Debt Problems and Tax Problems

 Idaho Bankruptcy and Tax Attorney
 

WHAT IS BANKRUPTCY?

     Bankruptcy is a court proceeding where people or businesses which are unable to meet their obligations and are at risk of losing their assets turn for protection.

     There are several options in filing an Idaho or Eastern Oregon Bankruptcy. There is Chapter 7, 11, 12 & 13 relief available. Chapter 7 & 13 are the forms most used by people and small businesses. The differences are explained in this webpage.

     The decision to file bankruptcy is not one which should be taken lightly. It will have serious effects on your credit rating and on your ability to obtain credit in the future.

     We offer a free consultation to determine if bankruptcy is right for you. We represent clients in Idaho and Eastern Oregon in Bankruptcy matters.  People in Eastern Oregon file their Bankruptcy in the Idaho Bankruptcy Court in Boise.  They also attend Court in Boise, Idaho

     Please fill out our online form and find out what our Idaho Bankruptcy and Eastern Oregon Bankruptcy Attorneys can do to assist you. We offer a free initial consultation to all clients, and special payment plans to those who need them.
 

WHAT CAN BANKRUPTCY DO FOR ME?

• Stop Foreclosures

• Stop Repossessions

• Stop Garnishments

• Stop Lawsuits

• Stop Harassment

• Eliminate Debt

• Stop Tax Penalties

• Repay Over Time

• Save Businesses
   

If I file Bankruptcy, WILL I LOSE EVERYTHING?

     NO! There are a number of exemptions provided by law which protect you from losing your assets. Generally, you are allowed to exempt the following in an Idaho Bankruptcy: $100,000 equity in your home, a household full of furniture and furnishings, $3,000 equity per person in vehicles and $1,500 per person for tools of your trade. There are many other exemptions, also. Of course, with secured debt like your home or your car, you will still have to make the payments if you wish to keep the item. Please note that the exemptions in Idaho and Eastern Oregon are different.
 
CHAPTER 7

     A Chapter 7 is a straight complete bankruptcy. All debts are discharged, with certain exceptions. Chapter 7, like Chapter 13, also stops repossessions, foreclosures and garnishments. There is no plan or plan payments in a Chapter 7.
 
CHAPTER 13

   Chapter 13 is also known as a wage earners bankruptcy. In order to file a Chapter 13 a person must have a regular source of income. In Chapter 13, a plan is filed with the Bankruptcy Court which provides that a certain amount of money is paid into the plan and distributed to some or all creditors. The Chapter 13 Plan is for between 3-5 years.

     The biggest advantages to Chapter 13 are as follows: If a debtor is behind on payments to creditors who hold security, such as house payments or car payments, the past due payments can be put in the plan and paid over the life of the plan. This is very important when a person is behind several payments and is unable to catch them up.

     A second advantage is that with secured debt, like cars, the debtor may only have to pay the creditor what the collateral is worth, not what is owed. This often happens in situations where a person owes more on the vehicle than it is worth. Also, in these circumstances, the amount of interest is reduced to 9%, rather than what the contract calls for. This often results in a significant savings.

TAXES

     Tax Discharge in Bankruptcy creates a unique situation.  Taxing authorities are entitled to preferential treatment and payment. Generally, if a tax is over 3 years old from the time it was assessed or from when the return was filed, it can be discharged in Bankruptcy. Taxes less than 3 years old are not dischargable and are entitled to be paid in full, plus interest. Most penalties, however, are discharged in Bankruptcy. Taxes are subject to complex rules as to whether they are dischargable in Bankruptcy. See our article: Discharging Taxes in Bankruptcy.

STUDENT LOANS

     Student loans are in a special category.   Generally, they are not dischargable in bankruptcy. However if repayment of them is determined by the court to constitute an undue hardship, them may be discharged.  Also, a Chapter 13 will provide protection during the life of the plan.

BUSINESSES

     When a business has financial difficulties, they may be one of several different types. There may be a shortage of cash flow to make current payments. Often, businesses will survive if they are given a reasonable chance to reorganize. A Chapter 13 is for businesses that are unable to pay their debts, but which could become profitable if they were given some opportunity to delay payments on debts and to reduce the amount of debt which they owe.

     Also, equipment or vehicles may have been repossessed and the business might need those items to continue to operate. In these situations, a Chapter 13 will give some breathing room and give the business an opportunity to propose a plan to reorganize. Chapter 11 is a more complicated form business reorganization which may prove beneficial to larger businesses with debt problems.

FARM /RANCH

     Farmers and Ranchers have special needs to keep their businesses alive. Congress has responded with Chapter 12 . Chapter 12 gives farmers and ranchers a chance to reorganize their debt and to extend payment terms. This can often mean the difference between losing the family ranch or farm and surviving.
 

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     Please fill out our online form and find out what we can do to assist you. We offer a free initial consultation to all clients, and special payment plans to those who need them. 

Our Bankruptcy and Tax Law Firm is:

 "An Idaho Tax and Bankruptcy Law Firm Representing Idahoans"

      Attorney Martin ("Marty") Martelle and his staff have extensive experience representing clients with all kinds of Debt or Tax problems.  Our Idaho Bankruptcy Attorneys and Idaho Tax Attorneys are both well equipped to solve our clients legal problems.

       Our fees are  reasonable. We have very good business sense and we are able to offer an unbiased and well-considered opinion as to the best course of action available.  
 

For a consultation regarding having your IRS or Debt problems handled by an experienced Tax Attorney or Bankruptcy Attorney, call us at:

208 938 8500

or

1 877 TAX CREW (877 829 2739)

Or, fill out our online form and find out what we can do to assist you. We offer a free initial consultation to all clients, and special payment plans to those who need them.

We  represent clients in Bankruptcy and Tax matters throughout Idaho and Eastern Oregon.  We represent clients with IRS problems throughout the United States.

Martelle Law Offices, P.A.
82 E. State Street, Suite F
Eagle, Idaho 83616-6047

Tel:  208 938 8500
Toll Free: 1 877 TAX CREW (877 829 2739)
Fax: (208) 938-8503
E-mail: martellelaw@yahoo.com