A foreclosure could subject you to tax liability. Never overlook this aspect of foreclosure. The tax rules are complex, and subject to interpretation. The Internal Revenue Service will treat a foreclosure as a sale and you will receive a Form 1099C for the amount your lender or a third party bids at the foreclosure sale. You could end up with a tax liability if you have realized gain from the sale. The rules are complex and you …

Category: Tax - Debt Garnishments

Tags: foreclosure foreclosure proceedings tax tax liability

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… or to a State or any political subdivision of such State); or

(B) such debt includes a liability designation as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance or support....

Please speak with a bankruptcy attorney about how your child support obligations may be handled in bankruptcy.

If you’re unemployed during this recession, several factors may greatly impact your tax liability. For unemployed workers who received unemployment insurance benefits, the IRS will tax all benefits after the first $2400.  If taxes were not automatically withdrawn from your unemployment benefits check you could end up being liable for hundreds, if not thousands of dollars in taxes.  Here’s what you need to know about reducing your tax liability and/or deferring payment as an …

Category: Tax - Debt Garnishments , Unemployment - Job Loss

Tags: Standard of living tax Unemployment

… harmless on the obligation, she failed to do so and filed for bankruptcy to discharge her personal liability on the mortgage. The debtor said the property’s sale was unlikely to satisfy the mortgage. He feared being held liable for a deficiency of $10,000 or more. The court noted that this potential deficiency was the debtor’s only unsecured debt. The debtor also said he should be entitled to an additional monthly expense of $1,048 for his current spouse’s mortgage payments.”

The …

… your plan will still pay for them.  The main goal is to understand what your potential medical liability is so that you can effectively plan for those expenses.  If you don’t understand a plan or you need for information, review the summary plan descriptions and talk to your human resources department for clarification.  After you understand what’s available, your debt management approach can become more proactive in the form of maximizing flexible spending accounts, generic …

… Road and Texas 183. In its bankruptcy filing, Margaux Westover Partners lists its assets and liability between $10 million and $50 million.

The article said:

“Westover Village is planned to have 250,000 square feet for shops and restaurants in 11 buildings, but Silverman said they have completed only five buildings totaling about 125,000 square feet. The space is about 65 percent leased, he said. Silverman said they have seen little tenant activity for the shopping center this …

… filed against Mastro in federal court alleges that Mastro transferred these assets into limited liability companies under the ownership of an off-shore trust.

The suit, filed by bankruptcy trustee James Rigby, claims that the transactions (made over the two years prior to Mastro being forced into bankruptcy) were “made to hinder, delay, and defraud Mastro’s creditors.  The case is now open before the U.S. Bankruptcy Court in the Western District of Washington.  Mastro’s wife and …

… a marriage are considered community property – meaning one has just as much legal right and liability to them as the other.  All property acquired by either spouse before the marriage or property acquired during the marriage by way of inheritance or gift is considered separate property.  In some cases, separate property can be converted to personal property and vice versa, but the process is long and tedious – and often times, not worth the effort.  Of the same token, just because …

… means the debtor is no longer personally liable for that debt.

Q:  So what does “personal liability” mean, then?

A:  Having personal liability for a debt means that creditors who obtain a judgment against you can use legal means, such as levies and garnishments, to reach your non-exempt assets and earnings, even if you didn’t pledge those assets as collateral and the debt was unsecured.  A bankruptcy discharge means you are no longer personally liable for that debt.

Q:  …

Category: Bankruptcy Q&A , Debt and Tax Relief

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… realize the shortfall. You can be assured that by the time the IRS decides to try to collect the tax from you, the original amount you owed will have increased significantly, due to penalties and years of interest accruing. It would even be safe to say that the small sum of money you owed the IRS in 2003 has now doubled, or even tripled in size. Dealing with the IRS can be a very scary situation. You did not file fraudulently, you did not file late, and the tax due is more than three years …

Category: Debt Consolidation , Debt and Tax Relief , Tax - Debt Garnishments

Tags: Income tax Internal Revenue Service Lawyer United States

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… ruled that the Chapter 13 debtor’s bankruptcy estate was entitled to half of the joint income tax refunds received by the debtor and his nonfiling wife.

The details of the bankruptcy case:

“The Massachusetts Department of Revenue (MDOR) filed a proof of claim in the amount of $64,172 including $14,936 for joint income tax liabilities of the Chapter 13 debtor and his nonfiling wife. Because the debtor’s wife did not join in the Chapter 13 petition, statutory interest and penalties …

Category: Chapter 13 Bankruptcy , Lawsuits , Tax - Debt Garnishments

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… scheduled an interest in real property that was subject to a lien for which she had no contractual liability. The lienholder filed a motion for stay relief. A copy of the mortgage was attached to the motion. The debtor was not named as a borrower in the mortgage. The debtor’s signature appeared on the last page above the word “witness” and the word “borrower” crossed out. The lender subsequently produced a recorded mortgage that showed the debtor as the borrower. The court found that …