Jeffrey M. Rosenblum, P.C.
A Fresh Start

May 2013 Archives

Even with insurance, cancer patients face financial challenges

Many Long Islanders may have heard of studies showing that medical expenses are the leading factor behind personal bankruptcy filings in America. A new study takes that sobering statistic in a new direction. The study, published in the journal Health Affairs, found that Americans diagnosed with cancer were more than twice as likely as cancer-free Americans to file for Chapter 13 or other forms of bankruptcy protection. That held true even for patients with health insurance.

IRS Reminds Those with Foreign Assets of U.S. Tax Obligations

The Internal Revenue Service recently reminded U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2012, that they may have a U.S. tax liability and a filing requirement in 2013.The filing deadline is Monday, June 17, 2013, for U.S. citizens and resident aliens living overseas, or serving in the military outside the U.S. on the regular due date of their tax return. Eligible taxpayers get two additional days because the normal June 15 extended due date falls on Saturday this year. To use this automatic two-month extension, taxpayers must attach a statement to their return explaining which of these two situations applies.

IRS, Australia and United Kingdom Engaged in Cooperative Effort to Combat Offshore Tax Evasion

The tax administrations from the United States, Australia and the United Kingdom announced on May 9th a plan to share tax information involving a multitude of trusts and companies holding assets on behalf of residents in jurisdictions throughout the world.

CAN TAX DEBT HELP A CHAPTER 7 FILING?

In 2005, Congress made substantial changes to the bankruptcy code. The resulting law made filing for bankruptcy much more difficult for consumers including that a consumer debtor is required to meet the means test in order to qualify for filing a Chapter 7 petition. However, under the new law, only consumer debtors are required to meet the means test. If more than fifty percent of the debts are not consumer debts, than an individual debtor is not a consumer debtor and, accordingly, does not have to meet the means test.In general, consumer debt is debt that was incurred by an individual primarily for a personal, family or household purposes. However, tax debt that is owed to a government and is an obligation incurred by law is not considered to be consumer debt.

Foreclosures fall in U.S. but rise sharply in New York City

Residents of New York are probably aware of the changes in foreclosure rates over the past few years. Foreclosure rates are rising by a huge amount in New York City, even as they fall nationwide. According to a report by the real estate industry group RealtyTrac, foreclosure rates nationwide were down 23 percent in April from the year before, to their lowest level since February 2007.

Son of founder buys company out of Chapter 7

Long Island businesses and individuals who are saddled with overwhelming debt may get their finances back under control through declaring bankruptcy. There are several types of bankruptcy under U.S. law, and one of the most effective is Chapter 7, or liquidation bankruptcy, as it is sometimes called. It differs from other types of bankruptcy in some important ways.