November 2009

30 Nov Will bankruptcy stop the (property) tax sale of my home or other property?

The simple answer is yes.   Filing bankruptcy will stop the sale of the property - if filed before the time of the sale and the taxing entity is notified of the bankruptcy filing. If a person is substantially behind on his or her property taxes, he may want to file a Chapter 13 which gives the him up to five years to pay back the delinquent taxes; however, the person must be eligible to file Chapter 13.    If the amount can be paid pretty quickly - usually within 30 days, the person may be able to file a Chapter 7, provided the person qualifies to file a 7.  In Texas, ad valorem taxes (real estate property taxes) are given an automatic priority and are given the the highest priority lien status allowed.  The taxes automatically become liens on January 1st of each year. 
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30 Nov Your Small Business: When Do You Call It Quits?

One of the hardest decisions a small business owner will ever face is whether to shut down a business that is losing money. It is an emotional decision because of the blood, sweat and tears that it takes to go into business for yourself. But it is also a financial decision, fraught with uncertainties and unknowns. Whether you have invested your life savings, or just your life, in a business, it is not easy to decide whether, and when, it is time to quit.
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30 Nov Means Test Does Not Apply to Individual Chapter 11 Debtors

One of the many advantages for an individual choosing to file a Chapter 11 bankruptcy over a Chapter 13 Bankruptcy is that the 707(b) means test is not incorporated into the calculation of disposable income for individual Chapter 11 debtors. Indisputably, the greatest change to the bankruptcy code in 2005 was the addition of the Means Test. The test is required by bankruptcy code section 1325(b)(3) and is used to determine the disposable income of a Chapter 13 debtor who is above the median income. The Means Test is nicknamed the "Mean Test" because it usually inflates a Chapter 13 debtor's real disposable income. A better indicator is and has always been comparing bankruptcy schedules I and J, which utilize actual data in determining a debtor's true disposable income. The Means Test is inapplicable in Chapter 11.
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30 Nov They Went Broke (Increasing Numbers Every Month)

Early in November 2009, the American Bankruptcy Institute (ABI) announced that bankruptcy filings had increased 27.9% in October 2009 from October 2008.    The ABI relied on statistics from the National Bankruptcy Research Center (NBKRC).   In October 2009, consumers filed 135,913 bankruptcies.  In October 2008, the number of consumer bankruptcy filings was 106,266.   The October 2009 filings also represent a 8.9% increase from the September 2009 filings.  
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