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 [...]
bankruptcy in the united states
Bankruptcy! I don’t want to file bankruptcy! Hey, if you do want to file, there is something wrong with you. But you want to keep your house? Avoid foreclosure? Which option hurts more: losing your home, or, filing bankruptcy? We humans make decisions based on our emotions: we shy away (or run, if you are [...]
I wrote about attorney fees as a means test deduction some time ago. BAPCPA’s provision, codified at section 707(a)(2)(A)(iv) of the Bankruptcy Code, says that priority claims are deducted from income. Priority claims include a Chapter 13 debtor’s counsel’s fees. See sections 507(2), 503(b)(2), and 330(a)(4)(B). Therefore, our attorney fees are a means test deduction. Oddly, the [...]
Bankruptcy Petition Preparers. Should you hire one? Let’s face it. Folks with financial problems aren’t exactly flush with cash. So it’s tempting to cut corners in purchasing legal advice and to opt for the services of a bankruptcy petition preparer. But as with most things, you get what you pay for. Preparers really can’t–at [...]
You may run an incorporated, or, unincorporated, small business. A corporation that wants to keep operating has to file for Chapter 11 to get bankruptcy relief. Individuals may file also; you do not have to be a corporation to file for Chapter 11. You may own and rent a bunch of houses, operate a store, [...]
In March of this year, the United States Supreme Court ruled in Milavetz v. United States that provisions of the Bankruptcy Code regulating attorneys in bankruptcy cases are constitutional. The Court found that bankruptcy lawyers must make certain disclosures required by Congress and must include the specific language that the lawyer is a “Debt Relief [...]
