Mommoth Lakes joined Stockton in filing for protection under the bankruptcy code.  Both of these California cities have asked the Bankruptcy Court  to protect them from their creditors under Chapter 9 of the bankruptcy code.  Experts expect a number of California cities to follow suit in the not too distant future.  It’s the sign of the times.

R Kelly is the latest celebrity the IRS is after.  The IRS claims R. Kelly owes nearly $5 million dollars for taxes going back to 2005.  R. Kelly has attorneys working on his side to resolve his IRS back taxes.  If you owe the IRS any back taxes, you, too, should find an attorney to help you resolve your IRS back taxes.  Opem Tax Resolution, and the Law Office of Steven A. Leahy, PC helps businesses and families fight the IRS.  If you have IRS back taxes or other tax issues, you need an attorney. You need me, Steven A. Leahy.  Call right now – 312-664-6649.  We can help.

Foreclosures are on the rise again in Illinois.  May 2012 saw the total number of foreclosure cases rise 29% from the total number in April 2012 – and 54% from May 2011.  In Chicago, 1 in every 252 housing units are now facing foreclosures.  If you are facing foreclosure, you need an experienced attorney to help you through this time.  Our office has helped 100’s of Illinois families fight their foreclosure case.  You have lots of options – make sure you understand each and every one.  If you are facing foreclosure, you need and attorney.  You need me – and the Law Office of Steven A. Leahy, PC. Call me on 312-664-6649.

Many of my clients ask me about criminal charges for un-filed tax returns.  While the IRS doesn’t always seek criminal action against non-filers.  It DOES happen.  Singer Lauryn Hill was recently charged with failing to file 2005-2007 tax returns. She faces JAIL time – one year in prison and $100,000 on each count if convicted.  So, be careful. If you haven’t filed your tax returns, you need an attorney.  Call me at 312-664-6649.

Another great question by a former client today: She has some outstanding student loans and is worried about student loan garnishment on her wages and/or her checking account.  She also questioned whether she was breaking the law. Here is my answer:

First, it is NOT illegal to owe someone money.  So, it is not a crime.

Usually, the loan company can get a student loan garnishment  without a court order – they don’t have to go to court. All they have to do is send you written notice:

• at your last known address (right?)
•  at least 30-days before issuing a garnishment order to your employer.

With a student loan garnishment, they get 15% of your after tax income (The amount must be less than 30 times the hourly minimum wage). – Unless, the student loan company takes you to court and gets a judgment (they usually don’t).  The rules are a little different for a judgment creditor garnishment. The creditor gets 15% of the gross.

It is my understanding, if you were recently unemployed, the student loan garnishment cannot be issued until you have been continuously re-employed for more than 12-months.

Without a court order, I do not believe they can reach the money in your bank account (I have seen some conflicting stories on that). I have never seen that happen.  (remember, without a court order).

You have to know they can take your Tax Refund too, again without a court order.  Same rules apply. They have to send you notice, just like the wage notice.  If you file married filing  jointly (usually the best way for a husband and wife to file) any refund will be used to set off the student loan – all the refund.  They do not split between husband and wife – they take it all.

It may be best to try to workout some sort of payment with them.  You know I would be happy to help you do that.