Kovacs Law Office
Newletter

September 26, 2011

Law Office of Robert W Kovacs, Jr.
172 Shrewsbury Street
Worcester, Massachusetts 01604
 (508) 926 - 8833
Greetings!

 

Welcome to our e-newsletter!     

 

As summer comes to an end I look forward to another transition into fall then winter. I have always enjoyed the changing seasons here in New England.

 

 

Thank you for taking the time to read our newletter. Please visit our web site, www.RKovacsLaw.com and checkout our new bankruptcy videos.

Please feel free to share this and future newsletters with your others. If you would prefer not to receive this e-newsletters in the future please click the link at the bottom of the page. I welcome any comments or suggestions for future newsletters.

 

 

Thank you for taking the time to read our newsletter.

 

Sincerely,

Robert Kovacs

 

Law Office of Robert W Kovacs, Jr.

 

 

 

 

 

 

 

Bankruptcy Stops Wage Garnishments Cold

 

 

 

 

One of the most beneficial provisions of the federal Bankruptcy Code is the automatic stay which stops all creditor action once the case is filed. Creditors can no longer commence or continue lawsuits, foreclose or repossess property, make harassing telephone calls, or garnish wages. For Massachusetts residents having their wages garnished, the automatic stay is welcome relief.

 

When a bankruptcy case is filed, the individual is under the authority and protection of the United States Bankruptcy Court. The automatic stay is just what it sounds like: a cessation of all collection activity immediately upon filing the case. This stay is "automatic" because it does not require a separate motion or a hearing. The stay is effective against any creditor, whether or not there is actual notice.

 

For wage garnishments, the automatic stay imposes an affirmative obligation for the creditor to put an end to the garnishment immediately. Failure to take this action could result in sanctions by the bankruptcy court. Typically, the debtor's attorney will notify the garnishing creditor of the bankruptcy filing and, in turn, the creditor will release the garnishment through notice to the state court and the debtor's employer. An exception to this general rule is a Massachusetts child support or other domestic support order, which is not affected by the automatic stay.

 

Money that has been collected and is being held by an employer will be returned to the debtor after the bankruptcy filing. In addition, if a creditor has taken over $600 from a paycheck or bank account within the 90 days before the bankruptcy filing, the bankruptcy trustee or the debtor can recovered the garnished funds from the creditor.

 

If your wages are being garnished, contact The Law Office of Robert W. Kovacs, JR. at (508) 926-8833 and discuss how a bankruptcy filing can stop the garnishment. Bankruptcy can provide immediate and lasting relief to Worcester and Framingham residents struggling with overwhelming debt. Call today and start down a path to financial recovery.

 

 

 

Tax Returns After Filing Chapter 13 Bankruptcy

 

YOU CAN KEEP YOUR TAX RETURN!!!

 

 

 

 

 

A Massachusetts Chapter 13 bankruptcy case lasts between three to five years. That is three to five New Years, three to five Fourth of July fireworks, and three to five Superbowls. It is also three to five Tax Days (usually April 15). Tax Day is an important concern for anyone in Chapter 13 bankruptcy, and the debtor ignores the importance of this day at his own peril.

 

During a Chapter 13 bankruptcy the debtor is required to commit all disposable income to repay creditors. Basically, the bankruptcy debtor pays what he or she can afford to pay over the repayment plan period. A Massachusetts debtor who receives a large tax refund is essentially telling the bankruptcy court that this money was not needed, since the debtor elected to allow the U.S. government to hold onto it (interest free!) during the tax year. This income tax refund is disposable income, and the trustee may ask for it!

 

Avoiding this problem is easy and, yes you can keep your tax refund. In chapter 13 we simply account for your potential income tax return and add it back into your monthly budget. Therefore the money is accounted for and you demonstrate to the Court your need for the return.

 

If you are contemplating a Chapter 13 bankruptcy filing, call Law Office of Robert W. Kovacs, Jr. toll-free at (877) 315-2641

 

 

About Our Law Firm

The Law Office of Robert W. Kovacs, Jr. is dedicated to helping individuals with overwhelming debt within the bankruptcy court.

If you have any questions please do not hesitate to contact us via e-mail or telephone.

You may also book an appointment on-line by clicking the here. 

 

Please visit our web site, www.RKovacsLaw.com, while there visit our bog were you can find these and many other articles.

  

Law Office of Robert W Kovacs, Jr.
172 Shrewsbury Street
Worcester, Massachusetts 01604
Telephone: 508-926-8833

E-mail: [email protected] 

Website: www.RKovacsLaw.com

 

The Law Office of Robert W. Kovacs, Jr. is a debt relief agency; helping people file for bankruptcy relief under the Bankruptcy Code. 

In This Issue
Bankruptcy Stops Wage Garnishments Cold
YOU CAN KEEP YOUR TAX RETURN
Attorney Spotlight
me

Attorney Kovacs

Attorney Kovacs has recently agreed to spend several hours each month at a Salvation Army Shelter in Worcester giving free legal advice to the shelter's many residence.