All you need to know about bankruptcy

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Excessive debts and foreclosures may push you into thinking that bankruptcy is the best solution.
This is a step that you should take after careful consultation with experts. Bankruptcy will stay on your financial record for a long time. Also, the updated Bankruptcy Law has made it difficult to file for bankruptcy. This law was passed in 2005.

Looking for a qualified team of professionals in Baton Rouge, LA to help you understand the intricacies of bankruptcy? iRefund has all the answers. Just visit for more information.

How can you file for bankruptcy?

If you are faced with financial turmoil such as a foreclosure, declaring bankruptcy is the most suitable way to get rid of your financial drawbacks.

The process of filing for bankruptcy has several steps. As soon as you file, you will be required to provide a detailed explanation to the presiding bankruptcy trustee about how got into this crisis.

You will also be required by the bankruptcy court to file the list of your assets along with your debts with them.

Your assets are broadly classified as:

1. Exempt assets

2. Non-Exempt assets

The former type cannot be utilized to pay your debts. Examples include your personal items or some part of equity in your automobile or home etc.

The latter category consists of goods that can be seized. These goods can be sold to pay off your debts. Your residential property other than your primary home, boats, recreational vehicles etc are some of the articles that can be utilized for this purpose.

Once you have provided all the necessary information, a bankruptcy trustee is appointed with the task to ensure that your secured debt is paid in the set time period. In due course, the court will issue you a stay order that will keep creditors off your property. This will also stop them from pursuing a lawsuit to get your property.

What are Chapters 7 and 13?

You may choose between Chapter 7 and 13 according to your situation. The features of these both are as follows:

Chapter 7

This chapter provides you with a liquidation option. This means that you will be able to keep your exempted assets and all of your unsecured debts will be discharged. You may use your non-exempt assets will be used to pay secured debts. Any debts from child support or taxes etc will not be supported.

If you have a few assets and low income, then this is the best option for you.

Chapter 13

This chapter requires that you pay your debts over a specific time period of three to five years. This is carried out through a repayment plan. In this procedure, a trustee will be required to collect payments from you which will then be transferred to your creditors.

You will be able to keep your home and avoid foreclosure.

If you are interested in keeping your non-exempt property and avoid property seizure then this is the right option for you.

If you are looking for expert help to avoid a financial crisis, then iRefund has all the expertise to help you. We provide peerless services in all kinds of legal consultation in Baton Rouge, LA.

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What is meant by Innocent Spouse Relief?

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There are certain benefits attached to joint tax return which is why many couples choose to opt for it. In this scenario, both partners are jointly responsible for paying tax and and any penalty or interest which is due together even in case of subsequent divorce. This condition stays intact even if the divorce decree establishes that a former partner will be responsible for paying penalties on joint returns. One spouse may be held accountable for the payment of the due taxes even if the other spouse had earned all the income.
Unfortunately, not every marriage has a ‘happily ever after’. What should you do in case you decide to part ways? If you are interested in finding the right guidance in Baton Rouge, LA for innocent spouse relief, then we will be happy to help you.

The salient features of innocent spouse relief
iRefund can help you in applying for innocent spouse relief.

In order to request relief, you have to file form 8857 with the IRS as soon as you know of the tax liability. There is no need to fill in multiple forms as one form will provide coverage for several years. You may add a letter along with your form and any other information that you think is necessary. You may use the U.S. Postal Service anywhere in Baton Rouge, LA to send your form to the IRS.

If you are afraid to file for relief because of your partner’s reaction, you should know that contacting your spouse is the duty of the IRS. In due course, all your confidential details such as your current address and phone number will be kept private by the IRS.

After the case has been filed, it may take around six months before any kind of determination is established. During this time, the IRS will obtain all information about your taxes and will keep contacting your spouse. This rule also applies to cases of domestic violence and sexual abuse. Whatever the case, you should not refrain from filing for your current tax return.

In case your previous claim for innocent spouse relief was denied, you may still file a second time. For this purpose, you will have to provide additional information supporting your claim. However, you will not be awarded any tax court rights in filing for reconsideration.

Innocent spouse relief provides both partners with the advantage of filing for relief.

Do you qualify for innocent spouse relief?
In order to qualify for innocent spouse relief, you must meet the following requirements:

1. You must have a joint statement filed with your ex-partner. It is necessary that this application has an understatement of tax.

2. Your spouse’s over expenditure must be the reason for this understatement of taxes.

3. You must have proof that at the time of filing for joint return; you had no idea about the existence of an understatement of tax.

4. Establish the fact that it would be unfair to hold you responsible for the understatement of tax.

5. It is important that you file for relief within two years of the date that the IRS begins its collection activity opposed to you.

With flawless guidance provided by iRefund, you will have no trouble in understanding and applying for innocent spouse relief. Visit for more information.

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