• Atlanta bankruptcy lawyer

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Navigating debt issues can be confusing. We have comprised a list of commonly asked questions which pertain to debt settlement and bankruptcy.

Got questions? We have answers.

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I have already filed bankruptcy once. Can I file again?

Yes! You can file a Chapter 7 case once every eight years and a Chapter 13 at any time. Our staff can look any prior case filings are make sure all options are presented to you.

How does a bankruptcy stop foreclosure?

The word foreclosure scares most of us. You need a place to live and the threat of losing that security is frightening. Especially if you have a family that depends on you.

Although there is a lot of talk about loan modifications and government assistance to help Americans stay in their homes the help is often too little, too late.

Unlike many states, Georgia is a non-judicial foreclosure state which means that a lender can foreclose on your home in a short amount of time (usually within 30-60 days of the notice).

Filing for bankruptcy protection can offer you the ability to stop the foreclosure IMMEDIATELY no matter what your final plan may be with the property. As long as you have not had more than one bankruptcy in the last 12 months, filing bankruptcy will evoke the automatic stay of 11 U.S.C. That means that all foreclosure proceedings must be stopped because to proceed would violate federal law.

Lastly, in difficult times likes these many “scam” companies are emerging telling people that for a small fee they can stop the foreclosure by claiming that the lender really doesn’t hold the orginal mortgage deed. So far, this argument RARELY works and the foreclosure will proceed as scheduled.

Contact us today at 404-889-8663 or fill in the contact information below to explore your options. Schedule a FREE consultation with an Atlanta bankruptcy attorney.

How does bankruptcy stop repossession?

Many people in these hard economic times are having problems paying back their bills. If you fall too far behind on your bills, you may end up facing repossession. Is it possible to end the creditor calls and prevent your car from being taken away from you by the repo man? Yes it is. Bankruptcy might just be the second chance you need.

It is easy to feel powerless when creditors are calling non-stop. A lot of people don’t understand that a bankruptcy provides legal protection from creditors keeping the repo man away from your assets.

How is that possible? Bankruptcy law is federal law. The moment your case is filed you are given legal protection from creditors. This includes an automatic freeze on repossession efforts.

Even if your car has already been picked up you may still be able to get the car back if it has not been sold yet.

Bankruptcy provides consumers with options. Contact our office today to see what options are available. In some cases we can even reduce the interest rate that you are paying on your vehicle!

How does bankruptcy stop creditors from calling you?

When your filing is received by the Bankruptcy Clerk, the court sends out an order to all the creditors listed in your petition forbidding them from taking any action to collect debts. They can’t call you at home or at work. However, up to the time that you file, creditors are free to pursue lawful collection efforts.

Creditors who contact you after being advised of your bankruptcy case are subject to various sanctions for contempt of Court and other violations of Federal Law. Often the Bankruptcy Court will award monetary damages to you (including legal fees) for such violations. These cases are taken on a contingency fee arrangement and are separate from your bankruptcy. Please be assured that the Bankruptcy Court takes these matters very seriously and that they are vigorously pursued.

How does filing bankruptcy stop bad credit reporting?

If your credit is bad, a bankruptcy will probably help it. A bankruptcy itself will hurt your credit score and be on your credit reports for 10 years HOWEVER the effects of a bankruptcy will usually help your credit score, and if your score is low, it will actually raise it!

Credit scoring is complex and a closely guarded secret, but your debt to income ratio is a big part of it. A bankruptcy helps your debt to income ratio, thus helping your credit score. Also, with a Chapter 7, you will not be able to file again for eight years so your creditors will feel more comfortable making loans to you.

By law, two years after a bankruptcy your bankruptcy will not affect an application for a mortgage, assuming you have been making timely payments and have not had any foreclosures or repossessions. We also find that for most people that make timely payments, after 2-3 years creditors do not weigh a bankruptcy very heavily and you can actually have a decent FICO.

How does bankruptcy help with tax problems?

So you didn’t think you could bankrupt taxes? Filing a petition under Chapter 7 bankruptcy can often erase your tax debt. Income taxes can be discharged in a Chapter 7 bankruptcy, but only if all of the following tax code rules are met:

The tax return on which the tax debt arises must have been due at least three years before you file for bankruptcy.
The tax return must have been filed at least two years ago for a tax year at least three years ago-this usually means April 15 of the year the return was due. If an extension was filed, then it means August 15 or October 15 of that year, or beyond to the actual filing date. If the 15 th falls on a Saturday or Sunday, the return wasn’t due until the following Monday. The tax return must also have been filed at least two years before the bankruptcy. (If the IRS files a substitute for a return it doesn’t count.)
Taxes other than income, such as payroll taxes, a 100% penalty, Trust Fund Recovery penalty, fraud penalties, or several other unusual types of taxes are by law excepted from bankruptcy discharge.
The tax must have been assessed over 240 days ago.
The tax claim must be unsecured or there must be no equity in the property to take (this is explained later).

If the tax return was fraudulent, or shows a willful evasion of payment, these taxes will not be discharged.

Any limitation on the time allowed to the IRS to collect, such as non-filing of the return or an offer in compromise or bankruptcy, “tolls” or extends the “3-Year Rule” past April 15 th of the third year after the return was due. Other events can delay the bankruptcy filing date to discharge taxes, including prior bankruptcies. The time rules (3-Year, 2-Year and 240-Day) are all delayed by the period in the prior bankruptcy proceeding, plus an additional 6 months. If you file an Offer in Compromise, the 240-Day period is extended by the period it is under IRS consideration, plus 30 days.

The idea behind a Chapter 7 bankruptcy is that you turn over all your assets to the Court, which in turn pays your creditors from that property. In most cases, there is no property to turn over after you are allowed to keep the minimum allowed to “start over” (your exemptions).

In a Chapter 7 bankruptcy, the immediate impact of filing bankruptcy is that all collection efforts are stopped by a Federal Court Order called a stay. The IRS is included in this stay. The only way a collector can overcome the automatic stay while your bankruptcy case is still open is to apply to the Bankruptcy Court.

Judges will rarely lift a stay for the IRS, unless the IRS can prove some kind of fraud is being perpetrated by the bankrupt taxpayer. Unfortunately, the statute of limitations for collections runs only while a person is not in bankruptcy. If the bankruptcy is not finished (discharged), the tax bill will not age for purposes of the statutes of limitations. If you go into bankruptcy and emerge from the process still owing the IRS, it gives the IRS extra time to collect the balance. This often happens if the taxpayer has some, but not all, of their taxes erased in a Chapter 7 bankruptcy.

As a result, many taxpayers end up filing a “Chapter 20″, wherein they first file a Chapter 7 bankruptcy to eliminate what tax can be eliminated and then file a Chapter 13 bankruptcy to deal with what is left. The IRS can have a total of ten years to collect taxes, penalties, and interest. Once a bankruptcy case is over, the IRS gets whatever time remained on the original ten years, plus the time the bankruptcy case was pending-plus an additional six months to collect the remaining debt (if any). Chapter 7 cases will add about 4 months to this.

The Tax Rules about Chapter 13

Taxes do not necessarily have to be paid in full, but this is up to the discretion of the bankruptcy judge. The debts and the plan to repay them can be “crammed down”. In order to be discounted, the taxes must be:
a) income taxes; with
b) returns due more than three years before filing
c) assessed by the IRS at least 240 days ago.

To be crammed down, the IRS must not have recorded a valid lien or there is no property for that lien to attach.

If a tax return was due less than three years ago, or the taxes were assessed less than 240 days ago, or the taxes are not income taxes (such as for payroll), they are “priority” taxes.

Priority taxes must be paid off in full through the plan. However, a Chapter 13 bankruptcy stops interest and penalties the moment it is filed. Under IRS Installment Agreements (IA), interest and penalties continue to run. So, paying $1,000 per month under an IA for a $60,000 tax bill leaves a balance of at least $30,000 after five years. The same payment in a Chapter 13 plan pays off the tax debt in full! Chapter 13 forces the repayment plan on the IRS. The IRS cannot get anything more than the bankruptcy judge approves. The IRS cannot restart collection activities or seizures of property or wages as long as a Chapter 13 plan is underway. This is a powerful way to get around an unreasonable Revenue Officer who won’t agree to a fair IA. In most Chapter 13 plans, the monthly amount paid to the IRS is far less than IA proposals that the IRS rejects.

Tax interest penalties may be greatly reduced by the Court. Even fraud penalties, never dischargeable in Chapter 7, can be reduced in a Chapter 13.

Unfiled income taxes may be paid as a fraction on the dollar. Though actual filing of tax returns is a requirement to discharge taxes in a Chapter 7, there is no “2- Year Rule” in Chapter 13.

Tax Liens and the liability for the taxes are extinguished when a Chapter 13 bankruptcy is completed.

How can a Chapter 13 stop a license suspension for child support?

State financial responsibility laws for motorists, such as those in Georgia, provide that a driver’s license may be suspended until debt for a civil judgment arising out of a car accident is paid in full. The suspended driver usually has a tougher time paying the debt because they don’t have the same flexibility to maintain or find work with the loss of their driving privilege. These judgments are often in the tens of thousands of dollars, and many suspended drivers eventually wonder if they’ll ever get behind the wheel again.

The United State Supreme Court, in 1971, held in Perez v. Campbell that, if the debt related to the financial responsibility law is discharged in bankruptcy, the license can be reinstated. Chapter 13 bankruptcy debtors can also get their driver’s license reinstated through the bankruptcy court during the life of their bankruptcy plan. The same principle applies to parking or traffic violations, if not classified as “crimes” under state law. You will not get your license reinstated if it was suspended or revoked forany other reason than the nonpayment of money (too many points, etc.)

If you have fallen behind on child support payments and your license (or jail) is at risk then you can also file Chapter 13 bankruptcy to enter into a repayment plan and retain your license.

Once you file a bankruptcy in Georgia, you simply submit a copy of your bankruptcy petition to the DMV and your license will be reinstated. However, you will be required to pay a reinstatement fee and carry SR-22 insurance. The only way to avoid these additional requirements is to file your case prior to your suspension hearing.

Bankruptcy is an excellent solution for those clients who need to reinstate their driver’s license, but cannot afford to pay a judgment or fines. The best time to file is prior to your suspension.

How can bankruptcy help you recover from divorce?

A divorce can be financially devastating. Often before the divorce, the financial strength of a marriage is weak. Fighting over finances is a major reason for divorce.

First, if you are still married, it is much cheaper for a couple to file for bankruptcy together than to each file separately. It is important to discuss this with your attorney since if your financial settlement is within 6 months of your bankruptcy discharge, the Trustee can come after property if it would not be exempt as a single filing.

The divorce decree does not stop bill collectors from collecting the debt from you, even if your spouse was ordered to pay it. It is also possible that your spouse will file bankruptcy and that you will have to pay the debt. Seriously consider whether you or your spouse will file bankruptcy and what guarantees your spouse will pay. For instance, if he or she cannot afford the house, it may be best for you to either force the sale of house or to take the house (and the debt for it), rather than trust your spouse to pay for it. It is common for a spouse to file bankruptcy and sit in the house until foreclosure. The mortgage company will then attempt to collect from you. A situation like this could destroy your credit.

What is Chapter 7 bankruptcy?

A Chapter 7 is a liquidation bankruptcy where a debtor’s

• Unsecured debt (with exceptions) is erased

• Allowed out of contracts

• Can be held not liable for secured debt in the future that was released in the bankruptcy

• Can lose any property that is not exempt or exempt property not listed in the bankruptcy.

• The principle of a Chapter 7 bankruptcy is that the Debtor is allowed to keep a small amount of exempted property to start over with and his creditors keep the rest of the property. The Debtor hands over all other assets including any excess funds in :

• a checking account,

• tax refund,

• inheritances etc.

and is no longer held responsible for his debts, at least in part. It is rare that any real assets are ever unwillingly handed over in a Chapter 7 if it is properly planned. Most people do not have any assets to hand over after they are allowed to keep their exempted property. Normally, all the property that the Debtor has is mortgaged or has liens on it or it is exempted.

Georgia Exemptions

NOTE: Just because you think you will lose property due to the exemptions below DOES NOT MEAN YOU WILL LOSE IT. There are many strategies we can employ to save your property! The vast majority of people filing lose NOTHING!

Your “equity” is that part of the property that you own. To figure out how much equity you have, deduct what you owe on the property from what it is worth: The part of the house, car, or property that you own is called your personal equity (or the Debtor’s equity) in the property. The part of the house, car, or property that the bank owns is called the Bank’s or Creditor’s equity. In a Chapter 7, your property or your equity must be less than or equal to the exemptions in order to keep that property. If this is going to be a problem, the Attorney preparing your bankruptcy should advise you that you have too much equity and tell you to consider a Chapter 13. This is rarely a problem.

Positive Aspects of Chapter 7:

Immediately upon filing your petition with the Court, an automatic stay is invoked and Creditors must stop their collection actions against you. This means they cannot call or write you, or repossess or foreclose on your property. In addition, the automatic stay will stop a lawsuit if one has been filed against you.

It will also reinstate your drivers license if you have lost it due to involvement in an accident with too little or no insurance. This immediate action by the Court relieves the pressure on you and your family.

With some exceptions, such as child support, most of your debts are wiped out. If you properly file a Chapter 7, you will no longer have to repay your debts and your debts will be “discharged”. A discharge in bankruptcy means that you no longer personally owe the debts. However, property that you have given as security may be repossessed if you don’t pay for it or co-signers may be required to pay the debt. Nearly 100% percent of all Chapter 7 bankruptcies are granted. Your goal in a Chapter 7 bankruptcy should be to “exempt” all of your assets so that you can keep all of your property and still wipe out all of your debts. However the trustee will attempt to grab any assets you fail to properly “exempt”.

The Chapter 7 process is quick, and it is the cheapest bankruptcy. It also offers you almost all the benefits of bankruptcy. It usually only takes about 120 days. It is often the best way to deal with a predatory mortgage where you owe 125% of the value of a home or you have a high interest rate.

It allows you to repair a poor credit rating and purchase houses and cars shortly after filing. Repairing your credit is done by making prompt payments on accounts after you file. If you had bad credit before you filed a bankruptcy, a Chapter 7 is a chance to repair your credit. A Chapter 7 bankruptcy can be reported for 10 years, but your present bad credit will be reported for 7 years after the last collection action (which can make it last far longer than 10 years). Most people who file bankruptcy already have damaged credit, so a Chapter 7 bankruptcy is unlikely to harm it very much further.

Make contractual payments promptly and reaffirm the debt with the same or different terms and possibly make up missed payments (the Creditor may not wish to reaffirm the debt if the contract is in default)

Continue making payments with same terms but without liability.

Redeem the property by paying its value in a lump sum

Give up the asset to satisfy the debt.

Negative Aspects of Chapter 7:

• Filing Chapter 7 will damage your credit rating if you had good credit before you filed.

• Chapter 7 does not discharge all debts. Some debts, such as child support, are non-dischargeable. It also does not discharge as many types of debts as a Chapter 13.

• The rights of secured Creditors may not be modified in a Chapter 7. These rights may be modified in a Chapter 13. An exception is that judicial liens and liens on household goods may be destroyed in a Chapter 7 and avoided if you tell your Attorney about them.

• In a Chapter 7, your only options when you want to keep an asset that is collateral for a debt are to either make timely payments, redeem, reaffirm, or surrender.

• A Chapter 7 does not protect co-signers and only protects joint property belonging to the Debtor while the Chapter 7 stay is in effect.

• If your income is too high, you may not qualify for a Chapter 7

• You may only get one Chapter 7 discharge every 8 years. This time period runs from the date of filing (when the first case started) to the date of the new filing. Many people say you can file bankruptcy only once every 7 years, but they are technically wrong. You may file more than one bankruptcy in 8 years, but you can only get one Chapter 7 discharge every 8 years.

What is a Chapter 13 bankruptcy?

The second type of bankruptcy for individuals is a Chapter 13 repayment plan. In a Chapter 13, you must pay back Creditors, within five years, in full or in part to the best of your ability and you must pay as much as a Chapter 7 would have paid if there had been a liquidation. Any Chapter 13 must always pay back at least as much as a Chapter 7 would have regardless of the state in which you live. By this, we mean if your house would have been sold in a Chapter 7 and would have paid back 20,000 dollars to your creditors, your Chapter 13 must repay at least $20,000. Each local district has its own rules.

Chapter 13 plans operate very much like bill consolidation loans, in that debts are consolidated into one monthly payment which is paid to a Trustee. The Trustee then pays the Creditors. Certain debts such as attorney fees are given super priority and are paid absolutely first. Then taxes and child support are given priority and are paid before the secured debts. After priority debts, secured debts are paid. The last debts to be paid are unsecured debts. A Trustee is an attorney appointed by the Court. He is not a judge, although he runs the 341 hearing in both Chapter 7 and 13 cases and will ask questions at the 341 hearing like a judge, but these “hearings” are actually more like depositions. The trustee does not work for you. He represents the banks and the Creditors that you owe. The Trustee’s major job is to take property from you if he can. This is how he earns his fees. Although you are required to tell the truth at the hearing, this is not the time to brag about how much your property is worth if it is worthless, and it is the time to check your titles to make certain they are properly recorded.

Secured claims are handled in one of two ways. The first, which we call the ” catch-up & maintenance ” method, is where your past due payments on secured debts are paid from your monthly bankruptcy plan payments, and payments that come due after filing bankruptcy are paid directly to the creditor (“outside the plan”). When the Chapter 13 has been terminated, you are still obligated to make any payments remaining due on the secured debts.

We call the other method the ” cram-down ” method. This method is used when either the collateral is worth less than the amount of the debt, or when the number of payments left on a debt is less than the length of the plan. The following examples illustrate the “cram-down” method. In it you can pay what the collateral is worth (not what you owe on it), stretch out the payments to 36 months, and pay a reduced interest rate. If you have a second mortgage with no equity, you can completely eliminate it. To qualify for a “cram-down” you have to have paid the purchase money for a car 910 days bfore filing bankruptcy, and for other property you must have made the first payment at least a year before filing bankruptcy.

The ability to “refinance” your secured loans through this second method permitted by Chapter 13 bankruptcy lets you reduce the monthly payments and is sometimes the only way to have enough cash flow to keep your property.

HOW A CHAPTER 13 WORKS

A Chapter 13 is a reorganization of your debt. It will stop foreclosures and the repo man in their tracks. In a Chapter 13 Bankruptcy, you will pay the Trustee all your “available” money for 5 years (generally) and he will pay your debts that are included in the Ch 13. At the end of the Ch 13, all unsecured debt that is left over is discharged. Some things can affect your discharge, such as being behind on a domestic support payment, if you have received a discharge in a case filed under chapter 7 (or 11 or 12) during the 4-year period preceding the filing date of the chapter 13, or in a prior chapter 13 filed within two years prior to filing the new case.

What Makes a Chapter 13 Better than a Chapter 7?

A Chapter 13 can stop foreclosures and repossessions. A Chapter 13 bankruptcy can discharge things that a Chapter 7 cannot discharge.

What Makes a Chapter 13 Worse than a Chapter 7?

Chapter 13 attorney fees are higher AND you make monthly payments for 3-5 years.

During the Chapter 13 Bankruptcy, in Georgia, you will need to ask the Trustee for every major financial change, from buying a car to selling one.

Who will know I filed for bankruptcy?

This one of the most frequently asked question by my clients. Bankruptcy is stressful enough without adding additional fear that the entire world will know that you filed. Here is who will know that you filed:

• ANYONE YOU TELL, OR ANYONE WHO IS TOLD BY SOMEONE YOU TOLD!

• Your creditors and anyone you with whom co-signed a loan.

• People who work in the court may find out.

• Anyone who attends the 341 meeting the day you have your 341 meeting (i.e. other people going through bankruptcy)

• Court records are matter of public record, so anyone could look it up, but WHY? You cannot “Google” someone’s name and their federal bankruptcy appear. You would have do a search of the federal courts to find this information.

• Chapter 13 Debtors are often required to make payments through wage garnishment, which means the employer will learn about the bankruptcy. In some situations this may be avoided.

• Anyone who looks at a credit report of yours – like a prospective landlord. Many of the larger apartment complexes are owned by banks, and banks tend to grant leases according to credit bureau reports. This may affect you. Small landlords will call former landlords and may not check credit reports.

Consultations are always free at Saedi Law Group. Call us TODAY at 404-889-8663 or set up an appointment online at www.timecenter.com/atlantabankruptcy. Set up a time to review your current financial picture with an experienced attorney to find out what options are available to you.

What is the 341 Meeting of Creditors?

Every debtor, regardless of the chapter, must make one appearance in the case, though it is not really in “court” since the judge is not present. Bankruptcy court for the most part is quite uneventful. The nice thing about bankruptcy court is that it runs on time and take about 10-15 minutes for most hearings.

The court schedules a meeting of creditors in each case, usually about 30 days after the filing. The meeting is nick-named the “341 meeting” after the section of the bankruptcy code that requires it.

The trustee assigned to the case presides and asks questions about the contents of the bankruptcy paperwork that your attorney filed on your behalf. You must appear at the meeting and answer questions under oath about your assets and liabilities.

The 341 meeting is not a test or an inquisition. Neither the trustee nor the creditors can take any action at the meeting that decides any question central to the case. It is a fact finding meeting.

Of course, if new or troubling facts come out at the meeting, the trustee or a creditor can file a motion or adversary motion in the bankruptcy court for the judge’s consideration.

Most 341 meetings are short, sweet, and uneventful. You do not have to justify filing bankruptcy. No rights are won or lost at the 341 meeting. Creditors do not have to attend the 341 meeting to file a claim or object to discharge.

What you need to bring to the hearing:

• Bring a picture ID. (Acceptable identification includes: drivers license, government issued pictured identification, passport, or permanent resident alien card.)

• Proof of Social Security Number. (Acceptable documents include Social Security card, current W-2 forms, or wage statements.) You can get a new Social Security Card by calling 1-800-772-1213.

• If your spouse is filing jointly with you, bring him or her.

• DON’T BRING A CELL PHONE.

You will want to get there a little early to listen to the questions that are asked and prepare for your turn. Normally, the Trustee will ask you the following questions:

• What is your name?

• What is your address?

• What is your social security number?

• Did you list all your assets and all your debts?

• Do you understand what a reaffirmation is?

• Do you understand what the effects of a bankruptcy are?

• Have you given any property to the Trustee?

• Have you recently won the lottery or inherited property?

• Have you given away or transferred any property within the last year?

• Why did you file bankruptcy or what caused your bankruptcy?

• Do you understand what a Chapter 13 is and did you consider it?

• Do you understand what a discharge is?

• When did you know that you were bankrupt?

• Do you have proof of full coverage insurance on your car?

• How much is your home worth?

• Have you recently inherited anything?

Creditors may appear and ask questions at the 341 hearing, but normally no one shows. If a secured creditor shows the only question they normally ask is whether or not you wish to reaffirm.

Do You Show Up With Me at the Hearing?

Of course! We take care of you, and hold your hand through the process. We don’t just file the paperwork.

What Do I Wear to the Hearing?

Don’t wear cut-offs or jeans with holes in them and don’t wear flip-flops. Suits are not required, but dress properly for a hearing in Federal Court. Be respectful of the process.
Most importantly, TELL THE TRUTH. You will be under oath.

Consultations are always free at Saedi Law Group. Call us TODAY at 404-889-8663 or set up an appointment online at www.timecenter.com/atlantabankruptcy. Set up a time to review your current financial picture with an experienced attorney to find out what options are available to you.

Why should I choose Saedi Law Group to help me?

Our firm is comprised of a team of experienced and professional attorneys. We understand what our clients are going through. You are not passed from one person or another and you work with the same attorney from start to finish. We are committed to helping clients one case at a time. If you want personalized service and a law firm that really cares about you, Saedi Law Group is the #1 choice in Georgia.

What will my initial appointment be like?

We ensure that all of our clients are met with friendly and professional service from start to finish. An attorney from our firm will meet with you to review your financial information and provide options to assist you in dealing with whatever financial problems you are facing. Most appointments last under an hour.

How much does it cost to file for bankruptcy?

The court fee to file Chapter 7 is $335.00 and $310.00 to file Chapter 13. Since each case is different our attorney fee can range from $800-$1700 for a Chapter 7 and $2500 – $4000 for a Chapter 13 case. Payment plans are always available.

Can anyone file Chapter 7?

No. In order to file Chapter 7 bankruptcy you must make under a certain amount of money once all required living expenses are deducted. Our attorneys will review your case and let you know if you qualify or not.

How long does a Chapter 7 case take to complete?

Typically it takes about 4-6 months to complete a Chapter 7 case.

How many times do I have to go to court?

Most clients only need to attend the 341 meeting of creditors. Hearings usually last about 10-15 minutes so you will not need to worry about being in court all day long.

Why do people file Chapter 13 instead of Chapter 7?

One reason may be that they make too much money to file Chapter 7 or they have too many assets to file and don’t want a trustee selling their assets to pay creditors. Most people who file Chapter 13 are filing to reorganize mortgage arrears on their homes, car balances they gotten behind on, or taxes that they owe.

How long does a Chapter 13 last?

Most Chapter 13 cases are written to last 60 months since that is the longest amount of time you can be in a case and also gives you the lowest monthly payment amount. Our attorneys can provide repayment plan options that fit your monthly budget.

Can I change my case from Chapter 13 to 7?

Yes. As long as you qualify you can change to a Chapter 7 at any time.

Can I hire you to settle all of my debts?

That depends on how many you have. Our debt settlement services are charged on a per debt basis so it may be cheaper for you to just file for Chapter 7. We are happy to review your entire financial picture and present options for dealing with that debt.

What if I am already being sued?

There is still time to settle the debt and resolve the collection matter. Many times we can consult with opposing counsel to reset the case until a resolution can be reached.

How much can I settle the debt for?

That all depends on the creditor but most creditor will agree to settle for a lesser amount to avoid an account holder filing for bankruptcy protection.

Can You Really Settle Your Tax Debt with the IRS for Pennies on the Dollar?

We have seen or heard the ads that promise that you can settle your tax bill for “pennies on the dollar.” All you have to do is hire the law firm in the commercial and they will use their special negotiating skills and inside knowledge to get you off the hook with the IRS.
While yes you can settle with the IRS typically it is only where a taxpayer clearly does not have the assets and/or income to pay off the tax debt in a reasonable time.

How long does the tax settlement take?

That depends on the taxpayer. Some offer and compromises may take 6-8 months while others can be expedited if you have a good reason. Once our team reviews you specific set of facts we can provide a reasonable time frame.

Does bankruptcy remove taxes?

In some circumstances yes but even if they don’t we may still have options to deal with the IRS.