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Within our website, you’ll find Articles, Forms and Links about Bankruptcy, Debt Relief, Insolvency, Reaffirmation, Mortgage Forgiveness, and much, much more, updated hourly. We’ll be adding more helpful sections with valuable resources, so check back soon. Question, Comments? Don’t hesitate to contact us by clicking on the contact link. … Read entire article »
Filed under: General Bankruptcy Information
Dealing With Taxes on Your Settled Debts
One of the biggest drawbacks of settling debts is dealing with the tax implications of having your debt cancelled. The IRS requires you to include cancelled debt as taxable income on your tax return and requires businesses to report cancelled debts over $ 600. If your creditor cancels at least $ 600 of debt, the IRS will know about it. They’ll be expecting you to claim this as income on your taxes. You could face an audit if you don’t include the cancelled debt on your tax return. Increasing your taxable income by adding in cancelled debt can decrease your tax refund – that’s if you still get a tax refund after increasing the amount of taxes you’re liable for. The worst-case scenario is that you end up with a tax … Read entire article »
Filed under: Debt Consolidation, Featured Articles, Insolvency, Questions & Answers, Tax Information
Short Sale – Homeowners Road to Recovery!
When a homeowner defaults on their mortgage, typically after missing 3 – 6 payments, there lender will initiate the foreclosure process. Foreclosure is the legal and professional proceeding in which a lender obtains a court-ordered termination of a mortgagor’s equitable right of redemption. In layman’s terms a foreclosure is the legal process a lender must go through in order to take back a property after a homeowner has defaulted on the terms of their mortgage. Banks are not in the business of owning properties, and therefore every bank has some type of Asset Management department specifically for liquidating non-performing assets. So, as a homeowner, foreclosure doesn’t necessarily mean all hope is lost. One of the ways a lender can liquidate a non-performing or bad asset (mortgage) is to allow a … Read entire article »
Filed under: General Bankruptcy Information
Bouncing Back from Bankruptcy…Do’s and Don’ts
Bankruptcy is the hardest financial decision you’ll ever face. It can be a fresh start, or it can be the start of the biggest financial nightmare ever. To make sure you truly get a fresh start after bankruptcy, follow these “Do’s and Don’ts”. 1) DO get copies of all three credit reports and make sure that the accounts in your bankruptcy are listed as discharged. 2) DO get a secured credit card but make sure the card issuer reports your payments, has a grace period, and doesn’t report your card as secured. 3) DO set up a DebtBuster Strategy for your undischarged debts and pay them off as quickly as possible. 4) DO wait at least two years before applying for a mortgage or car loan to get the going interest rate. 5) DO call … Read entire article »
Filed under: General Bankruptcy Information
2012 Brings Changes to the Federal Rules of Bankruptcy Procedure
Bankruptcy rules will be changing dramatically in 2012. Effective December 1, 2011, the Federal Rules of Bankruptcy Procedure (FRBP) that govern filing a proof of claim have changed significantly. If you thought the filing of a proof of claim in a bankruptcy proceeding was a trivial task, recent changes to the FRBP have made what once seemed like a simple undertaking into a minefield of potential liabilities to a creditor. Below is a brief overview of the recent amendments. FRBP 3001 – Amended to increase the types of information required to be attached to a proof of claim. While Rule 3001 has always required a creditor produce a writing to support its claim, now a creditor must also attach information relative to the principal, interest, fees, and any other expenses incurred pre-petition – … Read entire article »
Filed under: Featured Articles, General Bankruptcy Information
PROPERTY TAX LIENS AND TAX CERTIFICATES IN BANKRUPTCY
It has been said that there are two things that cannot be avoided in life: death and taxes. When it comes to property tax liens there are certain situations where a good lawyer can help you. As for death, you are still out of luck. First, a little about property tax liens in New Jersey. If a property owner does not pay his or her taxes, then the tax collector of the municipality where the property is located will conduct an auction of a tax sale certificate. At the sale bidders bid against each other to determine the interest rate that will be charged for the tax certificate. If the interest rate is bid down to 0%, then monetary bids (or premiums as they are referred to) are paid. The municipality … Read entire article »
Filed under: Featured Articles
How to Claim Bankruptcy
What are the ways to claim bankruptcy? Claiming bankruptcy should be avoided until you have explored all other options (debt consolidation, debt settlement, etc.) and find that only bankruptcy offers the type of relief you are seeking. Remember that a bankruptcy remains on your credit report for 7 to 10 years. If your credit report is blemished, then potential lenders will consider you a high risk borrower and you might not obtain credit that easily. Still, bankruptcy can be a more viable option than debt settlement as it might discharge a considerable portion of your unsecured debts. Although, you should keep in mind that claiming bankruptcy is not cheap. You might end up paying more than $2000 for court fees and paper work processing, but it will be on the basis … Read entire article »
Filed under: Featured Articles, General Bankruptcy Information, Insolvency, Questions & Answers
Is Bankruptcy Right For You?
Most people think of bankruptcy as a process in which you go to court and get your debts erased. It’s not that simple. In fact, there are two types of bankruptcy: the familiar liquidation bankruptcy, where your debts are wiped out (Chapter 7 bankruptcy) and “reorganization” bankruptcy, where you partially or fully repay your debts. The reorganization bankruptcy for individuals is called Chapter 13 bankruptcy. (There are two other kinds of reorganization bankruptcy: Chapter 11, for businesses and for individuals with debts over $1 million, and Chapter 12, for family farmers.) Filing for bankruptcy puts into effect something called the “automatic stay,” which immediately stops your creditors from trying to collect. Creditors cannot garnish your wages, empty your bank account or go after your car or house. Until your bankruptcy case ends, your … Read entire article »
Filed under: General Bankruptcy Information
Medicare Bankrupt by 2024
Almost every American who has read a newspaper, watched T.V. or signed onto the Internet in the past few years knows that Medicare, one of the government’s largest entitlement programs, is in financial dire straits and is heading for insolvency. What you may not know is that Medicare bankruptcy is closer than even the most pessimistic of previous estimates. An annual report issued last week by the trustees of Medicare said the program won’t have enough funds to pay full benefits by 2024, a full five years sooner than last year’s estimate and one that may yet be even rosier than reality. “Projected long-run program costs for both Medicare and Social Security are not sustainable under currently scheduled financing, and will require legislative corrections if disruptive consequences for beneficiaries and taxpayers are … Read entire article »
Filed under: Featured Articles
Bankruptcy Facts and Solutions
Many Floridians run into money issues, which can be caused by overspending, uninsured medical bills, sudden unemployment, and divorce amongst other things. These unexpected hurdles can cause debt so pile up so high, that many can’t see a way out. If you find yourself trapped in a hopeless financial situation, then bankruptcy may be your only option. Bankruptcy is not the end of the world; rather it is a rebuilding process that can lift a massive weight off of your shoulders and free you from debt. Bankruptcy is legal process handled in federal court in which a debtor declares that they are unable to pay off their debt. It is every citizen’s constitutional right to declare bankruptcy. There are three bankruptcy district courts in Florida: Northern, Middle and Southern. A debtor … Read entire article »
Filed under: General Bankruptcy Information
What You Need to Know for Your 2011 Tax Filing and What’s New for 2012
Tax season is here again! While the filing deadline might be a couple of months away, this month you will receive all required third-party reporting documents: W2s, 1099s for interest and dividends, 1099s for nonemployee compensation if you are an independent contractor, 1099-Bs from your broker reporting proceeds from the sale of stocks and bonds, 1098s from your mortgage holder, K-1s from partnerships, S Corps, estates, and trusts. Hopefully, you’ve set up a file to store all these documents to make data gathering for tax preparation a snap. If not, now’s the time to create one. Note that the due date for filing this year is April 17. If a tax due date falls on a weekend or a holiday, the next business day becomes the due date. This year April … Read entire article »
Filed under: Tax Information
How to Eliminate Credit Card Debt
Follow These Steps to Get Out of Debt Credit card debt is a major problem in this country. While not everyone has a credit card, those that do typically carry a balance. The interest rate on a credit card balance is usually between 10-30% APR. These high interest rates make it difficult for people to pay down their debt — especially if only making the minimum payment. In fact, just making minimum payments can make even the smallest balance over a decade to pay off and thousands of dollars in finance charges. It’s no wonder getting out of debt seems so hard. Fortunately, you can get out of debt. If you follow a few basic steps and put a plan in place, you can work to pay off your debt sooner, with … Read entire article »
Filed under: General Bankruptcy Information
Will Congress Extend Key Tax Deductions in 2012?
NEW YORK (CNNMoney) — It may be a new year, but when Congress returns from its winter break it will be all old business that lawmakers failed to finish before Christmas. The fight over a temporary extension of the payroll tax cut and long-term federal unemployment benefits sucked up all the oxygen on Capitol Hill. And it will suck up more between now and the end of February, when the two-month extension Congress managed to pass expires. In the meantime, lawmakers left more than 50 expiring business and individual tax breaks hanging in the balance, along with an expanded mass transit break for workers. Officially, of course, they expired on Dec. 31. But like Lazarus, they may be risen from the dead by Congress, which could choose to extend them and make the … Read entire article »
Filed under: Questions & Answers