The crash of the housing bubble has left many homeowners in homes that are now not worth what was paid for them. The current economic crisis and rise in unemployment are leaving many homeowners with mortgages they cannot afford for houses that they cannot sell.

A lot of our clients aren't sure what the effects of losing their real property are. There are several schools of thought. I will only (attempt) to address the differences as they pertain to bankruptcy.

It often happens that for one reason or another you owe back taxes. The IRS can be relentless in their pursuit for payment. It may seem like filing for Bankruptcy would get the tax man off your back, but this is not necessarily the case. The Franchise Tax Board and the Internal Revenue Service really don't like to lose money.

The struggling economy, housing crisis and high national unemployment rate are causing Americans in increasing numbers to seek help from their mounting debt in bankruptcy courts across the nation. With more than 6,000 new filings for bankruptcy protection each day, the numbers are on track to reach more than 1.4 million total filings for 2009 — up from 1.1 total filings last year.

A half-dozen years ago, bankers were testifying to Congress about the need for a sweeping reform of bankruptcy law to make it more difficult for Americans to file for personal bankruptcy. They got what they wanted in 2005 with the Bankruptcy Abuse Prevention and Consumer Protection Act.

Creditors can use various methods to collect on a debt. One of the most effective collection methods is wage garnishment. By garnishing a debtor's wages, the creditor does not have to be concerned with the debtor's willingness to send payments or pay the debt in full.