It’s not a phenomenon that’s affected people filing New York bankruptcy yet, but it might become one in the not-so-distant future: Some federal courts in other states are ruling that tax debts that would otherwise be dischargeable are in fact not.
Here’s the background. Typically, discharging a tax debt requires the debtor to meet three . . . → Read More: Bankruptcy Courts Becoming Less Forgiving of Late Tax Returns
In discussing reverse mortgages and New York bankruptcy, I demurred on whether they “work as intended.” As a brief reintroduction, a reverse mortgage gives the homeowner equity payouts over time rather than the homeowner “purchasing” equity with monthly payments. The Consumer Financial Protection Bureau (CFPB) recently issued a report that addressed the effectiveness of reverse . . . → Read More: CFPB Reports on Homeowners’ Reverse Mortgage Complaints
There’s a lot of bad reporting on student loans out there. Frequently, you will hear about how student loans aren’t a problem because the people with high balances are a tiny minority of all student loan debtors, or that higher debts tend to coincide with higher incomes. The issue isn’t that these points are strictly . . . → Read More: Student Loan Defaults Mounting Despite Income-Based Repayment Programs
A reverse mortgage is when a homeowner who owns a property free of any other mortgages and is at least 62 years old borrows money against the home’s equity. It’s “reverse” in the sense that the home’s equity decreases as the money is paid out to the homeowner instead of rising with each mortgage payment. . . . → Read More: Reverse Mortgages and New York Bankruptcy
You may have heard stories of underwater homeowners walking away from their homes and allowing the banks to foreclose on them without a contest. This might not sound so awful if you think you have no hope of catching up on mortgage payments, but it’s a very bad idea for multiple reasons.
. . . → Read More: 4 Reasons ‘Walking Away’ From an Underwater Home Is a Bad Idea
Usually debtors in chapter 13 New York bankruptcy concern themselves with what happens to their tax refunds, which trustees will keep for the creditors, but there’s another way the tax code intersects with bankruptcy—but this time to the advantage of debtors: deductions.
The reason tax deductions can make a difference for debtors . . . → Read More: Save Money in Chapter 13 by Ferreting Out Tax Deductions From Payments
So there’s research showing that filing chapter 13 New York bankruptcy may reduce mortality rates and delay or prevent foreclosure. How exactly does it accomplish this, and how can it best be used to debtors’ advantages?
First of all, like other chapters, upon filing chapter 13 bankruptcy, a debtor is immediately protected . . . → Read More: 5 Advantages Chapter 13 Provides to Homeowners
The topic of income tax refunds comes up periodically in New York bankruptcy. It’s important because in chapter 13 cases, New York trustees will demand the full refund to repay the creditors, and in chapter 7 it’s an asset that will be taken by the trustee if the debtor can’t protect it with . . . → Read More: 4 Debts That Are Subject to Income Tax Refund Offsets
I recently wrote about priority claims in New York bankruptcy, and notably, the types of claims with the highest priority are called “domestic support obligations.” Readers probably have a fairly good idea of what these might entail, but the role the play in bankruptcy isn’t so obvious. Because bankruptcies often coincide with divorces, . . . → Read More: What Are ‘Domestic Support Obligations’?