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As of March, 2005 there are proposed bankruptcy law
changes which ADVERSELY IMPACT DEBTORS. Therefore, you should
immediately contact a bankruptcy lawyer to determine what steps,
if any, you should take. In the meantime, you may also request
that your legislators and the President NOT pass these proposed
law changes.
Law Professors’ Letter on S. 256
We are professors of bankruptcy and commercial law. We are
writing with regard to The Bankruptcy Abuse Prevention and
Consumer Protection Act of 2005 (S.256) (the “bill”). We
have been following the bankruptcy reform process for the last
eight years with keen interest. The 92 undersigned professors
come from every region of the country and from all major
political parties. We are not members of a partisan, organized
group. Our exclusive interest is to seek the enactment of a
fair, just and efficient bankruptcy law. Many of us have written
before to express our concerns about earlier versions of this
legislation, and we write again as yet another version of the
bill comes before you. The bill is deeply flawed, and will harm
small businesses, the elderly, and families with children.
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CAUTION: Before you go bankrupt, have legal counsel determine
if the taxes are dischargeable in bankruptcy. Many times,
taxpayers have gone
through bankruptcy, only to find out later that the IRS tax problems
were NOT solved. Consideration might also be given to an Offer
in Compromise.
Referenced is a case example where one of the several rules for discharge
was
not met. Note: there are several other rules, but this case
illustrates the point. See Young
vs. USA (12/1/2000) - involving the rule concerning claims for
taxes for which the return was due three years or less
before the petition was filed. Consult a lawyer. The facts and
law may be different for your specific situation.
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