Article 2: Does Bankruptcy do more
harm than good?
By: Lori T. Williams, Esq.
I recently spoke with local tax
attorney Stephen Dunn, who shared his views about how Consumer
Bankruptcy can actually do more harm than good, especially where tax
laws are involved. In the first of two recent articles
published by Forbes, Stephen said "before filing a bankruptcy
case, a consumer needs to determine whether it is truly in his or her
best interests. In this regard the consumer should seek
the advice of legal counsel independent of that recommending the
filing of a bankruptcy case. Standing and dealing with your
debts may be wiser than trying to run from them."
In the second
article, Dunn elaborates as follows: "Relief from taxes in
bankruptcy is illusory. I have come to realize that the 10-year
statute of limitations on collections is the tax debtor's best
friend. Under 26 USC § 6503(h)(2), the filing of a bankruptcy
case extends the collection statute by the pendency of the bankruptcy
case plus six months. IRS will not acknowledge in writing that
taxes have been discharged in bankruptcy. IRS certainly will
not record discharge of a Notice of Federal Tax Lien recorded in a
register of deeds' office. The Federal tax lien may well
continue in the debtor's property notwithstanding discharge of the
debtor in bankruptcy."
articles, click here.
Did you know....
Bankruptcy lawyers focus on
different things in their practice. Some represent debtors,
others represent creditors. Some focus on Chapter 7
Bankruptcies (focused on discharge of debts for individual
consumers), while others focus on a Chapter 11 (focused on reorganization
of business debt) or Chapter 13 (reorganization of an individual's
debts). Some handle all of the above.
Fees for these matters can vary
considerably, depending on the type and complexity of the case, and
the level of experience of the attorney and size of practice.
For instance, some high volume firms will charge less than
smaller firms who are more selective about which cases they'll take
If you need an experienced
Bankruptcy attorney to advise you of your rights so you can determine
if that is the best option for you, call me for a referral. As a 22 year attorney, I
take the guess work out of hiring a professional, because I connect
you with the right specialist for your situation. Call me today
for a free referral at 248-594-4470.
Most people know when they need an attorney, and they
might even know an attorney or two. Yet, often they don't
know how to find the right attorney for their situation.
of Americans hire an attorney recommended by their
of them are unhappy with the services that attorney provided.
you deserve better Odds than that?
Attorney Lori Williams has put together a large network
of lawyers she personally knows and has worked with over the past
20 years, who are located throughout Metro Detroit, and are
ready to serve you. Each lawyer has experience (10-30 years) in
their particular area of law, and will handle your legal issues
promptly, professionally and affordably. You'll receive a FREE
referral to the right attorney for you, whether it be for personal
legal services as an individual, or for your small business.
team of specialists cover all the areas of law in Metro Detroit,
Estate (including Foreclosures/Loan Modifications/Landlord Tenant
Law (Set up a corporation or LLC; protect
intellectual property through patents, trademarks, copyrights;
draft/review contracts or operating agreements or licensing
agreements for your business; tax planning, etc.);
Planning and Succession planning (wills/trusts/powers of attorney;
buy sell agreements);
Call today for a free consultation and referral
the legal help you need!