Student Loan Bankruptcy: What is it and What it Can Do for You

People are much more conscious about their future these days: they want to choose the best educational institutions as it makes their curriculum vitae much more appealing to different multi-nationals and they are hired easily. On the contrary if one completes education from an average school it is difficult to get an extraordinarily good job.

These outstanding institutions and schools are sometimes impossible to enter. One reason is their stringent admission policy, second may be student grades and third and the most important is their ability to pay those high dues for tuition and admission.

Obviously many students can not afford such expensive schools. It leads them to the decision that they may take loan to enter those expensive reputed schools. Taking a  student loan might not be that difficult as returning the student loan, and rather than making the situation dire, people prefer other methods to return the student loan to the creditors or just try to get it discharged by student loan bankruptcy.

Many students have this misconception that filing for student loan bankruptcy may save them from the situation.  They think their loan can be discharged this way but actually, this is not true.

Basically, in the 1970s student loan bankruptcy gained magnetism. Students used to go for student loan bankruptcy filing just after they finished their highly expensive education. They wanted to get rid of any student loans on their name before entering practical life. Nowadays it does not work any more because the conditions were changed in 1998 for the whole process. Obviously, it is not possible to get that student loan discharged so easily now.

There is only one possible way that student loan can be discharged. That last way is that your attorney is able to persuade the court that due to this loan people who are dependent on you are going through undue troubles and hardships. The court will definitely consider the miserable situation of the dependents due to this student loan and in this case student bank loan bankruptcy may work.

Due to the publics inquiry into student loan bankruptcy, the Federal student Aid Ombudsman (FSAO) had meetings and decided unanimously three major criterions to find out how eligible the student is for his loan discharge, or to determine how genuine his student loan bankruptcy is.

The very first thing in this case is that it will be observed keenly that in case the student is forced to repay he or people dependent on him may not be able to maintain the least standard of living.
The second important point to be considered is regarding the time the student loan is to be paid back. That is, what the hardships in maintaining the finances will occur for how long a period and when you will have to pay your loan.
The last one is that you did try your very best to pay back the student loan before student loan bankruptcy. The Court will definitely think about your enormous efforts to pay back the student loan and the undue hardships you have been through during the process if this process continued for a minimum of five years.

Student loan bankruptcy may be a nightmare for many but anything can be handled tactfully with an optimistic thought. Before deciding to follow up on student loan bankruptcy you need to weight both the good causes of student loan bankruptcy and the bad caused by student loan bankruptcy.

This is an Original Article written by the DefeatBankruptcy.org Staff
and may not be reprinted in any form without prior written approval.

Do you need to file bankruptcy?
Deciding to file bankruptcy can be a tough decision. Almost everyone confronting the decision vacillates from “Fight” to “Flee”: struggle to pay the debts versus get relief from the constant pressure and start over. Our opinion.

To decide, you need to know:

Bankruptcy choices for businesses

What are an individual’s alternatives to bankruptcy?

Which chapter is best suited to my situation?

What debts will be discharged in bankruptcy?

The alternatives to bankruptcy:
Can you avoid bankruptcy on your own: To explore non bankruptcy alternatives, create a budget for your realistic, monthly expenditures for current living. Include mortgage and car payments, but exclude all other existing debt service. Try these nifty online budgeting tools to help.

With the money you have available each month after paying your current living expenses, can you pay off your existing debts at the current interest rates in 3 years?

Forget minimum monthly payments: calculate what it really takes to pay off credit cards at credit card interest rates with this online tool. Consider, too, the alternative uses of that money.

Can you reduce expenses, increase income, negotiate rates or sell assets to make that possible?

Consider long and hard before resorting to liquidating IRA’s or 401K plans to pay creditors: These assets are generally protected from collection actions by creditors; they are hard to replenish once spent; but most importantly, using retirement savings to pay creditors may create new debt in the form of income taxes and penalties for early withdrawal. Your good intentions to repay creditors may just end up substituting Uncle Sam as a tax creditor in place of your existing creditors.

Who to pay when money is tight.
Can you avoid bankruptcy with outside help: If you can’t pay off your debt within three years on the present terms, contact Consumer Credit Counselors, or a similar organization; they can help you make a budget and negotiate a repayment plan that may include a reduced or even zero interest rate on your existing debt. Creditors generally cease collection actions against those participating in CCC plans.

These plans usually work best when the debt is primarily credit card debt. CCC counselors sometimes exclude non dischargeable tax debt from the repayment plan, leaving the consumer paying unsecured, dischargeable credit card debt while non-dischargeable taxes or back support go unpaid. That approach seldom gets the debtor the relief needed.

Debt settlement plans seldom work.

See the dangers of debt repayment programs .

Consider the bankruptcy’s alternative to debt settlement.

Off site resources on non bankruptcy alternatives.

Consider bankruptcy:
If these repayment alternatives are not feasible, consider bankruptcy.

There is no magic formula that tells you whether bankruptcy is the best choice for you. An experienced bankruptcy lawyer is a great resource. Selecting a bankruptcy lawyer.

In general,

the older you are,
the greater the number of your dependents;
the larger your debt;
the smaller your cash reserves or retirement savings; and
the greater the amount of non dischargeable debt
the more likely that bankruptcy is appropriate for you. Profile of the typical bankruptcy filer. Are bankruptcy myths holding you back? You can file without your spouse. Favorite excuses not to file
You don’t need bankruptcy protection now if you have nothing that a creditor with a judgment could take from you:

If everything you have is exempt under the law of your state, you have nothing to lose to a creditor and no need for bankruptcy protection now. On the other hand, if your financial situation causes such stress that it interferes with your ability to work, parent, or sleep, perhaps you should consider bankruptcy as appropriate for your mental health rather than financial health.

This is an Original Article written by the DefeatBankruptcy.org Staff
and may not be reprinted in any form without prior written approval.

How to File Personal Bankruptcy: Basic Bankruptcy

Filing Procedures
Once you’ve gathered all of your papers and documents together, follow the following bankruptcy filing instructions.

• Place all the bankruptcy forms in correct order.
• Make sure that you, and your spouse/partner if you are filing a joint petition, have dated and signed each form where required.
• Always make the required number of form copies, and also one extra form copy for backup just in case those papers are misplaced and lost in the mail (if you send the forms by mail).Also make copies on:
  The Statement of Intention for each individual listed on the form, and
  The Statement of Intention for the trustee.
• Except if the court clerk is going to hole-punch your documents when you file them, you may use a normal two-hole punch (most copy centers have them), always punch at the top center of the original bankruptcy documents and never staple your forms together.
• When mailing your papers to the court, include an empty 9” by 12” envelope and write your address on it and affix enough postage to send one set of documents to your address. Although most people choose to file by mail, it is recommended that you personally bring your papers to your bankruptcy court clerks if at all possible.  Visiting the court will allow you to fix minor mistakes and typos on the spot.
• It is recommended that pay the filing fee, which is payable to the U.S. Trustee (usually courts will not accept a check). For installment payments, attach a filled out Form 3A, plus any extra papers required by the court’s local rules. If the attorney has been paid for his help with the bankruptcy process, you are not qualified for installment payments. However, if you don’t think you are able to afford installment payments, you should be able to get a fee waiver. For this purpose, use Form 3B. For both fee waivers and installment payments, you will need to appear before a bankruptcy judge for request justification.
• Mail or take the original and copies of each form to the designated bankruptcy court.

Emergency Bankruptcy Filing Procedures

If you are in a hurry and want to file for bankruptcy to get an automatic stay, you may accomplish that (in almost all places) by filing the Mailing Matrix, Voluntary Petition (Form 1), and Statement of Social Security Number (Form 21). Certain courts also ask you to file an Order Dismissing Chapter 7 Case and a cover sheet, which will be immediately processed if you fail to file the rest of your documents within fifteen days. (As mentioned by the Bankruptcy Rule 1007©.) If your bankruptcy court in your district requires that form, you may get it from your court (in some cases, downloadable on its website), the bankruptcy petition preparer or the nearest bankruptcy attorney.
If you are unable to file the additional documents within fifteen days, your current bankruptcy case will be immediately dismissed. You are allowed to file again, if it is needed. You will have to inform the court to keep your automatic stay in effect once thirty days have passed after the filing.

Do the following steps to perform an emergency bankruptcy filing:

• Check with your court to find out precisely what forms need to be submitted for the emergency filing.
• Complete Form 1 (Voluntary Petition), including Exhibit D.
• On the Mailing Matrix (or on any other forms that are asked by the court), list all the creditors, and also sheriffs, attorneys, collection agencies, and others who are looking to collect debts directly to you.
• Complete the Form 21 and any other forms the court requires.
• Now, you can file the originals and make the required number of document copies, accompanied by a fee (or a payment application of fee in installments), don’t forget to include a self-addressed empty envelope with your bankruptcy court. Make sure all documents are copied for your records.
• The final step is to file all other required forms in fifteen days. If you don’t, the case will likely be dismissed.

This is an Original Article written by the DefeatBankruptcy.org Staff
and may not be reprinted in any form without prior written approval.

How to Avoid Bankruptcy: The Easy Way to Avoid Bankruptcy

If you are spiraling towards financial disaster and afraid that your whole life may fall apart, you are not alone. Nowadays, many people deal with the prospect of losing many things and having to file for bankruptcy. Frequently, however, it is possible to avoid bankruptcy.

You can prevent bankruptcy by creating some serious financial preparations and acquiring a positive attitude about your current living standards. This does not mean living in a single-room apartment and eating cheap Chinese food takeaways, though, it simply means making constructive changes to financially unhealthy behaviors, immediately paying off your debt and stop overspending.

Bankruptcy radically alters your life and can make it very hard to get new credit for up to 10 years. It is also a last-ditch effort and cannot be reused during that 10 years period, meaning if one day you get into credit problem again because you have not improved your bad lifestyle, you will be in worse straits and really bad headaches the next time around.

You need to have a desire to “go straight” and the motivation to make honest, serious evaluations of your financial situation, to avoid bankruptcy and get out of debt. You will need to plan ahead for some belt tightening and start to make positive changes in your ways of thinking about financial matters and lifestyle. A financial planner or bankruptcy attorney can usually help you to work effectively with the creditors towards problem resolution without bankruptcy, find effective ways to prevent bankruptcy, and get your financial situation back on track.

The first and essential consideration will be your income versus your debt. You will likely need to maximize your income and minimize your debt to shift the whole balance in your favor. A few people find a part time job to boost their income and to redeem some of their debts. This is temporary situation and does not have to be long-term commitment, just enough to lower your debt until it can be handled by your regular income.

Selling liabilities and non-productive assets, negotiating your debts with creditors to eliminate or reduce service fees and minimize interest rates (all of them can reduce your debt) will help you to move the balance of income versus debt into your income’s favor.

Completing financial evaluations with the attorney or the counselor will quickly motivate you towards making proper decisions. Often, debt and finances restructuring will do much towards reducing or eliminating the debt load you are carrying. Unneeded furniture rentals, cell phones bills, car loans, and other expenses are all extra money that can be saved.

Occasionally, you will be advised to liquidate your home to cash in its equity and find a smaller home or one with a more affordable payment. Some individuals even sell their homes and temporarily rent a house, using the money gathered through the equity to pay off big chunks of debt. It is essentially about lowering debt to income ratio and allows your income to better handle any debts you are having.

Your counselor or attorney can help you to restructure your finances and better situate you for dealing with your debts. Establishing a sensible budget, sticking consistently to it, and sustaining a workable plan towards eliminating your debt are the keys of success to avoid bankruptcy.

This is an Original Article written by the DefeatBankruptcy.org Staff
and may not be reprinted in any form without prior written approval.

Life After Bankruptcy

Once you get the final discharge from your court, you can finally breathe a sigh of relief and begin the fresh start that you have been given. Your court will give you a notice of the discharge and the dismissal of your case in about 4 to 6 months after the creditors meeting, if everything goes nicely. In normal bankruptcy cases, a prepared debtor who files no-asset Chapter 7s will get his/her discharge and begins to rebuild his/her live after the bankruptcy. This means rebuilding credit and altering one’s financial aptitudes and attitudes. Once you finally become debt free you should remain debt free. First of all, however, you should be prepared of possible leftovers of your bankruptcy filing that can appear after the discharge.

Even though you are not technically told to inform about your financial activities to your court, certain conditions can happen and they have the potential to resurrect your bankruptcy case or become annoying residual problems in your otherwise peaceful post-bankruptcy life. For instance, if you become eligible or receive insurance proceeds, proceeds from a divorce, or an inheritance within six months of your filing, the court need to be notified. Similarly, if you find creditors or property you forgot to include in the bankruptcy documents, you must report them officially or risk getting into a big trouble with the law. Therefore, despite your discharge, you must deal with these potential situations, including creditor that harass you continuously, a trustee who chooses to reopen your bankruptcy case, and discriminations against you because of your previous bankruptcy filing.

Both public and private employers are not allowed to discriminate against you solely due to your previous bankruptcy filing, but that does not mean you will not encounter frustrations or complications with your employment that can be easily masked as anything but blatant discrimination. While most of the work involved in the bankruptcy process is now a thing of the past and behind you, you should remain alert and focused to the goal: becoming totally free of debt and proceeding toward a better financial future.

You should always look for ways to deal with these improbable situations that you may face after you have been discharged, including unjust discrimination for which the existing legal system still leaves you unprotected. Try to live consistently in your new brighter financial life and learn how to rebuild wealth, regardless of your present income. Wealth is a lot closer than many people think, because wealth on earth is built upon positive attitudes toward money instead of on how much a person makes.

This is an Original Article written by the DefeatBankruptcy.org Staff
and may not be reprinted in any form without prior written approval. ]]> http://www.defeatbankruptcy.org/life-after-bankruptcy/feed 0 http://www.defeatbankruptcy.org/small-business-bankruptcy http://www.defeatbankruptcy.org/small-business-bankruptcy#comments Wed, 04 Nov 2009 23:11:59 +0000 admin http://www.defeatbankruptcy.org/?p=24

Small Business Bankruptcy:

Small business bankruptcy occurs when the business suffers considerable losses over a period of time and fails to pay off its creditors. Small business firms fail due to many different reasons.  The situation where a small business firm completely fails to pay off its creditors, the business firm can file a petition for bankruptcy in a bankruptcy court and the bankruptcy court helps the business firm to pay off its liabilities under its safeguard and protection.

Types of Small Business Bankruptcy:

There are three major types of small business bankruptcy, namely Chapter 7 bankruptcy, Chapter 11 bankruptcy and Chapter 13 bankruptcy. The submission of petition for bankruptcy by a small business under chapter 7, chapter 11 or chapter 13 totally depends on the form of the business itself. In a sole proprietorship business firm, there is sole owner of the business and he himself is responsible for all the affairs of the business. If the owner of a sole proprietorship firm wishes to file a petition for bankruptcy, he can file his petition for bankruptcy under chapter 7, chapter 11 or chapter 13 bankruptcy, whereas on the other hand, association of persons (partnership firms) and/or corporation and companies can only file the petitions for bankruptcy under chapter 7 or chapter 11 bankruptcy.

• Chapter 7 Bankruptcy

When the small business firm completely reaches a shut down stage and there is no possible way for the business to find a future for itself, the best option available for the business is to file a petition under chapter 7 bankruptcy to pay off its creditors and settle its liabilities. Filing a petition for bankruptcy under chapter 7 merely means that the business has no further future and it is absolutely over. For a petition under chapter 7 bankruptcy, the court assigns a liquidator whose job is to take control of all the assets of the business and liquidate (turn into cash or equivalent) them to pay off the creditors of the business and to settle all the liabilities of the business. After the liquidation and settlement of liabilities, the owner of a small business receives a clean chit from the liquidator depicting that the owner has no further obligation to pay his creditors.

• Chapter 11 Bankruptcy

The small businesses that are not so badly hurt by the financial constraints that their existence become impossible, usually file a petition for bankruptcy under chapter 11. The bankruptcy court again assigns a trustee for such a petition who calls a meeting of the owner of the business and its creditors to resolve the issue. The owner of the business gives his plan for the payment of the liabilities of its creditors over a longer period of time and the creditors vote on that plan. Finally, if the trustee feels that the plan is reasonable, he approves it.

• Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a reorganization bankruptcy typically reserved for consumers, though it can be used for sole proprietorships. You file a repayment plan with the bankruptcy court detailing how you are going to repay your debts. The amount you will have to repay depends on how much you earn, how much you owe, and how much property you own.

This is an Original Article written by the DefeatBankruptcy.org Staff
and may not be reprinted in any form without prior written approval.

Bankruptcy Credit Report:

A credit report is a report that shows the past transactions regarding the debts and the payments of those debts. Bankruptcy is a very serious situation and leaves severe negative impacts on the credit report of an individual person or a business entity. A credit report actually shows the ability of a person to repay his debts and when a person suffers bankruptcy, it actually means that the person is not able to pay his debts at all and this leaves serious negative impacts on the credit report of that person.

A bankruptcy is normally reflected for 10 years in the credit report of a person. However, if the person dismisses his case of bankruptcy himself, it may increase the creditworthiness of that person.

After bankruptcy, the bankruptcy court issues a discharge certificate to the person being declared bankrupt. This discharge certificate actually refers to the fact that all the debts of the person have been settled and the person does not have any unsettled debts that he has to pay. This very fact issued by the bankruptcy court in the form of a discharge certificate should be properly incorporated in the credit report of the person being declared bankrupt. The incorporation of this fact in the credit report should make balances of all the creditors in the person’s credit report zero, which means that the person don not have any obligations towards his creditors and he owes nothing to them in regards of their previous debts.

It is advisable for the person, who is being declared bankrupt, that he makes sure that his bankruptcy is properly incorporated in his credit report and that his credit report gives a true and fair meaning of his financial position as a whole. For this purpose, the person, being declared bankrupt, should do the following things:

• The person, being declared bankrupt, should get a copy of his current credit report. This could be done online on internet as most credit reporting agencies offer this service to their clients.
• The person, who has filed a petition for bankruptcy, should send a letter to the credit rating agencies telling them about his bankruptcy and the details of the bankruptcy like the case number of his bankruptcy in the bankruptcy court and the details of all the creditors who have been discharged under bankruptcy.
• The last thing that person, being declared bankrupt, should do is to review the response of the credit rating agencies regarding his letter. The person should make sure that desired changes have been made in his credit report and if not made, then the person should consult a bankruptcy lawyer in order to get those changes incorporated in his credit report.

Different creditors interpret a credit report in various different ways, so this perception is absolutely wrong that a person who has been declared bankrupt can never take credit from any creditor. Whether the person being declared bankrupt will get the credit in future or not merely depends on the interpretations of the creditors of the credit report of that person.

This is an Original Article written by the DefeatBankruptcy.org Staff
and may not be reprinted in any form without prior written approval.

Personal Bankruptcy Laws:

When a person finds himself in a situation where it becomes impossible for him to settle or pay his debts and loans, the sole option that is left for him is to file for personal bankruptcy. The circumstances that lead a person to file for personal bankruptcy are very unsettling and cause a great deal of stress and mental pressure for the person filing bankruptcy. Filing for personal bankruptcy, as a whole, creates a considerable negative impact on the credit report of the person which may last for years.

Before filing for personal bankruptcy, it is advisable that the person filing for bankruptcy should consult a lawyer who has his expertise and experience of dealing the cases of personal bankruptcy. Consulting a bankruptcy lawyer helps the person, filing for bankruptcy, a great deal, as the bankruptcy lawyer will analyze and evaluate the whole situation and circumstances of the case of his client and will try to find out all the possible alternatives which could save his client from bankruptcy. However, if the bankruptcy lawyer finds that filing for personal bankruptcy is a last resort for his client, he will initiate the process by filing a petition stating all the assets, liabilities and the list of creditors.

Types of Personal Bankruptcy Laws

• Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most commonly used type of personal bankruptcy laws. In this type of bankruptcy, the assets of the person, who has filed for bankruptcy, are liquated (turned into cash or equivalent) and the proceeds are handed over to the court in which the person has filed for bankruptcy. This whole process of liquidation of the assets of the applicant is carried out by a liquidator (a person appointed or nominated by the court) who strictly follows the directions and procedures of the court. The liquidator then liquidates the assets of the applicant and makes payments to the creditors of the applicant. However, certain assets of the person, filing for bankruptcy, are exempted from liquidation under personal bankruptcy laws.

• Chapter 13 Bankruptcy

Chapter 13 bankruptcy is rarely used by a person going for bankruptcy. In this type of bankruptcy, the person filing for bankruptcy possesses some worthy asset, more often than not, a house, that is not exempted from liquidation under personal bankruptcy laws and that he does not want to be liquidated in the process of liquidation of his assets. In such a case, the court often settles the issues between the applicant of bankruptcy and his creditors and brings them to an agreement regarding the payment of the debts over a period of several years. However, the person who wishes to file for a Chapter 13 bankruptcy must have a regular source of income to pay his debts according to the terms and conditions set by the court.

Moreover, the court, under personal bankruptcy laws, after bringing the applicant and his creditors to an agreement, strictly binds all the parties to the agreement to follow the judgment of the court and the instruction therein.

This is an Original Article written by the DefeatBankruptcy.org Staff
and may not be reprinted in any form without prior written approval.

Do It Yourself Bankruptcy:

The importance of consulting a lawyer, having expertise and experience in dealing the cases of personal bankruptcy, can not be ignored, however, amendments in personal bankruptcy laws have allowed a person, who wishes to file a petition for personal bankruptcy, to represent himself in the bankruptcy court.

Ever since this amendment has been made in personal bankruptcy laws which allows the applicants to represent themselves in the bankruptcy court, the need of a comfortable and easy to handle procedure of filing a petition for personal bankruptcy has evolved. This very need has given rise to websites and online firms which offer their clients an uncomplicated and easy package of filing their petitions of personal bankruptcy. This process as a whole, where a person files his petition himself for personal bankruptcy, is commonly known as Do It Yourself Bankruptcy.

The packages designed for Do It Yourself Bankruptcy must essentially have certain characteristics and attributes to help the person who wishes to file his petition for personal bankruptcy. Firstly, the package should be user friendly and it must possess the attribute of understandability, so that the person filing his petition for personal bankruptcy can use and understand the whole process easily and effectively. Secondly, the package designed for Do It Yourself Bankruptcy should be perfect in terms of paperwork, so that the person filing for personal bankruptcy can present all the required and relevant information in absolutely perfect order for the purpose of court proceedings.

The whole process of Do It Yourself Bankruptcy begins with the preparation and filling of the all the documents and papers that are required by the bankruptcy court. The person opting for Do It Yourself Bankruptcy should fill all the documents and forms needed by the court and submit them to the nearby bankruptcy court. After submitting the petition, the clerical staff of the court will issue a case number to the person who has filed the petition. This case number should be used as a reference, if the creditors approach the person for the recovery of their debts.

From here on, the bankruptcy court will issue letters to the creditors of the applicant within a period of 20 to 40 days telling them about the petition for personal bankruptcy filed by the applicant and binding them not to approach the applicant directly from here on. If the creditors fail to obey the directions of the bankruptcy court, the person who has filed for bankruptcy should tell the court about it and the court may even charge the creditors with penalties and fine under personal bankruptcy laws.

The bankruptcy court will assign a liquidator for the petition of the applicant and the liquidator will call a meeting of the applicant and his creditors with in a few weeks to settle the issue. After this meeting of the applicant and his creditors, the liquidator will bind the applicant to submit the certificate of completion within 45 days and once the certificate of completion is submitted the liquidator will liquidate the assets of the applicant to pay off his creditors.

This is an Original Article written by the DefeatBankruptcy.org Staff
and may not be reprinted in any form without prior written approval.

Bankruptcy Tax:

Bankruptcy tax refers to the income tax payable by a person who has filed for personal bankruptcy under personal bankruptcy law. A majority of individuals is of a view that the income tax payable, by a person going for bankruptcy under personal bankruptcy law, is waived by law. This thinking is absolutely wrong as the person going for personal bankruptcy under personal bankruptcy law has to discharge his tax liabilities towards the state along with his other liabilities payable to his creditors.

However, personal bankruptcy law gives some relief to the person going for bankruptcy in regards of his tax liabilities payable to the state or federal government. This relief given to person, who has filed a petition for personal bankruptcy, is commonly known as bankruptcy relief. Thus, bankruptcy relief is an important factor that provides a reasonable solution to the tax problems faced by the person going for personal bankruptcy.

The law has provided dimensions to resolve the issue of bankruptcy tax in a situation where a person filing for personal bankruptcy is liable to pay the tax. The laws and the regulations that are made to resolve the bankruptcy tax issues are quite complex and hard to generalize. These laws deal each individual case differently. The application of these laws depends on the facts and circumstances of each individual applicant. The only generalization that could be made of these laws is that the past taxes of prior years could be waived or discharged subjects to the conditions, but the new or the recent taxes could not be discharged.

The waiver or discharge of a bankruptcy tax is merely dependent on certain important dates that are considered by law before discharging a bankruptcy tax. These dates include the last date on which the person was due to file a tax return, the date on which the tax payer actually filed the return, and the date on which the filed tax return was actually assessed by the tax authorities.

The bankruptcy relief brings certain benefits and advantages to the person who has filed a petition for bankruptcy under personal bankruptcy law. However, it is governed by several laws which are extremely complex and hard to understand by a normal person applying for personal bankruptcy.

This brings tax and bankruptcy lawyers into play who have the required expertise and the experience to deal with such cases and who understand the related laws better than anybody.

Thus a person should consult bankruptcy or tax lawyers in order to get the bankruptcy relief. A person who has filed a petition for personal bankruptcy under personal bankruptcy law should consult professional tax and accounting organizations about the discharge of taxes in bankruptcy and the treatment of federal tax liens and levies in the bankruptcy process.

If a person filing for bankruptcy have a federal tax lien filed against him, it is imperative that he should seek knowledgeable tax and legal counsel that could help him in dealing the issue and that can put up his case in a prudent and professional manner.

This is an Original Article written by the DefeatBankruptcy.org Staff
and may not be reprinted in any form without prior written approval.