Bernie Gartland: Hey everybody, Bernie Gartland and this is the IRS six brought to you by the Gartland Group. Tim Berry here, renowned tax attorney and [inaudible 00:00:21], no you’re not.
Tim Berry: I’m [inaudible 00:00:23].
Bernie Gartland: You’re boring, he’s so conservative.
Tim Berry: Bernie.
Bernie Gartland: That’s my name, you want my number?
Tim Berry: No.
Bernie Gartland: No, okay you’ve got my number. All right. It has come to our attention, unbelievably we’ve had a client came in the other day that filed bankruptcy in 2006. The interesting thing is that in 2006, 2007 the economy went south for skunking as we say. The thing of it is is that it didn’t get any better after the guy’s bankruptcy and he ended up with tax problems as well as other credit card problems because he just did things wrong. We sat there and we said, “Oh my goodness!” How many people out there have filed bankruptcy in the past and now since the economy hasn’t gotten really any better for them, especially here in Costello Valley, what about bankruptcy again? What about if they incurred taxes? What can these people do now that they’ve already filed bankruptcy?
Tim Berry: That’s a great question Bernie, what can they do?
Bernie Gartland: They can file another bankruptcy.
Tim Berry: They couldn’t file. Once they file one bankruptcy, there’s a long period they have to wait before they can do another bankruptcy.
Bernie Gartland: There is a long period, it’s several years, but aucointreau, they can file another bankruptcy. By the way, if they’ve had any consumer debts, or they’ve had any taxes that have accumulated during this time period from their last bankruptcy, guess what folks? Taxes are dischargeable, eliminated, in bankruptcy. It has to meet certain qualifications, but they are dischargeable. If after the economy failed, after you’ve filed bankruptcy and things didn’t get any better, and I know what happened. You don’t have the money to pay your taxes, so they accumulate. One begets two, begets three, begets four, et cetera. Now the time period has elapsed and you are allowed to file another chapter and you can possibly eliminate these taxes if they meet those three rules.
Taxes, The IRS and You Podcast Video
Tim Berry: Let me ask you this though. Is that basically white color crime? Is that a moral thing to do? You went bankrupt one time and now you’re going to go bankrupt again, isn’t this basically defrauding your creditors?
Bernie Gartland: I believe that bankruptcy is a tool rather than a decrement. Okay. The interesting thing is, the folks out there haven’t caused their problems. Other people have caused their problem for them and certain Wall Street firms are charging you outrageous fees, so I don’t have any empathy for credit card people. Look, congress, congress, congress, passed a law that says you can eliminate taxes in bankruptcy. If it’s a law, why not utilize it?
Tim Berry: Well see, my thing is, bankruptcy is almost a retirement planning tool. A lot of the client we meet with are 45, 50 years old. They really don’t have much saved up for their retirement and they’ve got this cloud of debt of a few hundred thousand dollars hanging over their head, they can choose to either pay off that debt of two or three hundred thousand dollars, which is never going to happen quite honestly, or they can declare the bankruptcy, wipe that out and start using that tool of bankruptcy to give them that fresh start so that they will be able to retire with some sort of financial dignity. Yeah, there might be moral issues, but as Bernie said, when banks getting 0% interest in charging the consumers 24, 25%, or whatever it is and all the weird rules they have, I have no compunctions about that what so ever.
Bernie Gartland: I don’t either and the thing that always ends up upsetting me is the … I’m an older person, so I can say, the little old lady that’s sitting at home and gets that unsolicited check for 4500 or 7,000, they said all you have to do is sign this and cash is. All of the sudden, they owe all this money, they don’t know … It is increasing exponentially because the interest and the revolving amount and like that, that’s not fair. So utilize a law that congress has said you can utilize. You can file a chapter 7 after a chapter 7, with the time period, and you can eliminate certain taxes and bankruptcy. Do not be afraid. If you want, give us a call. We’ll tell you whether you qualify or not. Have I said enough?
Tim Berry: I think so.
Bernie Gartland: Is that enough? Shall we have a call to action here? We have a call to action. Come see us if you need any help with bankruptcy and especially tax bankruptcy. Folks, we’ll see you next week with his emanate [inaudible 00:04:59], Tim Berry. Thanks folks.
Tim Berry: Thank you everyone.