Tag : Taxes & Bankruptcy

You cannot spend your way to wealth, unless it’s a debt elimination plan. If there was a magic pill to getting rich, you would think that more people would be taking it, but that simply isn’t the truth.  The truth is that most people have and hold very high moral values and want to fulfill […]

Do you owe taxes?  Many who do find themselves facing federal income tax collections and incur penalties, fines, bank levies, or even tax liens when the IRS pursues collections.  Did you know that some taxes can be eliminated and discharged through bankruptcy?  Did you know that bankruptcy can potentially remove tax liens? There are Five […]

Are you one of those people that gets a large tax refund every year and you pay bills; or take a vacation with it?  You’re providing the federal government with a free, no interest loan on YOUR money if you do. MSN posted this article, How to Adjust your Tax Withholdings, which provides a step-by-step […]

I know what you’ve been told because I have heard it all too.  The government wants you to do your very best to avoid bankruptcy at all cost.  Bankruptcy is bad; or at least, a harsh remedy to dealing with debt, and should be your last resort.  We have all bought into this ‘agreement reality’ […]

Let’s talk about your retirement accounts as they relate to your decision to file for bankruptcy.  There are many varieties and vehicles for retirements savings that include pensions, 401k, 403b, IRA and Roth IRA accounts.  Perhaps there are others that I am not aware of.  As I have said before, DO NOT CASH OUT YOUR […]

The only reason you should negotiate directly with your creditors, is to avoid bankruptcy.  Remember that working with debt settlement companies is both costly and detrimental to your finances and will likely land you in my office filing for bankruptcy.  If you want to avoid bankruptcy, work directly with your creditors for an agreement on […]

The November, 2009 issue of ABA Journal article entitled, The Bad-Debt Blues, explained the need to take federal taxes into consideration when restructuring debt as, “crucial.”  The article provides an excellent overview of the federal tax rules that apply to debt workouts, and focuses on the impact to individual debtors. The recent media blitz touting […]

Generally, taxes are treated the same as other debts in a chapter 7 bankruptcy case.  Taxes may be treated as secured, unsecured, or non-priority unsecured, or some combination.  IRS Code, found in 26 U.S.C. 6321, states that the government is secured if it has recorded a notice of lien.  Taxes that have been recorded as […]