In my last blog article, I explained that taxes are dischargeable in bankruptcy if they meet the following requirements: The taxes were due more than 3 years ago, They were filed more than 2 years ago, They were assessed more than 240 days ago, They were filed in good faith and absent of any fraud, and They were income taxes, not payroll taxes. But, what happens if you have to file an amended tax return? Filing an Amended Tax Return After Bankruptcy Everyone makes mistakes sometimes. That is only human and thus you should be allowed to correct those mistakes…Read More
Archives for November 2014
Important Bankruptcy Case to go before the Supreme Court of the United States
On November 17, 2014, the Supreme Court of the United States (SCOTUS) granted certiorari to hear an Eleventh Circuit Court of Appeals case regarding lien stripping. Decisions made by the Eleventh Circuit of the United States Court of Appeals are binding on all districts in the states of Alabama, Georgia and Florida. The issue in this case is whether a chapter 7 debtor may strip off a junior mortgage that is wholly unsecured and discharge that debt in bankruptcy and have no further lien by the junior mortgage holder on his or her property. The current law in the Eleventh…Read More
Millennials Aren’t Saving Money
According to CNN Money, millennials – young adults born between the years of 1980-1995- are not saving money. Their savings rate is at negative 2%, which means they are spending more than they are bringing in. In contrast, workers between the ages of 35-44 have a positive savings rate of 3%. Americans in general have problems with savings. The United States personal savings rate has been falling since the early 1980s. For Millennials, there are multiple factors making it even more difficult for them to increase their savings. While the job market has been improving, wages have remained stagnant. In…Read More
Debt Collectors Must Follow the Law!
Debt collectors and collection agencies are regulated under federal law pursuant to the Fair Debt Collection Practices Act, 15 USC 1692 et seq. (FDCPA). There are statutory and civil penalties that can be leveled against debt collectors and collection agencies for failure to follow this law. As reported by CNN, some debt collectors and a collection agency recently went way beyond the bounds of decency and even the prohibitions contained in the FDCPA. These debt collectors were arrested based upon the abuse that they forced upon many unsuspecting individuals. You can read the criminal complaint here. No one should have…Read More
Help in the Ongoing Housing Crisis
Homeowners across the United States continue to struggle with their mortgage payments. This is obvious from the estimated 700,000 foreclosures last year. Whether the financial issue is work related, health related, or of some other cause, people from all walks of life find it hard to pay their house note even when their mortgage company or servicer is cooperative. Sadly, many homeowners are not only facing problems with their finances. They are also experiencing a complete lack of assistance and, in some cases, strong opposition from their mortgage company. One loan servicing company that I constantly come across with clients…Read More
Getting a Car After a Wreck While in Chapter 13 Bankruptcy
Having a wreck is terrible….having a wreck while in Chapter 13 is even more horrible! Unfortunately, this is a common scenario for our clients. One solution for clients (not all bankruptcy courts allow this) is to swap out the collateral using the insurance proceeds received from the wreck. This process can be confusing to explain but this is how it works. Swapping Collateral Using Insurance Proceeds You have insurance with the ABC Insurance Company. After your wreck, you immediately notify your insurance company. They will process your claim and determine if the vehicle can be repaired or if it is…Read More
Todd Chrisleys Bankruptcy Fraud: Does Chrisley Know Best?
Todd Chrisley, star of USA Network’s Chrisley Knows Best, filed for bankruptcy relief under Chapter 7 of the Bankruptcy Code on August 31, 2012. Once again another reality show meant to highlight the lifestyles of the rich and fabulous has instead introduced us to a person who has not only found it necessary to file for bankruptcy relief but, allegedly, done so in a manner intended to defraud his creditors. According to Radar Online, Chrisley’s “bitter bankruptcy case” is still ongoing in 2014 and is heating up over allegations by the Chapter 7 Trustee that Chrisley fraudulently conveyed his interest…Read More
Childrens’ Social Security Disability Benefits Comes with Strings Attached
As some of my earlier blog posts have detailed, the pursuit of Social Security disability benefits is an arduous one. More so for children, it seems, as their claims appear to be given greater scrutiny by the system as they ostensibly already have a resource in place to pay for their upkeep and treatment – their parents. Moreover, even if you are able to successfully navigate the labyrinth of rules and regulations to obtain disability benefits for your child, the struggle is not over. Unlike with adults, who can pretty much spend their monthly monetary stipend as they wish, the…Read More
Can Debts Discharged in Bankruptcy Still Show Up on a Credit Report?
The answer to this question should be a quick and simple no. Unfortunately, for many people who file for bankruptcy, discharged debts still appear on credit reports and impact a large number of people who are legally trying to get a fresh start with their financial lives. Deal Book/New York Times just published a very informative article on this topic. A very well-respected bankruptcy judge, the Honorable Robert D. Drain from the Southern District of New York, issued a detailed opinion regarding this area of law and it is referenced in the Dealbook/New York Times article. The Fair Credit Reporting…Read More
What is Tenants by the Entirety Property in Tennessee?
In Tennessee, if a married person owns property, particularly real property, with their spouse, this means the couple has an undivided one-half interest in the property. Tenants by the entirety ownership, on practical basis, means that if one spouse passes away, the other spouse will automatically own the real property without the need to probate the estate of the deceased spouse. For bankruptcy purposes, when property is owed as tenants by the entirety, and then only one spouse chooses to file bankruptcy individually, the person filing the bankruptcy has a “survivorship interest” in the real property. A survivorship interest is…Read More
