For most of us, finding out that we are getting a sizable tax refund is great news. But if you’ve recently filed a Chapter 7 bankruptcy, hold your celebration. That refund may not be yours. You have a bankruptcy estate When you file bankruptcy, all of your assets become a “bankruptcy estate”. The estate includes […]
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How To Spend Money Before Filing Bankruptcy
Trying to spend down cash before filing bankruptcy? It’s time to talk about the float. Not the root beer float, though that would be more fun. The bank “float”: the period between writing a check and it clearing your bank. (We’ll talk about what to spend on before filing bankruptcy, too). When you file bankruptcy, […]
Who To Pay After Bankruptcy
You’ve filed bankruptcy. Your creditors are stayed. A bankruptcy discharge is ahead. You’re out from under unrelenting pressure to pay creditors. But don’t let your sense of relief keep you from planning: who should you pay now that you’re in bankruptcy? Paying bills after filing bankruptcy Two legal realities drive who needs to be paid […]
Means Test As Three Dimensional Chess
Means test issues in bankruptcy extend far beyond how much income you have. The allowable expense deductions for your life after filing bankruptcy count, too. After an hour long initial consultation with a client, these complexities became clear when the client tagged the means test with incredible clarity. It’s like playing three dimensional chess Pretty […]
Keep Your Tax Refund Despite Filing Bankruptcy
Usually, we’re touting pre bankruptcy planning: know what’s exempt, what debts will survive bankruptcy, and arrange your affairs to lose as little as possible to a bankruptcy trustee. There’s one bit of tax and bankruptcy planning that you can do after you file bankruptcy. That’s despite the fact that bankruptcy is generally a snapshot of […]
Terminate Cell Phone Penalties in Bankruptcy
I’m accustomed to advising those on the verge of filing bankruptcy about big ticket debts like mortgages, student loans, and back taxes. I was surprised when a client, resigned to letting her house go to foreclosure after the bankruptcy, was absolutely delighted to know that she could free herself from her unhappy relationship with Verizon Wireless […]
Free Retirement Advice By Professional Advisor Comes Up One Tool Short
The 65 year old woman featured in the newspaper’s Money Makeover series got a free review of her financial situation by a professional financial advisor. Over her working lifetime, she’s been the source of financial support for an extended family, including her aged mother and a disabled sister. Her aid to her family has come […]