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Blog Posts in February, 2011

In Bankruptcy? Don’t Fear the 1099-C

This year, it seems that more creditors than ever are sending IRS Form 1099-C to their debtors who have filed bankruptcy or settled debts with them. While in many cases it is unnecessary for the ...
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Tell The IRS Where To Put It

Business owners who find themselves liable for unpaid payroll taxes are in deep trouble. The trust fund portion of the tax, the amount withheld from employees' checks, becomes a personal debt of ...
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Income Tax Refunds In Bankruptcy

What happens to my tax refund if I file bankruptcy is: it depends. Tax refunds received, after you file your case, have to be paid to the Chapter 13 bankruptcy trustee, at least in the 6th Circuit, ...
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Bankruptcy and Emotions

Keep your emotions in check when dealing with your financial problems. No one wants to file bankruptcy, but sometimes it's your only meaningful option. "I don't want to file bankruptcy," a client said ...
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Same Old Debt as Last Year? Stop Living a Financial ‘Groundhog Day’

On Groundhog Day, it is fitting to consider whether you are living in a financial 'Groundhog Day.' Remember the Bill Murray movie? A self-absorbed weatherman is doomed to repeat the same day over and ...
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Credit Reporting During Bankruptcy

The Fair Credit Reporting Act requires credit reports to be accurate. What is accurate reporting during a bankruptcy case? In general, creditors have no duty to report anything at all to credit ...
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The Bankruptcy “Means Test” Explained in English

Few concepts are as difficult to grasp for a potential bankruptcy debtor than the " means test ," which Congress added to the bankruptcy law in 2005. To be sure, the means test can be confusing, and ...
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Will The Bankruptcy Trustee Take My Tax Refund?

A common question I get this time of year is whether the trustee will take the debtor’s tax refund if he files for bankruptcy. The answer depends upon many factors. The Trustee has a duty to ...
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