It is probably not surprising to many that the West Virginia company responsible for the chemical spill that caused widespread water contamination filed for protection under Chapter 11 of the Bankruptcy Code last week. Bankruptcy Court documents revealed that the company is estimated to be worth between $1 million and $10 million but has liabilities within the same range. More details will follow with the filing of more complete bankruptcy forms. The chemical spill affected 300,000 people and … [Read more...]
Tips for getting your insurance claim paid
January 17, 2014 by
None of us like to deal with insurance companies but especially when they give us grief over a valid insurance claim. Typically, we have already had to deal with whatever circumstance caused the need to file a claim (i.e. car accident, problems with our home, etc.) and dealing with a claims adjuster and the insurance paperwork is just too much to handle. However, there are things you can do to help ease the process like knowing exactly what is covered rather than accepting what the insurance … [Read more...]
Will new mortgage rules simply the process for borrowers?
January 17, 2014 by
The Consumer Financial Protection Bureau aims to use new rules to take the mortgage loan process back in time prior to the housing crisis. With new rules designed to simplify the mortgage process and make it more transparent, they hope to create a safer mortgage market to prevent mistakes that lead to the housing and mortgage crisis. CFPB’s director said that these rules would use “basic building blocks” to return to responsible lending and customer service. To read more about the new … [Read more...]
What do I need for my bankruptcy consultation?
January 16, 2014 by
Filing a bankruptcy case requires a lot of information; however, your bankruptcy attorney will help you by walking you through the process and advising you what information you need to provide to the court. During your initial bankruptcy consultation, the attorney will need key information such as your current income, household expenses and other information relative to your personal finances to give you the best advice regarding a bankruptcy case. While many law firms have a customized intake … [Read more...]
Have you committed tax fraud?
January 16, 2014 by
According to the Internal Revenue Service, almost one-fifth of taxpayers violate the tax code in some way each year. Individual taxpayers rather than corporations commit the majority of these violations. However, unless there are signs of fraud, the IRS will usually assume that a mistake has been made through either negligence or careless error. When tax auditors find suspicious activity, the IRS Criminal Investigation section will launch an investigation to determine if the acts were tax … [Read more...]
Reporting online sales on your federal tax return
January 15, 2014 by
Many people have turned to online sales as a way to earn extra income or as a way to support their family in this depressed economy. Unfortunately, the Internal Revenue Service expects you to report your online sales as income on your federal tax return so that you can be taxed on this income. Even items you make as a hobby then sell them may be taxed. There are a few exceptions but not very many. One exception would be if you sold a used, personal item through an online website (just as if … [Read more...]
Can Detroit’s art collection be saved from a bankruptcy auction?
January 15, 2014 by
As Detroit’s bankruptcy continues, many in the art community are worried that the bankruptcy trustee will sell pieces from the city’s art collection to help pay its staggering debt. The Ford Foundation, Kresge Foundation and the John S. and James L. Knight Foundation have pledged $330 million toward a deal that would help save priceless works of art at the Detroit Institute of Arts from being sold at a bankruptcy auction. The museum is working diligently with groups such as this to raise … [Read more...]
What happens if I default on my student loans?
January 14, 2014 by
Student loans are typically non-dischargeable in bankruptcy so what happens when you cannot pay your student loans. If you default on a federal student loan, the Department of Education has several options available to it to collect on the debt. For example, if you are entitled to a federal tax refund and have defaulted on your student loan, the DOE may take your tax refund to pay the loan. In some cases, the DOE may garnish your wages to collect the debt or seize other federal benefits for … [Read more...]
Failing to file a federal tax return can be a crime
January 14, 2014 by
Tax time - most of us hate this time of year unless we are entitled to a big, fat tax refund from Uncle Sam. Gathering information, finding documents, copying forms and worrying about how to pay our taxes can be stressful. However, failing to file a tax return when you know that you are required to do so can be a criminal violation of the law. Even though the IRS does not prosecute most cases, it can and does choose to do so when the acts are blatantly fraudulent or illegal. To find out … [Read more...]
