Asset Planning While in Debt – Don’t Just Take Your CPA’s Word
Posted September 26th, 2010
Asset planners such as CPA’s can be a great resource for avoiding tax liability or using trusts to avoid probate. However, such asset managers are often unfamiliar with bankruptcy laws, mainly bankruptcy exemptions, and their laser-like focus on short term gains and tax avoidance can cost you big time if you find yourself in need of bankruptcy protection.
Because of this potential blind spot, it is imperative to consider how asset planning moves will affect you in a potential bankruptcy case. This is because transfers of business and personal property are heavily scrutinized by the bankruptcy court, and many moves that look like a good idea to your CPA can actually cause you to lose the benefit of the bankruptcy exemptions, and worse. (more…)
Stop the insanity – do not liquidate your 401K to pay off debt!!!!
Posted August 29th, 2010
A recent report from Fidelity brings to light a disturbing trend in our country: record numbers of people are making hardship withdrawals from their retirement accounts, and near record numbers of people are borrowing from these accounts. As your friendly neighborhood bankruptcy lawyer in Colorado, I see this trend happening every day and it both saddens and frustrates me. This is because early withdrawals from your retirement account take from your future while simultaneously enabling your creditors to reach funds they otherwise could not touch. (more…)
Legal Protections for America’s Military: The Servicemembers’ Civil Relief Act
Posted August 16th, 2010
Hey all! This week’s post comes from NOLO. We believe it is very informative regarding the well-deserved rights of active service members against creditors. In addition to the rights listed below, the bankruptcy code exempts from means testing for Chapter 7 eligibility for both; i) disabled veterans whose indebtedness occurred primary during a period when they were on active duty or performing a homeland defense activity; and ii) members of the military reserves or National Guard for the period when they are on active duty or performing homeland defense activities, and for 540 days thereafter. These exemptions may enable higher income debtors to qualify for Chapter 7 if they were previously or are currently on active duty.
Active service members can take steps to reduce loan obligations, prevent court judgments, and avoid eviction and foreclosure. (more…)
Giving Away Property Prior to Bankruptcy: You’re Buying Trouble
Posted June 29th, 2010
If you’re struggling to pay your debt and your creditors are closing in on you, you may be tempted to give money or property to friends or family in hopes of keeping it away from your creditors. As a bankruptcy lawyer, I have some words of advice for you: DON’T DO IT! These transactions are generally considered fraudulent both in and out of bankruptcy court. Worse, these moves can taint your entire case, enticing judges to throw the book at you!! (more…)
Wage Garnishment: Big Stick for Creditors, and a Good Reason to File Bankruptcy
Posted June 14th, 2010
When you are behind on paying your debt, life can be stressful. You may feel helpless, wondering what to do. Or maybe you think your creditors won’t do anything other than call you multiple times per day. Whatever the case, you should know that your situation can get much worse when a creditor sues you and garnishes your wages. In many states, this means they can take 25% of your income, leaving you unable to pay for life’s basic necessities. You should also know that bankruptcy can help you avoid this desperate situation. (more…)
Here ye, here ye, let it be known from this point forward: DON’T BANK WHERE YOU BORROW!
Posted May 10th, 2010
Over the course of civilization, pearls of wisdom are developed which are so important and self-evident, they become part of the basic lessons passed down from generation to generation. Who knows when they came about in the evolutionary chain, but maxims such as ‘Never eat yellow snow’ are so well established that they seem to be part of our DNA. While it may be rare for anyone to join the short list of people who actually coin a phrase which becomes part of our fundamental decision making, I believe I may just be one of those people. For the recent financial crisis (and my work as a bankruptcy attorney) has given me clarity to see a basic truth which your mother never told you about – DON’T BANK WHERE YOU BORROW. (more…)
Can I get rid of taxes in bankruptcy?
Posted April 5th, 2010
It’s that time of year again – TAX TIME. I know you love it, especially if you owe or are going to owe the IRS. If this is you, you should know that some back taxes can be wiped out in bankruptcy. Of course, not all taxes can be wiped out. For example, payroll taxes and sales taxes associated with your ownership of a small business cannot be wiped out in bankruptcy. However, even if you cannot get rid of your taxes, Chapter 13 bankruptcy can stop penalties and interest on them while giving you time to repay, and reducing the amount available for your other creditors. (more…)
Presidents Day Secrets – Abe Lincoln, Thomas Jefferson, and Bankruptcy
Posted February 14th, 2010As Many Americans Face Bankruptcy in Today’s Economy, Lincoln’s and Jefferson’s Bankruptcies Remain A Little Known Secret
(Press Release – Denver, CO) – Abraham Lincoln and Thomas Jefferson are noted for many things, but bankruptcy usually isn’t one of them. Yet both President Lincoln and President Jefferson were declared bankrupt in their lifetimes. According to historians, Thomas Jefferson is thought to have faced personal bankruptcy several times during his adult life. As more American’s are forced to file bankruptcy today because of our recession, President’s day can remind us that even America’s finest Presidents had financial problems. (more…)
Small Business and Bankruptcy
Posted January 25th, 2010
As a personal bankruptcy lawyer in today’s economy, I am increasingly encountering small business owners facing bankruptcy. These business owners are usually considering bankruptcy because their business income is down and they have some combination of personal debt and personally guaranteed business debt which they cannot repay. I generally see the goal for these owners as wiping out business debt as well as personal liability for those debts, while keeping business assets. While achieving this goal in bankruptcy is not always not possible, bankruptcy can wipe out personal liability for business and personal debts, and can be the best option for business owners in financial distress. (more…)
Can I keep my car in bankruptcy?
Posted December 16th, 2009
As a Colorado bankruptcy lawyer, I come across many people who want to know the answer to this question. The short answer is that you can almost always keep some kind of car in bankruptcy, but it may not be your current vehicle. The legalities surrounding vehicles in bankruptcy are complicated and you should go into the process with a flexible mindset. (more…)