Stephen Dunn at it again! And he’s still urging caution on consumer bankruptcies and stating that they do more harm than good. However, this time he doesn’t even site a real case. It is evident that the legal community has very quickly grown tired of his antics. Consider that his first blog post yielded a total of 33 comments and over 2,000 views. So why change the formula right? Well, sadly for Mr. Dunn’s sake, lightning did not strike twice. Only 2 comments and 700 views since he posted the sequel.
After stopping to pat himself on the back by claiming a “badge of honor”, Mr. Dunn proceeds to tell three specific stories. We’ll call them Contractor, Offer in Compromise, and IRS. Neil Sader offers his rebuttal:
1. Contractor: “He could discharge his personal guaranties, so in a state like Kansas where the homestead is unlimited, Dunn’s argument against filing is non-existent. His argument about stiffing long time suppliers is archaic. People and businesses understand bankruptcy. Depending on the terms he received from suppliers, (maybe he was already COD) it may not matter. Furthermore, by eliminating debt, he may be in a better position to obtain favorable terms in the future.”
2. Offer in Compromise: “His argument is problematic b it takes forever to get an Offer in Compromise (OIC) approved anyway.B It could take months, a year b who knows. In the meantime the consumer lives with debts, lawsuits, phone calls from collection agencies, garnishments etc. Tax liens will not continue despite bankruptcy! While the IRS may not record a release due to bankruptcy, no one will enforce it either.B Title companies, banks etc., all understand this. Extending the collection statute only applies to those taxes NOT discharged. This guy completely fails to mention the ability to discharge taxes over 3 years old!
3. IRS: “Prove to me the filing of a bankruptcy compelled the IRS to re-open a file. Maybe her case was denied, maybe she omitted information, who knows in his fictional example.”
Mr. Dunn does offer one piece of advice that we can both agree on – that those considering Chapter 7 Bankruptcy should seek the “advice of competent, fully informed counsel.” The Sader Law Firm prides ourselves on helping to provide a fresh start to good people. We have more than 30 years of combined experience in Chapter 7 and Chapter 13 bankruptcy cases and can help provide you with real financial freedom with “competent, fully informed counsel.” If you live in Kansas or Missouri, contact Neil Sader today for a free consultation at (816) 281-6349 to learn more about the options available to you!