While having to file for bankruptcy is certainly not anybody’s idea of a good time or something to strive for, it is not the end, but rather a beginning or a fresh start. If you are considering filing for bankruptcy, you are in the company of some very famous and successful people. Abraham Lincoln – while his face is currently on a penny, at one time, didn’t have a single cent to spare. He tried his hand at many occupations as a young man, including buying a general store in New Salem, Illinois, in 1832. Honest Abe turned out to [...]
Sometimes my clients are forced to file for bankruptcy because their credit was ruined through fraudulent transactions by people they knew or they were victims of stolen identity. Unfortunately, these days most of us can find our selves victims of stolen identity. Here is what you can do to prevent further damage. Placing a Fraud Alert By placing a fraud alert on your consumer credit file, you let creditors know to watch for unusual or suspicious activity in any of your accounts, such as someone trying to open a credit card account in your name. To place a fraud alert, call [...]
I have a lot of people calling me asking me if I do loan modifications. My answer is always, “No.” Why don’t I do them? It seems like it would be a lucrative business to get into? There are several reasons: 1. Lenders are not quick to perform the modifications – this puts the homeowner at risk. The filing of Notice of Default and subsequent Foreclosure will proceed as planned and scheduled. Negotiations for home modifications do nothing to stop or slow things down. I see it as a distraction. I will get frantic calls from people all the time [...]
This is a great video explaining the “basics of bankruptcy.” http://www.uscourts.gov/video/bankruptcybasics/bankruptcyBasics.cfm The video is limited in that it really only goes through the basics and cannot replace valuable guidance by an experienced attorney. Hope you find this informative.
Recently a few of my bankruptcy clients received their 1099-C forms from creditors whose debt was discharged in bankruptcy. While outside of bankruptcy cancellation of debt could lead to tax implications, debts discharged in bankruptcy should not. However, the fastest way to deal with the problem is to file Form 982 along with your tax return and mark box 1a. http://www.irs.gov/pub/irs-pdf/f982.pdf This same form can help people who are facing cancellation of debt “income” if they can show that they were insolvent at the time this income was incurred. Note, I am not a tax professional and this is not [...]