A very common question I discuss at initial bankruptcy consultations at my Asheville office is whether the IRS will treat discharged debts as income. Simple answer: No. Allow me to explain why. When someone negotiates a settlement with a credit card company, the forgiven portion of the debt is treated as income by the IRS. …
My bankruptcy law office in Asheville, North Carolina stays busy. Almost every day I meet with clients or potential clients scared of filing a bankruptcy case because the process for filing Chapter 7 or Chapter 13 feels daunting to them. Usually, I respond by saying, “Your bankruptcy case will be relatively simple. The key to…
If you are currently in or thinking about using a debt settlement program, contact a bankruptcy attorney’s office to figure out your other options during a free, initial consultation. The ads online and on television scream, whatever you do, “Don’t file a bankruptcy case!” This marketing pitch, being sold mainly by non-attorneys who are not…
I often hear from clients around Asheville, NC during a bankruptcy consultation for Chapter 7 or Chapter 13 that the worst part of their financial difficulties is not job loss, indecision about living paycheck to paycheck, or budgeting problems. The worst part about not being to pay bills is often abusive debt collectors who will…
Many potential bankruptcy clients come to my Asheville office wondering whether they qualify for a Chapter 7 or Chapter 13 case (sometimes Chapter 11, but that type of case is generally for big companies with many employees or assets). The key qualifier for determining the proper type of bankruptcy relief is called the Means Test.…
Many people I meet with for a bankruptcy consultation in my Asheville NC office think filing a case is as low as you can get financially. On the contrary, the most difficult people for me to help are the ones who do not have secure employment. Sure, we could file a case for them, but…
Being a consumer bankruptcy attorney in Asheville is satisfying work. Filing a Chapter 7 or Chapter 13 for a client brings relief they didn’t know existed. Helping families improve their lives immediately and effectively is why I chose this work. The worst part of my job is trying to explain to people why they should…
If you live in Western North Carolina and file a Chapter 7 or Chapter 13 bankruptcy case, you might be surprised at how few people find out what you are doing. Usually, the people who will know are: -Your bankruptcy attorney -The bankruptcy trustee (another lawyer in town) -Your Creditors (usually out of state collection…
Recently, I spoke with a man who felt like he was constantly on the edge. Each month he would wonder if he was paying the right company, responding correctly to telephone calls, and doing the responsible thing. He said, “I work hard each month, and it just keeps getting tighter and tighter. I’ve always paid…
When the following conditions exist, filing Chapter 7 may be your best bankruptcy option: You cannot pay your debts. Your creditors are pestering you or threatening to sue you. All of your assets are exempt. If you want to keep property securing a debt (house, car, etc.) you are current with the payments. Chapter 13…