Past due tax debts have more serious consequences than other types of debts. Unlike most creditors, the IRS can seize your wages without obtaining a judgment. An IRS wage garnishment make your financial situation much worse. However, the IRS will give you warning before they pursue collection actions. This gives you time to look at options for stopping IRS collections. Depending on your situation, the following options may be possible: Alternative payment plans: You may be able to negotiate with the IRS before they begin garnishing your wages. In some cases, the IRS will allow you to make monthly payments until your debt is satisfied. You may also qualify for an offer in compromise. This is where the IRS allows you to pay off your debt at a discount. Not everyone will qualify for these options. Request a CDP Hearing: A Collection Due Process hearing (also called CDP hearing) allows…
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If you have defaulted on debts, chances are you have been contacted by collection agencies. Debt collectors can be irritating and intimidating, but you have rights as a consumer. Creditor harassment is often illegal. The following debt collection tactics are illegal under the Fair Debt Collection Practices Act (FDCPA). Lying to debtors: Debt collectors cannot mislead or lie to debtors. This means they cannot pretend to be law enforcement or attorneys. They also cannot lie about the amount owed. Threatening debtors: It is illegal for debt collectors to threaten debtors with arrest or acts of violence. Debt collectors cannot threaten to seize property or garnish wages unless they are permitted by law to take such actions. Harassing debtors: There are restrictions on how many times debt collectors can call debtors, and when and where they may call. Debt collectors are barred from calling before 8 a.m. or after 9 p.m.,…
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One of the most common myths about bankruptcy is that filing will permanently destroy your credit rating. This fear a major reason why many people who could benefit from bankruptcy do not file. It is important to remember that there is no such thing as a “permanent credit score.” Your credit rating after bankruptcy can improve if your financial situation remains stable. How Can You Improve Your Credit Rating After Bankruptcy? There are multiple ways you can improve your credit score after your debts are discharged in bankruptcy. However, the most important factor is ensuring your financial situation reflects stability. Pay all bills on time: Depending on your situation, you may have property that is exempt from your bankruptcy estate, or saved through other mechanisms. Continue to make timely payments on these assets after filing. Make timely payments on rent, utilities and other bills. It is important to maintain steady…
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*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
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