Tag Archives: consumer bankruptcy

Emergency Bankruptcy Filings

Sometimes people need to file bankruptcy fast. In those situations, they can file an emergency bankruptcy, which means filing the bare minimum of paperwork up front to get the bankruptcy case filed and complete the remaining paperwork later. Consumers and businesses in need of immediate bankruptcy relief can learn about their filing options from an experienced Kansas City bankruptcy attorney. Reasons To File An Emergency Bankruptcy Filing a bankruptcy triggers an automatic halting all collection activity. The automatic stay goes into effect immediately when a bankruptcy case is filed and remains in effect until the end of the case, unless a creditor successfully petitions the court for relief from the automatic stay, or you have had one or more prior bankruptcy cases pending within the past year. In that situation, you must file a motion with the bankruptcy court seeking to extend or impose the stay. The automatic stay prevents…
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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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