March 2011

31 Mar Failure to Report an IRS Audit Adjustment to the State may bar Bankruptcy Discharge of State Taxes

According to the 4th Circuit Court of Appeals, if you fail to tell your state taxing authorities after the IRS adjusts your taxable income, it may prevent you from discharging your state taxes in bankruptcy. Most states with personal income taxes base their determination of taxable...

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28 Mar Ink by Chase Sends 10 Year Old A Credit Card Application – For Her Business?

In Saturday's mail, my 10 year old daughter received a credit card application from "Ink from Chase". At first I was a bit shocked by a credit card company's decision to send a credit card application to a 10 year old child. I immediately thought: What a bunch of idiots? Are they that desperate? Do they really believe that a 10 year old is responsible enough to handle a credit card? How could they be so stupid? But, then my logical side kicked in and I thought: You know what, Chase has many brilliant people working in its banks, and their CEO, Jamie Dimon, recently received a $16 million dollar compensation package. My logical side said: Any bank that made 11.9 billion dollars in profits in 2009 has many smart people and they obviously wouldn't make a silly mistake like sending a little girl a credit card application.
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27 Mar Can bad faith or excess income be “cause” to dismiss a non-consumer Chapter 7 case?

As has been often explained, Chapter 7 Debtors with primarily business debt, or otherwise not primarily consumer debt, are not subject to the "means test" adopted in the 2005 bankruptcy reform act.In fact, they are not subject to any of the provisions of the Bankruptcy...

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