New York residents who are considering the possibility of filing bankruptcy protection might be wise to study the relevant laws on the subject. There are several different types of bankruptcy filings, each of which with their own conditions and benefits. It is essential to understand them in order to find the right kind of filing for each individual situation.
IRS Eases Offshore Voluntary Disclosure Program for Non-willful Tax Evasion
The Internal Revenue Service said Wednesday it would make major changes in its offshore voluntary compliance programs to provide new options to help both taxpayers residing overseas and those residing in the United States. The changes announced Wednesday make key expansions in the streamlined procedures to accommodate a wider group of U.S. taxpayers who have unreported foreign financial accounts. The original streamlined procedures announced in 2012 were available only to non-resident, non-filers. Taxpayer submissions were subject to different degrees of review based on the amount of the tax due and the taxpayer's response to a "risk" questionnaire. The expanded streamlined procedures are available to a wider population of U.S. taxpayers living outside the country and, for the first time, to certain U.S. taxpayers residing in the United States.
How to determine if Chapter 7 or Chapter 13 works for you
Most people who are in debt never expect to find themselves there. In many cases, a combination of factors beyond a person's control is responsible for large amounts of debt: a job loss, a divorce, or a medical emergency. For these people, filing for personal bankruptcy might be the best way for them to regain their financial footing.
Inherited IRA IS Not Exempt In Bankrupcty
A unanimous Supreme Court has held that the funds in an inherited IRA do not qualify for exemption in bankruptcy because they do not share the same characteristics as "retirement funds" that traditional IRAs have. Here are the facts of the case - In 2000, Ruth Heffron established a traditional IRA and named her daughter, Heidi Heffron-Clark, as the sole beneficiary. When Ms. Heffron died the next year, the IRA, worth at the time about $450,000, passed to Heidi as an inherited IRA. Heidi elected to take monthly distributions from the account.
New student loan rules may help some borrowers, but not all
As we have written about before on our personal bankruptcy blog, one of the most bedeviling types of debt for consumers is student loan debt. This is because it can be very difficult to wipe out student loan debt in bankruptcy, unlike other forms of debt such as credit card debt. As a result of this difficulty, there has been a lot of discussion in the halls of Congress and in the White House about how to relieve some of the pressure people feel with student loan debt -- which, these days, can easily reach $100,000 or more.
Have an old debt? Bankruptcy isn't your only option
Having large amounts of outstanding debt is an understandable reason for choosing to file for bankruptcy. It might seem as though there are few viable options for people trying to eliminate their debts, although Chapter 7 bankruptcy might be one of them. An experienced attorney can help guide people who find themselves in this kind of situation to determine if bankruptcy -- either Chapter 7 or Chapter 13 -- could prove to be useful to them.
