Category archive for ‘Tax Issues’ 
Health Care Reform Has Some Help For Small Businesses
by John C. Colwell on 7/20/10 | 0 Comment(s)
It was of particular interest to me, since my business likely qualifies for this tax credit. My office is comprised of 3 locations, with 4 attorneys and 6 support staff. According to this article, the tax credit will apply to business of 25 employees or less, along with other requirements. We happily provide Kaiser-Permanente health HMO to our employees, and it appears that our firm will enjoy a 35% deduction of our health care premiums by way of a tax credit this year, and each year, until 2014, when the tax credit is increased.
Bankruptcy and Taxes
by Richard Stokan on 7/19/10 | 0 Comment(s)
As a general rule, you cannot discharge back taxes in bankruptcy. Certain income taxes, however, can be discharged under limited circumstances. When filing for Chapter 7 bankruptcy protection, taxes can be discharged under the following circumstances: (1) the taxes are limited to taxes on income. Taxes levied for fraud, payroll taxes or sales taxes do [...]
More Changes Regarding Chapter 13 and Tax Returns in Michigan’s Eastern District
by Drew Broaddus on 3/26/10 | 0 Comment(s)
Until January 20, 2010 it was the practice of the U.S. Bankruptcy Court for the Eastern District of Michigan that, where a Chapter 13 confirmation order requires the turnover of a debtor’s tax refunds to the Trustee, the order also include a provision ordering the Internal Revenue Service to pay those refunds directly to the Trustee. On [...]
An all too common preliminary inquiry by a hypothetical debtor, and a reply. Episode 3 of a series.
by John C. Colwell on 3/12/10 | 0 Comment(s)
Serena V. Brief description of your legal issue: I am in serious debt, besides my mortgage I owe roughly 20+ thousand in credit card debt.I owe the IRS and have been trying to make payments as best as possible. I need help! Thank you for your inquiry. We likely can help a great deal. There [...]
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. Generally, a creditor is required to issue IRS Form 1099-C to a debtor for any debts forgiven greater than $600. What does this mean in bankruptcy? Settling a [...]
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 [...]
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 [...]
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 [...]
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 [...]
