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Memphis Bankruptcy Law Blog

Yes, it is possible to discharge tax debt through Chapter 7

May people who consider bankruptcy are facing debt on all sides, in their personal lives, in their professional lives, and even in their relationship with the IRS. While all debts are dangerous to some degree or another, tax debt is very difficult to address for some people, and may completely "sink their battleship" in a hurry if they do not address it directly as soon as possible.

Proper use of a bankruptcy is one of the most effective ways of discharging many debts, but many people assume that they cannot discharge tax debt with a bankruptcy. While it is true that consumers cannot discharge many kinds of tax debt through bankruptcy, they may still discharge some kinds of tax debt, as long as they meet a number of other requirements. If you find yourself facing serious tax debts, you should carefully examine your own circumstances to determine if you qualify for discharging your debt through Chapter 7.

What are your rights against unfair collections tactics?

As a consumer, it is easy to fall behind on debt. While this is rarely an ideal scenario, there is nothing ethically wrong with failing to pay debts or needing to pay them off slowly. When lenders loan money, they understand that they are making a business deal with an individual and account for the risk involved by requiring that the borrower return the money with interest.

Some debt collectors make the case that those who borrow money and cannot repay it at the speed that the lender prefers are terrible people... Of course, this is a slight exaggeration, but only slight. If you've ever been on the receiving end of a credit card collections call, you may have had a similar experience.

It's easier than you think to qualify for Chapter 7 bankruptcy

If you've been dealing with reduced income, expanding debt or collection calls, you're probably feeling quite stressed out. You may know that Chapter 7 bankruptcy offers relief for those with debt-related financial issues, but you may think it couldn't possibly work for you. People often think that bankruptcy is too difficult or that it requires that you give up everything you own.

There's good news here. First of all, you can retain some of your possessions in Chapter 7 bankruptcy, including some of the equity in your home. Secondly, if you have lower total assets and lower income, you may very well qualify for Chapter 7 bankruptcy relief, which helps you get out from under all of those monthly unsecured debt payments.

Hiding assets in a bankruptcy may lead to criminal charges

If you're considering filing for personal bankruptcy, it is important to do your homework on the process before moving forward. Planning properly for bankruptcy is one of the most important portions of the process, but many individuals who choose to use bankruptcy for debt relief fail to take full advantage of the process because of poor planning.

This is exceptionally true of Chapter 7 bankruptcy, where a debtor forfeits much of his or her property to a trustee in return for debt discharge. A debtor who fails to properly disclose all assets while filing may see a court toss out the bankruptcy and deny the debtor a dearly needed discharge.

3 tips for dealing with collections

The first of the month is right around on the corner and rent is due. You barely have enough cash to pay your landlord and still go pick up groceries for the week. But, you have a credit card. It won't hurt to use it this one time to buy food to get you through to your next paycheck. Unfortunately, past due notices are already stacking up from the other credit card you maxed out three months ago, in addition to the ones for your car loan. With constant calls from creditors and the threat of repossession, you may be wondering what to do.

If you live in Memphis and the above situation is familiar, you are not alone. When the job market only offers low paying part-time jobs, it is very difficult to make ends meet. This is how people often find themselves with more debt than they can handle and creditors start hounding them for payments. Since not every creditor plays by the rules, it is vital that you know how to protect yourself. Here are some tips to help you deal with creditors.

Signs bankruptcy is your best bet

Overwhelming debt is a common problem not limited solely to the Memphis area. People across the country are underwater due to trying to make ends meet. The combination of low wages and continuously increasing living expenses is generally responsible for the mounting debt problem.

While many people view bankruptcy as failure and are afraid of what their friends and family might think, you should instead look at it as a tool for repairing your financial situation. When debt gets so out of control that you are using one credit card to pay off the one you used to buy groceries, it is time to consider some real options to climb out of the cycle. Read further to learn about the signs that it might be time to declare bankruptcy.

What can Chapter 13 do for you?

The term "bankruptcy" is often used broadly to refer to government assisted discharge of debt, but the law actually offers a few options for the consumer to consider. Most commonly, individuals who pursue bankruptcy choose either a Chapter 7 liquidation or a Chapter 13 repayment plan.

Both of these are excellent options, but one may fit your circumstances better, depending on the nature of your particular needs.

Did the Affordable Care Act reduce personal bankruptcy?

During the last six years, fewer Americans have filed for personal bankruptcy. In fact, according to research by Consumer Reports, bankruptcies have declined by 50 percent. According to Consumer Reports, this decrease is partially the result of the Affordable Care Act, which makes healthcare easier and more affordable for Americans to get.

Many legal experts and bankruptcy law authorities agree with Consumer Reports on this point. Prior to the Affordable Care Act, medical debt was one of the leading causes of personal bankruptcy.

Are you familiar with the top benefits of Chapter 7 bankruptcy?

If you have reason to believe that Chapter 7 bankruptcy is the best way to escape financial trouble, you owe it to yourself to learn more about the process.

As you compare the pros and cons of filing, you'll soon realize if this is something that could put you in a better position in the days, weeks, and months to come.

Cancer is a common cause of severe medical debt and bankruptcy

When someone you love is diagnosed with cancer, your first concern is the process of treatment and the likelihood of remission. One of the very serious consequences of a cancer diagnosis is often a lot of medical debt. Cancer treatments, such as surgeries, chemotherapy and radiation are incredibly expensive, often costing thousands of dollars a week. Depending on the type of insurance your loved one has, some of that expense may end up as your family's responsibility, which can result in debt. It can be hard, even impossible, to pay down medical debt when an earner is missing work due to cancer.

In a perfect world, no one would lose a home or personal vehicle as the result of a serious illness. However, we don't live in a perfect world. If you or a loved one has built up a substantial amount of debt due to cancer treatments, you may need to consider bankruptcy as a means of debt relief.

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Ben Sissman, Attorney at Law
44 North Second Street, Suite 403
Memphis, TN 38103

Phone: 901-730-4958
Phone: 901-730-4958
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