Many people considering bankruptcy are being affected by the decision of several states to delay sending out tax refunds. One of these states is my state of North Carolina, and I expect to see two different situations come into my office. First will be the people who were planning on using the tax refund to [...]
March 2010
In explaining tax on mortgage debt forgiveness, the IRS stresses, as tax fact number 6, that proceeds of refinance debt used for purposes, other than buying, building, or making a substantial improvement in the principle residence, do not qualify for exclusion from income if the debt is cancelled. This can be important. Many lenders require [...]
Dear readers, we’ve gotten through the bankruptcy petition. It took us four separate blog-entries just go get through the bankruptcy petition. Of course, before you can even file a bankruptcy petition, you’ll need to take credit counseling first. And not just any credit counseling will do. You have to take credit counseling from a credit [...]
I am asked on a weekly basis: Can’t the judge make the mortgage company change the loan in bankruptcy? The basic answer is a resounding NO! It is important to note that the bankruptcy law is in a constant state flux and at some point in the future the law may change. However as of [...]
In Milavetz v. United States, 2010 WL 757616 (U.S. March 8, 2010), a unanimous U.S. Supreme Court upheld portions of the 2005 Bankruptcy Reform Act which had been challenged on constitutional grounds. Upheld were requirements that bankruptcy lawyers identify themselves as “debt relief agencies,” and that bankruptcy lawyers cannot advise clients to “load up” on new [...]
IRS tax fact number 5 tells us that refinanced debt proceeds used for the purpose of substantially improving your personal residence qualify for exclusion from income if the debt is later is cancelled. In other words, if you re-finance your principal residence home mortgage and use the excess funds (the portion not used to pay [...]
