What is a Tax Settlement?

A Tax Settlement takes place when a person or organization settles their back tax liability with the IRS (Internal Revenue Service). This involves an agreement with the IRS to pay back taxes in part or full through one of the IRS’s back tax settlement programs.

Who can qualify for a Tax Settlement?

Anyone with back tax liability may be able to utilize a tax settlement, depending on the individual situation. Please contact us today to find out if you can qualify for a clean start with the IRS.

Before the IRS will consider settling back taxes, a tax payer must be compliant with current tax obligations. This generally means that all past-due returns must be filed and the tax payer must remain compliant with ongoing payments. Compliance situations vary so it is recommended that you discuss the situation with an expert sooner rather than later.

How does the Tax Settlement process work?

Generally speaking the first step to a tax settlement is to show the IRS that you are serious about resolving your back tax liability. You must make sure that all past returns are filed correctly and that you are paying your current taxes timely.

Next your ability to pay back taxes is determined. To do this, the necessary expense test is run. The necessary expense test determines the amount of expenses necessary to provide for a taxpayer and his or her family’s health and welfare and/or the production of income.

Once the necessary expense test and other factors are determined, an Offer in Compromise (OIC) is presented to the IRS. This effectively begins the negotiations involved in a tax settlement and moves you to closer to a clean start with the internal revenue service.

What is a Debt Settlement?

A debt settlement is the process of negotiating with creditors (lenders) to accept payment that is less than the full amount of the debt owed. Debt settlement is sometimes called debt arbitration or debt negotiation. Once a debt settlement is agreed upon and completed, no further money is owed to the creditors.

Dept settlement is not as easy as some companies claim. The classic rule applies: if it sounds too good to be true, it probably is. Be wary of companies that guarantee they can remove unsecured debt, promise settlement for pennies on the dollar or ones that tell you to stop making payments to your creditors.

Who can qualify for a Debt Settlement?

Generally speaking anyone with a sizeable amount of unsecured debt can benefit from a debt settlement program. Unsecured debt refers to debt that is not backed by real assets like homes or vehicles. Credit cards are common example of unsecured debt.

The best case scenario is that a person has some lump sum of money to use in order to settle the debt. You may also set up a special account to save money for debt repayments. Be wary of companies that demand that you pay the company and then they will manage the debt payment account on your behalf. You should have access to the account at all times and it should be housed at a FDIC backed financial institution.

Contact us today to find out if your situation merits a debt settlement or some other type of CleanStart legal service.

How does the Debt Settlement process work?

The process of debt settlement basically involves a negotiation on behalf of the debtor (exe: credit card holder) with the creditor (exe: credit card company).

The details and strategy of the negotiation differ with each personal situation and Credit Card Company. Some companies take a more aggressive approach to settlement while others are happy to take 25% – 65% (or lower) of the existing debt. They are willing to settle for these amounts because if a debtor goes into bankruptcy, it is likely that the credit card company will not be able to collect any of the outstanding debt.

What is a Short Sale?

A short sale is when the mortgage company agrees to a sale of a home at a price that is less than the amount of the balance due on the loan. In this case the home sales price is said to be ‘short’ of the loan outstanding.

After a short sale takes place the initial home owner (the one making the sale) may or may not be responsible for further payments to the mortgage company.

Who can qualify for a Short Sale?

Anyone that owes more than a home is worth may be eligible for a short sale, though it is up to the Mortgage Company or bank as to whether to accept a short sale.

It should be noted that a person does not have to stop making payments (be in default) to qualify for a short sale.

Every situation is different and the decision to go with a short sale, Foreclosure, Deed in Lieu of Foreclosure or other option is a difficult one. If you are in this situation, contact us today for a free consultation and begin your clean start now!

How does the Short Sale process work?

A short sale is commonly an alternative to Foreclosure or Deed in Lieu of Foreclosure. In order for your short sale to be approved by a lender, you will first have to be in a position where you owe more than your house is worth and you will be forced to sell the property soon.

As is mentioned above, you don’t need to be in default on your loan to qualify but you will have to show the lender that you will soon be forced to sell your property below what is owed on the loan. If you come to the lender before you fall behind in mortgage payments, the bank may see this as a sign of responsibility and be more willing to figure out a solution to your problem. If you are current on your payments but know that financial problems are in your future, contact us today to figure out your best strategy for a Fresh Start.

If you are in the position to pursue a short sale, the next step involves getting in touch with the decision maker at the mortgage company and convincing them that it is in their best interest to take less than what is due on the loan. This is no simple task and involves proving your current and future financial situation as well as the expected sale price of your home.

Once you convince the lender that you qualify for the short sale, a homeowner would then need to find a buyer at the acceptable price. When an offer is received at the acceptable price, the seller sends the offer to the mortgage company for final approval. After final approval is received from the mortgage company, you can go through with your short sale.

Real Estate Law covers a variety of topics and issues.  First and foremost the purchase and sale of real estate have contracts, disclosures and documents that are full of legal language.  Residential investors, sellers, buyers, homeowners facing foreclosure or attempting to short sale a home can benefit from speaking with a Real Estate Attorney.

Most real estate agents are not licensed to practice law and they don’t have the training to review the contracts that may cause potential issues down the road for buyers and sellers.

Real estate deals can get complex when there are family trusts involved, one party that is on the title has passed away, or simply the deal isn’t as smooth as would be anticipated.

Real Estate attorneys can also assist in the case of commercial real estate when you are attempting to lease space or laying the foundational groundwork to break a lease due to financial or business needs.

Don’t trust residential or commercial real estate to simply a real estate agent, contact us today to see how our expertise can make a difference.

What is Bankruptcy?

Bankruptcy is a system of laws and courts which govern the rights of debtors (borrowers) and creditors (lenders) when a person or company can no longer meet their financial obligations. The framers of the constitution knew the importance of a clean start for our society. Article 1, section 8 of the US constitution grants Congress the power to establish uniform bankruptcy laws throughout the United States.

Bankruptcy is meant to pay out creditors in a fair and uniform way from the remaining assets of the person or company. Once the process is completed the person or company involved is freed of previous financial obligations, even if their prior debts were not paid in full.

Who is affected by Bankruptcy?

Basically anyone can find themselves faced with navigating the bankruptcy system, especially these days. From Donald Trump to former professional athletes to your next door neighbor, bankruptcy is a common avenue for getting back on track.

Bankruptcy filings continued their upward march, nearing 379,000 for the first quarter of 2010, an increase of 17 percent from the first three months of the previous year.

There were more than 6,200 bankruptcy filings per day in February 2010 and nearly 6,900 filings per day in March 2010, according to data from AACER (Automated Access to Court Electronic Records). That compares to less than 5,500 per day in February 2009 and fewer than 6,000 per day in March of the previous year.

California continued to lead the nation in 2010, with more than 59,000 filings for the first quarter of the year.  In 2009 more than 1.4 million personal bankruptcy petitions were filed, according to AACER, up nearly one-third over 2008.

This year’s bankruptcy filings are expected to reach at least 1.5 million, which was the annual average before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was approved.

The act — which was based on the assumption that consumers were abusing previous bankruptcy regulations — has meant higher filing fees, a means test for eligibility, counseling programs and an eight-year moratorium before filing again. Consumers rushed to file for bankruptcy before the changes took effect, pushing bankruptcy filings to about 2 million in 2005. The numbers plunged afterward, but they’ve since seen a steady rise. As the impact of the 2005 law works its way out of the system and the impact of the economy continues to wreak havoc on individuals’ wallets, filings have resumed their inevitable climb back upwards.

How does the Bankruptcy process work?

Like any legal process, the bankruptcy process can become quite complicated. The process for each individual bankruptcy is first determined by which chapter of bankruptcy code (law) the financial situation fits into. Here is a quick summary of the common ones:

Chapter 7:
The most common type of bankruptcy, it’s known as liquidation. A trustee is appointed who collects the non-exempt assets of the debtor, sells it and distributes the proceeds to the creditors. The law outlines what is protected from liquidation so it is important to contact an attorney early before you spend money that may be not included in the liquidation process.

Chapter 11 & 13:
In these types of bankruptcies a plan is established where future earnings are used to pay off creditors. There may or may not be a trustee involved in these cases.

For more information on the process and how your situation may be resolved, please contact us today for your clean start.

Well simply put experience does matter and you will be hard pressed to find another law firm with our vast amount of experience and great reputation in the fields of bankruptcy, real estate and debt related matters.

• Voted #1 Law Firm 5 years in a row by Style Magazine Readers!
• One of the top filers of bankruptcies quarter after quarter… for years.
• One of the largest real estate practices dealing with distressed properties in the State.
• We have filed thousands of bankruptcies; we have encountered and dealt with just about every issue.
• Negotiated over 500 short sales. Close typically 10 a month.
• Dealt with hundreds of lenders/creditors, etc.
• Ranked #7 out of 50 by the Sacramento Business Journal.
• Inc. 5000 list, ranked #350 out of 5,000 nationwide by Inc. Magazine,  #23 nationwide for Consumer Services.

 

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About Us

It is our mission to help homeowners and others in financial crisis find their way through the myriad of options or programs available to them. Involved in this since the beginning of the economic decline the CleanStart Law Firm offers unparalleled legal representation across a comprehensive range of practice areas that are critical to the financial freedom and repair of our clients. We practice at the very top of the legal profession and offer a cutting-edge blend of capabilities that enables us to handle deals and cases of any size and complexity. We have the ability to anticipate obstacles, seize opportunities and get the situation resolved—with the experience and know-how to prevent it from being undone.

We are one of the largest filers of bankruptcies in our area and have handled thousands of real estate files, so we have seen it all hundreds if not thousands of times.  In addition, we are a trusted ARAG provider for those with access.  With nearly a quarter of a century in combined legal experience you can rest assured that your legal issues are in capable hands.

It is painfully evident that with our current economic crisis that is crippling homeowners and main street, consumers need a personal advocate in their corner to help fight against their creditors. The attorneys at the CleanStart Law Firm are those advocates for their clients, and are committed to zealously representing and protecting their clients from financial distress and harassing creditors.

We have a team of educated, experienced and friendly attorneys, each of whom brings different levels of experience to the table to effectively and diligently represent our clients in the areas of Bankruptcy, Foreclosure Prevention and Foreclosure Defense, and Real Estate Law. Our Attorneys are outgoing and enjoy interacting with and assisting our clients with their legal needs in an efficient, responsive and affordable manner. With nearly half a century of combined legal experience you can rest assured that your legal issues are in capable hands.

We have deep roots in the communities we represent and the firm and all of our attorneys and staff are actively involved in many community events, sponsorships and philanthropic events. Our firm stands for a steadfast commitment to quality and excellence in everything we do—a commitment reflected in the continued success and well-being of our clients.
We invite you to explore our website as there is a lot of information on the various areas of law that we practice, but please note that the information contained herein should be not construed as legal advice, or replied upon as such and is for informational purposes only.

Background

CleanStart Law Firm is a highly regarded law firm providing client-focused, interdisciplinary services that result in high-value legal counsel for our clients. Our law firm has been around for years and has enjoyed consistent growth since inception, even through the difficult economy. This is thanks to a strong referral base, a strong indicator of our proficiency and manner in assisting our clients. We have a very high standard of care and accuracy in providing our clients with legal services. This high standard of care is evident in the large number of referrals we enjoy from previous satisfied clients and is the reason we have enjoyed the growth that we have. We strive to be a “one-stop legal shop” for our clients, assisting them with as many of their legal needs as possible, with experienced attorneys there to lend a hand in each area.

Excellence

As a law firm that realizes the positive impact we can have on our clients’ quality of life, we are passionately committed to going above and beyond the call to action in an effort to resolve our clients’ legal issues and get for them the best possible outcome to their legal dilemma. We execute this commitment to our clients with excellence and professional integrity and by setting a high standard of care and customer service for each of our team members. Every member of the CleanStart Law Firm family is asked to take a Pledge of Excellence where they resolve to uphold and abide by following CleanStart Law Firm core company values: Dedication, Diligence and Integrity.

Commitment and Ethics

From receptionists to Senior Attorneys, every staff member and attorney at the CleanStart Law Firm prides themselves on their dedication and commitment to serving our clients, being responsive, professional, and caring; practicing law but realizing there is a human component and clients need compassion and empathy as well. We conduct our business and legal matters in the highest accordance with the standards and code of ethics set forth by our governing agencies.

Customer Relationships

At the CleanStart Law Firm, our vision is to demonstrate to the disenchanted client how highly motivated and service oriented attorneys can provide immense value and service to the client, making the clients experience as pleasant as possible depending on the circumstances. We strive to provide a comfortable and comprehensive understanding of the legal process to our clients by answering any of their questions doubts or concerns through-out the process of representation. We operate as a highly symbiotic and functional team, attorneys and staff working side by side in order to provide valuable direction and advice for our clients.

Charity

The CleanStart Law Firm is committed to the communities in which we live, work and represents clients. We have deep roots in the communities we represent and the firm and all of our attorneys and staff are actively involved in many community events, sponsorships and philanthropic events. Our firm stands for a steadfast commitment to quality and excellence in everything we do—a commitment reflected in the continued success and well-being of our clients. From donating free legal services to charity events to serving on the board of directors for important non-profits and giving generous donations, we encourage our staff and attorneys to devote their time and energy to the cause of the greater good.