Archive for January, 2013

Learn More About Bankruptcy

Tuesday, January 15th, 2013

article from Bankruptcy Resources

What Is Chapter 7 Bankruptcy?

bankruptcyChapter 7 bankruptcy is designed for people who have very few assets and lower incomes. In order to qualify for a Chapter 7 bankruptcy, you need to make below the median income in your state. Then you may be required to turn in your car, and sell off any other liquid assets. The money you receive will be given to the court and divided among your creditors. Once this happens the rest of your debts are discharged, and you no longer need to pay anything to anyone.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is designed for most consumers. The court will set up a debt repayment plan that will clear up your debts in the next three to five years. This plan allows you to keep your home and your car because you will continue to be making payments. You must make your payments to the court on time during the length of the bankruptcy. Once you have completed the payment plan, the rest of your debts are discharged. You are considered as being the process of a Chapter 13 bankruptcy until you have completed making the payments according to the plan.

Business bankruptcy is handled differently from consumer bankruptcy. There are several different types of bankruptcy, and the type of business bankruptcy your company will use depends on factors like whether it is a sole proprietorship or a partnership or corporation. The types of debt that you have will also determine the bankruptcy. These debts are rarely completely discharged. You should contact a business bankruptcy attorney before you go this route.

How to File Bankruptcy

You should contact an attorney to learn how to file bankruptcy in your state. Although some people may say that you can file bankruptcy on your own, you really should contact an attorney. It is a complicated process, and it make take a while for everything to go through. You will need to begin by receiving the consumer credit counseling and working out a possible payment plan. If that does not work, then contact you attorney. You should continue to make monthly payments if possible until your bankruptcy is followed. You should also stop using all of your credit cards and revolving lines of credit.


Carolyn Secor is a Clearwater bankruptcy attorney and Clearwater foreclosure attorney serving Palm Harbor, New Port Richey, Oldsmar, Tarpon Springs, Seminole, St. Petersburg and the Tampa Bay area.

If you would like more information on our practice, please consult our website at:

www.bankruptcyfortampa.com
or call (727) 254-1704.

Mortgage Forgiveness Debt Relief Act Extended. Happy 2013.

Wednesday, January 2nd, 2013

article from Bankruptcy Law Network

Current news article from admin

What is this law, you may ask. Stated simply the Mortgage Forgiveness Debt Relief Act waives any tax due on debt forgiveness if you are able to negotiate a mortgage modification. Without this waiver, any amount of forgiven debt will be treated as ordinary income and taxed accordingly.

Here’s an example: let’s say that you owe $100,000 on your mortgage. Your property value has gone down and you are able to convince the bank to reduce your principal balance to $80,000, The $20,000 of debt forgiveness would be considered income by the IRS and you would be taxed on this. Currently, this tax is eliminated by the Mortgage Forgiveness law, but this waiver comes to an end on December 31, 2012.

Mortgage modification is already a time consuming, difficult process. Homeowners typically apply for modifications because they are struggling financially. If these homeowners discover that they will be facing a tax bill for debt forgiveness, many will conclude that there is no point in pursuing a modification and will decide to either walk away or file bankruptcy to deal with their upside down mortgages.

HOLD ON GOOD NEWS

Mortgage Forgiveness Debt Relief Act Extended. Happy 2013.

You can all exhale. The Fiscal Cliff deal passed in the wee hours of last night extended the 2007 Mortgage Forgiveness Debt Relief Act which was due to expire at midnight. According to NAR, the American Taxpayer Relief Act of 2012 passed the Senate 89-9.

There was an awful lot of concern among real estate licensees and borrowers either in or considering a short sale that the tax ramifications of a short sale would change with the expiration of the 2007 law. The extension saw to it that anyone who has purchase mortgage debt forgiven in, for example, a short sale would not have the forgiven debt treated as taxable income.

There is always small print as to what qualifies, so all are encouraged to consult with their  attorney  for specific advice, but the current law will continue unchanged, and that is good news.

This had been a big distraction and concern for the bulk of 2012. I am not happy about how long it took lawmakers to get their act together on this, but that is the climate we are in. The result is a happy one.

Carolyn Secor is a Clearwater bankruptcy attorney and Clearwater foreclosure attorney serving Palm Harbor, New Port Richey, Oldsmar, Tarpon Springs, Seminole, St. Petersburg and the Tampa Bay area.

If you would like more information on our practice, please consult our website at:

www.bankruptcyfortampa.com
or call (727) 254-1704.