The Woodlands TX Bankruptcy Attorney » nondischargeable

Discharge Your Tax Debt in Chapter 7

Rich Shea — Sun, 29 May 2011 12:22:42 +0000

Are you stuck paying tens of thousands of dollars in back taxes and penalties from old tax debts? If your tax debt does not fall into any of the following categories, then it is very likely your Woodlands Bankruptcy Attorney can get the debt discharged in Chapter 7 bankruptcy:

1. Any tax for which a return was not filed, for which a fraudulent return was filed, or which the debtor willfully attempted to evade;

2. Any tax with respect to which a late return was filed within two years before filing for bankruptcy;

3. Income Taxes:
a – for which a return was last due within 3 years of filing for bankruptcy; or
b – assessed within 240 days before filing for bankruptcy; or
c – not yet assess, but assessable after filing bankruptcy.

4. Property taxes assessed before filing and payable without penalty less than one year before filing.

If your tax debt does fall into one of the categories described above, then you may be eligible to discharge your debt at a later date provided you did not willfully attempt to evade the tax.

Contact The Shea Law Firm at (832) 592-7913 if you need to speak with an experienced bankruptcy lawyer about how to lose your tax debt, credit card debt, and debt from medical bills.

Your Student Loan Can Be Discharged in Bankruptcy!

Rich Shea — Tue, 02 Nov 2010 11:41:56 +0000

Student loans are a booming industry. The government guarantees the loan so schools everywhere saw a wonderful opportunity to raise tuition to the sky. And since it is not easy to discharge a student loan in bankruptcy lenders were almost always standing by ready to lend unsuspecting students large sums of money on a degree that may not be worth the price paid. What can you do if you are being buried by student loans?

It is not easy to get a student loan discharged in bankruptcy. Not easy at all, but it can be done under very specific conditions. It all comes down to the judge’s definition of “undue hardship.”

“Undue Hardship” is the legal standard used in the Bankruptcy Code to determine if a student loan should be discharged in a bankruptcy proceeding. However, Congress never defined what they meant by “undue hardship” so each judge has been left to create their own definition. Almost everyone agrees that an undue hardship is something more than regular hardship, but there are differences of opinion to how onerous the hardship must be.

Most courts have relied on the Brunner test in evaluating undue hardship. Under the Brunner test you may prevail on an undue hardship claim if:

You can not maintain, based on current income and expenses, a “minimal” standard of living for you and your dependents if forced to repay the student loan;
Additional circumstances exist indicating that your current state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and
You have made a good faith effort to repay the student loan(s).

If you believe you satisfy the criteria described above then you may be eligible to pursue a discharge of your student loans. Your Woodlands Bankruptcy Attorney can help review your facts and present your case in the best light to the bankruptcy court. Be prepared if you intend to pursue a discharge of your student loans: the process is longer, more expensive, and there will be more hearings than in your normal bankruptcy case; but this may be your only chance for the next 8 years to get your student loans discharged.

Get Help

The Shea Law Firm is here to help you get through the bankruptcy process and protect your rights to the fullest extent. Don’t risk losing property you may be able to keep. Call (832) 592-7913 and speak with a Woodlands bankruptcy lawyer today.

LoneStarBankruptcy.com provides the latest news and information on Chapter 7 and Chapter 13 bankruptcy in the Southern District of Texas. The Federal Bankruptcy Court for the Southern District of Texas covers many communities including: Houston, Spring, Conroe, The Woodlands, Montgomery County, and Harris County. If you need legal assistance with a personal bankruptcy matter speak with a Woodlands Bankruptcy Attorney today at (832) 592-7913.

Deadline to Discharge Student Loans

Is Your Debt Presumed Nondischargeable?

Rich Shea — Tue, 17 Nov 2009 14:04:25 +0000

One of the key features in a Chapter 7 Bankruptcy proceeding is the ability to discharge certain debts and provide a meaningful fresh start to an overwhelmed person or family. It is important to understand that not every debt can be discharged in a Chapter 7 bankruptcy. One of the significant exceptions to a discharge order are debts for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor’s financial condition. It may not seem like it at first glance, but some common purchases or debts can easily fall into this exception and end up not being discharged. If you want your bankruptcy attorney to discharge as much of your debt as possible, then keep reading.

As a bankruptcy attorney in the Houston federal court I see this exception to the discharge rule most often come into play in two more specific subcategories. These are:

consumer debts owed to a single creditor and aggregating more than $500 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and
cash advances aggregating more than $750 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable.

Are all debts incurred within 90 days presumed nondischargeable?

No, the key term is “luxury goods or services.” The bankruptcy rules explain “luxury goods or services” does not include goods or services reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor. If your debt is incurred within 90 days of filing but is not for luxury goods or services then your bankruptcy attorney in Houston may help you avoid the presumption of nondischargeability.

What can you expect if you have charges within 90 days or cash advances within 70 days?

It is a growing trend among credit card companies to request the Houston Bankruptcy Court rule these debts nondischargeable in an adversary proceeding. This strategy often works when a person is going through the bankruptcy process alone and does not know how to defend himself or herself from the credit card company, or even worse, ignores the adversary proceeding entirely. Often times in those situations the debt is ruled nondischargeable and it follows the bankruptcy filer even after their other debts are discharged. The presumption is on their side unless your bankruptcy attorney can defeat or rebut the presumption.

A Woodlands Bankruptcy Attorney at your side can help you get the discharge you are entitled to. Don’t just file for bankruptcy, get meaningful debt relief at the end of your case.

LoneStarBankruptcy.com provides the latest news and information on Chapter 7 and Chapter 13 bankruptcy in the Southern District of Texas. The Federal Bankruptcy Court for the Southern District of Texas covers many communities including: Houston, Conroe, The Woodlands, Montgomery County, and Harris County. If you need legal assistance with a personal bankruptcy matter speak with a local bankruptcy attorney today.

Discharge Your Tax Debt in Chapter 7