In order to qualify for full exclusion from income when debt is cancelled on the taxpayer’s principal residence, the amount of debt cancelled cannot be more than two million dollars for a married couple or individual; or if an individual is married but filing a separate return, the debt cancelled cannot be more than one [...]
March 2010
Filing for bankruptcy takes courage. It requires overcoming fear, embarrassment and even shame. Recovery from bankruptcy has two components. The first is financial. The second is emotional. Today, we’re going to focus on steps everyone should take to recover from bankruptcy immediately. Step 1 Ask yourself what got you into bankruptcy in the first place? [...]
A non-attorney “bankruptcy petition preparer” (BPP) was recently permantly enjoined by a New Mexico bankruptcy court from assisting any more debtors in preparing bankruptcy petitions. This case, U.S. Trustee v. Brown, 2010 WL 519849 (Bky.D.N.M. Feb. 8, 2010), held that Pamela Brown, in the person of Southwest Bankruptcy Services, had violated section 110 of the bankruptcy code in [...]
The IRS wants taxpayers to know about the Mortgage Forgiveness Debt Relief Act of 2007. In the waning weeks of 2007, Congress passed and President Bush signed into law this remedial legislation. Initially limited to tax years 2007, 2008 and 2009, the law was intended to prevent debt cancellation tax for unfortunate home owners who [...]
According to statistics released by the Administrative Office of the U.S. Courts, bankruptcy filings increased 31.9% in 2009, increasing from 1,117,641 in 2008 to 1,473,675 in 2009. Business filings for 2009 were up 40%, from 43,533 in 2008 to 60,837. Non-business filings were up 32%, from 1,074,108 in 2008 to 1,412,838. Chapter 7 filings totaled [...]
Our good clients often tell us that they are embarrassed by the thought of filing for bankruptcy. I tell them that they don’t have to be. First of all, people fear that their names are going to be published in the newspaper. Now that might happen in small towns. But nothing’s secret in a small [...]
