Discharge of Debt Tag

18 Jan Liar, Liar, Pants On Fire!

[caption id="attachment_46024" align="alignleft" width="300"]Liar, Liar pants on fire! Failure to list assets may make you a liar, liar, pants on fire![/caption] What is an asset and better still, why do I need to tell anyone about it in bankruptcy?  Let's start with the definition of an asset.  Merriam-Webster defines an asset as something owned by a person.  Merriam-Webster has provided a simple but most excellent way to describe the term "asset". To determine if something is an asset, ask yourself, "Do I own it?"  If the answer is yes, you MUST list "it".  Please allow me to illustrate.  A dog lives with you, do you list it?  If you feed the dog and care for the dog, you probably own the dog.  So list it.  If the dog is not an AKC registered dog or does not qualify as a show dog, then the value is $0.  I know, I know, the dog is part of the family and priceless, but no one else is going to pay a significant amount of money for the dog.  Therefore, the trustee will not want the dog, but you have complied with your duty to list the dog as an asset.
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27 Feb Unlisted Debts Are Not Discharged in First Circuit

Debts which are not listed in bankruptcy schedules are not discharged in the First Circuit, which covers Puerto Rico and New England (except Connecticut and Vermont). The only exception is if that creditor otherwise knew of the bankruptcy filing when it happened. They are discharged...

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13 Oct Personal Loans, Revenge and Bankruptcy: Not a Good Combination

You are probably aware that the Bankruptcy Code includes Section 523 which sets out the rules whereby a specific debt can be deemed non-dischargeable in a bankruptcy case. Certain types of debt, such as damages arising from a DUI or past due child support, can never be discharged. Other debts, like student loans can be discharged only in very limited circumstances. In real life, the most common challenges to a debtor’s bankruptcy comes from credit card companies or other unsecured lenders. So called “credit card binge” debt serves as the most typical example of abuse of the bankruptcy process - most people would understand why a judge would not allow an unemployed debtor to buy a big screen TV and high end stereo system, then file a bankruptcy six months later, wiping out thousands of dollars of recent charges, while keeping all of his purchases. Other dischargeability challenge cases may be a little less obvious - for example, an unemployed debtor may use his credit cards to buy food, but also to purchase a new cell phone and to buy movie tickets. In these circumstances, your lawyer will most likely be able to negotiate a reasonable settlement of the challenge, leaving some debt to survive your case but payable under reasonable terms. Credit card and other vendor challenges can give rise to litigation, but usually in those cases I can see the problem coming and the resolution usually involves a financial settlement.
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17 Jan What Can I Do When Bankruptcy Doesn’t Get Rid Of The Tax?

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 Dischargeon my personalsite. 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 debt that would qualify for bankruptcy discharge is rendered non-dischargeable when the taxpayer fails to file a tax return and the IRS or state collection authority uses their statutory authority to assess. Some types of tax, such as employment tax, are not subject to discharge. Fortunately, there are other ways to stopor managecollection problems. Some types of tax can not be discharged and can be collected by the IRS after the bankruptcy case is closed. Bankruptcy may not be available or appropriate for some delinquent taxpayers.
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