Tag : taxes

IRS Tax Bankruptcy

Chapter 13, Chapter 7, Taxes & Bankruptcy

Do you owe taxes?  Many who do find themselves facing federal income tax collections and incur penalties, fines, bank levies, or even tax liens when the IRS pursues collections.  Did you know that some taxes can be eliminated and discharged through bankruptcy?  Did you know that bankruptcy can potentially remove tax liens? There are Five […]

Mortgage Forgiveness Debt Relief Act Expired; California Homeowners Safe

Short Sales

The Mortgage Forgiveness Debt Relief Act of 2007 has been extended twice already and has finally expired this week.  California homeowners could avoid a tax hit according to this article. Senator Barbara Boxer sent a letter to the IRS seeking guidance on the effect of the expiration of the Act and the IRS Responded, from […]

Advantages of Bankruptcy when Closing a Business

Chapter 13, Chapter 7, Small Business Bankruptcy

When closing a small business, there are advantages to using Bankruptcy as a means to winding up your small business.  If you’re Going Out of Business and are looking for alternatives to Bankruptcy, or a more detailed discussion on bankruptcy advantages, then you must read Gordon Eng’s recent article in the Los Angeles Lawyer magazine of the […]

Tax Consequences of Restructuring Bad Debt

Bankruptcy Law Overview, Chapter 7, Foreclosure, Taxes & Bankruptcy

The November, 2009 issue of ABA Journal article entitled, The Bad-Debt Blues, explained the need to take federal taxes into consideration when restructuring debt as, “crucial.”  The article provides an excellent overview of the federal tax rules that apply to debt workouts, and focuses on the impact to individual debtors. The recent media blitz touting […]

Chapter 7 Basics

Chapter 7

In determining eligibility to file for a chapter 7 bankruptcy, the basic qualifying factor is income under the Means Test as set forth in 11 U.S.C. 707(b)(2).  The debtor’s income must fall below the Census Bureau’s Median Income by Family Size.   Thus, the Means Test is a two prong test: The first prong being the […]

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