Chapter 7 or 11:When you file for bankruptcy under Chapter 7 or 11 of the Bankruptcy Code, a separate estate is created which is made up of property that belonged to you prior to the filing date. The bankruptcy estate is a separate entity from you as a taxpayer. Under Chapter 7, the...
Hardship discharge cannot take place before the debtor has paid creditors the amount that would have been received from a Chapter 7 bankruptcy. Additionally, it is not possible to revise the existing repayment plan to match the new financial circumstances....
Chapter 7 bankruptcy is designed to give debtors a “fresh start” in their financial life. At theend of the process, all qualifying debts are discharged, which means you will never have to pay them. Filing a bankruptcy petition is complicated and time consuming and not all debts are discharg...
To discharge tax debt in a Chapter 7 bankruptcy certain circumstances must be met. Tax debt is dischargeable if: The debt is three years or older, There was no fraud involved, The taxes were due at least three years before the bankruptcy petition was filed, ...
Through a Chapter 7 bankruptcy, you (individual or business) can also discharge many unsecured debts like: Credit Cards & Charge Cards Personal loans Business debt Medical Bills Utility bills Pay day loans Unpaid Taxes (min. 3 years old) ...
LLC in Chapter 7 Bankruptcy Not Obligated to Remit State Taxes on Behalf of Out-of-State MembersNorth Carolina has a statute providing that the manager of an LLC doing business in North Carolina must on behalf of out-of-state members remit to the state theSubmitter, SKO Firm...
Disadvantages of Chapter 7 Bankruptcies Chapter 7 bankruptcy does also have some serious downsides. It Doesn't Discharge Personal Debts Under Chapter 7, bankruptcy filers still have to make good on personal debts like alimony and child support, college loans, and taxes owed to the government. ...
Chapter 7 bankruptcyeliminates most debt through the liquidation of assets. The court appoints a trustee to oversee the case. Part of the trustee's job is to take ownership of the debtor's assets, sell them, and distribute the proceeds to their creditors. ...
Chapter 7 bankruptcy does not protect co-signers from being pursued by creditors. If a debtor’s loan or debt has aco-signer, the creditor can still seek repayment from the co-signer even after the debtor’s obligation is discharged. In addition, filing for Chapter 7 bankruptcy is a matter...
Timing Considerations of Discharging Taxes in a Chapter 7 Bankruptcy.Timing Considerations of Discharging Taxes in a Chapter 7 Bankruptcy.The economic turmoil that has enveloped the United States and much of the rest of the world over the past several years has led to a dramatic increase in the...