Tag Archives: eliminate debt

Is It Right For You? Why People Avoid Bankruptcy

avoid bankruptcySome people avoid bankruptcy, and there are legitimate reasons to do so.  However, many people each year hire a bankruptcy attorney to resolve and eliminate their overwhelming debt. Those clients often express the relief they feel in knowing that their debt will be handled as quickly and painlessly as possible. However, we’re not going to say that the process is “easy” because we know that making that first call to your bankruptcy attorney can be a difficult first step.

Avoid Bankruptcy?

Reasons Why You May Choose Not to File Bankruptcy

• Fear of the unknown. We think you will find that the fear subsides when an adequate amount of information about bankruptcy is obtained to ensure a solid decision can be made. We can help you overcome fears, and gain access to information through a free initial consultation with one of our bankruptcy lawyers.
• Debt load is small. “Debt” levels may be interpreted differently from one household to the next. Debt compared to income will vary. Furthermore, if the ability to repay debt is not there, then bankruptcy may still be a good option. (Even if the debt is perceived to be small.) If you are unsure, seek an experienced attorney help make this determination with you.
• It will ruin credit scores. This is one of the biggest myths. In fact, if you are an ideal candidate for bankruptcy, your credit score is likely suffering right now. Bankruptcy can stop the downward spiral of credit ratings and help your scores to go up over time. In addition, we offer our clients the 720 Credit Score Program.
• It is open public record. Bankruptcy is a legal proceeding that is recorded in public court listings. But, unless you are a celebrity, a major corporation, or you have a family member who religiously reads public court records, there isn’t too much to worry about. The information isn’t printed every day. The financial future of you and your family should be more important than pride.
• We will lose everything. Even a chapter 7 bankruptcy, otherwise known as liquidation bankruptcy, ordinarily allows individuals to protect or exempt all of their property.  Depending upon your personal financial situation and the type of bankruptcy that is filed, you ought to be able to keep your car and your home.

Is Bankruptcy Right For You?

There are many myths about bankruptcy that put fear in front of facts. For many, declaring bankruptcy and committing to better money management are the best avenues towards ensuring a stable financial future. To find out if bankruptcy is the right option for you and your family, make the call today. The bankruptcy attorneys at Debt Advisors Law Offices will evaluate your situation and provide a best scenario or if available, alternative options to consider.

Taxes and the Collection of Unpaid Debt

taxt debt, tax debt collection, debt collectionSoon the holidays will be over and tax season will be staring us in the face.  The average tax refund in the United States is around $3,000, but not every tax payer will receive a refund.  Many people will procrastinate preparing taxes because they fear how much money they may owe.  After all, who wants to write a big check to the government?  Most people would rather owe money to their creditors than to owe Uncle Sam.  Maybe this is because they know that the IRS can garnish wages and levy or seize your property.  The IRS can even charge interest and fees on the collection of unpaid debt such as back taxes.

 

What If I Can’t Pay Tax Return Amount Due?

There are always tax-payers who are shocked in disbelief after seeing the dollar sign at the end of their tax form.  Many find that the taxes due are more than they can’t afford to pay.  What next?  The worst thing you can do is to ignore or run from your taxes.  There are stiff penalties for not paying taxes and it will cost a lot more in the long run.  If you can, file for an extension or make a partial payment.  Then, call the IRS to setup a payment plan.  Lastly, don’t forget to adjust withholdings or quarterly payments to ensure that you’re not going to owe more than you can afford to pay next year.

The IRS has payment options.  Try to work with them to resolve your tax debts.  If not, the IRS has the right to enforce collection of unpaid debt.  Eventually, you will hear from the IRS, or in some cases, from a private collection agency hired by the IRS.  You may begin to see wage garnishments coming from your paycheck.

 

How Bankruptcy May Eliminate Some or All Unpaid Debt

If you find that none of the tax return payment options reflect what you can pay, then you may have some larger debt problems that need to be addressed.  This is where we may be able to help.  Filing bankruptcy with a bankruptcy attorney at Debt Advisors can stop wage garnishments in most cases.  Wage garnishments stop due to the bankruptcy “automatic stay.”  This means that the IRS, or any collection agency, must cease all collection activities associated with the debts that you owe during the bankruptcy process, and as long as the bankruptcy is in effect.  This may include debt from unpaid taxes as well as other debts such as credit cards and medical bills.  There are some exceptions that can be discussed in detail with one of our lawyers.

If you are overwhelmed by debt, and can’t pay your taxes, find out if you are a candidate for bankruptcy. Some of your unpaid debt may be dischargeable. Reach out to Debt Advisors Bankruptcy Attorneys for legal advice.  Don’t procrastinate.  It’s always best to resolve debt issues as soon as possible.  At Debt Advisors Bankruptcy Law Firm, the initial consultation is free.

Dealing with a financial crisis? Avoid confusion and get the facts to avoid costly mistakes.

postHearing advertisements on the radio or seeing TV commercials that make big promises for your financial situation can be seductive.  Google, “financial help,” and instantly be pulled into an advertising vortex of confusing messages, big promises and sometimes false claims.  When dealing with a financial crisis, the last thing anyone wants or needs… is more confusion! There’s no harm in researching your options.  Here are some tips on where to go, and what to look for:

Reduce risk of making a bad financial decision.If you are thinking about hiring an attorney, do a quick search on Wisconsin’s State Bar website to ensure they are licensed to practice.  Search for any debt relief, debt resolution,debt consolidation company or law firm on the BBB to ensure the business is in good standing.  Visit the Federal Trade Commission website to see if a company has a history debt relief and credit repair scams.  (You may be surprised at how many legal actions the FTC has taken against bogus credit-related services!)  See what others who have used the service, or what clients of a law firm say about their experience through online reviews and testimonials.  Looking into these things will certainly put you in the right direction.  From there, you’ll be better equipped to determine which of your options offer the least amount of risk to solve your particular financial problem.  For example, bankruptcy is governed by federal law.  If you’re dealing with foreclosure on your home, lawsuits, or repossession of your car, for example…bankruptcy is a safe and secure option.  Bankruptcy also offers an “automatic stay,” which instantly halts actions by creditors when bankruptcy is filed.  Debtors who choose to go to a company that promises to settle, reduce, or consolidate debt run the risk of scams and even being sued to recover defaulted debt.  It’s never a bad idea to have a lawyer on your side.

Find effective financial help as quickly as possible.  Dealing with bankruptcy laws, petitions and the United States Bankruptcy Court may sound like it would be a long and complicated process.  However, a reputable bankruptcy attorney makes the process seamless.  With the exception of student loans and taxes, Chapter 7 bankruptcy provides “total liquidation” of debt, and it’s by far the quickest option.  If you qualify for Chapter 7, it can be completed in just a few months.  Chapter 13 bankruptcy is more like a ‘reorganization’ of debt so that process takes longer, usually 3-5 years.  Most debt settlement options are between 24 and 40 months, the length of time depends upon your financial situation and how much negotiation has to be done with creditors.  Worst case scenario; get caught up in a scam of fees and big promisesand find that yourself in the same or worse financial situation years later.  Regardless of who you turn to for help, most types of adverse credit history will remain on your credit report for 7-10 years.  The good news is that once you file bankruptcy, you can begin the process of rebuilding credit immediately.

Avoid the confusion of mixed messages, and always get a second opinion if you’re not sure about what to do.  You’ll find that the attorneys at Debt Advisors Law Offices are both experienced and trustworthy.  In addition, Debt Advisors offers bankruptcy and non-bankruptcy options.  At Debt Advisors, you’ll findhonest answers to your questions, and a more clear and positive outlook for your financial future.  Contact a Debt Advisors location near you, for a no-obligation, free consultation.