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Bankruptcy Tax Refunds: Keep ‘Em Small

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Keep Bankruptcy Tax Refunds Small It’s important to minimize your income tax refunds, whether you’re getting ready to file a Chapter 7 case or you’re already in a Chapter 13. In Chapter 7 bankruptcy, tax refunds are probably the most likely asset to be taken by the trustee.  This presents a couple of real problems, [...]

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Health Care Reform Has Some Help For Small Businesses

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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.

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Bankruptcy and Back Taxes

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As a general rule, discharging back taxes in bankruptcy is difficult. 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 not [...]

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More Changes Regarding Chapter 13 and Tax Returns in Michigan’s Eastern District

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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 [...]

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I am in serious debt and need help!

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San Diego Attorney John Colwell Answers a Reader question: From 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!   [...]

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Tax Issues with Credit Card Settlements

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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 [...]

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