Thursday 30 May 2013

How Tax Relief Lawyers Help Tax Payers?

If you are facing a tax related problem it is very important that you hire the services of a professional tax relief lawyer. Among the tax professionals tax lawyers occupy the highest level having advanced knowledge of technical, and legal related tax issues and problems. In most cases people have basic or no knowledge of the tax laws. If you default on some of your taxes even unknowing you are likely to face action by the IRS. Having an experienced attorney by your side helps you get rid of the tax related problems. Here we shall take a look at some of the advantages that tax payers have in hiring the services of tax relief lawyers.

  • Expertise - It goes without saying that a professional tax lawyer will have expertise on the different areas of taxation laws. In the United States it is mandatory for such lawyers to be licensed by their state bars. Along with regular practice they also remain up to date with the regular changes and amendments in the Federal and state laws. This allows them to serve you in case such as when you owe taxes that you aren’t able to pay in one go or you have unfiled tax returns.
  • IRS Laws - There are situations where an individual can become a psychological victim of the highhandedness of the IRS. In such cases a tax relief lawyer will navigate you through the crisis in as they are aware of all the IRS hardball tactics and don’t fall victims to it. They can easily comprehend the actions that the IRS is going to take and they understand the severity of their requests. They don’t have any emotional attachment to the tax problem and can handle it in a calm and composed manner in favor of their clients.
  • Confidentiality - In most cases you might be skeptical about disclosing your financial and tax information to a person. You can be rest assured that anything you disclose to your tax lawyer or their staff stays confidential. Under no circumstances will a tax lawyer or his/her staff be forced to disclose information that you have provided them. Tax lawyers only disclose the information that is required to resolve your tax problem.
  • Negotiations - Last but not the least tax related problems often require negotiations and professional tax relief lawyers are known for their negotiating skills. This is a very important skill when it comes to negotiating with the IRS as there is ample scope of negotiation here. In fact there is no fixed line of negotiation and two individuals with similar cases can have different outcomes depending on the negotiation skills of the layers. A good lawyer will try and accommodate all your problems regarding tax payment with the lawyer.

A tax relief lawyer can provide you relief in true sense when you are facing problems with your taxation. They handle such cases on a day to day basis and can solve all your tax woes in a professional and time bound manner.

Contact AttorneyforBankruptcy.com for any assistance related to tax relief lawyers. Here you may hire most experienced san jose bankruptcy attorney.

Wednesday 29 May 2013

Consider Five Important Points before Hiring a California Bankruptcy Lawyer

Filing for bankruptcy is one of the most crucial financial decisions that you will ever take in your life. This is considered as the final effort to get rid of your debts. If you are planning to file for bankruptcy in California you need to hire the services of a professional lawyer. You need to carry out a detailed research on the lawyer before hiring his or her service. Here are five important things that you must consider while hiring the services of a lawyer.

  1. Expertise - You need to make sure that the lawyer has expertise on the different aspects of the bankruptcy laws. By expertise we mean that the lawyer should have thorough knowledge of all the Federal and the state laws. How many cases have they taken up in the past? What is their reputation in the market? You can ask for references from your friends and colleagues as this will help you zero in on an attorney who can bring some relief to your troubled financial situation.
  2. Reviews - What are people saying about the lawyer or law firm that you intend to hire. In an era where most information is available on your fingertips you can easily find out the reviews that a lawyer has got from his or her previous clients. Try and judge the skills of the lawyer reading such reviews. However don’t expect even the best of the lawyers not to have anything adverse about them posted somewhere. You need to use your own discretion in taking the final call.
  3. Free Consultation - This is another good way of finding out a professional lawyer. If the lawyer is insistent on charging you even for a consultation it would be wise to knock some other door. A professional lawyer understands the poor financial state you are in and won’t charge you for a consultation. Having a free consultation with your lawyer helps you understand the minutes of the filing procedure and also knowing what kind of discharge can you expect.
  4. Communication - In bankruptcy related situations you are not likely to be in your best state of mind. Hence you need the services of an attorney who lends you an ear each time you want to discuss issues related to your case. They should be willing to respond to your phone calls and emails immediately and offer you time whenever you want to meet him or her.
  5. Pricing - Another important thing that you need to consider is the pricing of their services. While some lawyers would charge you on an hourly basis there are others who have fixed charges of taking up your cases. You need to do some market research and find out the price of hiring a professional lawyer. It is important to keep in mind that lawyers who have a tested market record might come at a high price but they can tilt the case in your favor and hence hiring them is a sound financial decision.
This post is shared by Attorneyforbankruptcy.com, which a leading law firm of California. Here you can have detailed information on california bankruptcy lawyer and consumer dept consolidation

Wednesday 22 May 2013

What Is The Main Factor That Defines Wage Garnishment In San Jose?

One of the common ways for creditors to get back their debts is by using wage garnishment. It is a legal order, given by the courts that allow the creditor to directly contact a debtor’s employer and get the accumulated amount deducted directly from the salary or wage. The creditors are however not allowed to intercept more than 25% of the wage in a month. Wage garnishment is usually one of the last steps creditors take to get back their money. The California Wage Garnishment Act compulsorily states that all employers (whether private or public) will have to obligate a wage garnishment direction and garnish a certain percentage of the employee’s wage for debt collection. Wage garnishment can be used to pay pending credit card bills, child support amount and back taxes.

Few Defining Factors of Wage Garnishment in San Jose

  • Employee Termination After Wage Garnishment Direction - According to the state laws of California which are applicable to San Jose, an employer cannot terminate an employee because of a wage garnishment notification. This rule has been defined according to the Wage and Hour Division of the U.S. Department of Labor’s Employment Standards Administration. An employer has to honor two or more wage garnishment orders for any employee.
  • Percentage That Can Be Deducted - According to the state laws, an employee or even a creditor cannot garnish an employee’s entire paycheck in one go. A certain percentage, in this case, 25 percent of the wage can only be deducted. However, this 25% should be deducted from an employee’s disposable income only. Disposable income means any income that goes to the employee after deducting the several kinds of federal, state and local taxes, medi-care, social security payments etc.
  • On Matters Related to Alimony and Child Support – In San Jose there are certain restrictions imposed on alimony and child support too. If a debtor is supporting a child or a spouse that is not included in the order, the employer has the rights to garnish more than 50 per cent of the person’s wage. However, if it is found that the above condition does not hold truth the employer can deduct as much as 60% of the disposable income. The California state laws also have a provision where if the arrears exceed 12 weeks, an additional 5% can be deducted.
  • Penalties Levied on the Employer - Wage garnishment can only be applied after a legal notice by the courts. Thus an employer is not allowed to garnish wages without getting a legal notification. If it is found that an employer is garnishing wage without a legal procedure, the state laws that govern San Jose, has a provision where the employer can be charged of non-compliance. Thus the employer has to pay back the garnished amount to the employee and restore all deducted amount. If the employer doesn’t follow the state directives, the Department of Labor can put a fine up to $1000 and imprisonment up to a year.
Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced Wage Garnishment in California and bankruptcy lawyer san jose.

Tuesday 21 May 2013

Importance of Hiring Tax Relief Lawyers

All of us have to pay taxes under the federal regulations. It is our social responsibility to pay our due taxes to the Federal government and its agencies. If we fail to do so by intent or by sheer ignorance it is a punishable offence. However tax related laws are very complicated and often beyond the understanding of many of us. There are situations when we find ourselves in the bad books of the IRS and are on verge of inviting strict penalties. In such cases you need to immediately get in touch with tax relief lawyers. They have expertise in this field of law and help you solve your tax problems. Here are some of the ways in which a tax relief lawyer can help you

  • First and foremost a tax relief attorney would interpret the tax laws to you in a way that you understand them. This is a great advantage as you might have already gone through many of the tax laws without understanding much of it. Even if you understand what the law states the interpretation of the law may vary from case to case and having an attorney by your side is a great advantage.
  • There are chances that IRS might freeze your bank account and garnish all the outstanding tax amount from there. Here an attorney will prevent your account from being frozen and creating issues in your life.
  • The tax relief lawyer will calculate all the taxes that you owe in the right manner. This is very important as you might be slapped with an inflated tax payment notice without talking into account all the related factors to your case. The lawyer will also make you aware of all your rights in case the authorities are contemplating any form of action against you.
  • A lawyer will not only fight a case on your behalf if the need arises but he or she will also perform a number of other tasks. These include resolving your audit which you get from the IRS agency and also reduce fines that the IRS has imposed upon you. He also she will also help you in getting liens removed and in turn relieving you from the burden of huge taxes.
  • There are cases when the IRS might levy huge tax on your spouse. In such cases having a professional attorney by your side is of great advantage. They will offer immediate relief to your spouse and ensure they aren’t put in the purview of unnecessary taxation.

If you are planning to hire an attorney for tax relief cases you need to be extremely choosy as only IRS tax attorneys have the right and the mandate to handle such cases. A general law practitioner won’t be able to offer you as much help as a specialist attorney. Thus it is advisable that you consult with a professional tax relief attorney and discuss the details of your case with them. They will help you get over the problems with unnecessary taxes.

Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced Tax Relief Lawyers and bankruptcy lawyer san jose

Monday 20 May 2013

How Medical Facilities help to Avoid Overwhelming Debt?

Medical treatment can give a severe blow to your financials especially if you take what the service providers on their face value. We don’t want to spend huge sums of money on medical treatment as it can lead to overwhelming debt. Thousands of people have suffered from this problem of debt related to medical expenses. You might be wondering if there are any alternatives to this. Yes there are many alternative ways of taking treatment that can help you cut down on your medical bills substantially without compromising on the quality of medical treatment that you receive. Doesn’t it sound impossible? It might as you never thought on these lines. Let us throw light on some of the ways in which you can cut down on your medical treatment expanses.

  • Compare Prices - You aren't always in need of emergency treatment and hence have ample time to compare treatment prices from different providers of the medical facility. Ask for quotes from different service providers and you would be surprised to see the stark difference between the prices of different service providers. An MRI can cost between $400 and $2400 without any difference in the quality of the service. The fact is there aren’t any strict parameters for fixing prices of such facilities and hence it most medical institutes fix their own price arbitrarily.
  • Ambulatory Surgery Facilities - In case you are in need of any surgical procedure it is advisable that you opt for ambulatory surgery facilities instead of going to a big hospital. There are two advantages of selecting ambulatory surgery facilities – first they perform the surgery for much lesser price compared to a hospital. In some cases it might mean a saving of as much as 30-50%. Secondly they perform the surgery in much less time compared to a hospital that leaves you with ample time to recover.
  • Emergency Medical Rooms - If you have been hospitalized does your medical conditions require you to be kept in the emergency or critical care unit rooms? It is often observed that many individuals are housed in such environments even though they don’t require such kind of care for their normal health related issues. There are many hospitals that resort to this technique to inflate your medical bills. To cut down on the medical expanses you need to reduce or eliminate the use of emergency rooms for routine medical care. You might have to talk to your doctors regarding this issue.

These actions taken can definitely help you reduce some of your medical expenses and cut down on overwhelming debt problems. But there are cases where you are in need of periodic medical care and it also affects your professional life making it difficult for you to make ends meet. In such a scenario one of the most preferred options for people is to file bankruptcy. This helps in discharging some of the debt and starting with a new plan to manage medical expenses as well as debt.

Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced california chapter 13 bankruptcy attorney and medical bills bankruptcy

Friday 17 May 2013

What are the Chapter 7 Bankruptcy Penalties?

Chapter 7 bankruptcy is one of the most popular types of bankruptcy filings in the United States. Thousands of people rightly use this to get a debt relief from their creditors. It does save them from harassment from the creditors. However like all other chapters of bankruptcy this does have its downside. It can attract multiple penalties and before you file for bankruptcy under this chapter you need know the penalties that can come along with this bankruptcy chapter. Here in this short write-up we shall discuss some of the penalties that this chapter attracts.

It Can Affect Your Spouse

Though this isn’t common in some cases your spouse may be affected by your title 7 bankruptcy. The law in certain states such as Arizona, California, Idaho, Louisiana, Nevada, and New Mexico affects both you and your spouse. This happens when your spouse is responsible for your debt or is contractually bound to it such as when they co-sign or act as a guarantor to your debt. However you can definitely claim exemptions under certain conditions. Another way that it can affect your spouse is when they are using a supplementary credit card as these have the same account number as yours and they stand to lose the cards.

Poor Credit Score

One of the biggest downsides of filing for a bankruptcy is to do with your credit score. Once you have filed for bankruptcy it becomes a matter of public record and this will become a part of your credit score or in other words make your credit score poor. It will be listed against your credit history for a period of 10 years which worsens your chances of getting loan easily. Also you won’t be able to file for bankruptcy again for a period of 8 years after the initial filing. This might also lead you to losing your credit cards as the issuing company has the discretionary right to issue or deny you a credit card.

Properties and Assets Might Be Ceased

Once you have filed for the bankruptcy under chapter 7 many of your assets might cease to exist. This can include your property and vehicles. They might be liquidated by the trustee in order to make payments to your creditors. You might be allowed to keep some of your assets but this might vary depending on the jurisdiction of the state and amount of money that you owe to your creditors. You also need to keep in mind that this type of bankruptcy filing doesn’t relive you of certain types of debts such as alimony, child support, drunken driving debts, student loans and income tax debt which you will have to keep paying.

If you are planning to file a bankruptcy under Chapter 7 you need to get in touch with an attorney who specializes in this field. He or she will guide you through the entire process of filing for a bankruptcy and also seek maximum exemptions for you.

This post is shared by Attorneyforbankruptcy.com, which a leading law firm of California. Here you can have detailed information on San Jose Chapter 7 Bankruptcy Lawyer and Wage Garnishment California Law

Wednesday 15 May 2013

How to Get the Best Solution for your Tax Problem?

The IRS has become very vigilant with the law and any person not paying taxing on time or not filing their taxes will see the hard faces of the IRS officials in no time. If you are having a tax problem and fear that the IRS or the local and state taxing authorities may come after you, consult an attorney in your state immediately. It is never advisable to sit with your problems. If you close your eyes and can’t see the world, the world (in this case the rightful authorities) do not stop seeing you – so stop ignoring your problem and consult an attorney who will have a solution that best suits your tax problem.

There are several tax problems you might face. Before you look for a solution, it is best you understand what these problems are-

  1. Non-filed Tax Returns - It is a criminal offense to not file tax returns on time. According to the law, you can be jailed for a minimum of one year if you do not file your tax returns on time. This is a serious problem that demands your immediate attention. However, if your financial situation is such that you are unable to pay the government and that is why you are delaying with the payments, do not worry. Consult an attorney and show him your financial holdings. Remember that if you file your tax return, you will be able to show exemptions and deductions that can reduce your tax liabilities. But if the IRS files the tax on your behalf, they will not look into your advantages but only the government’s.
  2. Owing Back Taxes - Filing for tax returns isn’t the end of the story. If you have been pending your tax payments year after year saying that next year is going to be good and I shall pay my taxes then, you are making one of the biggest mistakes possible. In 3-4 years, the IRS can send you a letter where it will be mentioned that you have to pay three to four times more of the original tax amount because of the accumulating arrears. Tax penalties and interest can add up very fast making your back taxes increase. So before you get such a notification from the IRS, deal with the back taxes and consult an attorney.
  3. IRS Liens and Levies - An IRS lien can take away everything you own. The IRS has the right to establish a lien against you which gives them a legal right to seize your assets, especially real estate and sell them as and when deemed necessary. Liens are also reflected in your credit report. IRS levies on the other hand have the power to seize your wages, stocks, bonds, Social Security Checks etc. However the worst is wage garnishment where your wage directly goes to the IRS. To come out of these problems you need to release the levies and liens. Your aim should be to come even with the IRS and reach a settlement where both gain rightfully.
This post is shared by Attorneyforbankruptcy.com, which a leading law firm of California. Here you can have detailed information on california bankruptcy lawyer and Tax Attorney san jose

How does an Individual get Free from Taxes Through Bankruptcy?

Taxes are compulsory payments that every citizen of a country has to make to his government. However, many times, due to unforeseeable reasons, individuals cannot pay their taxes on time. At the same time, if they are hit by a financial crisis where they have to declare bankruptcy, things only seem to go bad. If you are wondering whether filing for bankruptcy will give you any respite from paying pending taxes, then there is some good news for you. Under certain clauses of the US Bankruptcy Laws, an individual can get rid of their taxes through bankruptcy. There are two possibilities than can happen under bankruptcy - either an individual is discharged of taxes or they get the time to repay the tax on a 0% interest within a time duration lasting 3-5 years.

For taxes to be discharged under bankruptcy, it is very important to understand whether the taxes fall under priority or non-priority debts. If the tax falls under a non-priority debt, then the IRS can discharge all the taxes. But if the tax falls under a priority debt then neither can Chapter 7 or Chapter 13 be used to wipe it out. But to determine whether your tax falls under the priority or non-priority debt, you have to pass through the following three steps.

Step 1

For a tax to be listed under non-priority debt, it has to be 3 or more years old from the date of filing your bankruptcy. In simple terms it means that if you are filing your tax on May 2013, the tax should be dated at least May 2011 or earlier. If you fulfill this criterion, your tax could be listed under non-priority debt but not before completing the other steps.

Step 2

For a tax to be a non-priority debt, it has to be filed at least two years before the day of filing bankruptcy. But if the tax for a particular year wasn’t filed, that tax cannot be discharged. Furthermore, it should be understood that if IRS files the tax return on behalf of the tax payer, this step will not be applicable.

Step 3

The final step that can determine your pending taxes criteria is tax assessment. Tax assessment should be done 240 days before the date of filing for bankruptcy. Though usually the tax assessment happens immediately after the tax has been filed, if there is some mistake found in the calculations by IRS, the 240-day cycle will start afresh. The assessment period (of 240 days) may be paused if you have entered a repayment plan with the IRS. This is the most difficult step as many fail to pass the 240 days tax assessment period. It is always best to consult a reputed tax attorney in your state and under the law first-hand.

Though you can get free from taxes through bankruptcy after you have passed the above mentioned three steps, the bankruptcy courts are very strict on cases of fraud and tax evasions.

This post is shared by Attorneyforbankruptcy.com, which a leading law firm of California. Here you can have detailed information on wage garnishment california law and consumer debt consolidation

Monday 13 May 2013

Chapter 7 Bankruptcy and its Requirements in California

There are situations where all other means of repaying debt fails and you are only left with the option of bankruptcy. Under the laws in California an individual, married couple or business partnerships can file for Chapter 7 bankruptcy to clear all their outstanding debt. To file for bankruptcy under Chapter 7 you will need to meet some basic requirements and we shall take a look at these requirements under the laws in California.

Residency

First and foremost bankruptcy requirements in California state that in order to file for bankruptcy and to qualify for state exemptions the person concerned must prove that he or she has been a resident of the state of California for the past two years.

Means Testing

This test is done to verify if a person is really in need of bankruptcy filing. This test is borrowed from the Federal bankruptcy. Under this test a median income for households in the state of California is compared against the person filing for bankruptcy. This median income keeps on changing from year to year. According to the latest figures the income for an individual is $57,287 while that of a family is $61,455. In case the debtor’s income is below the median state income he/she qualifies to file for Chapter 7 bankruptcy.

Credit Counseling

Apart from meeting the requirements the person must also take approved credit counseling and complete any pending state and federal tax returns. The credit counseling course should be approved by the United States Trustee's office. Under this you are educated about your options about repayment under the bankruptcy laws.

Statement of Financial Affairs

Once your eligibility for this kind of bankruptcy filing has been determined the debtor has to complete a Statement of Financial Affairs. In this statement one needs to submit details of all assets and outstanding debts. Here one must clearly mention the names and addressed of all the creditors. Any intentional or unintentional omissions from the list can result in bankruptcy fraud. Once you have completed the Statement of Financial Affair the law puts in an automatic stay on all your outstanding debts. This prevents the creditors from collecting debts and call in the individual.

Seek Exemption Based On Your Case

Under the laws in California there are two exemption plans that you can take benefit from are Chapter 704 and Chapter 703. However one cannot combine the two parts together. There are several things that are considered for exemption including your assets, homestead, wages, insurance and debts such as alimony and child support. Under Chapter 704 married couples can seek double exemption while Chapter 703 which is closer to the Federal law doesn’t offer you double exemption. Chapter 704 also allows you to keep as much as 75% of your wages earned within 30 days of filing for bankruptcy.

It is advisable that you hire the services of a professional bankruptcy attorney who will guide you through the different stages of filing bankruptcy under Chapter 7.

Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced san jose chapter 7 bankruptcy lawyer and san jose bankruptcy lawyer.

Friday 10 May 2013

How Medical Bills Can Create Bankruptcy?

It is quite surprising to find that most middle-class, educated Americans having health insurances for themselves and their family file for bankruptcy due to their accumulating medical bills.

Till about 8-10 years ago, this phenomenon was not out in the open and medical problems were not considered one of the reasons for bankruptcy. But every year, new statistics are showing that illness and consequent loss of job have become the reason many well-to-do families file for bankruptcy.
So where is the problem? What has been the result that 62 per cent Americans are filing for bankruptcy for medical reasons (according to a study in American Journal of Medicine published in 2009)?

Health Insurances Doesn’t Covered It All
In the modern day, almost everyone makes a health insurance. Unfortunately with so many loopholes in the system, these health insurances do not really cover a person or families health-related expenditure. For example, a health insurance doesn’t cover physical therapy, prescription drugs and psychiatric care. Moreover, in the last recession when many Americans lost their jobs, their health insurances were automatically scrapped making them fall into a deeper pit.

Can Bankruptcy Be Avoided For Medical Debts?
Fortunately, there are a few ways bankruptcy can be avoided in cases of medical debts. To make this happen, individuals have to first negotiate with their healthcare providers for forgiveness and discounts in repayments. Moreover, if hospital bills can be limited, especially for the uninsured, bankruptcy can be avoided. Another way of avoiding bankruptcy is to get charity on medical bills.

The Affordable Care Act that is to come into effect in 2014 has provisions that can lower medical debt. This Act, also being called the Obamacare will help people not file for bankruptcy in cases of medical emergencies. It is being hoped that with the Act being rightly used, there will be lesser cases of bankruptcy.

Provisions Under Chapter 7 for Medical Bills
Chapter 7 liquidates all your assets and repay your debts in one go. Under Chapter 7 bankruptcy, medical bills are considered unsecured debts much like credit cards. Since they are unsecured debts, they can be completely wiped out and you will be discharged of your medical bills. However, if your treatment is still going on, it is best to let your debt accumulate so that you can file for bankruptcy in one go. You would not want to acquire new debt right after filing your bankruptcy.

Provisions Under Chapter 13 for Medical Bills
Chapter 13 lets you reorganize your financial situation allowing you to repay your debts for a period of 3-5 years. Medical bills are considered as unsecured debts even under Chapter 13 and thus can be discharged. However to get your medical bills discharged you will have to first pay off your secured debts under the repayment plan.

Conclusion
It is true that medical emergencies not only hamper the health but the finances too. To steer out of it consult a reputed attorney who can understand your problem and find a plausible solution.

Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced california chapter 13 bankruptcy attorney and medical bills bankruptcy.

Thursday 9 May 2013

Mistakes in Filing Bankruptcy - Avoid Them!

Bankruptcy can be filed intelligently with the help of an attorney. Filing for bankruptcy is not as bad as it seems. If you know when and how to file bankruptcy, you can well be out of the crisis in a few years without having to flesh out a lot of money. But if you make a mistake while acquiring your debts or while filing for bankruptcy, the US laws can give you nightmares you wouldn’t want to think of. Listed below are five mistakes you can avoid while filing for bankruptcy

  1. Do Not Overuse Your Credit Card - Once you find that your financial condition is in a mess and you need to file for bankruptcy, you should stop using your credit card. This is one of the things that people do not do while filing bankruptcy. If your credit card reflects that you have made luxury purchases amounting to $500 in the last 90 days of filing bankruptcy, they will be considered as non-dischargeable fund. It should also be remembered that cash advances of $750 used within 75 days of filing bankruptcy will also be considered as non-dischargeable fund.
  2. Trying To Solve Problems Yourselves - It is human tendency to first fall into a deep pit and then trying to scramble out and solve the problem. But when your problem is financial and you realize you have fallen deep, do not make the mistake of trying to solve the problem yourself. Consult a bankruptcy attorney and file for bankruptcy without wasting time.
  3. Liquidating Retirement Account - It is a big mistake to touch your retirement account in an attempt to clear debts. The retirement account is one thing which remains protected in most circumstances under bankruptcy. The bankruptcy laws protect retirement assets under exempt items so do not touch it and weaken your case.
  4. Making the Mistake of Transferring Your Property - If you think you are doing yourself a big favor by transferring your property into someone else’s name and stalling bankruptcy, you are hugely mistaken. However, a bankruptcy trustee can help undo the mistake if you had done so to hid assets from creditors. However, this can only work if the transfer happened within four years of filing for bankruptcy.
  5. Hiding Facts from your Bankruptcy Attorney - A common mistake many debtors make while consulting an attorney is hiding information. While many think that the lawyer will not understand the problem or by hiding information you can save some items from being liquidated, in most cases the opposite happens. If you hide facts from your attorney you are only weakening your case. He is the best person to understand your problem and it is his duty to find the appropriate solution for you.

While you try avoiding the above mistakes, you should also make sure that you are not ignoring any lawsuit against you while filing for bankruptcy. Ignoring lawsuits are not taken lightly by bankruptcy courts.

Contact AttorneyforBankruptcy.com for any assistance related to medical bills bankruptcy and to hire tax attorney in california.

Wednesday 8 May 2013

California Chapter 13 Bankruptcy Attorney

Filing a chapter 13 bankruptcy can be as easy or as tough as you make it. If you have an experienced California attorney with you, you can end up saving a lot of money while filing bankruptcy. But if you get the help from some small-time and inexperienced attorney, your case could weaken without your knowledge. But before anything else, it is very important that you understand what Chapter 13 bankruptcy is and how an attorney can help you with the bankruptcy process.

Key points About Chapter 13 Bankruptcy

  • The Chapter 13 bankruptcy is also referred to as the individual debt adjustment chapter as it allows debtors to forego some debts and repay most in a readjustment plan lasting 3 to 5 years.
  • You will need to have a regular income before you file for Chapter 13 bankruptcy. From the regular income, you will have to first meet your daily expenses and then repay debts according to a schedule set by the bankruptcy courts.

  • Hiring an experienced bankruptcy attorney is very important as he will be the person who will make the repayment plan after understanding your present financial condition. The attorney will plan for repayment in such a way that it covers most or all of your debts without making things difficult for you.
  • Once you have filed for Chapter 13 bankruptcy, the creditors cannot directly contact you for debt repayment nor can they make any plans to collect pending debts.
  • After your repayment plan is approved by the court, you do not directly pay the creditor. The monthly remuneration goes to a court-appointed trustee who then distributes the amount to the creditors. This process ensures that the creditors cannot contact the debtor directly.
  • In case you are unable to meet the repayment plan in the designated 5 years because you lost your job or do not have any stable income, your Chapter 13 can be converted into Chapter 7, the case can be dismissed or your debts can be discharged. You should always be prepared for the worst and keep in touch with your attorney.
  • An experienced California attorney will help you get the credit counseling that needs to be completed within 180 days before filing for bankruptcy under Chapter 13.
  • Lastly, it should be remembered that you have to pay an administrative fee to the court when you file for Chapter 13 bankruptcy. Apart from this the attorney will have his separate charges.

Considering all the above points, it can be said that Chapter 13 is a good answer for any debtors who have the possibility to repay their debts but need time. The right approach can only be decided by a California attorney. Choose an attorney you can trust blindly and with whom you wouldn’t hesitate to hide any information. While looking for a California attorney it should also be remembered that a firm which charges huge fees may not be the best. There are several attorneys in California who come cheap yet are extremely trust-worthy.

Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced california chapter 13 bankruptcy attorney and tax attorney san jose.

Tuesday 7 May 2013

New Debt Limits of Chapter 13

Chapter 13 is one of the most used chapters for filing bankruptcy. Though it is a tricky chapter, many debtors have no option but to use this chapter when their income doesn't allow them to file bankruptcy under Chapter 7. On the other hand, there have been many instances in the past where people could not use Chapter 13 due to its high debt limits. The good news is that recently, Section 109 (e) of the Bankruptcy Code has set new debt limits which went into effect from April 1, 2013. The new debt limits will now allow more people to file for bankruptcy under Chapter 13.

What are the New Debt Limits for Chapter 13?

The debt limit that was prevalent till 30th March, 2013 was $360,475 for unsecured debt and $1,081,400 for secured debts. But according to the new directions under Section 109 (e), for all cases filed on or after April 1, 2013 will now be $1,149,525 for secured debts and $383,175 for unsecured debts. All the debts are in terms of non-contingent and liquidated debts. Secured debts are mortgages or car loans that have been ‘secured’ during purchase. Unsecured debts on the other hand include almost everything else.

What Are Non-Contingent, Liquidated Debts?

Non-contingent debts are liabilities that you already owe on the debt. This could include your regular house payments and car payments. On the other hand, a contingent debt is an obligation that you are not liable of unless you agree upon in the future. Meanwhile, liquidated debt is a liability where the amount you owe can be easily determined.

It is important that all debtors understand the meaning of non-contingent and liquidated debts as if you do not clearly understand the distinctions, you could easily fall into a difficult trap. Thus it is not just enough to understand what are secured and non-secured debts.

What If Your Income Exceeds the Debt Limit?

There are several reasons to file for a Chapter 13 bankruptcy. Many prefer to file for Chapter 13 to catch up with mortgage arrears, get rid of any lien on property or your income doesn’t allow you to use Chapter 7. But unfortunately under the new debt limit, if your debt amount is more than what has been laid down by the law, you will have to forget about Chapter 13 and either opt for a Chapter 11 bankruptcy (used for reorganization of businesses, corporation and individual proprietorship) or Chapter 7 (liquidation laws). Though Chapter 13 is more expensive and risky and Chapter 7 gets rid of your secured debts, you do not have an option but to use one of them because you are not eligible under Chapter 13.

Conclusion

The new debt limits can be seen as both good news and bad news. Its good news for people who want to file for bankruptcy under Chapter 13 and bad news for those whose debt amount is high and thus cannot use Chapter 13 for filing bankruptcy. It is advisable that you consult an attorney before using Chapter 13 for filing bankruptcy.

Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced california chapter 13 bankruptcy attorney and tax relief lawyers.

Monday 6 May 2013

How to Discharge Taxes in Bankruptcy?

One of the reasons why you could file for bankruptcy is to discharge your taxes. There are several state, federal and local income taxes that can be discharged under the various chapters of bankruptcy. However, discharging taxes under the chapters of bankruptcy isn’t as easy as it seems. There are several things that need to be understood before anyone tries to discharge their taxes using bankruptcy. Before you decide on filing for bankruptcy for discharging your income taxes, consult an attorney in your state who specializes in bankruptcy. The three chapters on bankruptcy – Chapter 7, Chapter 11 and Chapter 13 have different clauses for discharging taxes and only an expert can give you the right method.

While the law does allow debtors to discharge several taxes under bankruptcy, not all income taxes can be discharged. There are certain criteria that you have to meet to be eligible to let go of tax obligation under bankruptcy laws. The five considerations are mentioned below -

  1. Return Due For Three Years - If you want to discharge your income taxes, they will have to be due for at least three years before the time of filing bankruptcy. If the tax payer received an extension from the state (which is not uncommon), the time of filing a bankruptcy will automatically be from the date of extension.

  2. Return Filed Two Years Ago - This is often called the 2-year rule where the tax payer must have filed his income tax returns at least two years from the date of filing for bankruptcy. This means that a person has to file the tax forms at least two years before filing for bankruptcy. However, if a person doesn't file for a return even after it is due in a tax year, the tax for that year cannot be discharged or shown under bankruptcy. It must be remembered that if the IRS files the return for the tax payer, it will not come under this rule.

  3. Tax Assessment Done 240 Days Ago - Under the 240-days rule, your taxes must be assessed at least 240 days before you filed for bankruptcy. Usually the IRS assesses your tax returns as soon as you file your returns. However, if you seek a correction in the IRS audit, the 240-day cycle starts afresh from the day of the new assessment.

Even after you meet one or all the three considerations mentioned above, you have to understand that not all taxes can be discharged under bankruptcy. Exceptions include -

  • Filing Fraudulent Returns or Evading Taxes - If the IRS finds that you have used fraudulent methods to pay your taxes, you cannot discharge your taxes. At the same time, if it is found that you have willfully tried to evade tax, you are not eligible for discharge.

  • Other Taxes - While income tax can be discharged under bankruptcy, several other state, federal and local taxes cannot be discharged under bankruptcy.

  • Tax Liens - A tax lien is not included under discharging income tax. You will continue with your tax lien that can include lien against property during the process of bankruptcy.

Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced san jose chapter 7 bankruptcy lawyer and tax attorney san jose.