Discover how companies leverage bankruptcy to restructure, streamline operations, and emerge stronger. Learn the key strategies that lead to successful recovery and growth.
When faced with overwhelming debt, bankruptcy can offer a viable path towards financial recovery. However, it is not a decision to be taken lightly. As an individual considering bankruptcy, it’s crucial to understand your options and the legal implications associated with them.
In an increasingly digital world, consumer privacy has become a significant concern. With the rise of data breaches, unauthorized data collection, and misuse of personal information, consumer privacy litigation has emerged as a critical area of law. This blog will explore the fundamentals of consumer privacy litigation, its importance, and what it means for consumers and businesses alike.
Starting and managing a small business in Dallas can be thrilling, but it also comes with its reasonable share of legal challenges. Whether launching a startup, expanding an existing enterprise, or simply maintaining daily operations, having a skilled small business attorney is crucial. This blog will explore why every small business in Dallas should consider hiring an experienced attorney and how they can help protect and grow your venture.
Probate is a legal procedure that transpires after someone passes away, involving the distribution of their assets and the payment of any debts. This process can be intricate and emotionally challenging, making it essential to have knowledgeable probate attorneys to guide you. In Dallas, probate attorneys offer expertise in handling these matters efficiently, ensuring that the deceased’s urges are observed and the legal requirements are met.
Dealing with the legal process behind the loss of a loved one can be difficult and emotional. A probate attorney in Harris County Texas, can provide guidance and support during this difficult time. Here, we will explore what probate attorneys do, the probate process in Texas, and why hiring a probate attorney in Harris County can be beneficial.
Having a proficient attorney by your side can make all the difference when dealing with probate law’s complexities. In Dallas, probate lawyers are crucial in guiding families through the often challenging process of managing a loved one’s estate after their passing. This guide will explain what probate law entails, the importance of Dallas probate lawyers, and how they can assist you during a challenging time.
Navigating the complicated world of business law can be daunting for any entrepreneur or business owner. Whether starting a new enterprise or managing an established company, a knowledgeable business law attorney can make all the difference. In this guide, we will confer the role of a business law attorney, the benefits they offer, and why they are essential for your business’s success.
In the vibrant landscape of business, financial challenges can emerge unexpectedly. When these hurdles become insurmountable, seeking the expertise of a business bankruptcy lawyer in Dallas can be a crucial step toward safeguarding your company’s future. Here, we explore why having a specialized lawyer is essential and how to find the right one to navigate your financial recovery.
Running a business is often fraught with challenges, and financial difficulties can be among the most daunting. When a company in Dallas faces the possibility of bankruptcy, the situation can feel overwhelming. This is where a skilled business bankruptcy attorney becomes indispensable. Let’s delve into why hiring an experienced business bankruptcy attorney in Dallas can make a significant difference in managing financial crises.
In the dynamic and competitive world of business, disputes are almost inevitable. Whether disagreements with partners, conflicts with employees, or issues with competitors, having a skilled business litigation lawyer can be your best asset. In a bustling city like Dallas, where the business landscape is thriving, understanding the role of a Dallas business litigation lawyer is crucial for any business owner.
Navigating through financial difficulties can be an overwhelming experience, but knowing when and how to seek help is the first step toward reclaiming control of your financial future. Hiring a skilled bankruptcy lawyer in Dallas can make a substantial difference if you struggle with insurmountable debt. This article will guide you through filing for bankruptcy, highlighting the importance of having a knowledgeable attorney.
Financial troubles can be daunting, leaving individuals and businesses in Dallas seeking solutions that offer relief and a fresh start. When debts become overwhelming, one effective option is filing for bankruptcy. However, the bankruptcy process is complex and requires expert guidance to navigate effectively. This is where a bankruptcy lawyer in Dallas comes into play; this guide will help you understand why hiring a bankruptcy lawyer is essential and how to choose the best one for your needs.
When businesses face financial distress, the complexities and stress can be overwhelming. Engaging a business bankruptcy lawyer can be critical in navigating these turbulent times, offering expertise, guidance, and a path toward financial stability. In this blog, we’ll explore the indispensable role of a business bankruptcy lawyer and why their involvement can make all the difference for struggling enterprises.
Navigating the complex flows of bankruptcy can be daunting for any business owner during economic uncertainty. However, with the right legal guidance and support, you can turn your business’s financial crisis into an opportunity for renewal and growth. Enter Herrin Law’s team of expert business bankruptcy lawyers—your lifeline in times of crisis.
Establishing a strong legal foundation is paramount for longevity of business. From formation to daily operations, navigating the intricacies of business law can be daunting without proper guidance. In this blog, we’ll delve into key tips from Herrin Law’s business law attorney on how to build and maintain a solid legal framework for your business.
Starting and growing a small business is filled with dreams, aspirations, and challenges. As entrepreneurs embark on this adventure, a dedicated small business attorney in Dallas is one crucial ally they need in their corner. This legal expert navigates the complex legal landscape and paves the way for entrepreneurial triumph.
When it comes to securing the future of your estate, having a reliable probate lawyer is essential. Navigating the complexities of estate probate requires legal expertise and an in-depth understanding of the intricate laws that govern this process. For those seeking peace of mind and expert guidance, finding exceptional estate probate lawyers near you is crucial.
Elder financial abuse is a growing concern that often involves taking advantage of vulnerable seniors, manipulating them into altering their estate plans, and disinheritance of rightful heirs. This is something I am seeing more and more in my practice. A troubling example I was recently retained to address involves a widow whose spouse passed away some time ago. After the spouse’s death, an individual with no apparent familial relation to the widow moved into her house. This individual then placed the widow in a nursing home and subsequently, family members were barred from visiting her. This individual had the widow sign various documents giving him control over her finances. These actions raise serious concerns about the widow’s well-being and the legitimacy of any changes made to her estate plan during this period.
The trucking industry, the backbone of the global supply chain, has faced a tumultuous journey, especially for small businesses operating in this sector. The COVID-19 pandemic brought about a seismic shift in the industry, altering the economic landscape in ways that continue to challenge these vital players.
When faced with mounting debt, the threat of a lawsuit from a creditor can be an incredibly stressful experience. It’s crucial to know your rights and understand the legal options available to you. Here are some strategies to consider if you’re trying to stop a lawsuit from a creditor.
The weight of student loan debt is a pressing concern for many. With rising tuition costs and the challenges of finding well-paying jobs after graduation, many borrowers find themselves in a financial quagmire, struggling to make their loan payments. However, there are ways to alleviate or even eliminate this burden. This article delves into two primary methods to get out of student loan debt, along with the recent successes achieved by Herrin Law.
Dallas, Texas September 28, 2023 – In a landmark ruling, Herrin Law secured a significant victory against the Federal Government, specifically the Environmental Protection Agency (EPA) and the Department of Interior (DOI), holding them accountable for willfully violating the automatic stay provisions set forth in the bankruptcy proceedings of Ms. Garrett.
In today’s unpredictable financial landscape, safeguarding one’s wealth against potential legal threats has never been more vital. With lawsuits, claims, and other potential financial pitfalls lurking, it’s essential to have a robust plan in place. This blog aims to shed light on effective asset protection strategies to ensure your hard-earned assets are shielded from unforeseen adversities.
In the dynamic world of business, every enterprise—be it a burgeoning startup or an established conglomerate—must operate within the legal frameworks of its industry. A clear understanding of business law essentials is not just about compliance; it’s about safeguarding the future of your company. Here, we delve into key aspects of business law that every entrepreneur and business leader should be well-acquainted with.
For many, the term “estate planning” evokes images of vast mansions, vast sums of money, and old family heirlooms. In reality, estate planning is a pertinent consideration for anyone who wishes to leave a legacy, be it large or small. This essential process allows individuals to ensure their assets and memories are preserved and distributed according to their wishes. Let’s unveil the world of estate planning and its role in preserving your legacy and assets.
Facing financial uncertainties can be daunting, but with the right legal guidance and comprehensive planning, you can regain control over your financial future. This is where Herrin Law, led by Daniel Herrin, comes into play. Our firm is dedicated to reshaping your financial landscape through a detailed analysis of your financial issues and crafting personalized strategies that align with your goals.
As a litigation attorney in Dallas, the art of mastering litigation lies in your understanding of the law but also in the strategies you employ to resolve disputes effectively.
No one wants to think about their death. It’s uncomfortable and creates feelings of unease and anxiety. So, most of us put it off.
If you are facing financial difficulties and considering filing for bankruptcy, you may be wondering how to navigate the Dallas bankruptcy court system. In this blog post, I will share some tips and resources that can help you understand the process and make informed decisions.
Today, I’m going to answer some frequently asked questions about bankruptcy in Dallas and the DFW Metroplex. If you are struggling with debt and considering filing for bankruptcy, this post is for you!
If you are struggling with debt and considering filing for bankruptcy, you may be wondering how to find the right bankruptcy attorney for you and what to expect from the process. In this blog post, we will share some tips and insights to help you make an informed decision.
Many people wonder if the IRS will forgive their tax debt after 10 years. The answer is not so simple, but there is some truth to this idea. In this blog post, we will explain what the IRS 10-year rule is, how it works, and what you can do to avoid or reduce your tax debt.
If you are struggling with debt and considering bankruptcy, you may wonder which type of bankruptcy is best for your situation. In this blog post, we will explain the main differences between Chapter 7 and Chapter 13 bankruptcy, and how they affect your eligibility, discharge rate, property, and repayment plan.
Filing for bankruptcy can be a difficult and stressful decision, but it does not have to mean the end of your financial future. There are steps you can take before and after filing for bankruptcy to budget and manage your finances effectively and rebuild your credit. Here are some tips to help you on your journey.
The hardest part for any person considering bankruptcy is gathering the required documents. In order to file bankruptcy, the Court requires that you file about 100 pages describing your financial situation.
The means test is one of the most important forms you can file in bankruptcy. It takes your last 6 months of income and your expenses and determines what type of bankruptcy you will qualify for and what your monthly bankruptcy payments might be (in a chapter 13).
The idea of filing bankruptcy can be stressful. It’s usually the last resort but bankruptcy can help transform a person’s financial life.
Dallas Bankruptcy Attorney – Advice on making your bankruptcy go smoother.
Are you overwhelmed by debt and considering filing bankruptcy in Dallas, Texas? It can be a difficult decision that can provide relief and the ability to start fresh financially. That being said, knowing what strategies work best when filing for bankruptcy is essential to maximize your options while still getting the financial freedom you seek.
This blog post will provide five tips on successfully navigating the process of filing for bankruptcy in Dallas. With these practical tips, anyone looking into declaring bankruptcy will have an easier time understanding their rights and obtaining optimal outcomes as they move forward with their finances. Keep reading for more information!
The short answer is — it depends. In a lot of cases, a person can get rid of their IRS debt through the bankruptcy process.
Can you purchase a home after your bankruptcy is over? The short answer is ABSOLUTELY!
Under a Chapter 7 filing your credit report will show the bankruptcy you filed for up to 10 years. Under a Chapter 13 your credit report will show the bankruptcy for up to 7 years. The limits listed above are the maximum amount of years allowed for a bankruptcy to show up on the debtor’s report history, it does not mean the bankruptcy could be removed earlier. The Fair Credit Reporting Act (FCRA) sets these parameters and help ensure that credit histories are both protected and accurate.
When you speak with our office for an initial consultation, our attorneys will discuss your options and how you can proceed forward.
In general, student loans are nearly impossible to get discharged through a bankruptcy proceeding, and doubly so when the loan is related to the Federal government. What does this mean from a broad picture perspective?
The short answer, is it depends. Like most things while in Bankruptcy the way they are addressed can help you retain your refund. First everyone must recognize that no one Bankruptcy case is the same and every case can vary depending on your own personal financial situation.
The number one reason why most people never consider bankruptcy is because they think it will destroy their credit and their ability to get credit in the future. But this isn’t true. Bankruptcy is a legal way for you to responsibly address your financial situation.
Most people see a significant increase in their credit score after filing a bankruptcy. The reason for this is simple. Bankruptcy helps drastically reduce and/or eliminate your debt. When you have less debt, it helps improve your credit score.
Many of us have been through the daily exercise of screening our phone calls because we don’t recognize the phone number, and are 99% sure it’s either a solicitation or a creditor calling. Why would you answer a call from someone you don’t know, that you do know is going to want something from you? Simply put, you don’t.
Many clients ask whether filing bankruptcy is a good fit for their small business. They’re worried about creditors coming after them individually or concerned about the risks of filing for their business in general. Below we are going to cover the some of the basics you’ll need to know before filing for bankruptcy with your small business, specifically the differences between Chapter 7, Chapter 11, and Chapter 13 filing.
Filing Bankruptcy requires you to file a Petition with the US Bankruptcy Court in your city/county. This can be done electronically. The moment the petition is filed, you will receive a bankruptcy case number and will be afforded the protections of bankruptcy. However, BEFORE YOU CAN FILE YOU MUST COMPLETE A CREDIT COUNSELING COURSE. There are hundreds of providers but you must make sure you are using a provider approved by the Bankruptcy Courts.
The strongest protection bankruptcy provides is the Automatic Stay, which prevents your creditors from continuing collection activities (garnishments, calls, lawsuits, etc.).
Bankruptcy allows a person or business to deal with their debt. There are two main types of bankruptcies for consumers: Chapter 7 (known as a liquidation) and Chapter 13 (known as a reorganization). In addition there are other chapters for corporations, farms, and municipalities but those will not be covered in this blog.
Debt Relief is where you hire a third party to help you renegotiate your outstanding debt. The normal process is that you put together a list of your creditors. The company then takes the amount of debt and creates a payment plan for you.
The whole point of filing bankruptcy is to get you a fresh start, which includes increasing your credit score.
Almost all of my clients see a credit score increase post bankruptcy filing. The reason for this is simple: they drastically reduced their amount of debt. I tell most of my clients that filing bankruptcy and receiving your discharge is a lot like turning 18 again. Your past has been reset and the actions you take now, are going to have significant impacts on your credit.
Financial mindfulness is really about being more aware of your current financial situation. Clarity is the key to improving your finances.
Financial stress is the number one cause of stress in adults. Most people get so used to being stressed that they no longer recognize or know what living a life with minimal stress is like. Being stressed is their new normal.
Medical Debt can cripple you. Not only do you have to deal with the actual health issue but you have to contend with the financial stress that comes with it.
There are really 3 main laws that regulate debt collection. You have the Fair Debt Collection Practices Act (known as FDCPA), which is a federal law. You also have the Texas Debt Collections Act (known as TDCA or TDCPA), which is a Texas law. In addition there are Fair Credit Reporting laws that come into play as well.
The reason debt collectors file lawsuits is because they work. Nothing scares a person more than getting served with a lawsuit. There is this fear that if they don’t do anything they could get into serious trouble. Some people falsely believe that they could go to jail or face criminal charges because of the lawsuit.
The idea of bankruptcy is scary. There is a negative stigma associated with it and most people do everything in their power to avoid having to consider it. However, a lot of the fears associated with bankruptcy are unfounded and simply put, are not true.
Outside of Bankruptcy, Creditors have a lot of power. If they file a lawsuit and obtain a judgment, they can severely impact your life and your finances.
For most people, considering filing bankruptcy is extremely stressful. You are dealing with creditors calling you, lawsuits being filed against you and your credit score tanking. In addition to that, there is the stigma associated with bankruptcy. Filing bankruptcy for many people feels like they are a complete failure, it’s like they are giving up. This is why I see so many of my clients struggle for years with their finances. They think filing bankruptcy is going to be worse but that is a lie.
You should be talking directly to your attorney about any actions you want to take prior to filing bankruptcy. The court looks closely at any recent transaction and in particular, pays close attention to transactions done within 90 days of filing your bankruptcy.
In Texas, your primary residence is protected under the homestead exemption. Unlike other states, Texas provides an unlimited homestead exemption. This means if you have $300,000 in equity in your home, it is protected from your creditors and the bankruptcy trustee.
However, there are some unique exceptions you must be aware of.
Exemptions are simply a legal term used to determine if you can protect your property from the bankruptcy process.
If you are going to have to file bankruptcy, then Texas is the state you want to live in.
Texas has the best exemptions in the United States. In addition, Texas allows you to choose between state or federal exemptions. Exemptions are the legal mechanism that allow you to protect your assets.
Most people have a preconceived notion that an estate plan is expensive. This is partly due to some attorneys who choose to use exoctic and complicated estate plans. The more complicated, the more they can charge.
The most important choice for you to make is picking the right estate planning lawyer.
The good news is that it’s pretty easy to find a good lawyer. Almost every single estate lawyer provides a free consultation of some sort. This is your chance to get a feel for the lawyer and law firm. Always interview a minimum of two lawyers and if you have the time, you should talk to at least three.
The most important choice for you to make is picking the right lawyer. The difference between a good lawyer and a bad lawyer could be the difference between you completing a bankruptcy and getting a fresh start or your bankruptcy failing and you ending up in a worse situation.
In order to qualify for a chapter 7 you must pass the means test. This is a form you fill out that lists your income and expenses and compares them to the median income/expenses for people in your zip code.
The IRS is scary.
They can do more than any other creditor in terms of collections. They can put liens on your property, including your homestead. They can garnish your bank account. They can sell your stuff. They can close your business and liquidate it.
There is not nearly enough being done to help consumers with their student loan debt.
Probate is expensive. The costs and time associated with the Probate process have led to many individuals simply forgoing the process altogether, and, consequently, real property is not properly transferred to an individual’s heirs. However, Texas has introduced the Transfer on Death Deed (hereinafter, “T.O.D.D.”), which allows an individual to easily transfer real property to designated Beneficiaries outside of probate.
An individual issues a hot check (also known as a “Bad Check,” a “NSF Check,” a “Dishonored Check,” or a “Bounced Check”) when they fraudulently write a check despite having knowledge of the fact that they do not have the funds available to cover the check. For example, an individual who issues a check for $500.00 knowing that their bank account only has $250.00, can be charged with an offense for this action. The issue is one dealt primarily in Criminal Law, however, the issue does arise in Bankruptcy. Dependent on the amount that the check issued, an individual could be charged criminally with either a misdemeanor or a felony. There may also be civil ramifications as well.
Delinquent on your home mortgage payments? You may be in luck. For borrowers whose loans are owned or guaranteed by Fannie Mae or Freddy Mac, the Federal Housing Finance Agency (or FHFA) will soon offer a Principal Reduction Modification Program to borrowers that meet certain eligibility requirements.
Under Chapter 13 bankruptcy, individuals with regular income are granted the opportunity to develop a repayment plan in order to satisfy all or part of the debts for which Creditors hold claims. A Chapter 13 repayment plan will allow a Debtor to make installments to Creditors over a period of three to five years to satisfy their debts. Some debts under this plan must be paid in full, while others may be paid only in part. A Creditor’s claim will be one of these four types: a priority claim, an administrative claim, a secured claim, or an unsecured claim. For purposes of Chapter 13 Cramdown, the focus will be on secured claims. A Creditor holds a secured claim when the Debtor pledges an asset as collateral to incur a debt, and, if the Debtor fails to pay the underlying debt, the Creditor will have the right to repossess or foreclose on the collateral. Examples of common secured debt incurred by Debtors include home mortgages, auto loans, and tax liens.
There are many reasons why someone might choose to file for bankruptcy; however, two of the most prevalent reasons are (1) a debtor’s need for relief, and (2) a desire to preserve one’s assets. For some people, the reasons might be as sentimental as they are financial, such as trying to hold on to a home with a mortgage the debtor is struggling to pay. While on the other hand, for businesses, filing for bankruptcy is likely to be a purely economic decision.
As a bankruptcy lawyer I deal with people whose financial situations have sometimes gotten drastically out of control. It’s seldom one terrible decision that bankrupts someone, though. More frequently, it’s a gradual decline that takes place due to a lack of proper management of your finances. This is actually good news, because it means that recovering your finances, (or developing them to begin with) can be done by simply implementing some good practices and using freely available tools. The following are some tools and tips that will help you budget like a pro.
Going through bankruptcy can be a trying experience. It can be overwhelming and it’s not always clear what to do, or who you should turn to. In another post we discuss bankruptcy mills and why they should be avoided. Basically, there are bankruptcy attorneys who treat their clients as a paycheck, and try to churn through as many cases as possible. On the other hand, there are many dedicated and competent bankruptcy attorneys who are committed to their client’s financial success.
Filing for bankruptcy can be a heartbreaking and confusing process. You want a law firm that will take a look at your unique circumstances and work with you to find the best solution for your situation. When you hire a bankruptcy mill, you’re not getting the personalized attention that we can provide for you.
Although bankruptcy can be devastating, there are many ways you can get back on track financially after bankruptcy. The first thing you will need to do is let go of all of the guilt and shame. Anyone can suffer a financial setback, so there is no need to feel guilty about filing for bankruptcy. Below are some of the steps you can take to rebuild credit after bankruptcy and get back on track:
Losing your vehicle through repossession can feel like a nightmare. For most people, the family or personal vehicle is one of their most valued possessions, and it’s loss can have a very dramatic impact. If you have had a vehicle repossessed, or if one of your creditors is threatening repo, you do have some options.
Obviously if you’re needing help declaring bankruptcy, you don’t have a lot of money to spare. Far too many Dallas bankruptcy attorneys bill clients the maximum of what they think they can get, rather than taking into account the client’s financial situation; We, however, don’t.
We realize that declaring bankruptcy can be one of the most vulnerable moments in a person’s life, and so we treat clients in such situations with respect and consideration. We consider ourselves to be cheap bankruptcy lawyers – but the affordability we offer our bankruptcy clients doesn’t mean there is any decrease in the quality of our services. A superior affordable bankruptcy attorney provides the same excellent service to their clients while taking into account their financial situation.
In other aspects of your life you probably would not make a major decision or make a significant purchase without reading reviews, asking pertinent questions, or doing some general research first. Finding a local bankruptcy lawyer should be no different. When you retain a bankruptcy lawyer you are purchasing their financial services and advice to get the most favorable outcome for your situation. You should be on the lookout for an attorney who has experience with bankruptcy cases and is knowledgeable about the current bankruptcy laws and procedures. Here are a few steps showing how to find a bankruptcy lawyer who is a good fit for you.
Every single year it happens. The chaos of the Holidays. We spend more, work less and always fail to account for December when we do our budgeting. It’s amazing how easy it is to spend money in December. If you read our previous post you’ll be aware of some great ways to celebrate Christmas on a budget, but this post is a little different. The goal of this post is to ensure that through careful planning you are able to spend the money you want to when Christmas rolls around. Let’s take a look!
Bankruptcy is an economic solution that has many myths attached to it and most of those myths are false. One truth about every bankruptcy case is that you will have to pay to file for bankruptcy. Another misconception is that all lawyers, including bankruptcy lawyers cost an arm and a leg. We want you to know that it IS possible to find a team of affordable bankruptcy lawyers who can get you the results you need without draining your wallet. With that in mind, if you are on the verge of bankruptcy you cannot afford NOT to file for bankruptcy to save your finances.
You always have the right to control who represents you in legal matters. That is a fact that is always true no matter what type of legal situation you find yourself dealing with.
If you filed a bankruptcy and Firm A represents you; you have the right to fire Firm A and hire Firm B to substitute in as counsel.
When you surrender your home in bankruptcy, you are discharging the debt associated with your home. This includes all debt associated with the home (property taxes, liens, mortgages, homeowner association fees, etc.).
Once you file bankruptcy and notice goes out, you should not be receiving any collection letters from your creditors. If you are then you need to consult with your attorney as those creditors may be violating federal bankruptcy law.
An important thing to remember is that surrendering the house in bankruptcy does not remove your name from the title – which means you still show up as the record owner.
There are two required financial courses in Bankruptcy. The first course is taken before you file bankruptcy and the second course is taken after you have filed the bankruptcy.
In my career clients sometimes will ask “why can’t I just file bankruptcy on my own?” My answer is always the same, “if your arm was broken, would you reset the bone yourself or go to a doctor?” Clients always say “I’d go to a doctor” This is the exact same situation, your financial life is broken, go to the doctor so it can be fixed.
Each chapter or type of bankruptcy defines who is eligible to be a debtor in its definition. Some of the chapters are reserved solely for individuals, some can be used by individuals or businesses. The most common forms of bankruptcy are Chapter 7, Chapter 13, and Chapter 11. An individual or business can be a debtor in a Chapter 7 or Chapter 11; however, a business cannot be a debtor in a Chapter 13.
Can I include my student loans in my bankruptcy? Are there qualifications I have to meet? What is the process? Is it different than a “regular” personal bankruptcy?
A common question I always receive from debtors is “do I have to do anything different when I file my tax returns?”
The short answer is no.
This article will address the actions a debtor must take in order to properly file a tax return with the Internal Revenue Service and have no negative impacts on their bankruptcy.
To answer this question, we first need to identify which chapter of bankruptcy you have filed or are planning to file. There are several chapters, but the primary consumer chapters are known as a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy.
So you filed a bankruptcy and received your discharge and do not want to ever have your wages garnished again; this article is to help you avoid that situation for ever.
We too often put our financial security off into the distant future. Someday, I will make more money and then I will start saving. Someday, when I have more money I will start putting money aside for retirement. Someday, when my mortgage is paid off I will be able to really invest.
Someday almost never comes.
As a Fort Worth bankruptcy lawyer, I have counseled over 3,000 people who have had financial setbacks in one form or the other, and income rarely is the reason.
What is an IRS Levy?
An IRS Levy is a tool used by the IRS to reclaim back taxes. It allows the IRS to freeze your wages, retirement funds or bank accounts and withdraw any available funds to pay off your debt. The IRS does not care about the bills you have to pay or the fact that you may need to put food on the table. Once they have their levy, they will use it to drain as much of your funds as possible.
Bankruptcy has a lot of stigmas, one of which is that bankruptcy changes the way you have to live your life. I often get asked what will I able to do after I file, is the court going to tell me what I can and cannot do with my money. This article will address what your life will be like after you file bankruptcy and what it is like after you receive your discharge.
Lawsuits can be stressful and it can be ever more stressful if a creditor gets an actual judgment against you.
A judgment is simply a piece of paper signed by a judge stating that a creditor (or plaintiff) has won the lawsuit and is entitled to something. Typically, the judgment will be an award of a certain amount of money, for you which you will be responsible for.
If you can avoid a judgment, that is always the first step but let’s assume the judgment has already been entered by the court, what can you do?
Timing can be very important to ensure that you are able to successfully navigate through the bankruptcy process. There are several reasons why waiting and filing in January 2014 could be better for you.
The Loan Modification process can be one of the most stressful experiences a homeowner can go through.
Bankruptcy hits at the heart of what we all need to survive: money. Our financial lives impact our personal relationships, our work, our mental state, our abilities to provide for our families and plan for the future; in short, our finances touch almost every aspect of our life. As a consequence, finances become one of the highest priorities of our lives. Bankruptcy is one of the most effective tools available to individuals and companies in fixing a difficult financial situation. But, the bankruptcy code is very complex and is deadline intensive and if the code is not followed correctly a person could find themselves in a worse situation than before they started. It is without question that a person or company should not attempt to represent themselves in a bankruptcy; everyone needs a guide through the bankruptcy process. Therefore, your bankruptcy attorney is integral in you successfully turning your financial life around and moving forward with a fresh start.
Bankruptcy is a powerful tool that can really help a person get back on their feet. One of the main policies for bankruptcy relief is to give individuals and businesses a fresh start. It would not be much of a fresh start if you were not able to remove your debts. Most all of your debts can be removed through the bankruptcy process. Everything from credit cards, medical bills, loans, payday loans, lawsuits and even toll fines can be removed. There are a few types of debt that typically cannot be removed in the bankruptcy process.
Foreclosure can happen to anyone. There were nearly 2 million foreclosures in the US in 2012. The Dallas area ranked 11th among major cities in foreclosures during that same year.
One of the most common questions I get from clients is “how can I improve my credit after bankruptcy”. In order to maximize your credit score after bankruptcy, you need to establish positive credit reporting. To establish positive credit report you need to MAKE YOUR PAYMENTS ON TIME, EVERY TIME. Do not be late on anything. If you have a vehicle or home, do everything you can to make those payments on time.
A recent case out of Alaska (In Re: Thomas Mortensen) held that a transfer to a trust was a fraudulent conveyance. I disagree but the issues presented can help future debtors avoid some of the pitfalls made in this case.
The debtor purchased a property in 2004. In 2005, the debtor transferred the property to an Alaskan Self-Settled Trust. The express purpose of the trust was “to maximize the protection of the trust estate or estates from creditors’ claims of the Grantor or any beneficiary and to minimize all wealth transfer taxes.” [NOTE: PURPOSE OF TRUST MATTERS WHEN DEFENDING FRAUDULENT CONVEYANCES/TRANSFERS].
My Debt Was Forgiven, Now What?
When a mortgage company or even credit card company cancels or forgives your debt, there could be serious IRS implications. In other words, you are not out of it.
Typically, when a company forgives or cancels a debt, they will mail out a form 1099-C to the individual debtor. If you do nothing at this point, that debt will become part of your gross income and you will be required to pay taxes on it. This is scary because owing the IRS is not a good position to be in. They are very aggressive and have significantly more collection tools at their disposal. They can offset tax returns, garnish wages, levy all of your personal and real property.
It all starts with the Client. Remember, a client who is sued or about to be sued and has his life savings on the line will do almost anything. As an attorney, it is imperative that you counsel your client against doing anything that is illegal. The sooner you and your clients begin to plan, the more protective and effective your protection plan will be. If your client has been sued it is likely too late to implement an asset protection plan.