Our Bankruptcy Questions Answered
Do you have questions about bankruptcy law in Maryland? Many of my clients do, and I am always happy to share my knowledge based on more than 30 years of experience I have in bankruptcy law. Following are some of the most frequently asked questions about bankruptcy and answers containing general information. Always talk with an attorney for advice that pertains to your specific circumstances.
Can Income Taxes Be Discharged?
You can discharge back taxes in bankruptcy if the following conditions apply:
- The tax debt is at least 3-years-old.
- The taxes were assessed at least 240 days before filing for bankruptcy.
- You filed a tax return (the IRS didn’t file one for you) and did not commit tax fraud or willfully commit tax evasion.
What Kinds Of Debt Can Be Discharged In Bankruptcy?
Most debt can be discharged in bankruptcy, including debt from medical bills, credit cards and personal loans. Debts that are not dischargeable include student loans (with a few rare exceptions), child support, alimony, court fees and tax debt that does not fit the criteria listed in the question above.
How Can I Stop Wage Garnishment?
Bankruptcy is the most effective means of stopping wage garnishment. As soon as you file for bankruptcy the automatic stay goes into effect. This prevents creditors from garnishing your wages and taking other collection actions against you.
How Can I Stop My Creditors From Harassing Me?
Persistent creditors will only stop harassing you if they have to. Bankruptcy makes them stop. Once you retain an attorney for your bankruptcy case, you can refer your creditors to your attorney. Once your bankruptcy is filed, your creditors will no longer have legal standing to contact you or take collection actions against you.