debt

Often, the final trigger leading a client to call me is getting suedfor a credit card. Fear !! Scarlet Letters!! Branded For Life!!  The suit can be a good thing.  You have defenses, and now you start planning for your financial fresh start instead of being hunkered down in your sweat box.  Even though there’s not enough money for a bankruptcy filing just yet.

A debtor can obtain a discharge of debt by filing for bankruptcy.  A discharge of debt releases the individual’s personal liability for many types of debts.  A discharge prevents creditors from making any collections efforts upon the debtor including phone calls, letters, and threats.    Many types of unsecured debt can be discharged, including credit [...]

Debts discharged in bankruptcy do not trigger tax liability Most everyone knows that filing for bankruptcy eliminates credit card debt, medical bills and other unsecured loans. However, a significant benefit of filing, that is rarely discussed, are the tax benefits that result when the bankruptcy discharge is issued. The IRS treats canceled debt as income [...]