This debtor was backed into a corner but was able to claw his way out using the powers of the Bankruptcy Code.
Woodland Hills, California (PRWEB) September 22, 2011
After a hard and drawn out contest, Los Angeles Bankruptcy Attorney Michael H. Raichelson recently obtained confirmation of a Chapter 11 bankruptcy plan of reorganization reducing the debtors' federal tax burden from over $901,000 down to $150,000.
The debtors in this Chapter 11 bankruptcy, case number 2010-11012 (Eastern District of California), hired the Law Offices of Michael H. Raichelson, a bankruptcy firm located in Woodland Hills near Los Angeles, to continue their struggle with the Internal Revenue Service after their well respected tax attorney had done as much as he could do for them outside of Bankruptcy Court.
Based on the Proof of Claim filed by the Internal Revenue Service in case number 2010-11012, the debtors allegedly owed the Internal Revenue Service $901,021 for taxes from the tax years 1999 through 2005. The Proof of Claim indicates that this amount supposedly resulted from not only taxes owed, but also penalties and interest on that amount. In June 2006, the I.R.S. recorded in Kern County, California, a notice of federal tax lien for a portion of these tax years, which secured the debt against the personal and real property of the debtors. Complicating matters, the debtors indicated in their bankruptcy schedules that their personal property included notes arising out of their used car dealership with a significant face value. Their bankruptcy schedules further indicated that the ability to collect on most of these notes was in doubt because of the economy and the nature of the borrowers (D to F paper). The Law Offices of Michael H. Raichelson obtained a Court Order in case number 2010-11012 to hire a valuation expert, and the valuation expert issued a report concluding that the notes had a relatively small value. Based on this information, it appears that the I.R.S. concluded that a negotiated settlement was in the best interests of not only the I.R.S., but of the U.S. public.
Following the Confirmation Hearing approving the Debtors' Chapter 11 Plan, Michael H. Raichelson said that “at the end of the day, this is the best result for the U.S. taxpayer, as well as the debtors; the taxpayer gets assurance that it is getting as much money out of the debtors as possible and the debtors can continue to be productive in their business, which benefits everyone. I believe that the I.R.S. made the correct decision in this case."
A stipulation filed in case number 2010-11012 indicates that Law Offices of Michael H. Raichelson was also able to strip off the debtors' second mortgage with Citibank, N.A. The Chapter 11 Disclosure Statement and Plan confirm that this stipulation stripping off the debtors' second mortgage increased the debtors' cash flow, allowing them to pay the I.R.S. the $150,000 over seven years.
The Law Offices of Michael H. Raichelson already makes quality bankruptcy information, news, articles, and resources available to the public through its Web site at http://www.cabkattorney.com. The site contains a complete list of on line bankruptcy resources, explanations regarding California bankruptcy exemptions, information on asset protection, and methods for eliminating your second mortgage through bankruptcy.
Attorney Michael H. Raichelson, owner and operator of the Law Offices of Michael H. Raichelson, is a former senior associate with a national law firm. He has counseled thousands of individuals and businesses regarding their debt problems and solutions, and, he has been selected as a Super Lawyer by Thomson Reuters - as republished in Los Angeles Magazine - confirming that he is in the top five percent of all attorneys in the Los Angeles’ area. He is dedicated to providing solid representation to his clients during the bankruptcy process and helping them to rebuild their financial life after bankruptcy.
For more information regarding Chapter 7, Chapter 11, and Chapter 13 bankruptcies, visit the Law Offices of Michael H. Raichelson.
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