Sadly, there are unfortunate circumstances in life that can lead to a bankruptcy filing, including divorce, job loss and/or death.
This is why bankruptcy is such an important tool for the American public. It helps people overcome overwhelming financial obstacles brought on by unfortunate events.
Recently, R&B singer Ginuwine announced that he was on the verge of bankruptcy. Ginuwine (whose real name is Elgin Lumpkin), was one of the world’s biggest recording artists in the late 1990s. He is currently involved in a lawsuit with a record producer who claims the singer owes him royalties.
Ginuwine’s attorneys reportedly said in a pre-trial hearing that he cannot pay the money owed to the producer, because he also owes the IRS money after he got into financial trouble following his divorce from his ex-wife.
Should I Talk to a Bankruptcy Attorney About My Financial Troubles?
As we reported recently, when you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay goes into effect that prevents collection attempts. The automatic stay also halts lawsuits, prevents wage garnishment and stops payment demands from collectors.
Keep in mind, while a bankruptcy filing may allow you to discharge unsecured debts such as medical bills and credit card debt, there are some exceptions for items like alimony and criminal/civil fines.
Additionally, through a bankruptcy, a person can discharge certain taxes if the debt and/or debtor meet the following requirements:
- The tax owed is more than three years old at the time of a bankruptcy.
- Tax Assessment is performed more than 240 days before the bankruptcy.
- No fraud or tax evasion charges have been filed against the debtor.
It is very important to talk to our bankruptcy attorney so that he may review your financial situation and advise you about your best options.
If you are overwhelmed with debt, contact our Washington DC and Maryland bankruptcy lawyer today for a consultation. We understand how stressful the threat of collections and lawsuits can be. Put an end to the anxiety you are feeling because of financial missteps today.
Law Firm of Kevin D. Judd – Maryland and Washington DC bankruptcy attorney
Judd’s Judgment: During a bankruptcy case, your property and assets are considered your “estate”.