Law Office of Marend Garrett

If you owe back income taxes that are more than three years old, you can have your tax debt removed or reduced by filing for bankruptcy. Note that this does not apply to sales taxes, which must be repaid.

Understanding the best option to choose when your financial situation is bleak can be complex. A bankruptcy attorney is familiar with debt consolidation and other alternatives short of bankruptcy and can help you make the right decision.

Bankruptcy can be a complicated process, with laws that vary from state to state. If you're considering filing for bankruptcy, a qualified attorney can walk you through your choices and help you negotiate with your creditors.

One of the requirements when filing for bankruptcy is credit counseling with a government-approved counseling agency. You can do this any time up to six months prior to filing, so consider getting your counseling sooner rather than later.

When you file for a chapter 13 bankruptcy, you'll only be required to pay a percentage of debt based on your total debts, the value of your assets, and any disposable income you may have. In many cases, this will reduce the amount of your total debt.

Despite your good intentions, paying back friends and family before filing for bankruptcy can cause problems down the road. The trustee has the power to sue over any money you've repaid to friends and family if it isn't voluntarily returned.

Depending on what type of bankruptcy you file, your tax obligations will vary, as chapter 7 bankruptcy creates a taxable estate that's completely separate from you as an individual taxpayer. Speak to your attorney to determine your tax obligations.

Did you know that filing for Chapter 13 bankruptcy often requires you to obtain approval for a payment plan? Hiring a bankruptcy attorney can help you receive a payment plan that officials are likely to approve.

Do you need to file for bankruptcy? Contacting a bankruptcy lawyer can help you determine whether Chapter 7 or Chapter 13 is most appropriate for your situation and explain what each type of bankruptcy involves.

Check with a bankruptcy attorney to make sure the debts causing you the most trouble can be discharged. For example, most student loans - a source of financial difficulty for many - cannot be discharged in a bankruptcy.

A bankruptcy trustee will very likely review your finances in the six months preceding the bankruptcy filing, and perhaps longer. Taking on extra debt too close to the time you file for bankruptcy can be presumed to be fraudulent.

Did you know that filing for bankruptcy at the beginning of the year can reduce some of the harsh effects of bankruptcy? This can make it easier to handle the effect of your filing on any potential tax returns.

Filing for bankruptcy devastates your credit. However, a bankruptcy attorney can explain the steps to take to regain your credit standing. Many people get credit cards and auto loans soon after bankruptcy, and home loans not long after that.