How To Handle A Surviving Tax Lien After Chapter 7 Discharge

Old taxes may be discharged in Chapter 7 bankruptcy, subject to several conditions. Sometimes my bankruptcy clients contact me after they received their discharge and complain that there is still a tax lien on the title to their home even though they understood that the bankruptcy would discharge their IRS debt. Why is there still a tax lien if their taxes were discharged. Continue reading

Client Seeks Bankruptcy To Avoid Imputed Income After A Foreclosure On Investment Property

Some people facing mortgage foreclosure consider filing bankruptcy to preclude liability for deficiency judgments. Deficiency liability is not the only problem associated with foreclosure; another issue is income tax from imputed income when a lender foregives part of a mortgage note for a property other than a primary residence. Continue reading

Trustee Pursues Next Year’s Tax Refund This Year

In previous years Chapter 7 trustees would inquire about debtors’ income tax refunds after the first of the year through May or June. They would ask if the debtors had filed their tax returns, if they had received a refund which was still in their bank accounts, and if they had not filed, whether they expected a tax refund when they would file. Continue reading