Category: BANKRUPTCY

IRS debts can be discharged in a Chapter 7. Eliminating Tax Debt in Bankruptcy The following set out the rules to discharge an IRS debt in Bankruptcy: You filed the Income tax return. At times the IRS files substitute returns when an individual has failed to file. Another name for this is Service Filed Returns. The amounts due on IRS filed returns are not dischargeable. The tax is for income-an income tax. You cannot discharge payroll taxes. The tax debt is at least 3 years old. Generally, the due date is April 15th. If April 15th falls on a Saturday… Read More

Bankruptcy laws say you have to do a Means Test. You are to list the gross income in family for the past six (6) months. The total is compared to the Illinois State Standards. If your gross family income is above a certain amount they want you to file a Chapter 13 instead of a Chapter 7. Most people have income below the Means Test. Everyone has to take the Means Test. For most it is only a simple exercise but for some it presents a challenge. Even if your gross income is above the income listed below there are… Read More

There are 3 basic types of claims in Bankruptcy for folks: Secured claims; Priority claims; and General unsecured claims. Secured Claims A secured claim is one where the creditor has a lien on a property in your possession. A secured claim can be by agreement; by law; or by recording a lien. By agreement. The most common types include mortgages, cars, and even furniture. The individual agrees that the creditor has a lien on certain property as well as on the note. By law. This would include real estate taxes. By recording. Creditors who get a money judgment can record… Read More

Often individuals with a heavy debt load want to file Chapter 7 but find out they can’t. There is a Means Test. Many middle-income folks are “high earners” in Bankruptcy Land. What this means is the income in the family exceeds certain thresholds. I have a blog that explains the Means Test in greater detail: https://www.robertadamslaw.com/beat-means-test/ So what do you do if a lot of debt; and income above the threshold? I often talk to good folks with situation frequently. And, we discuss what happening in their life. They tell me they are juggling their debts. Stealing from Peter to… Read More

Did you ever park your car to run into a store for a few minutes? You come back out and find a big fat Chicago Parking ticket on your windshield. It has happened to me. Ruins your day! Accumulated parking tickets are a major headache; license suspension; being “booted”; cars impounded. If the tickets go to a collection lawyer it can be a bad mark on your credit; and, even a lawsuit and wage garnishment. How dangerous is a license suspension? A recent survey: half the people lose a job or can’t get a job. People often don’t know that… Read More

You’re in a hurry, trying to run one quick errand during lunch before rushing back to the office for your busy afternoon – you stop for just 5 minutes to pick up dry cleaning and on your way out – OH NO, there it is… that all too familiar, dreaded paper notice sits under your windshield. You have a Chicago parking ticket. Whether it’s due to illegal parking in a restricted zone, or an overstay at your meter, Chicago parking tickets can not only ruin your day, but if left unresolved they can jeopardize your driving privileges, or worse. Unpaid… Read More

Everything You Need To Know For Debt Attorney In Chicago It an alarming situation when your bills are piling up and you do not have the means to pay them. Considering our current economic environment, it is not possible for the debt to spiral out of control. However, if you find yourself in this sludge, then it is advisable to find possible alternatives that can help you in getting out of this myriad. Debt settlement is one of the viable options for you among so many. To do so, it is imperative to consult with and hire an experienced debt… Read More

Many people avoid bankruptcy on the belief they can never get a mortgage. That is not true. Actually, the opposite may be true for many good folks. If you have too many debts or have a low credit score obtaining a mortgage is too difficult. To get a mortgage you have to resolve your debt problems. Bankruptcy may be the answer, and for that you need the help of a seasoned Bankruptcy Attorneys in Illinois, who can guide you and assist you in this whole process. If you file a bankruptcy there will be a waiting period. The time can’t… Read More

The following is a sample of emails or telephone calls that I frequently get. Dear Mr. Adams: I have a lot of bills and can’t get ahead. But, I am afraid if I file Chapter 7 bankruptcy my credit will be ruined for forever. Signed (name withheld for privacy) Dear ABC, Legend has it that filing bankruptcy means your credit is ruined FOREVER. My experience shepherding thousands of people through bankruptcy says the opposite. Fact: your credit starts improving when a person files Chapter 7. Yes, it sounds crazy, so let me explain WHY: When considering bankruptcy, for most people:… Read More

Surprising Benefits Of Chapter 13 Personal income tax debts that are older than 3 years may be discharged. For a fuller discussion see: Can I Discharge IRS Taxes In Bankruptcy? After Chapter 7 discharge there are 2 types of tax that remain: Non-Discharged taxes; and, Tax Liens. The tax liability may have been discharged but the lien remains. What To Do? A Taxpayer may be able to deal with the IRS outside of bankruptcy. Bear in mind that interest and penalties will continue. The IRS may levy wages and/or bank accounts. The second method is to file Chapter 13: Buys Time… Read More