We know that Congress squelched the proposal that mortgages on your home could be modified in chapter 13. Too bad. Mortgage foreclosures went ahead at the highest pace in recent history as a result. Mortgage modifications are as rare as hen’s teeth. Some mortgages, however, can be modified. The key is that mortgages on your [...]
March 2010
Mortgage debt forgiveness is considered to be income unless it is excluded. Principal residence debt has its own exclusion from income if it is cancelled or forgiven by the lender. To “qualify” it must be what is defined by the Internal Revenue Service as “qualified principal residence debt”. The debt must have been used to [...]
As a Consumer Bankruptcy Attorney, I get to see the amazing financial deals that my clients get themselves into. Some of my bankruptcy clients must have been amazing salesmen to get family members and others to co-sign their debts. I don’t know what a person would have to say to get me to put my [...]
The IRS, in listing ten important facts about mortgage debt forgiveness, points out that debt on a principal residence that is cancelled by restructuring the loan in cooperation with the lender can exclude it from taxable income. Subject to the two million dollar limit on the Mortgage Forgiveness Debt Relief Act of 2007, a write [...]
People in who face bankruptcy often find it to be an emotional experience. They have been hounded and abused by creditors. This places them in a tenuous situation emotionally. Bankruptcy lawyers – now authoritatively considered to be “Debt Relief Agencies” by the United States Supreme Court – often find that their clients need more than [...]
The question of whether a single bankruptcy debtor is limited to one motor vehicle allowance on the means test has vexed bankruptcy debtors since the inception of the 2005 Bankruptcy Reform Act. While Form B22 does not explicitly limit the number of motor vehicle allowances to the number of debtors in the bankruptcy case (that [...]
