Excerpt from Chapter 15 – “Taxes and Bankruptcy”

Bankruptcy – We Wrote the Book on It By Ronald C. Sykstus and the Bond and Botes Team of Lawyers

Excerpt from Chapter 15 – “Taxes and Bankruptcy”:

Another important topic that comes up repeatedly with many of
our clients is with regard to taxes and how they are affected by a
bankruptcy filing, either Chapter 7 or Chapter 13. Contrary to
popular belief, taxes can be discharged in bankruptcy, assuming that
certain rules and qualifications are met. Tax debt can also be paid
back through a Chapter 13 debt consolidation plan. The IRS and
state taxing authorities have many enforcement mechanisms and
procedures to ensure payment, and they can put these enforcement
actions into place quickly to the great detriment of the consumer. As
a result, if you have tax debt or concerns that you are confronting,
please be aware of your rights under the Bankruptcy Code. There is
also interplay with taxes when property is forgiven or settled short
of the full balance owed being paid.

Excerpt from Chapter 14 – “Divorce and Bankruptcy”

Bankruptcy – We Wrote the Book on It By Ronald C. Sykstus and the Bond and Botes Team of Lawyers

Excerpt from Chapter 14 – “Divorce and Bankruptcy”:

Can I File Bankruptcy on Debts from a Divorce?
By Attorney Amy K. Tanner

Most divorce decrees and marital settlements will address the debts
that exist at the time the parties separate. There is usually some type
of division of the debt. Most couples have debt that turns out to be
his, mine, and ours. The only party the creditor is interested in is the
person who is actually liable on the debt. A creditor does not care if
your divorce decree states that your ex-spouse should pay a debt that is
in your name. The creditor is going to collect against the person who is
named and liable on the debt itself, regardless of what is called a hold-harmless
provision in a divorce decree.

The hold-harmless language is an indemnification provision that
provides for the spouse who was assigned to pay a particular debt to
do so, leaving the other marital party unharmed by the debt itself. The
division of debt can become a real issue in bankruptcy. Even the hold-harmless indemnification can be a contingent debt in a bankruptcy.
§523 of the United States Bankruptcy Code provides that any debt to
a spouse or former spouse that arose during the dissolution of marriage
is non-dischargeable in a Chapter 7 case. Although the spouse who
files for bankruptcy can discharge the debt as to the creditor, he or she
cannot discharge the obligation to hold the former spouse harmless.

Excerpt from Chapter 13 – “What Should I Do If I Am Sued? How to Defend a Lawsuit and the Potential Consequences If You Do Not”

Bankruptcy – We Wrote the Book on It By Ronald C. Sykstus and the Bond and Botes Team of Lawyers

Excerpt from Chapter 13 – “What Should I Do If I Am Sued? How to Defend a Lawsuit and the Potential Consequences If You Do Not”:

What Can I Do If I Am Being Sued by a Creditor or Debt Collector?
By Attorney Ronald C. Sykstus

If you receive a summons stating that you have been sued by a debt
collector or creditor, do not ignore it! You have a right to request a trial
and to demand that the plaintiff (the entity bringing the lawsuit) prove
its case in court. If you do not timely file an answer to a lawsuit, then
you will automatically lose under what is called a default judgment.
The plaintiff will then be able to proceed with collections against you
on the default judgment that it received. You must file an answer on
time with the court where the lawsuit is pending and also mail a copy
of your answer to the plaintiff. Failure to timely file an answer with the
court will result in a default judgment against you! Below is a sample of
what an answer should look like. If your answer is anything other than
a denial of the complaint, you will lose automatically.