Bankruptcy and Tax Debt
As a general rule, you cannot discharge back taxes in bankruptcy. Certain income taxes, however, can be discharged under limited circumstances...
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Can I be Fired for Filing Bankruptcy?
Employers are not permitted to take adverse action against their employees who file for bankruptcy. Debtors are protected by 11 U.S.C. sec. 525(b). Section A applies to governmental units and Section B applies to private employers. In all my years of practice, I have never had to bring an action or even threaten to bring an action under Section 525. Most employers understand the stress their employees are under and are not insensitive to their plight. More people have filed for bankruptcy than you think...
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Credit Cards After Bankruptcy
A common question is whether or not a debtor can keep a credit card after filing for bankruptcy protection and do I have to list the cards I want to keep. If you owe a balance at the time the bankruptcy petition is filed, you must list the debt. This applies regardless of the amount of the debt. If you are worried that you cannot live without a credit card there are a few options. A credit card with a zero balance does not need to be listed and can be used after you file the bankruptcy petition. If you have a card with a low balance, you should pay it off before filing for bankruptcy. However, be careful not to use balance transfers to pay off the card as the transaction could be undone by the trustee or challenged by the creditor if it is determined that the transfer was fraudulent. It is not worth risking a discharge to save a credit card...
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Do I Need Debt Relief or Bankruptcy?
The Federal Trade Commission has created guidance for consumers on whether debt relief or bankruptcy may be right for them.
Debt got you down? You’re not alone. Consumer debt is at an all-time high. Whether your debt dilemma is the result of an illness, unemployment, or simply overspending, it can seem overwhelming. In your effort to get solvent, be on the alert for advertisements that offer seemingly quick fixes. While the ads pitch the promise of debt relief, they rarely say relief may be spelled b-a-n-k-r-u-p-t-c-y. And although bankruptcy is one option to deal with financial problems, it’s generally considered the option of last resort. The reason: its long-term negative impact on your creditworthiness. Bankruptcy information (both the date of your filing and the later date of discharge) stays on your credit report for 10 years, and can hinder your ability to get credit, a job, insurance, or even a place to live.
For more information, please visit their website at: https://www.consumer.ftc.gov/articles/0084-debt-relief-or-bankruptcy
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Filing for Bankruptcy Without an Attorney
Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent themselves in bankruptcy court. While individuals can file a bankruptcy case without an attorney or "pro se," it is extremely difficult to do it successfully...
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Garnishments and Bankruptcy
What is a garnishment? A garnishment is basically a legal collections tool where a creditor obtains a court order compelling an employer to withhold a portion of an employee’s wages. The amount that can be withheld is capped at 25%, however, the percentage may vary depending on the state issuing the garnishment and the type of debt. The cap applies to all creditors, meaning 25% is the most that can be withheld at any one time. Garnishments, however, are not limited to wages and can involve one time garnishment of bank accounts or personal property. Whether or not bank accounts, personal property or tax returns can be garnished will depend the individual state. Regardless, garnishments are usually not the first option for creditors and they usually take several months to process during which time you will be notified of the proceedings and have the opportunity to object to the garnishment...
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Tax Issues with Credit Card Settlements
Be careful if you settle any credit card debts before filing bankruptcy because you may convert a debt that is dischargeable in bankruptcy into a non-dischargeable debt...
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Understanding Bankruptcy Video - English
Please view our Understanding Bankruptcy Video in English below.
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Understanding Bankruptcy Video - Spanish (Espanol)
Please view our Understanding Bankruptcy Videos in Spanish (Espanol) below.
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