Archive for December, 2015

Filing in 2016 to Cover More Income Taxes

During the first months of 2016 your bankruptcy can write off more of your older tax debts.     Filing bankruptcy at the right time in 2016 can help you deal with income tax debts in two main ways:
  • Discharging (legally writing off) more of your tax debts (likely for the 2012 tax year), under a Chapter 7 “straight bankruptcy” or a Chapter 13 “adjustment of debts”
  • Including any taxes owed for the 2015 tax year in your Chapter 13 payment plan, with the advantages that provides
Today we’ll show the first step to this—how to write off more income taxes…

Filing in January to Qualify for Chapter 7 or Shorten Chapter 13 Case

Think about filing bankruptcy in early 2016 if you had some extra source of money in mid-2015.   Some people can take advantage of the peculiar way that bankruptcy law calculates “income” for purposes of the “means test” by filing their Chapter 7 case with the right timing. Doing so could qualify them for Chapter 7 when otherwise you may not. Others can take similar advantage of the way “income” is calculated for purposes of determining their Chapter 13 “commitment period”—the minimum length of time they have to pay into their court-approved payment plan. With the right timing their commitment…

Peace on Earth, Good Will to All: We Wish You a Merry Christmas!

Bankruptcy can bring you financial peace. While doing so you will be treated with respect and good will. We wish you a Merry Christmas.   A Tough Time of Year This season of gift-giving is hard when money is tight. It’s very hard when you can’t give to your kids and other loved ones what you would like to give. This season of hospitality is hard when you want to be generous in sharing your home and food but don’t have the means to do so. Financial Peace The goal of bankruptcy is to give you relief from your debts and…

Filing Your Chapter 13 Case in December May Shorten It by 2 Years

Filing in December (or any other month with increased income) could result in a much shorter Chapter 13 “adjustment of debts” case.   Two weeks ago we showed how filing bankruptcy by December 31 could enable certain people to file a Chapter 7 case instead of being forced into a Chapter 13 one. They could have their debts discharged (legally written off) within 3 or 4 months under Chapter 7. Otherwise under Chapter 13 they would be required to go through a 3-to-5-year payment plan. And they would only get a discharge of their remaining debts if they’d successfully make it…

Driving Under the Influence in Northern Utah

If you cause an accident and hurt someone while driving under the influence, bankruptcy does not write off debts from that bodily injury.   There are 3 different kinds of liabilities that can come from driving while intoxicated and getting into an accident: 1) personal injuries to others, 2) property damage, and 3) criminal traffic citation. Today we focus on the first of these. Personal Injury or Death from Driving while Intoxicated If you are in a traffic accident and you are injured and there’s not enough insurance to pay for your medical bills, usually you can file a bankruptcy…

Gift-Giving and “Fraudulent Transfers” in Northern Utah

Gift-giving during the holidays could raise issues ahead of bankruptcy, but only if the gift in question is a large one.   “Fraudulent Transfers” Usually Not an Issue This blog post is about a topic to be aware of but one that’s seldom an issue for consumers or small business owners filing bankruptcy. However, in part because “fraudulent transfers” often involve some version of gift-giving, it’s particularly worth getting an understanding of this during the holiday season. We’ll briefly explain here what a “fraudulent transfer” is, its two different forms, why neither are a problem for most people, and when you…

“Preference”€ Payments in Northern Utah

You may be extra motivated and better able to repay a personally important debt this time of year. But since that could be a “preference” maybe you shouldn’t.   Careful about Paying a Favored Creditor Around the holidays you may be extra motivated to pay back a personal loan. The relative or friend may be in real need of the money and pressuring you to pay it. Or if you are considering bankruptcy you may not want it to involve this person, or to have him or her know about it. You might feel be better able to pay this debt.…

The Cash Advances Presumption of Fraud in Northern Utah

If you can avoid it, don’t take any cash advances during the holidays when contemplating filing bankruptcy.    In our last blog post we explained the “luxury” presumption of fraud. This provision in bankruptcy law increases the risk that you would not be able to “discharge” (legally write off) a very particular kind of debt. That kind of debt would be one that resulted from a purchase or a set of purchases totaling more than $650 made during the 90 days before filing bankruptcy. The “cash advances” presumption of fraud is closely related to the “luxury” one. (See Section 523(a)(2)(C)(i)(II) of…

Bankruptcy Timing and the Holidays in Logan Utah: The “Luxury” Presumption of Fraud

If you’re thinking about bankruptcy, you must avoid using credit cards to pay for the holidays. If you use them, you may run into the luxury presumption.   Using Credit Shortly Before Filing Bankruptcy Using credit during the holidays if you’re contemplating bankruptcy is dangerous. It is fraud if you run up debt that you don’t intend to honor. What is “Fraud” in Bankruptcy? The bankruptcy system rewards honesty. One of the core principles in bankruptcy is that debts which are entered into honestly can later be written off, while debts entered into through cheating cannot. When you incur a…

Bankruptcy Timing and the Holidays in Logan Utah: Extra Income in December Affecting the “Means Test”

We show step-by-step how filing bankruptcy before the end of December can help you pass the “means test” and qualify for Chapter 7.   Have you received or are you expecting any extra money from any source during December? It’s probably the month when that’s most likely. If you are fortunate you may receive a bonus from your employer, or you’re working a part-time Holiday job or getting bigger paychecks because of overtime. Or you may get a cash gift from a parent or some other relative, either for yourself or to help buy gifts for your kids. In our last…