bankruptcy file the claim

What to Do When a Customer Files Bankruptcy

It is estimated that over 200,000 bankruptcy cases are filed every year. If you have been alerted that your customer has filed bankruptcy, there are certain things you ought to do. You should note that one filing for bankruptcy does not mean that you cannot get the amount of money the customer owes you. In this case, you should follow a certain protocol.

Do not contact the customer

bankruptcy do not call the customerBankruptcy sets certain rules for communication between a creditor and a debtor. From the moment you get a bankruptcy notice, you are not supposed to contact the debtor or even ask for a payment. This is known as automatic stay. Usually, a trustee is assigned the account, and he or she is in charge of the debtor’s debts and assets.As much as the notice will give you the contact information of the trustee, you will not be provided with detailed information concerning the bankruptcy. Remember that the trustee’s office cannot offer you legal assistance.

Hire a bankruptcy attorney

You should note that bankruptcy attorneys not only work for debtors, they can also assist debtors. Remember that bankruptcy law is quite complicated. If a lot of amount of money is involved, it is a good idea to hire an attorney who specializes in bankruptcy law.

Another important part of bankruptcy law is preference clause that means debtors cannot prefer one creditor over another. This means that a trustee must go to every creditor who the debtor paid in the last three months preceding bankruptcy filing. However, if a creditor is a business partner, insider identity, or family member, then a trustee is required to check back an entire year. In such a case, a defense attorney can be of great help to you.

File proof of claim

bankruptcyUsually, the bankruptcy filing notice you get includes information on the manner in which a debtor owes you. Why are you owed a given amount of money? It is a good idea to file the proof of claim. Failure to file, you are bound to forfeit your rights of being paid. This process is quite straightforward, and a lawyer can help you.

Attend creditors meeting

Usually, creditors will be invited to a meeting also known as 341 hearing. At this point, the debtor is required to explain how his or her business got into bankruptcy. This is your opportunity to ask questions.…

tax professional

Reasons Finding the Right Tax Professional Can Save You a Lot of Money

Just as you finish winter season, the tax season is here. You find it challenging as you have not planned your tax reports. It is unfortunate that every year, you will find yourself in the same situation. However, if you hire a tax professional, this season can be quite different. He or she can help you to be more organized as far as your finances and taxes are concerned. Do you think it is a good idea to hire a professional to help you? The following are some reasons to consider hiring a tax professional.

Provide information on your income

tax information provided by tax consultantsRemember that you are required to provide adequate information about your income. This is inclusive of you and your partner. Moreover, you are required to declare income from investments and side jobs. Fortunately, a tax expert can help you add deductions to the taxes that mean you are getting more money in your pocket.

Prepare banking information

A tax expert will gather bank account information, joint accounts, and individual accounts. They will help you know where your tax returns belong. In this way, they eliminate the guesswork that results in inconsistencies that can lead to deadly audits.

Deductions

Usually, deductions are classified as non-business or business. Business deductions include office supplies, mileage, and utility bills. On the other hand, non-business deductions are student loans, property taxes, and charitable donations. A tax guru can help you whether you miss some money.

Prepare tax documents

In some instances, you may be required to provide past tax returns, investment records, pay stubs, and pension information. This particular level is quite important because a tax professional is not going to demand a lot. Remember that the process entails accountability on your part.tax consultant

You should not expect instant numbers and results. When you hire a tax professional, he or she will need to access your financial situation. This will take a lot of time. They ought to check the numbers to find out the type of money, which is owed to IRS. Also, you can get an opportunity to examine your past tax history and check whether IRS owes you some money. It does not matter whether it is the first time you are hiring a tax professional, remember that it is the best decision you can ever make.…