Monday, September 29, 2008
Can my taxes be eliminated in bankruptcy?
There is a test that taxes need to pass in order to be discharged. Typically they must be at least three years old,
you must have filed them with the IRS at least two years prior to your bankruptcy, and the IRS cannot have assessed them within
240 days, and the taxes may not be an IRS lien. IRS liens may sometimes be eliminated in Chapter 13. IRS liens
will not be eliminated through Chapter 7 filings.
12:38 pm edt
Monday, September 22, 2008
What is the "means test" that I keep reading about?
When the Bankruptcy laws changed in 2005 it made is so you must pass the means test in order to qualify for a Chapter 7 bankruptcy.
Your monthly income must be below the specifided median for your state. The Median applicable to you is determined by
the number of people in your household. Currently in Nevada the applicable median incomes are as follows (determined
by gross income):
1 person: $45,642
2 people:
$57,860
3 people: $65,032
4 people: $67,977
5 people: $74,877
6 people: $81,777
7 people:
$88,677
8 people: $95,577
3:52 pm edt
Wednesday, September 17, 2008
What happens if I "redeem" property?
If you have an asset that is not exempt, you may pay the value of the property to the Trustee in order to keep it. This
is a way for the Trustee to use the money you pay to keep your asset, avoiding having to sale the asset at auction, and
distribute the cash value among your creditors.
7:54 pm edt
What will happen to me if I neglect to list all of my assets on my bankruptcy petition?
Listing all of your assets in your bankruptcy petition is very important,. Failure to do so could be considered fraud
and you could risk being fined or going to jail. When you sign your bankruptcy petition it is under penalty of perjury,
so be sure you and your attorney is as thorough as possible when preparing your petition.
7:47 pm edt
What assets are usually not protected when I file bankruptcy?
If you qualify to use Nevada exemptions for your bankruptcy, you can use a $1,000 wildcard exemption for any unprotected
assets. Examples of unprotected assets are: cash, stocks that are not part of a qualified 401k or IRA account, money
in bank accounts, boats or recreational vehicles, art, furs, jewlery, annuities, and cash value insurance policies.
How does a Chapter 13 bankruptcy work?
A Chapter 13 bankruptcy consists of payments made on a monthly basis to your bankruptcy trustee. The period of time
in a chapter 13 typically ranges from 36 to 60 months. A Chapter 13 can be filed if you do not qualify for a chapter
7, need to pay IRS debt, or are trying to get caught up with secured payments, such as a home or vehicle.
7:38 pm edt
