THE TELEPHONE CALL NO ONE WANTS TO RECEIVEI remember like it was yesterday. I was told I had a call I needed to take. When I picked up the woman stated her name and said she was with the IRS and that they had issued a warrant for my arrest because I had not paid my taxes! She indicated that there was someone on their way my to my location to arrest me.

I became suspicious because I had paid my taxes and that I had not received a single written notice from the IRS that I owed them money. I knew that the IRS has very detailed steps they must follow in trying to collect unpaid taxes. So I asked the woman to email or fax me the documents that proved that I owed money to the IRS. She said she wouldn’t do that and that an agent was on their way to arrest me. I insisted that I receive documentation from the IRS before I would talk to her any further. I hung up the phone.

No IRS agent showed up to arrest me and no documentation arrived to prove that I owed the IRS money.

I recently got a chance to talk with an IRS agent in their Inspector General Office who told me that the I received was part of a scam. The people on the phone are counting on us to be scared to death. Then they tell you that the arrest warrant can be cancelled if you pay the taxes by phone on a credit card.

Fortunately, I did not fall for this scam. Now that you know about it I am hoping that you do not get victimized by these people. Please share this story with your family and friends.

If you get one of these calls gather as much information as you can and then contact the IRS at a Hot Line they have set up for these scams. The IRS wants to prosecute the people that are doing this. Please call 1-800-366-4484 or go a special website to file a report.

Seasons Greetings & Happy New Year from John Hargrave & Associates

Seasons Greetings and Happy New Year!

2015 Christmas Story – TIME – John W. Hargrave


By: John W. Hargrave


Imagine there is a bank that credits your account each morning with $86,400. It carries over no balance from day to day. Every evening the bank deletes whatever part of the balance you failed to use during the day. What would you do? Draw out every cent, of course!

Each of us has such a bank. Its name is TIME. Every morning, it credits you with 86,400 seconds. Every night it writes off, as lost, whatever of this you have failed to invest to good purpose. It carries over no balance. It allows no overdraft. Each day it opens a new account for you. Each night it burns the remains of the day.

If you fail to use the day’s deposits, the loss is yours. There is no going back. There is no drawing against “tomorrow”. You must live in the present on today’s deposits. Invest it so as to get from it the utmost in health, happiness, and success! The clock is running. Make the most of today.

To realize the value of ONE YEAR, ask a student who failed a grade. To realize the value of ONE MONTH, ask a mother who gave birth to a premature baby. To realize the value of ONE HOUR, ask the lovers who are waiting to meet. To realize the value of ONE-SECOND, ask a person who just avoided an accident.

Treasure every moment that you have! And treasure it more because you shared it with someone special, special enough to spend your time. Remember the time waits for no one. Yesterday is history. Tomorrow is mystery. Today is a gift. That’s why it’s called the present!

Understanding the Different Bankruptcy Filings

Whether you face personal financial challenges or your business has fallen upon difficult times, there are options available to you under the federal bankruptcy laws. This blog post provides an overview of the most common types of bankruptcy filings.

Chapter 7 Liquidation Proceedings

The protections afforded by Chapter 7 are available to individuals or businesses. In a Chapter 7 petition, you are allowed to permanently discharge most types of debts. In a Chapter 7 bankruptcy you are allowed to “exempt”, or protect your assets up to a certain dollar amount. In more than 95% of all bankruptcy cases, the person who files for bankruptcy keeps everything they own. In a Chapter 7 certain debts, such as child support arrearages, student loans (except under very limited circumstances) and some tax obligations cannot be wiped out. Each state has its own state based exemptions, and some states allow their residents to use the federal property exemptions. You may choose the state or the federal exemption, but not both. Once your Chapter 7 bankruptcy if finalized, you are permanently freed from any obligation to repay any debts discharged.

In 2005 Congress added a “means test” to the bankruptcy code. The means test determines if an individual or couple makes “too much money” to file a Chapter 7 and instead must file a Chapter 13 to repay their creditors a portion of what is owed. For the vast majority of people looking to file bankruptcy, the means test has no impact on their ability to file Chapter 7. It is simply false to say that you “can’t file a Chapter 7” or that is it “much harder to file a Chapter 7”.

Chapter 13 Reorganization

In a Chapter 13 filing, you pay what you can afford to pay on a monthly basis. Your creditors will receive a percentage of what they are owed, and at the end of your three to five year plan, the balance of what is owed is wiped out.. As with a Chapter 7 petition, you are immediately protected by the automatic stay, which prohibits your creditors from calling, writing or taking legal action against you to recover a debt.. As long as you honor the terms of the reorganization plan, your creditors may not make any other attempts to collect any debts you owe.

Chapter 11 Business Reorganization

A Chapter 11 bankruptcy filing allows a business to obtain the protection of the automatic stay, and to negotiate new payment arrangements with creditors, in a fashion similar to the Chapter 13 petition for individuals. Chapter 13 has debt limits and if an individual owes more money than what is allowed, they will be required to file a Chapter 11 case in order to reorganize.

Contact John Hargrave and Associates

We have provided comprehensive counsel to individuals in and around Barrington, New Jersey, since 1977. To schedule a free initial consultation, contact our office by e-mail or call us at 856-547-6500.