Tag Archives: consumer bankruptcy

Is Social Security Income Protected from Creditors?

Creditors sometimes go to court and get a judgment against the debtor. If this happens to you, your creditor can then take the judgment order to the bank, garnish your account and take your money. According to federal law under 42 U.S.C. section 407 (a), your Social Security income is exempt from garnishment. This protection is not automatic and there are steps you need to take to be sure that you do not lose your money to the creditor. If you do one of the following, you should be able to save three months of your Social Security income from garnishment. Filing an affidavit with the court If you receive a notice of a hearing requested by your creditor, attend the hearing and provide the court and your creditor with information verifying that your income is exempt from garnishment. If you did not attend the hearing, you can still take…
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Tax Debts and Tax Liens

If you are interested in discharging tax debts in bankruptcy, The Sader Law Firm can help. There are certain rules that apply in order for that to happen. At a minimum, filing a petition for bankruptcy stops collection action during the pendency of the bankruptcy proceeding. Tax debts which are dischargeable If the following conditions are met, the tax debt, including penalties and interest, may be discharged at the end of the Chapter 7 Bankruptcy proceeding: The taxes are income taxes All outstanding tax returns have been filed You did not engage in any fraud or tax evasion The taxes you want discharged were originally due at least three years prior to your filing for bankruptcy The tax return for the debt you want discharged was filed at least two years prior to the bankruptcy filing date The IRS assessed the debt at least 240 days prior to the date…
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How Fast are Chapter 7 Bankruptcy Discharges?

After a Chapter 7 bankruptcy is filed, a section 341 meeting, also known as a “meeting of creditors” is scheduled with to take place within 21-40 days of the filing. A debtor must attend his or her section 341 meeting or the bankruptcy case will be dismissed. For individual debtors filing Chapter 7 bankruptcy, debtors are eligible to receive their Chapter 7 discharge sixty (60) days after the date set for the section 341 meeting, unless a creditor files a timely objection or the bankruptcy court orders otherwise. In the normal case where there are no complaints objecting to discharge filed in a timely manner, the debtor will receive a discharge within five (5) working days after the sixty (60) days has passed. In the event of bankruptcy schedules needing to be amended after filing, a notice of amendment to schedules will be filed (to add creditors, etc.), the discharge…
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