Automatic Stay

Call: 888-297-6203 The taxman is exiled by bankruptcy. Bankruptcy might offer protection from the taxman. In Chapter 13, taxes and penalties that cannot be discharged can be paid in whole without incurring interest. Chapter 13 bankruptcy offers a repayment schedule that shields the debtor from collection efforts during the case and dismisses nearly all outstanding debts at the conclusion. The debtor draughts that payment schedule; based on the debtor's earnings and assets, creditors may only receive a small portion of their debt as repayment. Any chapter of bankruptcy includes an inherent injunction known as the automatic stay. A [...]

Call: 888-297-6203 Any chapter of bankruptcy includes an inherent injunction known as the automatic stay. A court order prohibiting the continuation of any action by any creditor against the debtor or the debtor's property is issued as soon as a bankruptcy case is filed. As soon as creditors and bill collectors become aware of a bankruptcy filing, they must stop all collection efforts. Even if the creditor hasn't received official notice or a copy of the filing, the stay is still enforceable. Saying "I haven't received notification from the court" is not a valid defence. Even co-debtors who [...]

Call: 888-297-6203 Most measures taken against a debtor or their property are immediately postponed (put on hold) when a bankruptcy petition is filed. Even if the creditor is unaware of the stay at the moment, it is still in effect. The stay applies to things like garnishing wages, litigation, and foreclosures. The stay is intended to protect the debtor's assets and allow them some time away from the court case. When is "relief" from that stay available to creditors? A creditor must demonstrate to the bankruptcy judge that there is "cause" for the granting of relief in order to [...]

Call: 888-297-6203 Taxpayers to believe that the IRS has violated the bankruptcy Automatic Stay or discharge injunction can file claims with the IRS for relief and damages. The filing of the claim with the services is a prerequisite for seeking damages. See 26 U.S.C. §§ 7430(a) and (b)(1), 7433(d)(1) and (e). Regulations provide that such claims should be sent in writing to the Chief, Local Insolvency Unit, for the judicial district in which the taxpayer filed the underlying bankruptcy case giving rise to the alleged violation. See 26 CFR § 301.7433-2(e). These bankruptcy-related claims can be mailed to: [...]