2012-4
26

What conditions must a debtor meet for his Federal income taxes to be discharged in a Ch. 7 bankruptcy?

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Dealing with high interest credit cards, medical bills or late car payments may be stressful enough, but dealing with the IRS can create a new level of financial turmoil. The law allows the IRS to place levies on personal property in order to collect taxes. This allows it to seize real property and vehicles, and even take money out of your bank account. Fortunately, a bankruptcy can help you avoid the loss of your property and money. Just as it allows the discharge of unsecured debt, bankruptcy can be used to discharge federal tax debt as well.

Federal income taxes may be discharged in a Chapter 7 bankruptcy if the debtor meets all of the following conditions:

• Income taxes are sought to be discharged: Only personal income taxes may be discharged through bankruptcy. Business payroll taxes and penalties for tax fraud may not be discharged.

• The debtor did not commit willful tax evasion or tax fraud: If a debtor was penalized for repeatedly failing to pay taxes, hiding money or taxable assets from the IRS, or filing a blank or incomplete tax return; these charges may not be eliminated through bankruptcy. The same applies to charges levied due to tax fraud.

• The 240-day rule applies: The tax debt must have been assessed at least 240 days before the bankruptcy petition is filed.

• The taxes stem from a legitimate tax return: The debtor filed a tax return for the relevant tax years at least two years before filing for bankruptcy.

• The past tax debt is at least three years old: The tax debt was originally due at least three years before filing for bankruptcy.

In a Chapter 13 bankruptcy, a debtor will make payments on tax debt through a repayment plan. Such plans last between 36 and 60 months, and the payments are based on the debtor’s disposable income. After the plan is completed, the remaining debts are discharged.

The same dischargeability requirements apply for Chapter 13 plans. Only income taxes from legitimate returns that have been assessed at least 240 days before the petition was filed may be discharged. However, Chapter 13 can be used to pay non-dischargeable tax debts (i.e. unpaid payroll taxes, tax penalties) over time.

The preceding is not intended to be legal advice. If you have questions regarding discharging tax debt, an experienced bankruptcy attorney or tax attorney can advise you on the options available.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. at www.miamibankruptcy.com.

2011-6
25

What Debt is Dischargeable through Bankruptcy?

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Bankruptcy laws specify that only particular types of debts can be discharged through bankruptcy. Chapter 7 and Chapter 13 bankruptcy allow borrowers to eliminate their unsecured debts. Unsecured debts include items such as credit card debt, medical bills, utility bills, service bills, personal loans, payday loans and judgments. Secured debts which are backed by some form of collateral, like a house, and debts incurred through fraudulent activity, student loans, tax debts, child support and alimony are typically not dischargeable in bankruptcy.

When you hire Kingcade & Garcia, P.A. our attorneys will provide a complete evaluation and give you an honest and accurate assessment of your financial circumstances. We help clients analyze their finances and determine the best path to debt relief. This past year our firm handled more than 1,500 bankruptcy cases, bringing debt relief to individuals, families and business owners throughout South Florida. If you are struggling with insurmountable debt do not wait any longer, set up your FREE office consultation today by calling (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.

2011-5
29

Should I convert my Chapter 13 Bankruptcy to a Chapter 7?

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There are two main forms of bankruptcy. In a Chapter 7, all or most of your consumer debt is eliminated, but some of your assets could be repossessed, including your car. In Chapter 13 bankruptcy, you set up a three- to five-year repayment plan that is based on your income and ability to pay.

Are you struggling to keep up with your Chapter 13 payments? If you have recently lost your job or become ill, Chapter 13 Bankruptcy may no longer be the right option for you. You have the right to convert a Chapter 13 bankruptcy to a Chapter 7 bankruptcy at any time if you become eligible. Many of our clients are surprised to discover they never have to go to court or see a judge in order to convert their Chapter 13 filings to Chapter 7.

Contact Kingcade & Garcia, P.A. at 305-285-9100 to arrange a free consultation if you have any questions on this topic or are in need of converting your Chapter 13 bankruptcy to a Chapter 7. It is extremely important that you hire an attorney who is experienced in the field of bankruptcy and focuses exclusively on representing the interests of individuals and families in bankruptcy matters. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.

2011-3
26

When should I consider filing for Bankruptcy?

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Timing is everything. File your bankruptcy too late and you can lose your home to foreclosure or have your wages garnished. File too soon and you may lose an important tax refund or the opportunity to get better terms. Knowing not just what action to take, but when to take it is a vital part of your bankruptcy.

At the Miami bankruptcy law office of Kingcade & Garcia our legal experience comes from helping more than 15,000 Florida families get relief from debt and financial crisis through bankruptcy. Since 1996 we have been helping people build long-term solutions to complex financial problems. We know the issues involved in bankruptcy, and we can help you decide when is the best time to act.

Striking the Right Balance

When considering bankruptcy, it’s important to understand how much of your life can be affected. Handle the bankruptcy right and it can dramatically improve your debt situation, your finances and your life. File at the wrong time, however, and you may be facing serious concerns.

At Kingcade & Garcia our attorneys evaluates all areas of how a Chapter 7 or Chapter 13 bankruptcy can impact your life. We look at a diverse range of issues before filing your case, including:

Without the skill and experience of thousands of bankruptcy cases, it can be difficult to know how to strike the right balance for clients. When the results of your bankruptcy matter, timing can be everything. Rely on a professional with the tools, knowledge and proven record to help you take the right action at the right time.

2011-3
26

Can I afford to file for Bankruptcy?

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This is a common question asked by many people struggling with overwhelming debt. Why should you pay attorney and filing fees when you are already having enough trouble paying your existing bills?

Most good bankruptcy attorneys understand that if you’re considering bankruptcy, the last thing you want to do is pay for a lawyer. At Kingcade & Garcia, we offer a free, no-obligation consultation to every potential client. Our fees are reasonable. We work with each client to create an individualized payment plan, typically over a four- to six-month period. We are here to help you, not hurt you.

At Kingcade & Garcia, we know that Chapter 7 or Chapter 13 bankruptcy is not for everyone. If we evaluate your case and do not believe you are a good candidate for bankruptcy, we will not encourage you to file. We can assist you in exploring bankruptcy alternatives and provide you with sound legal guidance.

How Much Is Your Happiness Worth?

Consider your current financial circumstances. Are they affecting your life, your health and your happiness? Can you put a monetary value on these things? We encourage you to take action soon if you are struggling with debt. For most people, inaction will cost them much more than the costs of bankruptcy in the long run.  Take back control of your finances. Contact our experienced bankruptcy professionals online or by phone in Miami, Florida, at 305-285-9100 for a free consultation.

2011-3
26

Can I file for bankruptcy more than once?

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It would be nice if bankruptcy guaranteed that the future would work out, and that just one second chance would be enough, but part of building a successful future inevitably means taking chances. Even people who have had to file for bankruptcy in the past can still face significant financial challenges down the road, and may need to come back again to reset, restart and rebuild.

The rule is that you can file for Chapter 7 or Chapter 13 bankruptcy every eight years.

At the Miami bankruptcy law office of Kingcade & Garcia we understand that even if you’ve filed for bankruptcy, you may have encountered another situation that has left you and your family facing a financial crisis. The laws of Florida and the U.S. understand this as well, which is why consumers have the right to file for bankruptcy even if they have filed in the past.

Another Chance at the American Dream
Life is full of chances. Some chances taken work out and lead you exactly where you had hoped. Others lead the opposite direction and can end in seemingly insurmountable personal and financial challenges. Part of the American Dream and the foundation on which capitalism is built has to do with ordinary people taking extraordinary chances on success.

Our attorneys at Kingcade & Garcia has worked to help people file second and even third bankruptcies under Chapter 7 and Chapter 13. This is your right under state and federal law, and we are proud to help you take action to protect those rights.  We guide you through the process, make sure you are aware of the consequences, and help you rebuild a pathway to success.

2011-3
26

What can I keep after filing for bankruptcy?

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Most people are reluctant to declare bankruptcy for fear of losing their home, their car, or their personal possessions. In reality, you may be able to keep most of your things, depending on the kind of bankruptcy your file for and the specifics of your case. And, while home foreclosure is a worry for those filing for bankruptcy, foreclosures are often more expensive for banks than modifying a loan or refinancing a house altogether.

At Kingcade & Garcia, Attorneys at Law, we prepare clients for life before, during, and after bankruptcy by explaining what they can keep, what they will likely have to sell, and what they may be able to keep by working with creditors. In many cases, whether you file under Chapter 7 or Chapter 13 will determine what you can keep after bankruptcy.

If you are considering filing for bankruptcy but are unsure of the consequences, contact Kingcade & Garcia today to schedule an appointment and get the information you need to regain your financial footing.

Chapter 7 Bankruptcy
Under the terms of Chapter 7 bankruptcy, most of your unsecured debt should be wiped out. However, the court may sell some of your personal items and property in order to pay creditors all or a portion of what you owe them. In general, non-essential luxury items like plasma or LCD TVs, high-end stereo equipment, a boat, expensive clothes or jewelry, or certain kinds of appliances could be sold. Workers’ compensation benefits, Social Security disability income, assets from a prepaid college fund, and retirement funds are usually exempt. If you can continue making payments on your car, you will likely be able to keep it.

Chapter 13 Bankruptcy
Since Chapter 13 involves a restructuring of your debt, it is frequently used to allow you to keep your home, cars, and personal property under its terms. Under Chapter 13, a trustee is appointed by the court after you file. You will be required to repay a percentage of what you owe over a 3 or 5 year period. As such, any debt owed on credit cards or loans will be incorporated into the terms of your repayment plan. The court will not need to sell your property since the debt against it will be paid down according to the terms of your Chapter 13 repayment plan. Additionally, you should be able to keep your home since Florida provides a generous homestead exemption.

2011-3
26

Why should I hire a bankruptcy attorney?

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At times when you are struggling against serious debt and seemingly insurmountable financial troubles, it may seem like a good idea to try and handle your bankruptcy on your own. After all, why take on yet another expense in the form of a lawyer. The reason is simple:

The small savings you get by not hiring a lawyer now may cost you much more during and after your bankruptcy.

At Kingcade & Garcia, our Miami bankruptcy attorneys have been helping Florida families dig out from under crushing debt and build a better financial future since 1996. We have helped more than 15,000 individuals and families build solutions in the face of what seem like endless questions by providing a clear path through the sometimes complex process of Chapter 7 and Chapter 13.

2010-4
27

Can I be charged lawyer and court fees during a foreclosure on my house if I already filed bankruptcy?

Category: Timothy Kingcade - Legal information | No Comments

I am assuming by your answer that you surrendered the property and did not reaffirm this debt. If so, then no, you cannot be charged lawyer and court costs.

The foreclosure mills simply use the same forms over and over again. Your personal obligation was likely removed through the bankruptcy and the foreclosure mill is simply finishing the foreclosure process.

2010-4
16

Will I be required to go to court?

Category: Timothy Kingcade - Legal information | 2 Comments

About 30 to 40 days after filing the bankruptcy petition, you will have to attend a hearing presided over by a bankruptcy trustee. This hearing is called the First Meeting of Creditors. The trustee is not a judge, but an individual appointed by the United States Trustee to oversee bankruptcy cases. At the First Meeting of Creditors the trustee will ask you questions under oath regarding the content of your bankruptcy papers, your assets, debts and other matters. Creditors will also be permitted to ask you questions, although in the majority of cases creditors do not ask questions at the First Meeting of Creditors. If we are retained to represent you, one of our attorneys will appear at the First Meeting of Creditors with you.

After the initial meeting you normally do not need to return to court. However, if a creditor or the trustee files a motion or an adversary action, you may have to appear in court.

Please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.com.

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