Have you previously filed bankruptcy?

9. How should I answer? Just tell the truth. Don’t feel like you need to tell a whole story–keep your answers short and sweet–but answer truthfully and completely. If you don’t know the answer to a question, ask for clarification–it’s better not to answer right away than to answer incorrectly.

10. Where is the meeting? 

• Minneapolis Chapter 7 cases: Federal Courthouse, 300 South Fourth Street, 10th Floor
• St. Paul Chapter 7 cases: Federal Courthouse, 316 North Robert Street, 4th Floor
• Minneapolis/St. Paul Chapter 13 cases: 12 South Sixth Street, Suite 310

The post What to expect at the bankruptcy meeting of creditors appeared first on Friedman Iverson.

Photo by Ed Yourdon

This post explains business bankruptcy and helps you figure out if it’s a good idea for your business.

1. I have business debt. Do I need to file bankruptcy?

I am a sole-proprietorship. If you are a sole proprietor, you are the business. This means that the business assets are your assets, and the business debts are your debts. If you file personal bankruptcy (under Chapters 7, 13 or an individual Chapter 11 case) your business debt will be wiped out and your business creditors can’t collect from you.

I am an LLC or corporation. If you own a separate legal entity, then filing personal bankruptcy won’t wipe out your business debts. To take care of business debts, you can do a few things:

• - Negotiate with the lender to settle the debt;
• - Close your business and turn over any leftover assets to your creditors; or
• - File a business bankruptcy to reorganize your debt.

2. How do I close my business without filing a business bankruptcy?

You can close a business by filing a “dissolution” with the Minnesota Secretary of State’s office. Dissolution gives notice to your creditors that you are closing up shop, and gives creditors a chance to try to collect assets before the business is wrapped up. You may be able to dissolve a business on your own, but you’ll probably want to consult an attorney first, to see if there will be any issues to watch out for.

3.   Do I need to file business bankruptcy?

Generally not. If your business has lots of real estate, secured debts, or large assets, you may want to look into business bankruptcy to reorganize your debt. But most people don’t need business bankruptcy. If you have a business that’s insolvent, the dissolution process described above should be enough.

4.   Are my business debts wiped out in my personal bankruptcy?

If you close a business and you have personally guaranteed the debts, the business creditors may try to collect from you after the business is closed.

Your personal liability on your business debts is erased. This means that if you default on your business debt, your creditor cannot come after you personally for that debt. On the other hand, this doesn’t prevent the creditor from collecting the business’s assets.

One other important point—if you have business debts, and a business bank account with the same creditor, your creditor probably has the right to take money directly out of your business account if you don’t pay the business debt, even after a personal bankruptcy. If you are keeping your money with a bank that is a creditor, the smart play is to move it as soon as you can.

The post Do I need to file business bankruptcy? appeared first on Friedman Iverson.

Location: 2609 Aldrich Ave. S. Suite 102, Minneapolis, MN 55408 (We’re pretty much in the CC Club’s backyard)
Time: 6 pm -10 pm

Featuring: complimentary food + booze, music from DJ Jake Luck (Yeti Records), and Instagram Photo Contest!

JONATHAN HAMILTON: Jonathan is is an artist who has lived in Northeast’s Audubon and Windom Park neighborhoods for the last 6 years. He has been designing and leading creative workshops in schools, Park and Rec. programs, and community organizations such as the Walker Art Center, VSA, and Opportunity Resources over the course of his career. After earning his BFA and K-12 Art Education Certification from the University of Montana, Jonathan came to Minneapolis to work as the Director of Visual Arts at Interact Center for the Visual and Performing Arts from 2001-2006. He is now an Exhibition Technician for the Minneapolis Institute of Arts.

STEVEN LANG: Artist and writer Steven Lang received his B.F.A. from the University of Minnesota, Twin Cities.  In 2012, he was a resident artist at Elsewhere, a living museum set in a former thrift store in downtown Greensboro, NC, and was a participant in the 4th season of CSA — Community Supported Art, sponsored by mnartists.org and springboardforthearts.org. He has recently exhibited at Rosalux Gallery, Soo Visual Arts Center, and the Walker Art Center’s Walker Shop. His short story, “Tandem,” was included in the recent Milkweed Editions anthology Fiction on a Stick. His short-short story, “The Scarecrow,” was published in 2011 as finalist in the mnLIT series on mnartists.org.

INSTAGRAM PHOTO CONTEST!
Parties with a purpose are always more fun. Winning a fabulous prize is a great purpose.  With that, we’re excited to announce our first Instagram Photo Contest.  During Friday night’s party, we’ll challenge you to take pictures in and around our office with your smart phone and submit them via Instagram with the tag #hipsterlawfirm.  The photos will be displayed on a screen in the office.  At the end of the night we will pick a winner and award a prize.  The theme will be: “Things You Wouldn’t Expect to See at a Law Office”.  Let your imagination run wild!

The post Friedman Iverson gallery opening “Someplace Else” October 19 appeared first on Friedman Iverson.

http://www.consumerfinance.gov/students/repay/

It’s only once in a while that the federal government finds a way to actually help consumers (Zing!). With so many student loan borrowers struggling with debt, it’s about time there was some effective help out there. The Department of Education and the Consumer Financial Protection Bureau have teamed up to publish the (poorly-named) Student Loan Debt Collection Assistant.

The Q-&-A-style assistant takes you through all the different possibilities of being behind on student loans, for public and  private loans, loans deep in default, and loans where you’ve just missed a payment or two. It provides tips on dealing with collectors, eligibility charts for helpful programs such as Income-Based Repayment for federal loans, and provides links to more help. This information is provided in an easy-to-use, Choose Your Own Adventure-style format. The Assistant is a great starting point for figuring out your options when you’re in trouble with student loan collectors.

The post New web site explains student loan default options appeared first on Friedman Iverson.

Congratulations, your Chapter 13 plan has been confirmed! (If our congratulations are early, don’t worry–your turn will come too). Since you’ll be in Chapter 13 for three to five years, you probably have a bunch of questions about what to expect. We’ll tackle a few of these below. If you have other questions, please leave them in the comments below.

1. When do I make my first payment to the trustee? Your first Chapter 13 plan payment is due within 30 days of filing your case. The payment must be by money order to the P.O. Box specified on your welcome letter form the trustee’s office. Future payments can be made by automatic debit from your bank account, if we arrange that ahead of time with the trustee’s office.

2. Which of my bills should I pay while I’m in Chapter 13? You’ll need to pay your new, ongoing bills on time. This always includes utilities, generally includes your mortgage, and sometimes includes your car loan and student loans. Every once in a while, it’ll include a credit card if you have a cosigner. But your bankruptcy lawyer should have the final word on what bills to pay. If you’re not sure, ask.

3. I’m still getting calls from creditors. What do I do? Your creditors are breaking the law if they contact you after you file Chapter 13. On the first call, you can tell the creditor you filed bankruptcy and give them your case number. If you keep getting calls, you should let your bankruptcy lawyer know right away.

4. I need to buy a new car. Can I take out a loan while I’m in Chapter 13? You’ll need permission from the court to take out any new loan while you’re in Chapter 13. If you absolutely need financing, call us first so we can take you through the steps of the process.

5. What do I do if I’m going to miss a payment? If you’re in danger of missing a Chapter 13 payment, or if you already missed one, call your bankruptcy lawyer. In some cases, we can work with the Chapter 13 trustee’s office to help you get caught up on your payments. Otherwise, we might be able to modify your plan. If you don’t get in touch before missing a payment, the trustee can move to dismiss your case. The most important thing is that you let us know in advance so we can prevent this from happening.

You’re probably starting to pick up on a trend here. If you have a question, call your bankruptcy lawyer. Most of the problems that come up with confirmed Chapter 13 plans can be avoided as long as we know about them in advance. But let us know in the comments below if you have other questions.

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