Former NFL Star Declares Bankruptcy
A football player followed by controversy throughout his career has ended up in the headlines again due to financial issues during his retirement business choices. Bill Romanowski played for 16 seasons in the NFL, including for the Oakland Raiders, now the Las Vegas Raiders. Now, in the hours before a hearing regarding tax fraud through a nutrition company, Romanowski and his wife have declared bankruptcy. Filing for bankruptcy triggers the automatic stay, which can stop legal proceedings like a civil lawsuit brought by the U.S. Department of Justice. Their nutrition company, Nutrition53, allegedly was used to avoid tax liabilities and pay for luxury expenses that were personal in nature such as rent on a vacation home, day spas, and their daughter’s rent. The DOJ filed a lawsuit for approximately $15.5 million in back taxes. But before the hearing could proceed, the Romanowskis filed for bankruptcy. Read on to learn more about filing for bankruptcy, including specifically to stop a debt collection action by a creditor. If you’re seeking a skilled bankruptcy lawyer in the Las Vegas area, look no further than the Law Offices of Erik Severino- call 702-842-0700 for your free consultation today.
What Is The Automatic Stay?
The automatic stay goes into place no matter the chapter of bankruptcy filed, including chapter 7 and chapter 13, or the two most common forms of consumer bankruptcy. It is one of the main reasons that many people choose to file for bankruptcy, as it stops creditors from taking a number of actions against them. When the automatic stay is in place, creditors can’t proceed with lawsuits, garnish wage, repossess assets, foreclose on homes, levy bank accounts, shut off utilities, and more. This can sometimes be more invaluable than how much debt is actually discharged by the bankruptcy filing.
In most cases, the automatic stay lasts from when the petition is filed until the case is discharged. However, the protections from the automatic stay end if the debtor’s case is dismissed for any reason. The lifespan of a chapter 7 case is generally 3 to 6 months, while a chapter 13 case almost always lasts either 3 or 5 years. The length of the automatic stay can be shortened if the debtor files multiple bankruptcy cases in quick succession, e.g., their case is dismissed so they refile a week later. A creditor can also ask the court for permission to proceed with collection despite the automatic stay. This is known as a motion for relief from the automatic stay. Because the automatic stay is one of the most important benefits of filing for bankruptcy, it’s crucial to draft the petition correctly the first time around and avoid interruptions in its protections. A skilled Las Vegas bankruptcy lawyer can help you achieve this goal- call 702-842-0700 for your free consultation today.
Taxes & Bankruptcy
Romanowski and his wife filed for bankruptcy due to a lawsuit by the DOJ to collect back taxes. Taxes can be categorized as priority debts or non-priority debts. When tax debts have non-priority status, they are dischargeable like any other unsecured debt in both chapter 7 and chapter 13 bankruptcy. If taxes have priority status, they can’t be wiped out by chapter 7, but can be paid off as part of a chapter 13 payment plan. Making sure that a tax debt is categorized as non-priority debt could be a huge factor in whether or not it is worth it for someone to declare bankruptcy. Tax debts must meet a few requirements in order to be assigned non-priority status:
- The debt arises from income taxes;
- The debt is at least 3 years old;
- The tax return must have been filed at least 2 years before filing for bankruptcy;
- The IRS must have recorded the debt at least 240 days before filing for bankruptcy;
- No tax evasion or fraud;
- No IRS lien on the debtor’s assets.
Here, the Romanowskis might not be eligible to discharge their tax debts using bankruptcy because they have been accused of tax fraud. But a bankruptcy filing and the associated automatic stay gives them more time to gather their bearings and figure out what to do next before their legal matter with the DOJ proceeds further. Are you facing rising pressures due to tax debts from the past? Bankruptcy could be a workable solution to your financial issues. To learn more, call 702-842-0700 to schedule your free time to speak with an experienced Las Vegas bankruptcy lawyer.
How To File For Bankruptcy Quickly In Emergency Situations
The Romanowskis’ bankruptcy filing came just hours before a lawsuit hearing with the DOJ, showing that bankruptcy can still be effective at the last minute. It’s always more ideal to file with plenty of time to prepare and review, but there are accelerated filing options available for debtors who face imminent action by their creditors. An emergency bankruptcy filing, also known as a skeleton bankruptcy filing, allows the debtor to get an abbreviated version of their petition in with the court so that the automatic stay (and all the protection it provides) can go into place.
A skeleton petition only requires a few documents to put together, while a full bankruptcy petition will require dozens. For a skeleton petition, the debtor only must provide their basic information and income information, along with their creditor matrix and credit counseling course completion certificate. For most, this information can be assembled in just a few hours. The debtor has a 2-week deadline to complete the rest of their bankruptcy petition, but they will be protected by the automatic stay in the interim. Many bankruptcy debtors utilize this process when a creditor is about to repossess their vehicle, foreclose on their home, or garnish their paycheck. If you would like more information about filing for bankruptcy as quickly as possible in the Las Vegas area, call 702-842-0700to set up your free consultation with our Las Vegas Bankruptcy Lawyers.
High-Quality Bankruptcy Representation In Las Vegas & Henderson
Do you have debts like back taxes, credit cards, and medical bills piling up? Do you avoid answering your phone due to nonstop calls from creditors? Are you bogged down by interest payments, late fees, and the other repercussions of having unmanageable debt? If you answered yes to any of these questions, it might be time to consider filing for bankruptcy. Bankruptcy stops creditors in their tracks with the automatic stay, and clears several types of debts permanently. It can halt a lawsuit and potentially wipe away the debt from which the lawsuit originated. When combined with post-bankruptcy efforts to improve credit, bankruptcy can turn around a negative financial situation and create a more positive one. Because our firm understands our clients’ situations, we aim to eliminate up-front costs as a barrier to declaring bankruptcy. We offer payment plan options that start as low as Zero Down Bankruptcy. To see if you’re eligible, and to discuss any other questions you might have about filing for bankruptcy, call 702-842-0700 to set up your free consultation with our Las Vegas bankruptcy firm. Contact us now!
Zero Down Bankruptcy Lawyers
Phone: (702) 842-0700
Email: info@vegaszerodownbankruptcy.com
Las Vegas Office
5552 Ashley Creek St
Las Vegas, NV 89135
North Las Vegas Office
7251 W Lake Mead Blvd
Las Vegas, NV 89128
Henderson
1489 W Warm Springs Rd #110
Henderson, NV 89014
