debtor Tag

22 Jan Filing Bankruptcy Under U.S. Bankruptcy Code Tough On Debtors? South Africa Bankruptcy Law Strips Bankrupt Debtors of Assets!

South AfricaEach day in my bankruptcy law office, at least one client will complain about the Bankruptcy Code and the effect on their daily existence. Debtors who file for bankruptcy protection often will complain that the U.S. bankruptcy code is too harsh, too tough when the debtor must limit expenses for luxury items. Bankruptcy debtors also worry about having excess equity in an asset and losing a part of that property. However, bankruptcy debtors in the United States have a much easier time during their bankruptcy than debtors in other countries and keep much more property safe from creditors. For example, while visiting South Africa recently, this author found herself waiting patiently inside a local bank. The bank had a brochure rack and on that rack was a brochure about the bank's debt repayment plan. Unlike the debt management programs here in the United States, each creditor in South Africa is responsible for their own debt management plan
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06 Aug What Do You Mean I Can’t Afford Bankruptcy?

I’m sitting in my office discussing a prospective client’s financial situation and it is, indeed, grim. The prospective client blurts out that, “it looks like I can’t afford bankruptcy.” Sometimes, that is exactly correct. To be sure, bankruptcy can help most people but sometimes there are situations or folks with particular financial goals in mind for whom bankruptcy may not work. It can be a very disheartening and sober realization. So, what might these situations be?
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09 Jan IRS to Chapter 13 Debtors: File Your Returns by February 5!

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 the day before the date on which the meeting of the creditors is first scheduled to be held under section 341 (a), if the debtor was required to file a tax return under applicable nonbankruptcy law, the debtor shall file with appropriate tax authorities all tax returns for all taxable periods ending during the 4-year period ending on the date of the filing of the petition.

At first reading, this section appears to only be dealing with those returns the debtor "was required to file" prior to the 341 hearing or "First Meeting of Creditors." For example, if it's February 5th, 2012, and I'm a debtor in bankruptcy, it can't be said that I "was required" to file my 2011 return. After all, the IRS gives me until April 15.
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