Monday, January 10, 2011

Questions for the Tax Lady: January 10th, 2011

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question: Roni, I read that your firm is now offering bankruptcy representation, what states are the services available in?

Answer: Yes, my law firm recently rolled out bankruptcy services. Our firm can represent people in the Eastern District of California. For more information on bankruptcy and our services you can visit

Question: What is the difference between filing Chapter 7 and Chapter 13 bankruptcy?

Answer: Great question! Depending upon a person’s current financial situation, one chapter will be better suited to their needs than another. Here’s the main difference:

Chapter 7 Bankruptcy is set up for people who have severe financial difficulties, and cannot repay their debts at all. A successful Chapter 7 filing will result in debts being “discharged,” meaning, you are not obligated to pay back the debt, and the creditors cannot try to collect from you.

Chapter 13 Bankruptcy is designed for people who have a regular source of income, but are having trouble paying their debts. A successful Chapter 13 filing may result in some debts being discharged, but most debts will be restructured so that you can afford to make regular payments to reduce your debts.

There are restrictions for each chapter type, and not everyone will qualify for either type of filing. Anyone considering a bankruptcy filing is strongly encouraged to talk to a qualified bankruptcy attorney.

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