Bankruptcy is a word that is often seen in very poor light and with the numerous taxes being introduced associated with bankruptcy, this term has also turned into the most misunderstood and frequently confusing term. Unfortunately as mind boggling as the prospect of filing a bankruptcy; for many people across the country this is the last resort to protect themselves from the taxman's axe. If you also find yourself in a precarious situation where filing for bankruptcy is the only option available you should seriously consider getting in depth information about the intricacies of the process, the guidelines and the filing requirements.
Orange County Bankruptcy Lawyer, How Much Does Bankruptcy Cost, Bankruptcy Records,
Remember any error on your part can have disastrous consequences because not only will the IRS appeal to the court requesting the dismissal of your plea but also if it is proved that you are trying to cheat the IRS by filing for bankruptcy a criminal proceeding may be initiated against you.
It is highly advisable that you get in touch with a Dallas tax attorney before making your move; a tax attorney will be able to help you in filing for bankruptcy.
Often people misconstrue the meaning of bankruptcy; this is a situation where a person/ business can no longer afford to meet their financial obligations including tax debts. As far as individuals are concerned there are three types of bankruptcy that apply to their individual situations:
Chapter 7: This is either filed by individual or by couples. In this case the debtor has the grace period to liquidate the assets and pay up some of the outstanding debt, however, the applier can hold back enough to start on a fresh slate; this simply means that if you apply for Chapter 7 bankruptcy, you will not have to liquidate all your assets.
Chapter 12: This type of bankruptcy is specifically for people who are family fishermen or farmers
Chapter 13: This type of bankruptcy is also know an ' debt reorganization', as the name suggests, in this type of plea your debts will be reorganized making payment more feasible for you; so this option is more suitable for people who can make at least a small amount of payment regularly. Normally, you get three to five years to clear your debts including tax dues.
Just like individual applicants businesses also have three alternatives.
Chapter 7: This type of bankruptcy results in the dissolution of business
Chapter 11: This is debt reorganization for businesses, where you can clear your dues while still being in business
Chapter 15: This is associated with the eradication of foreign debt.
If you are not sure about the type of bankruptcy that suits your situation, get in touch with a Dallas tax attorney who will be able to help you determine the type of bankruptcy that will be a viable solution to handle you specific situation.
When you apply for bankruptcy, you get reprieve from several types of debts such a medical expenses, tax obligations. credit card debt and unsecured loans; however, there are some types of tax debts and child or spousal support are not covered by bankruptcy, meaning hat you will have to make these payments.
After the 2005 changes in the legislation, you can get a tax attorney to help you with the filing process; your Dallas tax attorney will be able to help you with the filing requisites and will also be able to advise you on the type of forms to prepare and submit. Unfortunately, the process is quite complicated and it would be best to enlist the help of a tax attorney to avoid problems.
For instance, there is a humongous amount of paper work involved about your earnings and expenditures that you will have to be collected and numerous procedures to completed before your bankruptcy plea sees the light of the day.
You will have to opt for debt counseling from an approved outfit 6 months prior the filing.
You will have to be certain requirements; quite simply the new rules meant to dissuade most people from filing for Chapter 7 bankruptcy. If you do not meet the requirements of Chapter 7 you can go for Chapter 13.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Dallas Bankruptcy Attorney
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment