What is Mortgage Forgiveness Debt Relief Act and Debt Cancellation?

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in [...]

Cancellation of Debts: Are they forgiven?

We have been asked this question many times, and frankly, we don’t even know the full answer until someone pointed us to the right answer. Here, we are posting mainly the excerpts from IRS website. Also, we do not provide any tax law information and neither we are competent in these matters. If you have [...]

Are Federal Owed Taxes Dischargeable in Your Bankruptcy?

How to Get Rid of Back Federal Taxes in Bankruptcy? We have been asked this question many times. As a matter of fact, Congress has already provided this important tool in the Bankruptcy Code but the important thing is that one should carefully use it without any collateral impact on the bankruptcy case. Let us [...]

What is the proper venue for a bankruptcy case?

Under section 1408 of the title 28 of the United States Code, a debtor may commence a bankruptcy case in any federal district in which the domicile, residence, principal place of business, or principal assets of the debtor have been located for 180 days than any other district. Here, the language clearly describes “the longest [...]

What is the role of a Bankruptcy Trustee?

As we know that in every case of chapter 7 or chapter 13, a trustee is appointed by the US trustee. If there is an estate, there shall be a trustee. The trustee’s basic role is to represent the interests of the unsecured creditors. The trustee’s duties in carrying out this role are provided in [...]

What is Automatic Stay and What Happened on Its Violations?

Bankruptcy and automatic stay, law office of malik ahmad, las vegas bankruptcy and chapter 7 attorney

What is Bankruptcy Rule 2004 Exam?

This is a common question yet not fully addressed by us previously. In this session, we will make an attempt to define the scope and extent of Rule 2004 Examination. This is a very broad pre-litigation discovery device which allows examination of any person, under oath, on any matters which relate to the “acts, conduct, [...]

Which Reaffirmation Are Binding?

We had discussed the definition of ‘surrender’ and ‘reaffirmation’. In this post, we would only discuss reaffirmation. Some time creditors lure the debtors to sign reaffirmation with various tactics like lowering the interest rate, shortening time period etc. The Code does not completely bar reaffirmation, it however, restricts them significantly. Section 524(c) and (k) sets [...]

Student Loan Dischargeability-Hardship Test?

Student loan is one of the exceptions to discharge under our Bankruptcy Code. The term qualified education loan is defined in section 221(d) (1) of the Internal Revenue Code to mean any indebtedness incurred y the taxpayer solely to pay qualified higher education expense. The IRS code also provides that the qualified higher education expenses [...]