Is IRS Offset of Tax Refund a Violation of Automatic Stay?
Here is the issue: Debtor files for bankruptcy on February 1, 2016 but expects a tax refund for tax year ending in December 31, 2015 from the IRS. Debtor owes tax to the Internal Revenue Services for prior tax years. Can the IRS offset the tax refund for 2015 for the tax debts for prior […]
Ask Sacramento Bankruptcy Attorney – What happens to Inheritance during and after Bankruptcy?
When a debtor becomes entitled (even though you have not received it) to an inheritance within 6 months of filing Chapter 7 Bankruptcy, the inheritance becomes a part of the bankruptcy estate. If you do not have enough exemption to protect all of the inherited assets, the non-exempt portion of the inherited assets will be used […]
IRS Scam Phone Calls about Tax Debt
You should be warned that there are thieves who will pose as IRS agent to steal your personal information and money. You should be suspicious of any callers who ask for personal information or money or who use threats to get your personal information or money. They may sound convincing by altering the caller ID to look […]
Clawbacks of College Tuition Payments in Sacramento Bankruptcy Court
Recently, there is a dispute between bankruptcy trustees and colleges over the application of the clawback provision of the Bankruptcy Code on college tuition paid by insolvent parents for the benefits of their children within several years of filing for bankruptcy. The Bankruptcy code allows the bankruptcy trustee to recover transfer of assets or money […]
Clawbacks of Preferential and Fraudulent Transfers by Bankruptcy Trustee
It is a myth that you can transfer assets to friends and family before filing for bankruptcy without any repercussion. The Bankruptcy law gives Bankruptcy Trustee the power to void or undo such transfers for the benefits of your unsecured creditors. This is known as the "Clawback" of Preferential or Fraudulent Transfer. Payment or Transfer to […]
What Debts are Not Discharged in Bankruptcy
You can find a list of debts that are not discharged in bankruptcy under the Bankruptcy code 11 U.S.C. § 523. The list is too lengthy to go into details here. Here are some examples of nondischargeable debts that are most common: 1. Recent Taxes 2. Alimony and Child Support 3. Student Loans 4. Debt incurred […]
Ask Bankruptcy Attorney in Sacramento, Stockton, Fairfield, CA – How is Payroll Tax aka Trust Fund Tax Treated in Bankruptcy?
Payroll Tax, aka Trust Fund Tax, are treated as a nondischargeable priority debt in bankruptcy, whether you file for Chapter 13 Bankruptcy or Chapter 7 Bankruptcy. Liability of the Trust Fund Tax is not dischargeable regardless of the age of the tax. Chapter 13 Bankruptcy is a good option in dealing with Trust Fund Tax […]
Ask Bankruptcy Attorney in Sacramento, Stockton, Fairfield, CA – How Chapter 13 Bankruptcy can provide relief from Tax Debt Liability?
If you owe taxes to the Internal Revenue Services or Franchise Tax Board, Chapter 13 Bankruptcy might be a good option for you. Chapter 13 Bankruptcy can provide relief from tax liability in the following ways: 1. upon filing of your Chapter 13 Bankruptcy petition, the Internal Revenue Services and Franchise Tax Board must stop […]
Ask Bankruptcy Attorney in Sacramento, Stockton, Fairfield, CA – If One Spouse Files for Bankruptcy, What Happens to the Other Spouse?
It is a myth that both spouses must filed for bankruptcy together. One spouse can file for bankruptcy. However, it might be better for both spouses to file bankruptcy jointly. If one spouse file for bankruptcy, the non-filing spouse does not get the protection of automatic stay or bankruptcy discharge. If both spouses are jointly […]
Ask Bankruptcy Attorney in Sacramento, Stockton, Fairfield, CA – What if my Life Change during the Chapter 13 Bankruptcy Plan?
It is a myth that when you file for Chapter 13 Bankruptcy, you are in a financial prison where you cannot make any purchases. That is false. If your car breaks down and you need to finance a replacement car or you need a loan to replace the roof on your house, the bankruptcy court usually […]