We are well educated and qualified attorneys, with over 25 years of experience, helping people, both consumers and small businesses, file for bankruptcy relief and tax relief, to stop foreclosures, eliminate debts, deal with the IRS and property tax debts, and providing the financial fresh start our clients need.
Get the Facts about Bankruptcy & Tax Laws
Bankruptcy Option:
Chapter 7 is commonly referred to a Liquidation bankruptcy. Chapter 13 is commonly referred to as a Reorganization and Reduction of debts. It is used for individuals who have gotten behind on the payments on their homes, and cars, or both.
For individuals that file either Chapter 7 and 13, it provides for the elimination of credit card debt, elimination of medical bills, stops collection efforts and telephone harassment from creditors, and stops lawsuits.
Frequently asked questions:
Most clients begin with these ten (10) frequently asked questions:
1. What property do I keep and lose if I file a bankruptcy case?
Most people keep their home, their cars, and their personal possessions, like their furnishings inside their home and garage, their clothing, their jewelry, collections, books, retirement accounts, and pets. All of these items do have limitations, but most of my clients find that these limits still enable them to keep their personal property.
You may, but not always, lose the extra car, a lake lot, a savings account, stock certificates, or other non-exempt property. We will need to look at ALL of the property and your individual circumstances to determine what you may possibly lose.
2. What is the difference between a Chapter 7 and Chapter 13?
In the simplest answer, a Chapter 7 allows you to file a case and be relieved of debts in a short period of time. Whereas, Chapter 13, requires that you make a monthly payment to the Trustee in order to pay some of your debts. The different Chapters provide different protections for people who need to catch up on back mortgage payments, or car payments, and may be determined by the amount of your gross income.
3. What will this do to my credit score?
In my practice, we have found that your credit score improves after the first year of the anniversary of your filing a bankruptcy case.
4. Will filing a bankruptcy case stop lawsuits?
When you file a case, bankruptcy law immediately puts in place an Automatic Stay provision that protects you from being sued by any creditor for debt.
5. If I'm married, can I file a case by myself without my spouse?
You are allowed to under the Bankruptcy rules to file a case by yourself. The debts may have been created by only you, and your spouse was not a party to the credit agreement.
6. Can I file again, if I already filed in the past?
Most people are not prohibited from filing a second, or third, or however many cases, even if they have filed a bankruptcy case in the past. We will have to look at the rules for repeat filings, and apply those rules to your particular case.
7. What is the Means Test?
First, it’s not something that you pass or fail, it’s a guideline, for gross income earned, and for allowable deductions from income, to determine whether you are qualified to file a Chapter 7 case, and a determination to set the Chapter 13 Plan at either 3 or 5 years.
8. Can I get relief from Student Education Loan or Taxes?
At the current time, Student loans and most Taxes are not dischargeable in bankruptcy. Some taxes are forgiven, so we will have to look at your type of tax owed.
9. How long does it take for the process?
Commonly, most Chapter 7 cases are a few months in duration, and Chapter 13 cases range from 3-5 years.
10. Are Judgments take care of with a bankruptcy?
A judgment for an unsecured debt, like a credit card, or a repossessed vehicle debt, foreclosed home sale, are taken care of by the discharge in bankruptcy. Other judgments for criminal or administrative debt are not dischargeable.
Judgments: release & removal
Common Judgment problems:
1. CLOUD ON TITLE of your Homestead Property
If you own a home, a judgment can cloud the title on your Homestead. In Texas, your homestead is protected by the Texas Constitution from a forced sale of the property from this type of creditor, however, it will make it near impossible for you to ever sell or refinance your home if a judgment is not released and removed from the property.
2. GARNISH, FREEZE, OR TAKE control of your Bank Account
After a judgment is taken, the creditor can garnish and take from your bank account, even months or years later.
3. SEIZE "NON-EXEMPT PROPERTY"
A creditor that has taken a judgment against you can seize your non-exempt property and sell it. Usually, a judgment creditor will obtain a Writ of Execution from the Sheriff's office to allow the search for non-exempt property that can be seized.
4. CREDIT REPORTING of Judgments
A judgment is reported as a Public Record, normally at the very top of the listings of bad credit history on your credit report. Judgments are devastating to a credit report score. Although most bad debts are removed from your credit report within 3-7 years, a Judgment remains for 10 years, or more, if it is renewed.
JUDGMENT SOLUTIONS:
Fight the lawsuit BEFORE the creditor takes a judgment;
Settle the Debt before and after the Judgment is taken;
File for Bankruptcy Protection, eliminate debts and judgments.
tax claims:
Priority, Secured, Unsecured, Payroll taxes: Each type of tax claim is handled differently under the Bankruptcy rules.
IRS TAX COURT Options:
Payment Plans, Offers in Compromise, Uncollectible Status, and Dismissal of Tax Liability.
A settlement of your tax debt is obtainable, with no or minimal loss of assets.