• Chicago Bankruptcy Lawyer Warns of Tax Complications After Filing

    If a person files bankruptcy, hopefully it is a once-in-a-lifetime experience. Therefore, the process is often intimidating as people have no previous experience with a personal bankruptcy. Lots of people are not sure how filing their personal income tax returns will change after filing a bankruptcy and what they need to claim and what they do not.

    According to IRS Publication 908, Bankruptcy Tax Guide, the Bankruptcy Code requires anyone who files bankruptcy to file all tax returns, or at least file for an extension. If you have already filed bankruptcy, you will also need to file an estate tax return, or Form 1041.

    “Taxpayers who have made the filing for a bankruptcy and are still currently in the process usually make the mistake of filing their tax return as they normally would,” says Joshua S. Barger, vice president of tax services for Foundation Financial Group. “This is not the process that should be taken.”

    Tax laws differ depending on whether you filed a Chapter 13 or Chapter 7 bankruptcy . If you have filed bankruptcy or are considering doing so, please contact our firm for a free consultation.

    Benjamin Brand Services- Chicago bankruptcy attorney .

  • Chicago Bankruptcy Attorney Appalled at Creditor Harassment

    Creditors are notorious for their borderline harassing collection methods, particularly the big banks. The lengths that some of these banks go to collect is often unethical and sometimes illegal. One individual went through a particularly outrageous nightmare with Bank of America after his mother passed away, and he told his story to Consumerist.com.

    Matt, who is still a college student, had to deal with the devastating loss of his mother on October 1. After she passed, Matt went through the process of notifying credit card companies, utilities, etc., while still grieving. Matt had to call Bank of America regarding his mother’s mortgage, which proved to be much more difficult than one would expect.

    “The first call ended after the associate we are speaking to told us that the only person they could talk to was the person who was listed on the mortgage:  my mother,” Matt said. “Since she was deceased, that’s obviously not possible, so we explained ‘death’ to the person we were speaking to. They said they had to talk to my mother, we decided it was hopeless, and gave up.”

    Matt sent in a copy of the death certificate, but continued to get daily harassing phone calls approximately once per hour. Matt told the Consumerist he sent the certificate in a total of six times and the calls continued for eight weeks.

    It is outrageous that a young man had to deal with this creditor harassment while worrying about his school work and grieving his mother’s death. Please contact our firm for more bankruptcy information if you are being harassed by creditors.

    Benjamin Brand Services- Chicago bankruptcy attorney .