Category Archives: After Bankruptcy Tips

Are the fees I paid my bankruptcy lawyer and trustee tax deductible?

Posted on by
Reply

Basic Information Bankruptcy fees paid to lawyers and trustees can be either a tax deduction or not and it will depend on the type of bankruptcy filed, Chapter 7 or 13, and on the items included in the petition. In order to take any bankruptcy expense as a deductible item on your taxes, you will need to file a Form 1040 and itemize your expenses. If you file using the short form, you will not be allowed to claim any itemized deductions.

Deductions Allowed by IRS
Regular legal expenses for Chapter 7 and 13 bankruptcies and the filing fees, $299 for Chapter 7 and $274 for Chapter 13, are not deductible as defined in IRS Publication 908, the Bankruptcy Tax guide, which rules these fees as personal expenditures. However, if your attorney spends time communicating with the IRS regarding any tax issues you have; those fees are deductible and will be listed as a miscellaneous expense on your Schedule A tax form. Any fees that you pay to either your attorney or an accountant for the preparation of your taxes while you are in a bankruptcy proceeding will be taxable itemized deductions on your Schedule A Tax Form.

Allowable Expenses as Tax Deductions
Any item paid in your plan to a trustee that would normally be a tax deduction, such as back federal or state taxes, spousal support, delinquent mortgage payments or mortgage interest, can still be taken as a personal tax deduction. These are expenses that you are paying through the bankruptcy distribution process by your payment plan administrator, the trustee, and it is the same as if you were writing the check yourself. It is a good practice to ask an accountant or your attorney if you are not sure whether an item is deductible or not.

Continue reading →

Two ways to buy a house being after bankruptcy in Michigan.

Posted on by
Reply

Being declared bankruptcy under one of the bankruptcy-protection act prove to be devastating to many. This “many” includes the home owners or buyers. The buyers dream get shattered being declares a bankrupted personal. No banks or mortgage firm will allow him or her to have the house he or she wants to purchase. But there’s a couple of ways which can let them to have their dream home.
1. Be Patient: Wait for one or couple of years before buying a house. In the period one should either pay off the debt completely or in maximum. A retirement plan or 401(k) assets is also helpful in this matter. The individual, also need to remember, should save as much as possible during this period as the down payment will be high and paying that needs a deposit not a loan or credit as it will become added-burden on them.

debt2

Continue reading →

Life after Bankruptcy

Posted on by
Reply

With many people they feel relief after bankruptcy for others they feel a sense of failure. The important part to remember is to look forward in re-establishing your credit
Many suffer from guilt after being bankrupted. They removed themselves from economical outing like going to seminars or auctions or visiting the bank. They thought of themselves as the social outcasts who are marooned on a distant galaxy for not keeping the promise of paying.
But they forget that mistakes make a man wiser by teaching him a lesson; they also forget that past shouldn’t be hold on as they hold back. So being bankrupted is not an end but can be considered as the beckoning to new life. This new life will fill with his experiences and the lessons he had learned or gathered from the mistakes. So he should start afresh again to regain their position, their life and his status.

bankruptcy-banner.jpg

Continue reading →

Keep Bankruptcy Records.

Posted on by
Reply

There are a lot of people who every year find themselves in the grip of filing for bankruptcy.  For many of these people, it can be a humbling and depressing time.  Americans don’t like to lose and they don’t like to feel less than others around them.  Still, for many people, it is the only option available to them.

After filing for bankruptcy, people will get a copy of the bankruptcy records which includes the date that the bankruptcy was discharged.  This is important for several reasons.  One reason to keep bankruptcy records is so that people can still buy a house.  The mortgage company will ask for a copy of the discharge records in order to decide on if they will even finance the loan and if they decide to finance it, they need to decide on the interest rate for the term of the loan.

Continue reading →

Bankruptcy Loans (Believe It Or Not!)

Posted on by
Reply

Have you recently filed for bankruptcy? A bankruptcy loan can help you salvage your finances, and can also help to improve your credit rating. It may sound far-fetched, but you can actually be approved for a loan after filing for bankruptcy. Without a doubt it is difficult, but do keep in mind is that immediately after bankruptcy, you are not likely to have any debts, which is about the only factor that’s going to be working in your favor at this point. You do not have to apply for a bankruptcy loan before applying for bankruptcy.

Continue reading →

What Happens Once You File For Bankruptcy

Posted on by
Reply

What’s Personal bankruptcy? Still confused? Therefore, it’s important that you will get an attorney who are able to explain the entire concept for you. Promptly every month without having neglect. Effects of the Personal bankruptcy Dismissal Dismissal can result in negative effects for that debtor, leading to more problems than just before declaring personal bankruptcy. Individual Voluntary Arrangement It’s a formal proposal through the individual to his creditors to re-pay a portion of total financial loans on the certain time period (generally it is almost always five to seven years).

Continue reading →

Emerge From Personal bankruptcy With Loan Alternative

Posted on by
Reply

To be able to do that, a legal court will appoint a trustee to liquidate your assets that won’t be excused from collection. Within the situation of indigent borrowers, it’s possible that creditors will get little if any money toward the payment of the obligations. You will be needed to create tax statements, evidence of earnings for time, and perhaps a certificate demonstrating required consumer credit counseling classes – mandatory before filing. Choose a lawyer who is employed by a bigger firm. It’ll robotically create an environment of trustworthiness and from there let’s start, you’ll be easily led towards your path. Choose a lawyer whose costs are fair. Chapter 11 Personal bankruptcy is declared individuals companies that want to remain viable but wish to pressure creditors to reorganize their debt.

Continue reading →

Bankruptcy Help – 5 Things You Can Do After Bankrupcy

Posted on by
Reply

One of the issues that people considering bankruptcy often worry about is that they will never get credit after filing a Chapter 7 or Chapter 13. That, or the fact that the bankruptcy will stay in their credit report for 10 years from the filing, which fact would serve as warning to future creditors that you might turn out to be a bad risk. But neither is true, however. While a bankruptcy will indeed stay in your credit report for ten years, it does not necessarily mean that you can no longer get new credit.

Furthermore, only a Chapter 7 bankruptcy will stay in your credit report within 10 years. If you filed under Chapter 13, the period is shorter – about five to seven years. Worst case scenario: You can get a new loan but with high interest rates or fees. Now, that’s not so bad, is it? Especially after considering that even people with good credit can get bad loan deals. The fact remains that no matter how bad or good your credit line, it is not a guarantee that you are going to get approved for a loan or get low interest rates. In other words, a bankruptcy may damage your credit but only to an extent. It does not necessarily mean that you will never qualify for a new credit. What damage there is, you can always rebuild. And that is what you should be focusing on, instead of wallowing in the pits of Credit Doom.

#1 CAN DO: Keep a Credit Card out of the Bankruptcy

When filing for bankruptcy, the rule is that you have to make a schedule. A schedule is a list of all assets and liabilities that you are required under the law to disclose before a bankruptcy case could commence. If you owe money on a credit card at the time you file for bankruptcy, you have to include that in the schedule. Otherwise, you may be sued for perjury and penalized under federal law. What’s worse, if you fail to disclose unpaid credits like this, you may be denied discharge of all your debts.
Continue reading →