Chapter 7 Bankruptcy
This is the most common type of bankruptcy, and the
type most people think of when they refer to "filing
bankruptcy." With chapter 7, the debtor generally
loses all his assets (with the exception of certain "exempt" assets)
and wipes out (discharges) all his debts (with the
exception of certain "non-dischargeable" debts).
The extent to which assets that can be claimed "exempt" from
the claims of creditors depends on the state in which
the debtor resides. Each state can either elect to
follow the federal exemption statutes, or have its
own set of exemptions. In Florida, the exempt assets
include the cash surrender value of life insurance
policies, annuities, certain wages, one's homestead,
and a few other things. However, these items are not
exempt from the claims of the Internal Revenue Service!
Non-dischargeable debts include alimony and child
support obligations, student loans, debts incurred
by fraudulent means, and certain tax debts. Chapter
7 cannot discharge (i) an individual's debts for "newer" income
taxes, or (ii) civil penalties relating to payroll
tax (regardless of age). Once income taxes age enough,
they change from non-dischargeable to dischargeable.
Therefore, it is imperative that before anyone actually
files for bankruptcy protection, they consider the
timing of their bankruptcy! Many times taxpayers do
not wait long enough before filing such that, afterward,
they may no longer owe medical bills or money to credit
card companies, but they still owe large debts to IRS.
We have personally visited with a number of people
who would have discharged their tax debts had they
waited as little as two more weeks!!
To find out if your income tax debts are old enough
to be discharged, contact us for a gameplan meeting.
The way we approach tax bankruptcies is to realize
discharging income tax debts is an important, difficult
but possible three-step process. The first step is
to research the facts of your particular case to make
sure the taxes are dischargeable. If they are, then
your bankruptcy attorney can go to the second part
and file bankruptcy. If not, we determine when they
would be and wait until then. The second stage is the
actual bankruptcy. Afterward, we do the third and final
stage, which is to deal with IRS to show them why your
tax debts were discharged and obtain a written release
of your tax debts.
Afterward, you will find yourself free not only of
credit card debt, medical bills, and judgments, but
free of IRS as well! Free of tax liens. Free of bank
account levies. Free of continuing wage garnishments.
Free to live your life again and sleep soundly at night.
Would you like that? Call us today!
We know the answers and we can help
solve your tax problems
Contact
us now to get your life back.
Also visit Larry Heinkel's web site for Bankruptcy
Law:
www.MyFloridaBankruptcyLawyer.com
