Bankruptcy can wipe out federal and state tax debt (which is called “discharging” the tax debt) if several conditions are met. If a case is filed too early, the debtor may go through bankruptcy and still owe taxes on the other end of the process. It’s usually a pretty easy malpractice case if an attorney misses this. Read more »
Bankruptcy Procedure
Getting Rid of Tax Debt with Bankruptcy Can Take Time – Lots of It
Clients often arrive in my office, panicking, with big problems such as unpaid student loans, huge tax or business debts, and creditors filing liens. They want their problems to go away immediately – rightly so because the stress is terrible. But, for many clients, the only effective strategy is one that will take time. Often lots of it. Read more »
Hiring a Low-Cost Bankruptcy Attorney Can Be a Big and Costly Mistake
There are lots of bankruptcy attorneys out there. Many of them are downright cheap, charging less than $1,000. I routinely charge three to four times more. How could hiring an “expensive” attorney ever make sense? Remember that old saying: “you get what you pay for?” It’s true. Read more »
Bankruptcy Triggered by Medical Bills
In the past year, there’s been lots of talk– especially by politicians — about millions of personal bankruptcies being triggered by massive medical bills. While this may be true, I’m here to report that I have not had a bankruptcy client whose medical debt topped $100,000. Read more »
The Three Questions You MUST Ask When Hiring A Bankruptcy Attorney
1. WHICH TYPE OF BANKRUPTCY FITS MY SITUATION – A CHAPTER 7 & 13? There are two kinds of bankruptcies for personal (rather than business) debt. Generally, chapter 7 Read more >>
Which Possessions Will I Lose in Bankruptcy?
Clients often ask whether they can keep a treasured possession, like a 1968 Camaro, out of their bankruptcy? Technically, no. What Can I Keep? When filing bankruptcy, Read more >>
Chapter 12 Bankruptcy & Judicial Foreclosure
An investor was trying to collect on a note, and called me to help him out: he and a bunch of strangers had loaned $600,000 to a fellow living in the outskirts of Cambria, California. The fellow Read more >>
Hawkins vs. FTB Changes Tax Evasion Standard
If the government can prove that you “willfully attempted in any manner” to “evade or defeat” a tax, then you cannot discharge that tax debt in bankruptcy. 11 U.S.C. 523(a)(1)(c). Read more >>
Wells Fargo: Freezes Accounts of People in Bankruptcy
If you have more than $5,000 in your Wells Fargo checking account when you file a bankruptcy petition, be prepared. Wells Fargo will freeze your account until the bankruptcy trustee tells them it’s okay Read more >>
Wells Fargo: Worst Bank EVER
I don’t like Wells Fargo Bank. Its abusive policies make it impossible to think well of it. I try not to do loan modifications for clients because all banks are reluctant to negotiate them. Banks are forced to do so by well-meaning statutes. Read more >>