Unfortunately, companies touting their ability to "fix/lower/relieve income tax debt" are often in the business of helping themselves to the detriment of their clients.In the latest development, American Tax Relief of Beverly Hills, CA has been sued by the Federal Trade Commission (FTC) for bilking customers of some $60-100m and siphoning off some $30m for its owners. While the FTC is … [Read more...]
Over 50 and Unemployed?
September 24, 2010 By
The 57-year-old woman featured in this NYT story paid her home off but may lose it in foreclosure because she cannot pay her property taxes. She is not alone.According to the article it will take years to absorb the giant pool of unemployed at the economy’s recent pace:Of the 14.9 million unemployed, more than 2.2 million are 55 or older.Nearly half of them have been unemployed six … [Read more...]
Bankruptcy Counseling instead of Head in the Sand
September 22, 2010 By
I won't weigh in on the remedies prescribed by economist David Rosenberg here, but I salute the intelligence of his agreement with my comparison of our economy to a python that just took on a big meal.If you or your business are struggling financially, consulting with our offices might reveal coping strategies for you until better times emerge. Putting your head in the sand and hoping for … [Read more...]
Income Tax and Bankruptcy
September 10, 2010 By
We find that many people in financial distress owe taxes in addition to credit card bills and student loans and business debts. Before you succumb to an offer by a so-called tax specialist, educate yourself. MYTH: Income taxes are never dischargeable in a bankruptcy case TRUTH: Income taxes may be dischargeable in a bankruptcy case. Dischargeability depends on a number of factors, including, … [Read more...]
Discharge Income Taxes in Bankruptcy?
August 30, 2010 By
In the American Bar Association Journal last week, I read about a California attorney who has been accused by the state attorney general of operating a "heartless scheme" that takes retainers from thousands of clients while doing little or nothing to help them. Yes, even lawyers can act like debt settlement companies, many of which take fees and settle no debts I have no opinion on this … [Read more...]
Beware Foreclosure Scams Part 2
June 9, 2010 By
Part 1 of this series advised of free consumer protection resources for homeowners in foreclosure who receive offers to purchase their homes before the foreclosure process finalizes.THESE OFFERS ARE USUALLY SCAMS. Go into foreclosure and get sued at the same time? Why are these presumably well-meaning offers usually scams? In general terms, if you enter into a contract to sell a home … [Read more...]
Dealing With The IRS
April 23, 2010 By
Did you file for an extension on your income taxes? If you did so because you owe the government more than you can afford to pay, USAToday ran a good article on how to proceed. The best advice may be in this paragraph about installment agreements: You'll have to pay interest on the unpaid amount at a rate that's adjusted quarterly. The rate for the first quarter of 2010 is 4%, which is lower … [Read more...]
Cash for Keys?
March 25, 2010 By
The copywriter who thought up "Cash for Keys" did a good job. Unfortunately, the process isn't as simple as the catchy title implies. You don't simply hand the keys over to the mortgage company, take your $1000 to put down on an apartment and walk away.[important]Unless you file for bankruptcy protection, any time you sell or surrender your home for less than the balance due on the mortgage(s) … [Read more...]
Foreclose or Declare Bankruptcy?
January 15, 2010 By
Clients in financial difficulty often ask whether they are better served allowing their home to go into foreclosure or whether bankruptcy might be a better option for them.Not since the Great Depression have so many people had to learn so much about credit law. Five years ago most of the clients we now see in our offices thought foreclosures and bankruptcies happened to "other people" and now … [Read more...]
The Tax Man Lienith
January 12, 2010 By
After ten years the Internal Revenue Service issued 475% more liens last year than it did in 1999.A recent CNNMoney story quoted national taxpayer advocate Nina Olson saying, "Taxpayers are being greatly harmed for very little benefit to the government." In her annual report to Congress, Ms Olson says the IRS must do more to assess whether the benefits of a tax lien outweigh its harm to the … [Read more...]