If you are struggling with debt and cannot get ahead no matter how much you pay, it’s time to consult a bankruptcy attorney to discuss your options under the bankruptcy code. Bankruptcy is not for everyone. That is why you need to consult an experienced and knowledgeable Bankruptcy Attorney. Attorney Muoi Chea has a long track record of successfully eliminating and reducing her clients’ debts and protecting their assets in Bankruptcy Court.
Chapter 7 and 13 Bankruptcy can stop creditors’ harassment and lawsuits, wage garnishment and bank levy. Call Muoi Chea bankruptcy attorney at (209) 751-7448 to determine if you qualify for the benefits of bankruptcy.
Creditors’ phone calls and harassment
IRS Tax Debt Levy
Bank Account Levy
Lawsuits and Creditors’ threats
Driver License Suspension
Professional License Suspension
Upon Bankruptcy filing, whether it is Chapter 13 or 7 Bankruptcy, “Automatic Stay” comes into effect. At that point, creditors must stop their attempts to collect on a debt or enforce a lien such as making phone calls, sending letters, or proceeding with lawsuit, wage garnishment, foreclosure or repossession. They must get an Order from the Bankruptcy Court known as a “Relief from Automatic Stay” to continue the lawsuit, foreclosure or repossession. Otherwise, creditors will face hefty penalty and sanctions, not to mention attorney’s fees from the person who filed for bankruptcy relief. Some creditors like child support may continue collection. Call for more information.
When automatic stay comes into effect upon bankruptcy filing, wage garnishment must stop unless the underlying debt is nondischargeable like child support or alimony.
Automatic Stay does not stop all creditors. For example, child support may continue wage garnishment and money can be withheld from your paycheck to repay 401k pension loan. Automatic Stay may stop a lawsuit by a credit card or regarding a car accident but not a lawsuit involving criminal proceeding, paternity, or domestic support. Automatic Stay can stop the IRS from issuing a lien or seizing your property like a wage garnishment, bank levy, or sale of your real estate. However, automatic stay will not stop the IRS from auditing you, demanding a tax return, reassessing your IRS tax debt, or issuing a tax deficiency notice.
If you filed multiple bankruptcy cases and had one dismissed without a discharge within 365 days from the date of filing your current bankruptcy case, your automatic stay is limited to 30 days unless you can get an Order from the Bankruptcy Court to extend your automatic stay. If you have more than one bankruptcy case dismissed without discharge within 365 days from the date of filing your current bankruptcy case, you do not have automatic stay unless you can get an Order. In both theses cases, you must prove to the Bankruptcy Court that your bankruptcy filings are in good faith and that this current bankruptcy case will succeed in obtaining a discharge. That is why you should hire an experienced, reputable bankruptcy attorney from the start. In choosing a bankruptcy attorney, it is important that you pick one that is accessible and have the time to discuss your case in details with you directly. I am always available to answer my clients’ questions personally and I personally work on their cases from start to finish. I personally appear in their court hearings and do not assign court appearance to other attorney who will not be familiar with their case since the beginning.
Keep in mind that automatic stay and bankruptcy discharge are two different things. The automatic stay will just stop creditors from collection activities and enforcing liens only during the pendency of your bankruptcy case with some exceptions discussed above. A bankruptcy discharge will eliminate your debt forever.
Liens survives the bankruptcy discharge unless you can avoid or reduce it through a motion filed with the bankruptcy court. For example, you still have to pay your mortgage and car loan if you want to keep your house or car. But your secured lender can only take the collateral if you fail to pay and cannot pursue you personally for the deficiency of the debt like a wage garnishment or bank levy because your personally liability is discharged in the bankruptcy.
Examples of dischargeable unsecured debts are credit cards, personal loans, payday loans, medical bills, PG&E bills, cable bills, personal injury claim in a car accident not involving DUI, deficiency from car repossession or foreclosure, and old IRS tax debt (if all requirements are met–call me for more details).
Examples of nondischargeable unsecured debts are child support, alimony, fines, traffic tickets, debt incurred through fraud, student loans (unless you can show undue hardship), 401k pension loan, and recent IRS tax debt.
Furthermore, potential bankruptcy filers can do something that can disqualify them from Chapter 7 or 13 Bankruptcy discharge. It is important that you talk to a bankruptcy attorney soon if you are contemplating filing bankruptcy. A bankruptcy attorney can warn you about the do’s and don’ts of bankruptcy before you make any mistakes.
Of course, these are a few examples because there is just so much I can discuss on a webpage and everyone’s case is unique so bankruptcy law will apply to them differently. Call for a bankruptcy consultation for in-depth discussion on how bankruptcy can help you.
No, one spouse may file for bankruptcy. However, it might be prudent for both spouses to file for bankruptcy because the bankruptcy discharge will only protect the filing spouse’s separate property and the community property. The non-filing spouse’s separate property will not be protected by the filing spouse’s bankruptcy discharge.
The answer is no.
If the tax debt cannot be discharge in Chapter 7 Bankruptcy because it is too recent or it falls outside of the category of dischargeable tax debts, Chapter 13 Bankruptcy might be a good option for you. It put the IRS tax debt into payment plan upto 60 months. Moreover, any tax penalties that accrues can be discharged in Chapter 13 Bankruptcy, which cannot be done in a Chapter 7 Bankruptcy. While you are in good standing with your Chapter 13 payment plan, the IRS cannot levy your bank account or garnish your wages.