Although filing your tax returns might seem like a tiresome affair that you would rather do without, the reasons for filing your returns- and filing them on time- are quite significant and far outweigh any reasons that you might have for not filing at all.
To start with the good news; by filing your tax returns on time, you can enjoy tax refunds on many items within your tax schedule. If you earn a good income then this refund can be quite significant and could serve as an extra source of income- albeit for a short time.
When they do get you, they will want all the money that you owe them in back taxes, along with the interest that the money should have earned, and you will suddenly find yourself in more problems than you had bargained for.
Unlike tax refund which you can only claim for a maximum of three past years, there is no limit to the number of years for which the IRS can charge you for back taxes. Fortunately, and with the help of a good tampa estate planning attorney, you can still talk to the IRS and work out a way to pay off your tax debt and some of the most common solutions for this include the following:
- Lump sum payment- if you are able to afford it, you can offset all your tax debts, as well as the interest they will have earned, in a single lump payment made to the IRS.
- Instalment options- if you cannot afford to pay all your back taxes at once then you can work out and agree on a schedule with the IRS in which you continue to make periodical payments, on a weekly or monthly basis, until all of your tax debts are paid off.
- Offers in compromise- sometimes, though not very often, the IRS might be convinced to accept a portion of the back taxes owed to them if they deem that you are completely unable to pay them any more than that. In fact, this is usually how it goes most of the time for people who owe the IRS money but have declared bankruptcy.
When an individual ends up overwhelmed by debts to the point of bankruptcy, getting additional expenses may seem like a luxury or irresponsibility. On the other hand, hiring a legal assistant for bankruptcy process brings new expenses. So, should a debtor get a lawyer or not and what are the alternatives if one cannot afford the legal help?
Bankruptcy laws are strictly professional area, involving myriad considerations. The debtor needs to understand his own situation, limits and legal options, so as the wide range of bankruptcy laws in order to make the best out of a case. Debtor has to be able to estimate properly whether to file bankruptcy case, under which chapter, how to handle assets and creditors successfully and many more things. If you want to know more about Bankruptcy lawyer dallas please visit our page.
Completing a whole collection of requested document is a challenge itself. Though very little legal non-professionals know all of this, many debtors decide to go for “filing pro se” option. This refers to the debtor representing himself in the court and handling the bankruptcy process without attorney’s assistance.
If the debtor figures out that a legal help could come handy at some point, there is a solution between official lawyer and “do it yourself” way. Non-attorney petition preparers can help debtors complete their documentation, but nothing further than that. They are not allowed to provide legal advices, counseling or to represent the debtor in the court.
Now, consider the possibility of filing bankruptcy petition in an attempt to save your property and get a chance for a fresh start, but nevertheless lose all assets and still end up with all the debts you had at the beginning of the process, due to wrongful documentation, for example. Or simply due to lack of legal knowledge.
This is a real scenario and it’s probably the best recommendation for hiring a lawyer. Getting a legal professional to provide knowledgeable guidance through the bankruptcy process, answer all questions, give wise advices and come up with the best solutions for particular situation is worth of the cost, even when one is at the financial bottom.
There are several ways to find legal counsel. If the debtor cannot afford the attorney, he may be allowed to get it for free or he’ll be offered a discount legal service. List of referral services can be found online, within the Yellow pages or at the website of the Bankruptcy court. Some of these referral services work pro bono.
Bankruptcy is a complex legal procedure involving a lot of paper work and legal procedures. Benefits of bankruptcy are significant, but so are the risk and responsibilities. Future financial, legal, even emotional consequences can be severe. Good preparation and understanding of all potential legal issues is highly recommended. Debtors are strongly encouraged to get lawyer assistance, but there are some alternatives.
The debtors have the right to file for bankruptcy without an attorney. This is so called “filing pro se” procedure and consists of individuals representing themselves in the bankruptcy court. These debtors should educate themselves in order to understand the rules and procedures of the bankruptcy code, their own duties, rights and options, so as the possible legal issues and limits.
They are expected to understand the complex field of bankruptcy laws and to make a right call on whether to file, what chapter to file under and what exemptions to claim in order to keep their property. The best decision depends on numerous things, like total amount of debts, debtor’s obligations, limits, assets, current income and many other things.
Taking all these factors into considerations and handling the legal process successfully personally, especially if being aware that the wrong decision could affect the rest of one’s life, can turn out to be confusing and overwhelming. There is also an option of non-lawyer bankruptcy petition filing services.
These services can help people collect, complete and provide the court with all requested documents, but they are not allowed to provide any kind of legal counseling, advices, answers to legal questions, neither to represent or assist the debtors in the court. These services certainly cost less than hiring a lawyer, but their help is quite limited. Check Bankruptcy attorney dallas page and search for help.
Filing bankruptcy under the chapters 13 and 11 includes particularly complex procedures and demands thorough understanding of the law. In the cases, working with an official attorney is even more recommended. If a company files bankruptcy case, representation in the court by an attorney is mandatory. There is a whole list of advantages when allowing a lawyer to take the process over. The lawyer can explain the laws, procedures, rights, obligations and alternatives. He can advice the debtor on whether to file a case, under which chapter, what taxes and outcomes are expected and help in many other ways so the debtor can successfully complete the bankruptcy process. Maybe you need help from best bankruptcy attorneys chicago , visit our page and found out more.
Complex as they are, bankruptcy laws and procedures are significantly more complicated when it comes to married couples facing bankruptcy and considering filing a petition.
Roughly speaking, there are two major possibilities. Couples may choose between individual and joint bankruptcy filing. Both options have pros and cons depending on the amount of property couples own, whether they have joint debts, whether one spouse faced bankruptcy or both of them and many more factors.
Individual filing is usually done when only one spouse has debts and wants to discharge them in order to unburden other spouse of any financial and legal obligations. If local state laws don’t allow double exemptions in a joint filing, filing two individual cases is a wise solution. The major concerns when filing individually is that non-filing spouse get no protection from the creditors. There are exceptions, like filing under chapter 13 when co-debtor stay protects the other spouse.
Also, if both spouses want to discharge their debts, filing two individual petitions doubles administrative costs required during bankruptcy procedure.
On the other hand, a joint petition saves a lot of money to couples. It’s cheaper than filing two individual petitions. A joint filing allows couples to save time and effort, because they can go though procedure as one and discard all the debts though one process. Joint petitions provide more protection for both partners and prevent creditors from going after non-filing spouse to claim their rights. Check Bankruptcy lawyer dallas page and search for help.
Common reason for filing joint petition are joint debts. Marriage itself doesn’t obligate spouses to share debts, but they often co-sign on one another’s loans. In this case, since non-filing spouse will be held liable for share of debts, joint filing is better option. Trouble with joint petitions is the fact that some local rules prohibit couples from doubling exempts in joint petitions thus making it hard to protect property if filing joint bankruptcy.