Call to schedule a consultation(763) 398-1676

 

"Small Town Attention....To BIG City Problems."

"Small Town Attention....

                 To BIG City Problems."

"Small Town Attention....To BIG City Problems."
mobilephone

Call to schedule a consultation 763-398-1676

Kelsch Law Firm Legal Blog

Bringing you the latest and most informative legal information.

Change Orders

 

Change can be difficult. This can be especially true in residential construction where projects can veer off course when a contractor encounters an unforeseen obstacle that may cut into his profit margin, or when an owner requests an oral change and later refuses to pay for the extra work, claiming that it fell within the parameters of the original contract. This type of unfortunate scenario can be extremely difficult to sort out because of the “contractor said, owner said” nature of the conflict.

Continue reading
  1392 Hits
  0 Comments
Tags:
1392 Hits
0 Comments

Pesky Uncle Sam: Tax Treatment in Chapter 11 Bankruptcy

Pesky Uncle Sam: Tax Treatment in Chapter 11 Bankruptcy

Uncle Sam, of the U.S. Treasury, is a pesky and persistent “family member” who inserts himself into every conceivable financial affair. Impossible to shake, his needs must be satisfied.  If not, he can make life extremely difficult.  Understanding tax treatment in Chapter 11 Bankruptcy is critical because of the stringent tax debt payback requirements imposed by Uncle Sam.

Why Is Tax Treatment Important in Chapter 11 Bankruptcy?

More often than not, persons (individuals, partnerships, and corporations) who are considering Chapter 11 bankruptcy relief have significant issues with Uncle Sam.  Tax obligations are typically the most tempting not to pay because neglecting to do so usually does not result in immediate shutdown of business operations, unlike non-payment of trade debt where creditors can disrupt or bring a screeching halt to business affairs. Those contemplating Chapter 11 must understand how tax debt is treated in the bankruptcy case because failing to account for this debt treatment could derail the entire reorganization effort before it even gets a solid footing on the track.

Continue reading
  2981 Hits
  0 Comments
2981 Hits
0 Comments

Stripping Away Burdensome Mortgage Debt

Stripping Away Burdensome Mortgage Debt

Lien stripping is a process available to debtors in bankruptcy that can remove junior mortgage liens on residential property, freeing property from burdensome mortgages that exceed the value of the property.  After a lien strip, a homeowner is only obligated on the first mortgage, i.e. the mortgage having the most senior priority, which typically is the mortgage that was taken out first.  The junior mortgage debt is wiped out.  Lien stripping is a great option for those homeowners who want to remain in their home, whose first mortgage balance is not too much higher than the home value, and who can afford payments on the first mortgage.

Continue reading
  4175 Hits
  0 Comments
4175 Hits
0 Comments

Myths about personal bankruptcy

Myths about personal bankruptcy

We all have preconceived ideas about consumer bankruptcy, but the most common stereotype of bankruptcy doesn’t stir up a lot of sympathy for most of us. We picture a young, reckless American adult, privileged and unschooled in smart spending and saving, who has racked up credit card debt through frivolous living (picture: vacations, fancy cars, a mortgage they can't afford) who is suddenly reduced to eating Ramen noodles, pawning valuables, and asking friends to foot the bill at restaurants. We see their demise and think, well, that serves you right. 

Continue reading
  8233 Hits
  3 Comments
Tags:
8233 Hits
3 Comments

Newspapers rarely announce your personal bankruptcy

bankruptcy-news

Perusing the Star Tribune this morning, I came across a short article listing several local business bankruptcies. 

Consumers who are considering filing Chapter 7 or Chapter 13 bankruptcy often worry about the publicity of bankruptcy. Everyone is going to find out, they think. 

Continue reading
  6541 Hits
  0 Comments
6541 Hits
0 Comments

How does a bankruptcy like Hostess's affect the economy?

hostess-cupcake

Many major news outlets like The Washington Post and Reuters keep tabs of all the well-known businesses who are currently filing for bankruptcy. Their journalism makes high-profile bankruptcies become hot news items.

One example of this is Hostess's bankruptcy. In 2012, the company received permission in bankruptcy court to liquidate its assets and has since garnered interest from other companies who wish to buy the business. This past weekend, one of Hostess’ creditors - Silver Point Capital - and hedge fund Hurst Capital expressed interest in purchasing Hostess’s snack cake brands (including the famous Twinkie brand). The company has already sold its Wonder Bread and Beefsteak bread brands, to name a few. 

Most Americans learned about Hostess’s bankruptcy almost immediately – and many of us continue to follow with a bit of interest. Why is this? The publicity of the bankruptcy comes partly because Hostess has been a part of many American’s lives since childhood. It is a company with deep American roots and a long-standing presence on grocery stores shelves.

But the other factor is that whenever a company goes out of business, the economy is affected.

Continue reading
  14205 Hits
  0 Comments
14205 Hits
0 Comments

We are also here: LinkedIn Today