Debts Discharged in Bankruptcy are Not Taxable
Settled debts must be included in your income taxes If you settle a debt for less than you owe, the balance canceled or forgiven is taxable income. You must report any cancelled or forgiven debts as part of your gross income on your income tax return. The creditor will send you an IRS Form 1099-C […]
New Debt Limits for Chapter 13 Bankruptcy Take Effect
New debt limits for Chapter 13 bankruptcy took effect today. For cases filed on or after April 1, 2016, the new limits are: $394,725 for unsecured debt and $1,184,200 for secured debt. The former limits were $383,175 for unsecured debt and $1,149,525 for secured debt. The increase in debt limits essentially means that more people […]
How Long Will Bankruptcy Stay on My Credit Report?
Bankruptcy can be a life-changing decision. You should definitely educate yourself as much as possible about the ramifications before you file. Your specific circumstances will determine whether bankruptcy is the right choice for you. But you must keep your long-term objectives in mind. On a weekly basis I answer the question: How long will bankruptcy […]
Restrict Debt Collectors from Calling Cell Phones
In November 2013, the CFPB issued an Advance Notice of Proposed Rulemaking soliciting public comments on an array of issues relating to the debt collection practices of third-party debt collectors, debt buyers, and creditors. The CFPB should restrict debt collectors from calling cell phones. In a recent article, Todd Zywicki, law professor at George Mason […]
Boomerang Buyers Are Back!
Boomerang buyers are back from the housing crisis. “Boomerang buyers” is the name for homebuyers who had lost their homes to short sales and foreclosures during the housing crisis. Mortgage default rates skyrocketed in 2006, and in the years following nearly 9.3 million borrowers lost their homes. Today, over a million of these boomerang buyers […]
Fannie Mae: DC is Now a Judicial Foreclosure Jurisdiction
On March 16, 2016, Fannie Mae updated its Foreclosure Time Frames and Compensatory Fee schedules to recognize that DC is now a judicial foreclosure jurisdiction. The table specifies Fannie Mae’s maximum number of allowable days between the due date of the last paid installment (or “LPI”) and the foreclosure sale date. Fannie Mae had originally […]
You Do Not Have to Be Broke to File Bankruptcy
Megastar veteran rap artist 50 Cent declared Chapter 11 bankruptcy on August 3, 2015. In his bankruptcy schedules, 50 Cent (real name: Curtis James Jackson III) listed assets amounting to $24,823,899.18 and debts totaling $32,509,549.91. The monthly mortgage payment for his $8.25 million mansion is is $17,400, and the value of his vehicles (including […]
Get a Second Chance at Life with Bankruptcy
Dealing with unmanageable debts can completely take over your life. You don’t get that many opportunities in life to start over. But you can get a second chance at life with bankruptcy. Worrying about losing your car or home can keep you up at night. And debt collectors can make you afraid to answer your phone. […]
Can I Keep My Car If I File for Bankruptcy?
Most people need a car, either to get to work, to shop for groceries, to haul the kids around. If you live in Maryland or Virginia, you need a car, though less so if you live in DC. One of the questions I get asked all the time is, “Can I keep my car if […]