May 2011

31 May Why You Shouldn’t Reaffirm a Mortgage in Bankruptcy

I recently got a phone call from a client. She got a letter from her mortgage company giving her the "opportunity" to reaffirm her mortgage. She wanted to know whether she should do this. I told her, "Absolutely not." In the overwhelming majority of cases, it makes absolutely no sense to reaffirm a mortgage debt. Why? The Bankruptcy Code is written in such a way so as to make a mortgage reaffirmation bad news with a very small upside.
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29 May Federal Income Tax Discharged in Bankruptcy Unless Non-payment was Intentional, Appeals Court Says

TheU.S. Court of Appeals, Sixth Circuit,recently ruled that an Ohio doctor could discharge her federal income taxes in chapter 7, based upon the government's inability to prove that her failure to pay the income taxes was intentional. This case, Beneficial Mortgage Corp., et al. v. Storey, No. 09-3848 (6th Cir. May 16, 2011), involved the U.S. government's attempt to obtain tax liens upon the doctor's real estateafter her chapter 7 case was discharged.
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