Bankruptcy Sensei

Instructions for Handling the 1099-a and 1099-c After Foreclosure

admin — Sat, 11 Feb 2012 03:43:14 +0000

Handling the Different IRS Forms 1099-a and 1099-c

Did Your Mortgage Lender Send You a 1099-A and 1099-C? Wondering what the difference is between the two and need some instructions for handling these forms? Let’s dig into some of the issues your are facing.

The 1099-A

Mortgage lenders use IRS Form 1099-A to inform the [...]

Is Selling a Secured Asset Before Bankruptcy Fraud?

Brian Methner — Thu, 23 Jun 2011 19:25:47 +0000

Legislation for Bankrutpcy Discharge of Private Student Loans Goes To Next Step

admin — Thu, 09 Jun 2011 17:14:00 +0000

H.R. 2028, which would make private student loans dischargeable in bankruptcy, has taken the next step in the Congressional legislative process. The bill was introduced by Congressman Steve Cohen (Democrat from Tennessee) on May 26, 2011 and it has 17 co-sponsors including Jarid Polis (Democrat from Colorado). The bill has now been referred to the [...]

Surplus Foreclosure Funds Due Owner Exempt Under Colorado Homestead

admin — Sat, 04 Jun 2011 13:05:01 +0000

In the rare event (in this depressed housing market) that a foreclosure sale yields surplus funds beyond that needed to satisfy the mortgage, the prior homeowner receives those funds; those funds are protected from other creditors and the bankruptcy trustee under Colorado’s Homestead exemption.

May 10, 2011, Colorado Bankruptcy Court judge B. Campbell issued the [...]

Why the IRS Took Your Tax Refund Even Though You Filed Chapter 13 Bankruptcy

admin — Tue, 31 May 2011 18:51:40 +0000

Many debtors and even many bankruptcy attorneys are surprised to find out that the IRS kept a tax refund to pay the debtor’s tax debt notwithstanding the fact that the debtor filed chapter 13 bankruptcy. This situation typically arises for chapter 13 bankruptcies filed between February and May; reason being, most debtors have just filed, [...]

When “Life” Happens In Chapter 13 Bankruptcy, There are 4.5 Options for Making Changes!

admin — Mon, 30 May 2011 19:58:00 +0000

Chapter 13 bankruptcy is the most powerful debt relief tool. Clients are often shocked to hear that because they think they are under the control of a trustee for 5 years and cannot live a normal life. That is not true. Sure, chapter 7 bankruptcies can wipe out debt, but chapter 7 bankruptcy can only [...]

Can I Buy A Car After Filing Chapter 7 Bankruptcy, but Before Discharge?

admin — Thu, 26 May 2011 15:36:36 +0000

Question:

My friend filed for chapter 7 bankruptcy. He completed the 341 meeting of creditors about two months ago. He is close to being discharged. Can he buy a car before discharge? Does he need the trustee’s approval? He said that his mother was going to give him the money to do so!

Answer

It [...]

Divorce and Bankruptcy, Divorce Decree Does Not Affect Liability to Bank!

admin — Sun, 22 May 2011 13:00:47 +0000

Question:

My divorce was recently finalized; am I responsible for all debt that my ex-husband was awarded after he files for bankruptcy?

Answer:

I assume what you mean is that in the divorce decree, the Family Court ordered your husband to pay certain marital debts? The problem you encounter is common, unfortunately. The divorce [...]

What’s Worse; Bankruptcy or Trying to Wait Out My Creditors?

admin — Thu, 19 May 2011 22:48:00 +0000

Question:

I am considering filing chapter 7 bankruptcy. My credit is already bad (526), is it worse to have a bankruptcy or charge offs and collections on my credit report? At this point Discover and American Express put a charge off against my credit; will a chapter 7 banrkuptcy stop this?

Answer:

Bankruptcy actually helps [...]

Bankruptcy Success Commandment: Know The Value of Thy Assets!

admin — Thu, 19 May 2011 14:00:15 +0000

Next to your budget (see this post), knowing the value of your assets is an important key to bankruptcy success. At first glance, this admonition may seem obvious, but most people really don’t know the value of their stuff and tend to overestimate. The problem with overestimating is that what you can keep and [...]