If you have tried your hardest to climb yourself out of debt, but just seem to be sinking deeper and deeper into it, bankruptcy might be your best option. Though scary to think of, The Law Offices of Louis Esbin are specialized in bankruptcy law and can assist.
Filing bankruptcy allows those who have found themselves buried in debt have assistance in climbing out of it. There are two types of bankruptcy that are most common for individuals: chapter 7 and chapter 13.
Chapter 7 bankruptcy is the most common by far. In this type, the court gains legal possession over your belongings and may sell them to pay the creditors you owe money to. Afterwards, they may discharge (or forgive) the remaining debts you owe, leaving you debt free.
Chapter 13 bankruptcy is different. Instead of seizing property, the court will arrange a monthly payment plan to help make your debt repayment more manageable. In this type of bankruptcy, you must pay back all of what you owe.
Chapter 7 bankruptcy also helps to eliminate certain tax debts! Depending on the situation of your debts and the actions you have taken for them, some types of debts can be discharged.
The most common of these tax debts is income tax debt but could include other types. Taxes such as payroll taxes and fraud charges cannot be forgiven. Tax forgiveness will only work if certain criteria are met. These qualifications are as follows. The tax debts must be at least 3 years old in order for them to meet discharge qualification.
On top of this, you must have successfully filed tax returns for the debt for the last 2 years. If you filed the return late or attempted to commit tax fraud, the debt cannot be discharged. Lastly, you must pass the “240 day rule.” This rule states that if the IRS has assessed your debts in the last 240 days, the debts will not be forgiven. If you wait these 240 days or if the IRS hasn’t assessed your debts, you are in the clear.
By checking off all of these qualifications, you are more likely to have your debts forgiven when filing for chapter 7 bankruptcy.
Though it could be an effective way of lightening your financial load, bankruptcy should not be rushed into. Instead, you should consult a professional to help you decide if bankruptcy is your option. Professionals in Santa Clarita, such as the Law Offices of Louis Esbin, are willing to help you discover a tax debt repayment plan that is in your best interest!
Louis Esbin of the Law Offices of Louis J. Esbin is an attorney in Santa Clarita and Canyon Country, Valencia, Saugus, Stevenson Ranch, Newhall and Castaic neighborhoods who specializes in bankruptcy law, business law and consumer protection. The motto of his firm is, “When experience counts, count on experience,” and Esbin has been practicing law locally since 1993. His experience in Los Angeles, San Francisco and New York also enables him to pledge to provide his clients with high quality, big-city legal services as a Santa Clarita attorney. In addition, the bankruptcy attorney in Santa Clarita is founding treasurer of the Santa Clarita Valley Bar Association, a founding member of the Central District Consumer Bankruptcy Attorneys Association and a member of the Financial Lawyers Conference and California Bankruptcy Forum. Those searching for the best attorney in Santa Clarita or an “attorney near me,” can contact the Law Offices of Louis J. Esbin today for more information.
27451 Tourney Road, Suite 120
Valencia, CA 91355-6304