Search results for tax return

Does Bankruptcy Affect My Tax Return?

…t tax return? Essentially, it doesn’t. Cancellation of debt income (CODI) is typically taxable. The creditor will send you a 1099-C, showing the amount of debt that was cancelled, and the cancelled amount is reported on your tax return as income. This can increase the amount of taxes you owe or decrease any refund you may receive. But some cancelled debt is excluded from taxable income under 26 U.S.C. § 108. One exclusion provides that if a debt…

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Bankruptcy and Taxes. My #1 Tip!

…cy, and this is not intended as legal advice for your specific situation. Ask your bankruptcy lawyer if this tip is right for you (sort of like those drug ads on TV.) With that out of the way, here’s the tip: File your tax returns on time, even if you owe money and can’t afford to send payment. (If you’re due a refund, this won’t apply.) Fascinating, isn’t it? It may seem simple, but many people fail to file their…

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Bankruptcy and Taxes

…four tests; if you can pass all four tests, the tax debt is dischargeable. Taxes are dischargeable if: 1 – the tax was due more than three years ago, 2 – the tax was assessed more than 240 days ago, 3 – the tax return was filed more than two years ago, and 4 – the filed tax return was not fraudulent and the debtor did not willfully evade the tax. This is a simplified explanation, but these are the questions your…

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How will filing bankruptcy affect my tax refunds?

It’s the time of year when people start thinking about tax refunds. Many people use overwithholding of taxes as a forced savings plan. My clients who do this often ask if they will be forced to turn over their tax refunds to the Bankruptcy Court or if they should wait to file their taxes until after their bankruptcy is completed. As with many legal questions, the answer is “it depends.” Relevant factors include the Chapter…

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How To Prepare For Your Meeting With A Bankruptcy Attorney

…the attorney determine whether you are above median or below median for your household size. – Tax returns for the last two years. Used to see if there have been significant changes to your income. – Real estate tax bills. If you don’t know the fair market value of your house, the tax bill may give you a ballpark figure. – Vehicle titles and recorded documents from the county land records. These will show if your creditors…

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The Bankruptcy Alphabet – T is for Timeshares

…Clair Shores MI Bankruptcy Attorney Kurt O’Keefe Tax Discharge – by Allen Park, Michigan Bankruptcy Lawyer, Christopher McAvoy Tax Dischargeability – by Northern California Bankruptcy Attorney, Cate Eranthe Tax Refund – by Cleveland Bankruptcy Attorney Bill Balena Tax Refunds – by Philadelphia Suburban Bankruptcy Lawyer, Chris Carr Taxes – by Kauai Bankruptcy Attorney, Stuart T. Ing Tension – by San…

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Filing Bankruptcy

…you can take home to review before making any decisions. If you decide bankruptcy isn’t for you, this is the end of the process and you won’t owe me anything for the visit. If you decide to proceed, you’ll return the fee agreement to me and I’ll send you a worksheet to complete and a list of documents to gather. 2. Get credit counseling (45-60 minutes) as described HERE, complete the worksheet (60-90 minutes), and gather…

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Should I Sign a Reaffirmation Agreement?

…say for sure that nothing will happen in the next few years that will cause you to default? • Your bankruptcy discharge will eliminate the personal liability and the ability of the creditor to sue you for anything other than return of the collateral. If you sign a reaffirmation agreement, you give back that benefit without getting anything in return. Because reaffirmation agreements rarely benefit the debtor, I usually discourage clients from…

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What Documents Will I Need To Provide If I File For Bankruptcy?

…disclosures that are filed with the Court. I don’t require my clients to bring these documents to their initial consultation, but here is a list of documents I will request if you decide to file bankruptcy: – Tax returns, including all forms and attachments, for the last two years. – All of the pay stubs you have received from employment in the last seven months. – Copies of titles to any vehicles, boats, or mobile homes….

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FAQ

…before the judge. I’m behind on my house payments. Can bankruptcy help? If you can catch up the amount you’re behind over 3 to 5 years, then a Chapter 13 might be able to save your house. Can bankruptcy help with tax debts? Bankruptcy can eliminate some income tax debts. Others cannot be eliminated and must be paid after the bankruptcy is over. Collection agencies are driving me crazy with phone calls. What can be done? Under certain…

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