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

October 2014 Archives

In 2015, various tax benefits increase due to inflation adjustments

For tax year 2015, the Internal Revenue Service announced today annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2014-61 provides details about these annual adjustments. The tax items for tax year 2015 of greatest interest to most taxpayers include the following dollar amounts -

Cancer treatment and medical debt

According to findings from several studies, nearly 33 percent of cancer survivors in New York and around the country say that they have suffered financial hardships due to their illness. The American Society of Clinical Oncology says that younger patients tend to suffer the most from these hardships. Furthermore, these hardships may last for several years after receiving treatment even if a patient has insurance.

How is a discharge obtained in a Chapter 7 bankruptcy?

One of the most anticipated moments of a bankruptcy case for the debtor is the discharge. This is the wiping out of certain debts, allowing the individual going through the bankruptcy process to begin on a fresh financial footing. The discharge is granted by the bankruptcy court upon completion of appropriate steps by the debtor and creditors.

IRS announces 2015 pension plan limitations; Taxpayers may contribute up to $18,000 to their 401(k) plans in 2015

The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment. Highlights include the following:

Overview of chapter 7 bankruptcy eligibility

Bankruptcy is designed to give people who need it a fresh start financially. For people in New York, Chapter 7 may be a viable option. Businesses, including partnerships, are also eligible for Chapter 7, but only qualified individuals will be able to discharge their debts. However, certain requirements must be met to file the action, and not all debts will be discharged. Property liens, for example, will not be affected by completing the bankruptcy process.

How Chapter 13 works

Citizens of New York who are researching different types of debt protection and bankruptcy filings may be considering filing under Chapter 13 of the Bankruptcy Code. This requires careful attention to detail and thorough reporting of all requested information, but the process is straightforward and can be accomplished with relatively few fees or levies.

Some advantages for Chapter 13 bankrutpcy

Many New York residents considering bankruptcy avoid filing for it because they fear that they will lose their homes or other property. However, Chapter 13 bankruptcy helps individuals, even those who are self-employed or own an unincorporated business, adjust payments on their outstanding debt, and the filer may be able to avoid losing some of their assets.