A Cautionary Tale While there are both state and federal laws to protect you from creditors, laws are also in place to protect creditors and allow them the opportunity to collect. You can use this double-edged sword to your advantage with the help of a skilled attorney. After helping thousands eliminate their debt and having many conversations with other attorneys, accountants, and financial advisors, here are Read More
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The Z Law Difference
Zimmelman Law is not your typical bankruptcy law firm. Here’s what sets Z Law apart from other bankruptcy law firms: We Listen - While Zimmelman Law possesses a wealth of knowledge and experience, one of our strengths is our ability to listen. Listening is the only way to learn about you, your case, and your goals. We can then ask the right questions to identify any potential obstacles or issues with your case. Read More
Alternatives to Bankruptcy
More Than Just Bankruptcy Bankruptcy is not the right solution for everyone. In fact, there are many reasons not to file for bankruptcy relief. Filing for bankruptcy relief can potentially put significant assets at risk, or you may not qualify for the type of bankruptcy that would otherwise be the best option. Every case is different, and there is no single solution. An experienced bankruptcy attorney Read More
PPP Loans and Taxation
Three weeks ago I wrote a post explaining when forgiven debt is taxable. In light of the current pandemic and three stimulus packages that have been passed, this topic deserves some additional attention. As part of two of the three stimulus packages, Congress provided funding, through the U.S. Small Business Administration (SBA), for the Paycheck Protection Program (PPP). The PPP program provides loans to small Read More
What about joint tax filings where only one spouse files for bankruptcy relief?
Over the past few weeks we discussed what may be taxable, how to eliminate taxes, and what happens to tax refunds in a bankruptcy. This post is going to address instances where a couple files a joint tax return, but only one spouse files for bankruptcy relief. First, let me remind you that it is possible for one spouse to file bankruptcy while the other does not. I will go into detail on how that works in a later Read More
Tax Refunds and Bankruptcy
Every year as we prepare our taxes we hope that we’re entitled to tax refunds. Most people view tax refunds as a bonus and get excited that they’re receiving money from the government. It’s not that simple. A tax refund is essentially the government paying you back for money you lent them over the past year. Sadly, you do not get interest on that loan. A tax refund is the difference between the taxes you had Read More
Do I have to pay taxes on…?
Another question I receive frequently is whether one has to pay taxes on debt discharged in a bankruptcy. The answer is no. That doesn’t make for much of a blog post, but it does segue nicely to the topic of where debt and taxes do come together. While debt discharged in bankruptcy is not taxable, when debt is eliminated outside of a bankruptcy it can be taxable. One may choose not to file bankruptcy to Read More
Discharging Taxes in Bankruptcy
They say that nothing in life is certain, except death and taxes. Most people assume that personal income taxes cannot be discharged in a bankruptcy. The general rule with discharging any debt in a bankruptcy is that debt is dischargeable unless it falls under one of the many exceptions listed in the Bankruptcy Code. Taxes are the first exception to discharge listed in the Bankruptcy Code. This should not come as Read More
Let’s Talk About Taxes
While it feels like we are stuck in a never-ending 2020, it’s the middle of February 2021 and tax returns are due in two months. It’s possible some of you have already filed your returns but most are still getting paperwork together and will file closer to April 15th or go on extension. Either way, I am going to spend the next few blog posts discussing taxes and how they relate to debt, bankruptcy, and Read More
Debt Collection: Part 2
In our last post, we mentioned that you cannot go to jail for not paying your bills (with child support being the main exception). Creditors do have certain rights afforded to them under state and federal law, but there are laws in place to protect debtors from being harassed by aggressive and abusive creditors. Here’s what usually happens in the debt collection process: once you miss a payment, a creditor can Read More
