Despite this moderately good news, bankruptcy filings for this July were still up 11% over July 2009. And observers expect bankruptcies to climb back up after the summer, noting a recent increase in foreclosure filings; foreclosures usually predict future bankruptcies more accuracy than the unemployment rate.

A home is usually the asset families struggle the hardest to keep, and homeowners often neglect other debts in favor of paying their mortgage. When they simply can’t make the payments anymore, filing for bankruptcy protection is the next logical step.

At The Pew Law Center, PLLC, we believe that your life shouldn’t be defined by debt. We have helped hundreds of people just like you find the relief they deserve from harassing bill collectors, paycheck garnishment, foreclosures proceedings, and – most importantly – the constant worry about money and what to do about your debts.

We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona file for bankruptcy or work through tough tax problems every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing debt. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.

How did Bashas’ get here?

After low sales, a shortage of working capital, and a drawn out battle with the United Food and Commercial Workers Union, Bashas’ was called “dysfunctional” in early bankruptcy court hearings. Chapter 11 bankruptcy protection allowed Bashas’ to negotiate a truce with the union, close several unprofitable locations, renegotiate store leases, and trim payroll and other operating expenses.

The company also revitalized its marketing efforts, enacted strict cost-control measures, and cut a wide swath through middle management. All the changes have left Bashas’ lean and even profitable – the company expects to report over $20 million in profits for 2010.

At The Pew Law Center, PLLC, we believe that your life shouldn’t be defined by debt. We have helped hundreds of people just like you find the relief they deserve from harassing bill collectors, paycheck garnishment, foreclosures proceedings, and – most importantly – the constant worry about money and what to do about your debts.

We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona file for bankruptcy or work through tough tax problems every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing debt. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.

Some taxpayers think that if they can’t afford to make a tax payment, then they shouldn’t bother even filing. Perhaps they think it’s possible to stay under the radar and escape IRS notice. The reality is that it’s better to file even if you can’t pay in full instead of avoiding the whole process. If you don’t do anything, not only will you be hit with a penalty for not paying on time, but you’ll also incur fines for not filing. The failure-to-file penalty is worse than the one for not paying.

If you don’t file your return or an extension on time, the IRS will assess a penalty of 5 percent of the unpaid tax every month or portion of a month that the filing is late. The maximum is 25 percent of the unpaid tax balance. If you file more than 60 days late, the penalty is $135 or 100 percent of the tax owed, whichever is smaller. If you fail to pay on time, the penalty is 0.5 percent of the unpaid tax every month it is late. The maximum is 25 percent of your unpaid tax amount. The formula changes slightly for those who fail to both file and pay on time.

You can avoid the penalty if you request a filing extension and send at least 90 percent of what you owe by the initial deadline. The only exception is if you can prove that you had a legitimate reason for missing the deadlines and didn’t simply ignore the due dates.

If you can’t pay the full amount, the IRS recommends paying as much as possible. The remaining balance can be addressed through a payment plan, and the agency will work with you. Keeping up your end of the bargain can help you avoid penalties. An experienced Arizona tax lawyer can help guide you through the process, ensuring that your rights are protected and that you understand what is happening.

Beware of “Debt Settlement” Companies

We’ve warned you before about giving your hard-earned money to those questionable debt settlement companies. These are the ones that target debt-burdened consumers and make empty promises to settle with all creditors for mere “pennies on the dollar.” In this article, we give you the tools you need to spot the less-than ethical debt settlement company before they get their hands on your money.

Ponzi Schemes: Don’t Fall Prey

Did you know that R. Allen Stanford of Texas was recently convicted of operating a $7 billion Ponzi scheme that reached over 100 countries and defrauded some 30,000 investors? The Ponzi scheme is named for Mr. Charles Ponzi, a 1920s confidence man who defrauded his investors out of millions of dollars. As the Stanford case illustrates, cons are still using Ponzi schemes to defraud honest hard-working people out of their savings. So you don’t become the next victim, in this article we list what to look for when you’re offered a new investment opportunity.

Community Leaders: Scott David Stewart, AZ Divorce and Child Custody Attorney

With our community leaders segment in the Arizona Bankruptcy Newsletter, May 2012, we’re very pleased to introduce Scott David Stewart. This Arizona native is a divorce and child custody attorney right here in the Valley of the Sun. The Law Offices of Scott David Stewart, pllc – with office locations in Phoenix, Chandler, Scottsdale and Peoria – also offers Free Arizona legal divorce seminars. Read this article about Scott and his family law firm’s mission to provide excellent client-focused representation.

Cosmetics Laced with Mercury?

If you knew that your “anti-aging” lotion had mercury in it, would you still apply it to your face? Would you let your grandchild kiss you on the cheek? This article is a consumer alert! According to the FDA, certain cosmetic products sold in the U.S. have trace amounts of mercury, a very dangerous poison. Learn how to identify these toxic cosmetics and dispose of them in an environmentally safe way.

Deep Fed Tax Debt for American Idol Champ

We brought you yet another celebrity back tax article, this time it’s Ruben Studdard who’s in the red with the IRS.

Paperless Proof of Insurance on Your Smartphone

Arizona is about to go paperless with proofs of insurance. If you’re stopped by highway patrol, just find your iPhone or Android mobile device and show an image of your insurance card – you’ll be good to go!

Do you need information about the Pew Law Center’s bankruptcy, debt relief, foreclosure, and tax problem resolution services? Don’t delay, just give us a call at (480) 745-1770 or send us an email. We’re always ready to answer your questions on the telephone or chat with you live at www.pewlaw.com.

In this series of blogs, we will look at the ten basic steps you can take to minimize the chances of getting that scary audit letter in the mail.

#2: Don’t “Do-it-yourself”

There are some who claim that getting your tax return prepared by a professional makes it less likely for you to be audited. Whether or not that’s true, getting help on your return from an experienced, honest professional tax preparer will help ensure that you are following tax law appropriately.

If you choose to do your own return, using a software program can cut down on human errors – just make sure you don’t manually override the program if you think it made a “mistake.” At least investigate the issue a little further before doing anything drastic.

At The Pew Law Center, PLLC, we understand that if you do run into tax problems with the IRS, it can be overwhelming.  Whether you owe back taxes, haven’t filed taxes for several years, or have received an audit or wage garnishment notice from the IRS, the attorneys at The Pew Law Center, PLLC can help you or your business with these and any other federal and state tax problems.

We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona work through tough tax problems or file for bankruptcy every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing tax problems. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.

In this series of blogs, we will look at the ten basic steps you can take to minimize the chances of getting that scary audit letter in the mail.

#1: Don’t Claim Questionable Deductions

You have the right to arrange your financial affairs in a manner that gives you the lowest taxes possible. Deductions and credits are there for a reason, and that reason is to save you money on your taxes when you qualify.

This can get you into trouble, however, if you start “stretching the truth” a little bit in order to justify a deduction. If you find yourself doing something that doesn’t feel quite right, ask yourself how you would defend the tax deduction or credit to an IRS tax auditor sitting across the desk from you – and if they would be likely to believe you.

Keeping to the straight and narrow when preparing your taxes is the best way to avoid an audit – and the best way to get through one unscathed.

At The Pew Law Center, PLLC we understand that if you do run into tax problems with the IRS, it can be overwhelming.  Whether you owe back taxes, haven’t filed taxes for several years, or have received an audit or wage garnishment notice from the IRS, the attorneys at The Pew Law Center, PLLC can help you or your business with these and any other federal and state tax problems.

We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona work through tough tax problems or file for bankruptcy every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing tax problems. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.

The dismal wait times and service goals have led National Taxpayer Advocate Nina E. Olsen to call the organization’s customer service levels “unacceptable” in a report she delivered to congress recently. She reported that most taxpayers only wait about 5 minutes for help before they hang up the phone.

Olsen says congress is partly to blame for the problem for dumping a load of complicated, last minute tax breaks on the IRS without upping their customer service budget. Calls to the IRS have more than doubled since the first economic stimulus passed in February of 2008.

Olsen pointed out that if taxpayers can’t get help, they are more likely to make mistakes, which in turn causes more work for the IRS and further slows down service – not to mention causing all sorts of IRS tax problems for the person making the mistake.

If you have a question on your taxes and you can’t get through to the IRS, consider consulting a qualified tax professional to make sure you don’t make a mistake. If it’s already too late for that, it’s time to consult with a qualified tax relief attorney.

At The Pew Law Center, PLLC, we understand that if you do run into tax problems with the IRS, it can be overwhelming.  Whether you owe back taxes, haven’t filed taxes for several years, or have received an audit or wage garnishment notice from the IRS, the attorneys at The Pew Law Center, PLLC can help you or your business with these and any other federal and state tax problems.

We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona work through tough tax problems or file for bankruptcy every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing tax problems. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.

Call Your Arizona Bankruptcy Lawyer

When individuals expect a substantial tax refund, they tend to get their tax returns prepared and filed early. They’re eager to get their money back from the U.S. Treasury! Once they have the refund, the next stop for many debt-burdened taxpayers is the Arizona bankruptcy lawyer’s office.

According to the National Bureau of Economic Research (NBER), there is an annual increase in bankruptcy filings shortly after tax refunds go out. Tax rebates and tax refunds are often the only external source of cash for financially distressed people needing money for legal expenses in anticipation of bankruptcy. The average tax refund is just over $2,900, about the right amount for most petitioners to pay the petition filing fees and all or part of their bankruptcy lawyers’ fees.

Real Cost of Bankruptcy Abuse Prevention and Consumer Protection

With the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) came substantial changes to the U.S. Bankruptcy Code, making every consumer bankruptcy filing more complex. Because bankruptcy lawyers spend more time working through each case and verifying detailed financial information in compliance with BAPCPA, there has been a corresponding increase in legal fees compared to pre-2005 bankruptcies.

In the U.S. Government Accountability Office’s (GAO) June 2008 report on the increased cost of bankruptcy under BAPCPA, attorneys’ fees in Chapter 7 increased by 51% in the first two years after BAPCPA went into effect in 2005. For the same period, the GAO estimated that Chapter 13 fees increased by as much as 55%.

Expanding the U.S. Trustee Program

Under BAPCPA, the U.S. Trustee Program (Department of Justice) was expanded to include greater oversight of case administration and enforcement of bankruptcy laws. BAPCPA responsibilities assigned to the U.S. Trustee included:

● Implementation of the Means Test, which is used to determine the debtor’s eligibility for Chapter 7 or Chapter 13 bankruptcy.

● Supervision of both random and targeted audits to determine accuracy of the Chapter 7 debtor’s bankruptcy documents.

● Certification of non-profit credit counseling and financial education agencies that are now involved with every consumer bankruptcy.

● Carrying out “enhanced oversight” over Chapter 11 small business debtors.

Increased financial disclosures and heightened oversight by the U.S. Trustee have resulted in higher bankruptcy costs for consumers across the nation. With increased costs, individuals seeking debt relief through bankruptcy will need cash from somewhere to get their cases filed. Which brings us back to our initial question – Why not use your tax refund to pay for bankruptcy?

Phoenix Bankruptcy Resource:

Tax Refunds Being Used to Pay for Bankruptcy Filings

First Solar Perrysburg Planet

Tempe, Arizona, solar panel producer First Solar, Inc., is laying off 2,000 employees, reducing its international work force by about 30%. Along with a reduction in its U.S. and European employment numbers, First Solar announced it will indefinitely idle four of its production lines in Kulim, Malaysia, by May 1. The Frankfurt, Germany, (Oder) factory will be closed in the final quarter of 2012. This is all part of the restructuring of operations to “align with sustainable market opportunities.”

What’s China and Europe Got to Do With It?

The harsh reality for photovoltaic (PV) solar system production is that it is an highly competitive industry. China’s solar panels are swamping the international market with low-cost products, out-competing (fairly or unfairly) First Solar and its ilk. Additionally, First Solar points to shrinking European demand where there was once a vibrant market for its solar panels. “[I]t is clear the European market has deteriorated to the extent that our operations there are no longer economically sustainable.” To remain competitive, these economic realities require that First Solar restructure its global operations.

Are you looking for a Mesa Arizona Bankruptcy Attorney?  Contact Us Now!

By taking extreme cost reduction measures, First Solar expects immediate savings of between $30 and $60 million. By 2013, the Tempe-based solar panel company anticipates saving another $100 to $120 million. The 2012 restructuring charges are estimated to be $245 to $370 million; the company will also pay down $145 million of its debt.

Flashback:  2011 First Solar Benefits from $455.7 Million Federal Loan

US Export Import Bank

Last September, we learned of a $455.7 million loan relating to First Solar from the Export-Import Bank of the U.S. (Ex-Im Bank is federally funded). The loan was earmarked for the First Solar manufacturing plant in Perrysburg, Ohio, where solar panels designed specifically for installation in Canadian power plants would be produced. The Ontario, Canada, utility facilities scheduled to receive First Solar’s Ohio panels are located in the townships of Amherstburg, Belmont, Saint Clair and Walpole.

Ex-Im Bank’s loan was not made directly to First Solar, but the company was unquestionably the intended beneficiary of the loan arrangement. The bank made separate loans to two different Canadian borrowers; those borrowers were to use the money to purchase First Solar’s Ohio solar panels. The federal loans were made to enhance First Solar exports of PV panels.

Last September, James Brown (First Solar President of Utility Systems) announced that:  “Ex-Im Bank’s support strengthens First Solar’s competitiveness and enables us to sustain U.S. renewable-energy manufacturing and the jobs that go with it.”

The $455.7 million dollar loan will put as many as 550 Ohioans to work – that’s about $828,540 loaned for each Buckeye employee hired into the Perrysburg solar plant.

The Canada loan comes after an earlier $117 million loan in 2011 to India interests benefiting First Solar’s panel exports to that country. That brings the total Ex-Im Bank loans to benefit First Solar’s export business to almost $573 million.

If you are unfamiliar with our 77-year-old Ex-Im Bank, it claims to have “supported more than $456 billion of U.S. exports, primarily to developing markets worldwide.” The Ex-Im Bank was created in 1934 by President Franklin D. Roosevelt’s executive order. In 1945, Congress made the Ex-Im Bank an independent agency of the executive branch. Here is an excerpt of the Ex-Im Bank’s mission statement:

The Export-Import Bank of the U.S. (Ex-Im Bank) is the official export credit agency of the U.S. Ex-Im Bank’s mission is to assist in financing the export of U.S. goods and services to international markets.

Ex-Im Bank enables U.S. companies – large and small – to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy.

Ex-Im Bank does not compete with private sector lenders but provides export financing products that fill gaps in trade financing. We assume credit and country risks that the private sector is unable or unwilling to accept. We also help to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters.

Ex-Im Bank provides working capital guarantees (pre-export financing); export credit insurance; and loan guarantees and direct loans (buyer financing). No transaction is too large or too small. On average, 85% of our transactions directly benefit U.S. small businesses.

Although First Solar’s export business clearly benefits greatly from the Ex-Im Bank loans, it seems a stretch to describe Canada as a country with “risks that the private sector is unable or unwilling to accept.” Canada?

Lastly, the 2,000 scheduled layoffs are not expected to affect First Solar’s Perrysburg plant.

Tempe Bankruptcy Resource:

Tempe-Based First Solar Laying Off 2,000 Workers

Tempe Solar Company to Benefit from Foreign Loans

Over the AZ Sales Tax Top

According to the Tax Foundation, Washington, DC, seven Arizona municipalities are among the top 16 highest sales tax charging cities. The major U.S. cities in the report include those U.S. Census municipalities with a population of more than 200,000.

Here are the top 16 cities with the highest combined local sales tax (state plus city tax):

Birmingham, AL – 10.0%

Montgomery, AL – 10.0%

Chicago, IL – 9.5%

Glendale, AZ – 9.5%

Seattle, WA – 9.5%

Phoenix, AZ – 9.3%

Memphis, TN – 9.3%

Nashville, TN – 9.25%

Tucson, AZ – 9.1%

Mesa, AZ – 9.05%

Baton Rouge, LA – 9.0%

New Orleans, LA – 9.0%

Scottsdale, AZ – 8.95%

New York, NY – 8.875%

Chandler, AZ – 8.8%

Gilbert, AZ – 8.8%

The total sales tax rate for Arizona cities begins with the state’s 6.6% rate. Add to that the city sales tax for a total rate. Among the top 16, only Tennessee has a higher state sales tax (7.0%) than Arizona.

Tax Avoidance – Buying Goods Elsewhere

The imposition of excessive sales taxes inhibits and sometimes interferes with the ability of area businesses to compete with those businesses purposefully located just outside the city limits.

The higher the cost of the goods (such as vehicles, motor homes, and boats), the more likely the potential buyer will seek to buy them where the sales tax is less. Take a new 2012 Chevy Volt, for example, that retails at the dealership for $43,000. If the vehicle is purchased in Glendale, then 9.5% sales tax adds another $4,085 to the cost. If the identical Volt is purchased in an unincorporated community like Oracle in Pinal County, then the total sales tax would be 6.6% for only $2,838. That represents a savings of $1,247, certainly enough of a difference to drive the purchaser away from the City of Glendale.