Tax debt can create a large financial impact on people’s lives. While you may be able to settle tax debt with the IRS, many times people do not have the cash to make a lump-sum settlement. When the IRS sets-up a payment plan, those plans can take years to complete, with interest accruing on the entire balance owed until paid off. Hiring a Phoenix Bankruptcy Attorney to help you file a Chapter 7 or Chapter 13 bankruptcy can provide you with the necessary tools to take control of your tax debt, and in some cases, completely eliminate the debt owed with no additional payments to the taxing authority.
Even if the IRS or state of Arizona is about to levy your wages or bank accounts, or if they have started a levy, the automatic stay of 11 U.S.C. §362 will stop the taxing authority from continued collection activity in most cases.
Many people, including tax professionals, fail to realize the potential for tax elimination that a bankruptcy provides. Even if you cannot completely eliminate a tax debt, you can, in most cases, manage the amount of payment to be made on a monthly basis, eliminate penalties owed, and stop the accrual of interest through a Chapter 13 filing. Even if the taxing authority has a lien, a Chapter 13 bankruptcy can help reduce the amount owed through a plan of reorganization, and in the end, you will be free from all dischargeable debt.
When you are dealing with a tax debt, it is important that you hire an experienced Phoenix Bankruptcy Attorney to protect your rights under the bankruptcy laws. I offer free initial consultations by phone, or in person, to help guide you toward a successful resolution of your financial problems. Call to schedule a free consultation. You have nothing to lose but your debt.
This blog article was created by Larry P. Karandreas, Esq., a Phoenix Bankruptcy Attorney, on behalf of the Law Offices of Larry P. Karandreas, P.L.L.C., A Lawyer Who Cares™, which concentrates its practice of law to Chapter 7 and Chapter 13 Bankruptcy, and in Debt Negotiation. If you live in or near Phoenix, Glendale, Surprise, Peoria or the Scottsdale, Arizona areas and want legal advice or help - please visit the firm website for more information or call the firm directly at 623.487.1670 to schedule a free consultation. You really have nothing to lose but your debt.
Thursday, May 8, 2014
Monday, April 28, 2014
Is a Cheap Phoenix Bankruptcy Attorney Worth the Price?
Type in the words “Phoenix Bankruptcy Attorney” in your favorite search engine and you will find a plethora of paid ad listings using terms such as “cheap” or “low fees” in order to entice you to click. Sometimes you may even see listings showing actual fee quotes to file a Chapter 7 Bankruptcy such as “$500.00," “$699.00" or even “$0.00 down to file” (the “$0.00 down to file is a whole different animal and will be the subject of a another blog article). While you may not need to spend Cadillac prices for the use of a Phoenix Bankruptcy Attorney, is paying Yugo prices really worth the risk? In my opinion, the answer is an emphatic “NO.”
In theory, as well as in practice, the average Chapter 7 Bankruptcy should take at least five hours of attorney time to complete your bankruptcy preparation and meeting of creditors. The representation should include: an initial meeting and consultation with a client, document review and legal analysis, client counseling, creditor contact, a signing appointment to go over all documents to be signed and filed, as well as attendance at the meeting of creditors and communications with your chapter 7 trustee. When these $500.00 or $699.00 law firms file 50 to 100 cases a month, the question that begs to be answered is how can a law firm commit to the hours necessary to complete a client’s case and still remain in business? The answer is simple, you increase your client base and reduce the amount of time you spend with that client base and become a “mill” firm.
In a recent case out of a Texas Bankruptcy Court, In re Bradley, the bankruptcy court defined a “mill” firm as “a firm whose business model is dependant upon bringing a large volume of consumer debtor clients while simultaneously minimizing expenses by having as few attorneys possible, who are paid extremely low salaries.” In re Bradley, at footnote 33. Simply put, the only way a law firm can charge you $500.00 or $699.00 to file your Chapter 7 Bankruptcy and stay in business is to pay the least amount that it can to its attorneys and spend the least amount of time on a client’s case, or in the case of a solo lawyer mill firm, spend the least amount of time on your case. The question you have to ask yourself is why hire a lawyer who does not want to spend the time necessary to guide you through the bankruptcy process?
Filing a bankruptcy is not an easy task for the inexperienced. Protecting your bankruptcy rights takes experience, knowledge, dedication and time, time that the so-called mill firms cannot afford to devote. When all that you own is at issue, when your ability to properly eliminate your debt is at risk, hiring a lawyer whose main concern is volume and less time spent on your case in order to maximize his/her profitability is a problem waiting to happen.
There are several so-called mill firms in Arizona who are still in business, and for some people, people who literally have nothing to lose, these mill firms are a risk that they are willing to take. For the rest of you, take the time to find an Experienced Phoenix Bankruptcy Attorney who will, for a fair price, spend the necessary time to make sure your bankruptcy is filed correctly. You may not need to find a “Cadillac” attorney to prepare your case, but a reasonably priced attorney, who will spend the necessary time you deserve, will make sure that you arrive at your ultimate destination, a fresh start.
This blog article was created by Larry P. Karandreas, Esq., a Phoenix Bankruptcy Attorney, on behalf of the Law Offices of Larry P. Karandreas, P.L.L.C., A Lawyer Who Cares™, which concentrates its practice of law to Chapter 7 and Chapter 13 Bankruptcy, and in Debt Negotiation. If you live in or near Phoenix, Glendale, Surprise, Peoria or the Scottsdale, Arizona areas and want legal advice or help - please visit the firm website for more information or call the firm directly at 623.487.1670 to schedule a free consultation. You really have nothing to lose but your debt.
In theory, as well as in practice, the average Chapter 7 Bankruptcy should take at least five hours of attorney time to complete your bankruptcy preparation and meeting of creditors. The representation should include: an initial meeting and consultation with a client, document review and legal analysis, client counseling, creditor contact, a signing appointment to go over all documents to be signed and filed, as well as attendance at the meeting of creditors and communications with your chapter 7 trustee. When these $500.00 or $699.00 law firms file 50 to 100 cases a month, the question that begs to be answered is how can a law firm commit to the hours necessary to complete a client’s case and still remain in business? The answer is simple, you increase your client base and reduce the amount of time you spend with that client base and become a “mill” firm.
In a recent case out of a Texas Bankruptcy Court, In re Bradley, the bankruptcy court defined a “mill” firm as “a firm whose business model is dependant upon bringing a large volume of consumer debtor clients while simultaneously minimizing expenses by having as few attorneys possible, who are paid extremely low salaries.” In re Bradley, at footnote 33. Simply put, the only way a law firm can charge you $500.00 or $699.00 to file your Chapter 7 Bankruptcy and stay in business is to pay the least amount that it can to its attorneys and spend the least amount of time on a client’s case, or in the case of a solo lawyer mill firm, spend the least amount of time on your case. The question you have to ask yourself is why hire a lawyer who does not want to spend the time necessary to guide you through the bankruptcy process?
Filing a bankruptcy is not an easy task for the inexperienced. Protecting your bankruptcy rights takes experience, knowledge, dedication and time, time that the so-called mill firms cannot afford to devote. When all that you own is at issue, when your ability to properly eliminate your debt is at risk, hiring a lawyer whose main concern is volume and less time spent on your case in order to maximize his/her profitability is a problem waiting to happen.
There are several so-called mill firms in Arizona who are still in business, and for some people, people who literally have nothing to lose, these mill firms are a risk that they are willing to take. For the rest of you, take the time to find an Experienced Phoenix Bankruptcy Attorney who will, for a fair price, spend the necessary time to make sure your bankruptcy is filed correctly. You may not need to find a “Cadillac” attorney to prepare your case, but a reasonably priced attorney, who will spend the necessary time you deserve, will make sure that you arrive at your ultimate destination, a fresh start.
This blog article was created by Larry P. Karandreas, Esq., a Phoenix Bankruptcy Attorney, on behalf of the Law Offices of Larry P. Karandreas, P.L.L.C., A Lawyer Who Cares™, which concentrates its practice of law to Chapter 7 and Chapter 13 Bankruptcy, and in Debt Negotiation. If you live in or near Phoenix, Glendale, Surprise, Peoria or the Scottsdale, Arizona areas and want legal advice or help - please visit the firm website for more information or call the firm directly at 623.487.1670 to schedule a free consultation. You really have nothing to lose but your debt.
Tuesday, April 22, 2014
Can hiring a Bankruptcy Attorney in Phoenix, Arizona Stop the IRS?
When you file a Chapter 7 or Chapter 13 Bankruptcy, the automatic stay of 11 U.S.C.§362
will stop collection activity, including collection activity conducted
by the IRS and the State, in most, if not all cases. To make sure that
your rights are protected, proper legal representation is a key to
success.
While the automatic stay is a powerful statute, there have been instances where revenue agents of the IRS have not fully complied with bankruptcy laws. In a recent report conducted by the treasury inspector (you can find the report here), it was revealed that even with the automatic stay, the IRS, in some instances, continued its collection activities and failed to fully comply with the automatic stay. Debtors, with proper legal representation, were more likely able to protect their rights under bankruptcy law and stop the IRS. Those who were unrepresented may have had a more difficult time protecting themselves.
To ensure that you have a successful bankruptcy filing it is important that you hire an experienced Phoenix bankruptcy attorney to protect your rights under the bankruptcy laws. I offer free initial consultations by phone or in person to help guide you toward a successful resolution of your financial problems. Call to schedule a free consultation. You have nothing to lose but your debt.
While the automatic stay is a powerful statute, there have been instances where revenue agents of the IRS have not fully complied with bankruptcy laws. In a recent report conducted by the treasury inspector (you can find the report here), it was revealed that even with the automatic stay, the IRS, in some instances, continued its collection activities and failed to fully comply with the automatic stay. Debtors, with proper legal representation, were more likely able to protect their rights under bankruptcy law and stop the IRS. Those who were unrepresented may have had a more difficult time protecting themselves.
To ensure that you have a successful bankruptcy filing it is important that you hire an experienced Phoenix bankruptcy attorney to protect your rights under the bankruptcy laws. I offer free initial consultations by phone or in person to help guide you toward a successful resolution of your financial problems. Call to schedule a free consultation. You have nothing to lose but your debt.
This blog article was created by Larry P. Karandreas, Esq., a Phoenix Bankruptcy Attorney, on behalf of the Law Offices of Larry P. Karandreas, P.L.L.C., A Lawyer Who Cares™, which concentrates its practice of law to Chapter 7 and Chapter 13 Bankruptcy, and in Debt Negotiation. If you live in or near Phoenix, Glendale, Surprise, Peoria or the Scottsdale, Arizona areas and want legal advice or help - please visit the firm website for more information or call the firm directly at 623.487.1670 to schedule a free consultation. You really have nothing to lose but your debt.
Wednesday, February 5, 2014
Medical Debt Collection Can Be Stopped By Filing a Bankruptcy (Phoenix, Arizona)
For the past 22 years, I have noticed that a major cause of my clients’ filing for bankruptcy relief are medical issues and debt related to their medical care. If you have large medical debt or are being sued or garnished for medical debt, filing a bankruptcy will stop medical collections in its tracks.
When you file a bankruptcy, the automatic stay created by your filing prevents all further collection efforts from medical creditors. Whether you file a Chapter 7 or a Chapter 13 bankruptcy, the automatic stay protects you from your medical debt.
If you qualify for a Chapter 7 bankruptcy, medical debt will be eliminated/discharged once you complete the bankruptcy process. Chapter 7 cases are usually filed by people who are below median income (or pass the Means Test) and who have little or no unprotected (nonexempt) property.
In a Chapter 13 bankruptcy filing, you also eliminate debt, including medical debt, after making payments based on a plan of reorganization, with payments based on your ability to pay. Clients who file a Chapter 13 bankruptcy include people who are able to pay a portion of their outstanding debt over time. Even if you have filed a previous Chapter 7 bankruptcy, you may qualify for a Chapter 13 filing.
An added benefit of a Chapter 13 bankruptcy is that unlike in a Chapter 7 bankruptcy, a Chapter 13 filing will allow you to keep unprotected (nonexempt) property by making payments through your Chapter 13 plan.
Whether you file a Chapter 7 or Chapter 13 bankruptcy, it is important that you seek competent advice from an experienced bankruptcy attorney. My office offers free in-person or telephone consultations. You have nothing to lose, but your debt.
This blog article was created by Larry P. Karandreas, Esq., on behalf of the Law Offices of Larry P. Karandreas, P.L.L.C., A Lawyer Who Cares™, which concentrates its practice of law to Chapter 7 and Chapter 13 Bankruptcy, and in Debt Negotiation. If you live in or near Phoenix, Glendale, Surprise, Peoria or the Scottsdale, Arizona area and want legal advice or help - please visit the firm website for more information or call the firm directly at 623.487.1670 to schedule a free telephonic consultation. You really have nothing to lose but your debt.
When you file a bankruptcy, the automatic stay created by your filing prevents all further collection efforts from medical creditors. Whether you file a Chapter 7 or a Chapter 13 bankruptcy, the automatic stay protects you from your medical debt.
If you qualify for a Chapter 7 bankruptcy, medical debt will be eliminated/discharged once you complete the bankruptcy process. Chapter 7 cases are usually filed by people who are below median income (or pass the Means Test) and who have little or no unprotected (nonexempt) property.
In a Chapter 13 bankruptcy filing, you also eliminate debt, including medical debt, after making payments based on a plan of reorganization, with payments based on your ability to pay. Clients who file a Chapter 13 bankruptcy include people who are able to pay a portion of their outstanding debt over time. Even if you have filed a previous Chapter 7 bankruptcy, you may qualify for a Chapter 13 filing.
An added benefit of a Chapter 13 bankruptcy is that unlike in a Chapter 7 bankruptcy, a Chapter 13 filing will allow you to keep unprotected (nonexempt) property by making payments through your Chapter 13 plan.
Whether you file a Chapter 7 or Chapter 13 bankruptcy, it is important that you seek competent advice from an experienced bankruptcy attorney. My office offers free in-person or telephone consultations. You have nothing to lose, but your debt.
This blog article was created by Larry P. Karandreas, Esq., on behalf of the Law Offices of Larry P. Karandreas, P.L.L.C., A Lawyer Who Cares™, which concentrates its practice of law to Chapter 7 and Chapter 13 Bankruptcy, and in Debt Negotiation. If you live in or near Phoenix, Glendale, Surprise, Peoria or the Scottsdale, Arizona area and want legal advice or help - please visit the firm website for more information or call the firm directly at 623.487.1670 to schedule a free telephonic consultation. You really have nothing to lose but your debt.
Monday, June 17, 2013
How to stop an automatic withdrawal from your bank account.
Before my clients file a Chapter 7 or 13 Bankruptcy, I often instruct them to stop automatic withdrawals from personal bank accounts for payments to creditors. Many times my clients are unaware of their rights with respect to such withdrawals and sometimes the banks do not make it easy for them to stop such payments. The Electronic Funds Transfer Act does provide some assistance and protection for people who wish to stop these automatic withdrawals.
Under the Act, you have the right to stop an authorized electronic funds transfer up to three days before the transfer is scheduled to take place. To do this, you must contact your bank to have the transfer to the individual creditor(s) stopped. While you can do this verbally, I often find that it is better to go to your bank and give them a written notice AND verbally tell them not to make any further electronic transfers to a particular creditor(s). Keep a copy of that notice. You may have to repeat this process three days prior to the next scheduled payment (if you choose to remain at that particular bank.) I also advise my clients to send a written notice to the creditor telling them to stop all electronic funds transfers.
This is all fine and well and should work, but sometimes it does not. In the event that the creditor succeeds in having funds transferred to them, you have certain rights against your bank if they allow the funds to be transferred after you have given them orders to stop.
Once you notify the bank that an unauthorized transfer has occurred ( I would do this in person and give them written notice) they must initiate an investigation and advise you within 10 business days of the result of their investigation, and, by day 11, they must credit your account with the amount that was erroneously transferred. If the bank does not credit your account, you have the right to sue them for the money taken out, plus any fees charged, plus a penalty ranging between $100 to $1,000 (and they also have to pay your lawyer.) If it is shown that the bank acted in bad faith, they can be found liable for triple the amount of damages.
Knowing your rights will go a long way toward preserving your sanity and your money. Seek the assistance and guidance of an experienced Chapter 7 and Chapter 13 bankruptcy attorney. You have nothing to lose but your debt.
Under the Act, you have the right to stop an authorized electronic funds transfer up to three days before the transfer is scheduled to take place. To do this, you must contact your bank to have the transfer to the individual creditor(s) stopped. While you can do this verbally, I often find that it is better to go to your bank and give them a written notice AND verbally tell them not to make any further electronic transfers to a particular creditor(s). Keep a copy of that notice. You may have to repeat this process three days prior to the next scheduled payment (if you choose to remain at that particular bank.) I also advise my clients to send a written notice to the creditor telling them to stop all electronic funds transfers.
This is all fine and well and should work, but sometimes it does not. In the event that the creditor succeeds in having funds transferred to them, you have certain rights against your bank if they allow the funds to be transferred after you have given them orders to stop.
Once you notify the bank that an unauthorized transfer has occurred ( I would do this in person and give them written notice) they must initiate an investigation and advise you within 10 business days of the result of their investigation, and, by day 11, they must credit your account with the amount that was erroneously transferred. If the bank does not credit your account, you have the right to sue them for the money taken out, plus any fees charged, plus a penalty ranging between $100 to $1,000 (and they also have to pay your lawyer.) If it is shown that the bank acted in bad faith, they can be found liable for triple the amount of damages.
Knowing your rights will go a long way toward preserving your sanity and your money. Seek the assistance and guidance of an experienced Chapter 7 and Chapter 13 bankruptcy attorney. You have nothing to lose but your debt.
Wednesday, June 5, 2013
Filing a Chapter 7 or 13 Bankruptcy in Arizona Requires Careful Guidance.
Filing a Bankruptcy can be a challenge and to be successful the decision to hire a bankruptcy attorney is a critical step. Unfortunately, not all attorneys have the experience and knowledge necessary to prepare and file a bankruptcy petition.
As an experienced Chapter 7 and Chapter 13 attorney for over 20 years I have seen first-hand cases where attorneys attempted to assist debtors with their bankruptcy filing with mixed results. Within the last 10 days I have consulted with three separate debtors who had received inadequate, and frankly, incorrect, advice when filing their bankruptcy. While these debtors’ cases may be salvaged with proper help, that is not always the case. There are many attorneys out there practicing bankruptcy law with little experience. This fact underscores two critical issues in deciding to file; seeking accurate legal advice in deciding to file a bankruptcy so that you are informed of your rights and consequences of filing, and, making sure that the advice you receive comes from a competent and experienced Bankruptcy Attorney.
Finding an experienced Bankruptcy Attorney in Arizona can take some time, but the time spent will be an invaluable investment. Some things to do to assist your search are:
1. Look for on-line reviews and read available websites set-up by the prospective attorney’s firm. Some reviews can be very helpful in giving you insight into the manner in which the attorney practices.
2. Contact the State Bar of Arizona. Their web site, http://www.azbar.org/, includes such information as whether that particular attorney is authorized to practice law in the state of Arizona, as well as information such as years of practice, areas of practice, whether the attorney has malpractice insurance and whether there are past and or pending bar complaints against the attorney.
3. When you find two or three prospective attorneys, interview them, don’t just consult them. Ask questions about their experience, what services they are willing to provide, and how much it will cost you to hire them and complete your case. If the attorney is unwilling to meet or speak with you, find an attorney who will. Too many law firms will have you meet with, for lack of a better word, a “salesperson,” for your initial consultation. You may eventually speak with an attorney on that visit, but no real time or analysis of your case will be given to you. In my opinion, you are entitled to more than a “meet and greet.” Don’t settle for less.
Filing a Chapter 7 or Chapter 13 bankruptcy is a difficult and daunting process to undertake. The benefits of the “fresh start” that a bankruptcy filing can provide you is worth the time it will take to find an experienced bankruptcy attorney who will help file the right bankruptcy case for you. It may take a little more time, but most attorneys offer a free initial consultation. Make sure that consultation is with an attorney and take advantage of such a consultation. You have nothing to lose but your debt.
This blog article was created by Larry P. Karandreas, Esq., on behalf of the Law Offices of Larry P. Karandreas, P.L.L.C., A Lawyer Who Cares™, which concentrates its practice of law to Chapter 7 and Chapter 13 Bankruptcy, and in Debt Negotiation. If you live in or near Phoenix, Glendale, Surprise, Peoria or the Scottsdale, Arizona area and want legal advice or help - please visit the firm website for more information at A Bankruptcy Lawyer Who Cares or call the firm directly at 623.487.1670 to schedule a free telephonic consultation. You really have nothing to lose but your debt.
As an experienced Chapter 7 and Chapter 13 attorney for over 20 years I have seen first-hand cases where attorneys attempted to assist debtors with their bankruptcy filing with mixed results. Within the last 10 days I have consulted with three separate debtors who had received inadequate, and frankly, incorrect, advice when filing their bankruptcy. While these debtors’ cases may be salvaged with proper help, that is not always the case. There are many attorneys out there practicing bankruptcy law with little experience. This fact underscores two critical issues in deciding to file; seeking accurate legal advice in deciding to file a bankruptcy so that you are informed of your rights and consequences of filing, and, making sure that the advice you receive comes from a competent and experienced Bankruptcy Attorney.
Finding an experienced Bankruptcy Attorney in Arizona can take some time, but the time spent will be an invaluable investment. Some things to do to assist your search are:
1. Look for on-line reviews and read available websites set-up by the prospective attorney’s firm. Some reviews can be very helpful in giving you insight into the manner in which the attorney practices.
2. Contact the State Bar of Arizona. Their web site, http://www.azbar.org/, includes such information as whether that particular attorney is authorized to practice law in the state of Arizona, as well as information such as years of practice, areas of practice, whether the attorney has malpractice insurance and whether there are past and or pending bar complaints against the attorney.
3. When you find two or three prospective attorneys, interview them, don’t just consult them. Ask questions about their experience, what services they are willing to provide, and how much it will cost you to hire them and complete your case. If the attorney is unwilling to meet or speak with you, find an attorney who will. Too many law firms will have you meet with, for lack of a better word, a “salesperson,” for your initial consultation. You may eventually speak with an attorney on that visit, but no real time or analysis of your case will be given to you. In my opinion, you are entitled to more than a “meet and greet.” Don’t settle for less.
Filing a Chapter 7 or Chapter 13 bankruptcy is a difficult and daunting process to undertake. The benefits of the “fresh start” that a bankruptcy filing can provide you is worth the time it will take to find an experienced bankruptcy attorney who will help file the right bankruptcy case for you. It may take a little more time, but most attorneys offer a free initial consultation. Make sure that consultation is with an attorney and take advantage of such a consultation. You have nothing to lose but your debt.
This blog article was created by Larry P. Karandreas, Esq., on behalf of the Law Offices of Larry P. Karandreas, P.L.L.C., A Lawyer Who Cares™, which concentrates its practice of law to Chapter 7 and Chapter 13 Bankruptcy, and in Debt Negotiation. If you live in or near Phoenix, Glendale, Surprise, Peoria or the Scottsdale, Arizona area and want legal advice or help - please visit the firm website for more information at A Bankruptcy Lawyer Who Cares or call the firm directly at 623.487.1670 to schedule a free telephonic consultation. You really have nothing to lose but your debt.
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