Listing all creditors is vital to the success of a bankruptcy case. So is filing all required tax returns on time. If you fail to file a tax return you might not be aware you owe the IRS money, so it would be easy to mistakenly omit that creditor from your bankruptcy case. Even debt [...]
Tax Issues In Bankruptcy
The law is clear that bankruptcy will only discharge income tax for which a return, if required, has been filed. However, Congress for many years left it up to the courts to determine exactly what the word “return” means. Courts have varied their definitions of “return”, with some courts using an objective approach and others applying [...]
It’s tax time and the hunt goes on for tax deductions to lower your income tax hit. Tax deductions lurk in the most unlikely places. If your Chapter 13 plan is catching up home loan arrears, look at your trustee’s annual report for some deductible mortgage interest. Most likely, the lender’s filed proof of claim [...]
Bankruptcy can stop collection and eliminate tax debt in many situations. For more details on tax discharge see the article I wrote about Bankruptcy Tax Discharge on my personal site. While bankruptcy can be a very useful tool in dealing with the Internal Revenue Service and state collectors, it will not solve all problems. In many cases, a tax [...]
We all know that individual tax returns are due on April 15 (or a day or two later if April 15 is on a weekend). But Congress inserted a little tax time craziness into sections 1308 and 1307 of the new and drastically unimproved Bankruptcy Code of 2005. Section 1308(a) states: (a) Not later than [...]
Chapter 12 farm bankruptcy helps family farmers to keep their farms. It allows family farmers to reorganize their finances and operations. Chapter 12 was originally enacted by Congress in 1986, and was made permanent in 2005. It helps the farmer and the banker to sit down and work out alternatives for debt repayment. But according to [...]
