Category archive for ‘Tax Issues’ 
Tax Issues with Credit Card Settlements
by Steven Striffler on 3/11/10 | 0 Comment(s)
Be careful if you settle any credit card debts before filing bankruptcy because you may convert a debt that is dischargeable in bankruptcy into a non-dischargeable debt.
Eastern District of Michigan’s Chief Bankruptcy Judge to Participate in Roundtable Discussion About Chapter 7 Bankruptcy Issues
by Drew Broaddus on 2/19/10 | 1 Comment(s)
On February 17, 2010, the U.S. Bankruptcy Court for the Eastern District of Michigan (which covers Detroit, Bay City, and Flint) posted a notice on its website regarding “A Late Afternoon Roundtable Discussion” to take place on Wednesday March 10, 2010 in Southfield, Michigan. The notice (available here) indicates that the discussion will be moderated Read more>>
Eastern District of Michigan Encourages Bankruptcy Attorneys to Learn More About Income Tax Issues
by Drew Broaddus on 1/22/10 | 2 Comment(s)
Tax season is again upon us – as evidenced by the instruction booklet I received in the mail earlier this month – which brings up some potentially complicated issues for consumer bankruptcy attorneys. Some of these issues were discussed in two relatively recent articles by John O’Connor on this site, “Be Careful With Tax Refunds Read more>>
What are my options for getting out of credit card debt?
by John O'Connor on 12/10/09 | 2 Comment(s)
According to the Federal Reserve, the total outstanding credit card debt carried by Americans reached a record $951 billion in 2008. Newsflash…….its becoming a major problem.
John Colwell wrote an excellent post this week detailing the financial toll that paying the minimum monthly on credit cards can take on your wallet over the long haul. The Read more>>
Avoiding Judicial Liens
by Richard Stokan on 11/30/09 | 0 Comment(s)
In an effort to obtain a fresh start with bankruptcy, the bankruptcy code permits a debtor to avoid certain liens on his or her assets. Liens tied to property, ie are secured, cannot be avoided because a discharge only applies to the personal liability of a debtor. However, judicial liens, that attach to an asset Read more>>
What are the Tax Consequences of a Bankruptcy Discharge?
by Drew Broaddus on 9/18/09 | 1 Comment(s)
Debts discharged in bankruptcy are not taxable events.
Tax Consequences of a Short Sale; the Bankruptcy ‘Cure’
by John O'Connor on 9/07/09 | 3 Comment(s)
Debts discharged in Bankruptcy are not taxable events.
With the housing market in turmoil, many are looking to a short sale as a way out from under a house that is rapidly declining in value. A true short sale or deed in lieu of foreclosure involves a forgiveness of debt. The borrower either sells or Read more>>
Priority of Tax Liens
by Richard O'Connor on 8/03/09 | 0 Comment(s)
As part of the 2005 amendments to the Bankruptcy Code, Congress essentially eliminated a Trustee’s ability to subordinate tax liens in a Chapter 7 filing. See 11 USC 724(b). Although fortunate for holders of secured tax claims, remaining secured creditors are now almost always forced to take a back seat to perfected Read more>>
Be Careful With Tax Refunds in Bankruptcy
by John O'Connor on 7/16/09 | 1 Comment(s)
Ahh, tax season everyone’s favorite time of the year. While no one enjoys paying their taxes, most look forward to receiving their refund. It never hurts to have a little extra cash in the wallet. If you are considering filing for bankruptcy after January 1, it is important that you discuss how best to protect Read more>>
Is Tax Debt Dischargeable When Filing Chapter 7?
by Jeff Herrick on 7/15/09 | 0 Comment(s)
If you owe the IRS back taxes they may be dischargeable in a bankruptcy filing. However, not all tax debt will be discharged. The bankruptcy code sets forth specific criteria that must be met in order to have tax debt discharged in bankruptcy. Tax debts are associated with a particular year and a particular tax Read more>>
