Petitioning for bankruptcy may be a long process, but with the help of a business lawyer in Wichita , it doesnât have to be complicated. Filing for bankruptcy mostly involves filling out the paperwork correctly and approaching each proceeding in the correct order. Once you attempt to declare bankruptcy, a government employee called a trustee will examine your case.
Assemble financial information
Before you file a bankruptcy petition, you need to assemble your financial information for your business lawyer. If you are married, you need to include your spouseâs financial information, even if he or she is not filing with you. To begin, you need to collect all debt information, including your creditor, current balance, interest rate, and your monthly payment. You should include all debt you currently owe, even if your payments are current. You should also provide your business attorney information on any income you have received in the past six months as well as any income you expect to receive in the future.
Attend credit counseling
At most, you must attend credit counseling from an approved agency six months before you file your petition. This usually only takes an hour or two, and can often be conducted over the phone or Internet. The court will not accept your bankruptcy petition if you forgo the counseling requirement. In addition to your business attorney, your credit counseling agency can help you determine which bankruptcy chapter is most appropriate for your financial situation. If you choose to file Chapter 13, the credit agency can also help you develop a payment plan.
Filing your petition
Once you file your bankruptcy petition, an automatic stay goes into effect. This prohibits your creditors from making further attempts to collect your debt. This means you creditors can no longer begin legal proceedings to collect your debt, enter liens against your property, or try by any other means to collect your money or property. However, the automatic stay wonât stop the automatic payments taken from your paycheck to cover your 401K loan.
If youâre a business owner, you need to pay very close attention to your financial matters, including your tax payments. An IRS audit can be a stressful procedure, even with the guidance of a tax lawyer near Wichita . To reduce your chances of being audited, your business lawyer will advise you to keep meticulous records of all income, expenses, and other losses. Doing so can help you avoid making mistakes on your tax returns.
To learn about the issues that could trigger an audit, consult your business tax lawyer and watch this brief video. This video explains why you might hesitate to claim more than $1,600 in charitable deductions, why you should never round figures for your deductions, and which types of business owners need to be especially cautious about the possibility of an audit. Bear in mind that the IRS selects some tax returns at random each year for an audit, regardless of how closely those taxpayers followed the rules. Always consult a business lawyer if youâre one of those unfortunate taxpayers.
If youâve already retained the services of a business lawyer in Wichita to manage affairs that involve corporate law , youâve made a wise decision. Your business lawyer can ensure that your company remains in compliance with all relevant regulations and he or she can provide specific guidance on certain situations as they arise. However, it never hurts to familiarize yourself with the basics of the regulations that apply to your business, particularly tax law. Before reading these regulations, it can be helpful to have a basic understanding of common tax law terminology.
You can find IRS regulations published in the Federal Register. Regulations serve as guidance for new additions to the tax code. They help taxpayers understand their obligations and how to remain in compliance with legislation . The IRS may also publish regulations to resolve any issues that may arise with already existing tax codes.
Private Letter Rulings
Sometimes, a taxpayer or a business attorney might submit a written request to the IRS for information. For example, the taxpayer may wish to know how the IRS tax code applies to a particular transaction or other circumstance. In response, the IRS will issue a private letter ruling (PLR), which interprets relevant sections of the tax code for the taxpayer and helps the individual understand how tax laws are applicable to the situation. Provided the taxpayer fully and accurately informed the IRS of the situation and acts as instructed, the PLR is binding on the IRS.
Like regulations, revenue rulings are a form of guidance issued by the IRS to help taxpayers and tax professionals understand how tax laws apply to certain situations. Revenue rulings are considered to be official interpretations made by the IRS. For example, a revenue ruling might explain how a taxpayer might deduct a home office.
Revenue procedures are similar to revenue rulings. However, while revenue rulings provide information on the position of the IRS regarding a particular situation, a revenue procedure provides taxpayers and professionals with instructions. For example, a revenue ruling might explain the circumstances in which a home office deduction is allowed. A revenue procedure might explain how to determine the percentage of the home that is devoted entirely to business purposes and how to claim the deduction.
Property ownership is the quintessential American dream and itâs often a smart investment decision, given that land typically rises in value. Yet, when you become a landowner, you are subject to a spectrum of obligations and liabilities. Itâs a good idea to consult a property lawyer near Wichita to help you sort through the regulations. Your property attorney can offer expert guidance on matters related to land use law , since a misstep in this area can easily depreciate your property.
A property attorney can also review property transaction agreements and identify ways in which you can minimize your taxes. For example, a property tax lawyer could help you defer your capital gain taxes by structuring the sale as a tax-deferred exchange. He or she can review your property tax bill and file an appeal if you might be paying too much. If you own distressed assets, itâs particularly important to work with a property attorney. He or she can manage issues such as restructuring, workouts, bankruptcy, and refinancing.