When it comes to discharging state and federal income taxes in bankruptcy, the courts use what may appear to be a complicated set of rules and timeframes. Let's Try to Make it Simple for Those Considering Bankruptcy: Taxes which had a due date which was 3 years before filing bankruptcy may be dischargeable. For example, [...]
Divorce nearly cost a debtor the confirmation of his Chapter 13 bankruptcy case, after he failed to apply for a modification of his plan in a timely fashion. Details of the bankruptcy case: The Debtor and his estranged spouse, Mrs. Carlson, originally filed their joint Chapter 13 bankruptcy petition on December 28, 2005 ("Case No. [...]
Debtors who have incurred debt because of foolish financial decisions will not be denied a bankruptcy discharge. However, debtors engaged in fraud can find that their bankruptcy discharge is denied. But how can the court tell the difference between foolishness and fraud? Let's take a look at a few examples: A debtor who uses one [...]
In a recent bankruptcy case involving a debtor who filed Chapter 13 bankruptcy within four years after receiving a Chapter 7 bankruptcy discharge, the bankruptcy court ruled that he had a right to strip the wholly unsecured junior mortgage lien. Typically, a debtor who files Chapter 13 bankruptcy within four years of receiving a Chapter [...]
We've talked quite a lot about hiding assets in bankruptcy and how doing so can end with the denial of a debtor's bankruptcy discharge. However, it is important to note that simply hiding assets is not enough to compel the bankruptcy court to deny a discharge. When denying a debtor's bankruptcy discharge there must be [...]
If a debtor earns more than the median income for their state, they must take the bankruptcy means test. The reason the bankruptcy means test was implemented was to prevent abuse of the bankruptcy process. Specifically, the architects of the 2005 bankruptcy reform act, wanted to make sure that those who earned enough money to [...]
What Are Nondischargeable Debts? Nondischargeable debt in bankruptcy is a class of debt which cannot receive a bankruptcy discharge. Child support, student loans , alimony, taxes and debt incurred because of criminal activity may be considered nondischargeable by bankruptcy court. While most bankruptcy debtors are aware of the difficulty in discharging student loans and other [...]
Facing a Bankruptcy Case Dismissal Facing a bankruptcy case dismissal can be a huge blow to the debtor in financial trouble. But there is hope. A bankruptcy debtor can refile their case even after a dismissal but they may not have the full protection of the automatic stay . Debtors who had a bankruptcy case [...]
In September of last year, singer Toni Braxton filed her second bankruptcy with a reported $1.6 million in assets and $18.3 million in debts. Her bankruptcy attorney was recently able to win a bankruptcy discharge for some of her debts. Which debts receiving a discharge have not been revealed by the bankruptcy court records yet. [...]
Reasons Why Bankruptcy is Often Better Than Debt Settlement Despite the fact that debt settlement vs. bankruptcy debate is really one that is a no-brainer, there continues to be dishonest discourse about the benefits and drawbacks of debt settlement in comparison to bankruptcy. The bottom line is that most debtors trying to avoid bankruptcy do [...]