Creditors and Bankruptcy/File for bankruptcy



I have a lot of debt including owing the Franchise Tax Board and the IRS.  

I was told that filing for bankruptcy would solve the problem.  Will you please tell me how I should be able to file? Would this be under Chapter 7?

Thank you,


Hi Michelle:  This is a good news, bad news situation.    IRS taxes are sometimes dischargeable in a Chapter 7, but it depends on the circumstances.   What kind of tax, how many years has it been due, whether you filed a return for the years in question and when you filed those returns, and whether you made an agreement with the IRS pursuant to an offer in compromise.    I really need to talk with you to ask you some questions to see for sure whether you could discharge those tax debts or not.

As for the franchise tax debt, I am thinking that that kind of tax debt may not be dischargeable -   it has something to do with whether you are personally liable for the debt, i.e., tax, or whether you were keeping for yourself money that was actually held in trust for someone else, like the government.    Again, I need to actually talk to you to be sure.   However, on both of these issues, there may be a way to get around the tax debt by using another vehicle other than a chapter 7, like a chapter 13, for example.

Whether you file a 7 or a 13 depends on your specific circumstances and facts that you did not put in your question.    You may not even qualify to do a 7, but that depends on your level of income.   Also, I see you are in California.   My experience out there has been that chapter 7ís are going to cost you around 1,500 plus the filing fee of 335.     If you were to do a chapter 13, for whatever reason, you could count on paying double or triple that, and the filing fee for a chapter 13 is 300.      On the other hand, depending on your level of income, you may be able to have the entire filing fee that you pay to the court waived.   Or, at worst, you could pay the filing fee in installments over a four month period.   If I did a chapter 7 for you, I would charge 300 and probably could get the 335 filing fee waived.   For a 13, if that was necessary, I would typically charge around 500.

You are welcome to call me anytime you want, and I will not charge you just to talk on the phone.   

Jack Hall, J.D.
915 261-3893

Creditors and Bankruptcy

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Can answer questions about bankruptcy, lawsuits or judgments that have been filed against you. Also can answer questions about tax issues, property that is facing foreclosure, repossession of vehicles, and wage garnishments. 915 261-3893


Over 30 years experience assisting consumers with lawsuits and bankruptcy matters since graduating from law school.

Numerous published appellate court opinions; Law review publications; Article on consumer bankruptcy in Black Enterprise magazine; was requested to author a book on consumer bankruptcy by Doubleday Publishers

Over twenty years of education including law degree (J.D.); masters and bachelors degrees in political science; author of magazine articles related to consumer bankruptcy; hundreds of hours of continuing education legal education and seminars

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Have had well over a thousand bankruptcy clients during the past 30 years and have had many clients in civil lawsuits during the same time period

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