If you are struggling with your monthly bills, you are probably also dealing with collection phone calls and threatening letters. While you are working hard to meet these obligations, a lender could take action to repossess your property. When you buy something on credit, whether it is a car, home, or household appliance, the property […] The post Car Repossession Laws in New Jersey appeared first on .

Income tax debt is common among those who need to file Chapter 7 bankruptcy or Chapter 13 bankruptcy. Did you know that while income tax debt can get discharged in bankruptcy, there are strict and specific rules regarding which past-due income taxes are dischargeable?  The timing of your bankruptcy filing is very important. Read on to find out if your income tax debt can be discharged in bankruptcy, from noted Philadelphia bankruptcy attorney David M. Offen, Esq. Discharging Tax Debt During Your Bankruptcy When you get a bankruptcy “discharge,” you are no longer personally responsible for paying that debt. Most commonly, credit card debt, medical bills, and other unsecured debt gets discharged. Sometimes unaffordable collateral is surrendered in bankruptcy, such as a car or real property, and the underlying secured debt is discharged. Income tax is subject to bankruptcy discharge only if it meets certain criteria. Chapter 7 Bankruptcy Tax Discharge You can discharge past-due income tax in Chapter 7 bankruptcy if it meets certain criteria. Chapter 13 Bankruptcy Tax Discharge You can discharge past-due income tax as well as some other government fines and fees in Chapter 13 bankruptcy. When You Can Discharge Tax Debts Federal, state, and city income tax is dischargeable in bankruptcy when: The debt is at least three years oldTwo years has passed since you filed the related tax returnThe tax debt has not been assessed yet, or was assessed at least 240 days before you file bankruptcyYou have not paid any installments on that debt When You Can’t Discharge Tax Debts You cannot discharge tax debts if the conditions above are not met. You cannot discharge unpaid sales tax or unpaid employee withholding taxes. These are typically referred to as Trust Fund Taxes. You cannot discharge unpaid income tax if you filed a fraudulent tax return. You cannot discharge taxes assessed when you did not file a return. You cannot discharge tax debt that has been filed as a lien on real property. Talk with a Bankruptcy Lawyer About Your Tax Debt We have helped our clients discharge hundreds of thousands of dollars in income tax, and we can help you too. Even if it is clear to you that you cannot get your back taxes discharged because it does not meet the required conditions, call us. We have experience negotiating with the IRS and may be able to help you.  We can also advise you as to the timing of a potential future bankruptcy filing based on your unique situation. In addition, in many cases, filing for Chapter 13 Bankruptcy may bring you excellent results, depending on your situation. Call The Law Offices of David M. Offen for your free of charge, no-obligation consultation, to find out which approach can bring you the best results. Call us today. The post Discharge Taxes in Bankruptcy appeared first on David M. Offen, Attorney at Law.

BANKRUPTCY CASES CONTINUE TO BE FILED AT A LOW LEVEL Fewer Bankruptcy Cases Filed in November. Nationally, chapter 7 individual bankruptcies had 17,378 new filings in November, down 6.6% over October 2021. Chapter 13 individual bankruptcies had 10,336 new filings, down 2.9% over the prior month that had 10,642. We expect bankruptcy cases to remain at a low level for at least the next six months. BUT IF YOU NEED HELP NOW, THERE IS NO REASON TO WAIT. WE CAN HELP!! CALL NOW

When people say that they’re going on “disability,” what specific program are they talking about?  Disability benefits can come from a wide range of programs.  Typically, short-term disability benefits come from employment benefits, but long-term benefits are usually paid by one of two programs: long-term disability insurance at work or SSDI. SSDI is the Social […] The post What Is the Difference Between SSDI and Long-Term Disability in Pennsylvania? appeared first on .

When you sit down with one of our experienced Philadelphia bankruptcy attorneys for the first time, you will be asked many questions about your income, household size, type and amount of debt, and your marital status. When you declare bankruptcy in Pennsylvania and are married, you have the choice of filing as an individual or […] The post Can You File For Bankruptcy in Pennsylvania While Married and Not Involve Your Spouse? appeared first on .

Disability is an important system to have in place for all workers.  Age often affects your ability to work – especially if you suffer from a health condition or injury that makes working more difficult.  Disability benefits from the Social Security Administration (SSA) take age into account in a way that can often help older […] The post Can You Get Disability Benefits When Over 50 in Pennsylvania? appeared first on .

Not necessarily at all. If you want to and can afford to keep your car, an experienced bankruptcy attorney can help you apply bankruptcy exemptions to keep your car out of reach of the Chapter 7 Trustee. You should also know that Chapter 13 allows you to “cram down” a car loan or pay a lease-end balloon payment over your three or five-year plan. If your car is simply unaffordable, you also have the option of surrendering your car in bankruptcy and having the underlying debt discharged with no need to repay the car loan.  This article will explain your options for keeping your car, surrendering your car, and making your car more affordable using bankruptcy, from the desk of noted bankruptcy lawyer David M. Offen Esq. And if you have questions about how your car loan or car lease will be treated in bankruptcy, give us a call. Your initial consultation is free of charge. What Happens to Your Property When You File Bankruptcy The moment you file a bankruptcy petition all your assets become part of the “bankruptcy estate” and can be seized by a  Trustee and sold for the benefit of your creditors. Thankfully, the federal Bankruptcy Code includes many  bankruptcy exemptions that take property or your equity in property out of the estate and out of reach of the Trustee. Most debtors filing for bankruptcy relief keep all of the assets they want to keep by applying federal or state exemptions. It is only in the case of luxury goods or fully-owned real property that exemptions may not be enough to cover the value. Find Out How to Protect Your Car with Bankruptcy Exemptions Motor Vehicle Exemption In Pennsylvania, we almost always use the federal exemption scheme rather than the state exemption scheme, especially when you have equity in a motor vehicle. The current federal exemption for equity in a motor vehicle as of this writing (November 17, 2021) is $4,000.  If the equity in your car is more than $4,000, don’t worry – there are more applicable exemptions that may apply. Wild Card Exemption The federal “wild card” exemption can be used on anything, and if you need to use it to exempt equity in your car, you can exempt an additional $1,325, bringing the total to $5,325. Unused Homestead Exemption The federal homestead exemption is currently $25,150. If you have less equity in your home than that, you can use the remainder to exempt equity in your car up to $12,575. For example, if you have $20,000 equity in your home, you can apply another $5,150 to the equity in your car, for a total of $10,475 in equity protected. If you do not own a home, however, you can only use $12,575 of the homestead exemption for your car, bringing the total equity in a motor vehicle that is exempt to $17,900. The amount of these exemptions is set to change on April 1, 2022. Calculate Your Car’s Worth How do you know how much equity you have in your car? You or your lawyer needs to figure out how much your car is worth and then subtract the amount of your car loan from that to get the amount of equity you have. Bankruptcy trustees and car lenders generally accept a Kelley Blue Book or NADA retail value as of the month of your bankruptcy filing as proof of current value. Be sure to account for the car’s condition and mileage, but do not attempt to underreport value or use a lesser number if the car is really worth more – you risk an objection by the trustee or the car lender. Maintaining Your Vehicle’s Equity To maintain your vehicle’s equity, you should perform the regular recommended maintenance and also maintain insurance.  Determining What Happens to Your Car During Bankruptcy Dealing with Your Car in Chapter 7 Bankruptcy If you want to keep your car, you must apply the Chapter 7 property exemptions to exempt the equity in your car and protect it from being taken  by the Chapter 7 Trustee. If you cannot afford to keep your car, or the car is damaged or you do not wish to keep the car, then you can legally “surrender” the car to the car lender in your Chapter 7 filing. You will either take the car to your dealership, or the car lender will repossess it.  You must maintain insurance on the car until it is no longer in your possession. If it suffers any damage between the date of your filing and the date you actually surrender possession and it is not insured, you may  have to pay the amount of the damage. When you get your Chapter 7 discharged, you will also be discharged of the unpaid portion of your car loan. You may also surrender a leased car in the same way. Dealing with Your Car in Chapter 13 Bankruptcy If you want to keep your car and you have sufficient exemptions to cover the equity, you need do nothing. If you want to keep your car and do not have sufficient exemptions to cover the equity, you will have to pay the difference to your creditors through your three- or five-year Chapter 13 plan. If you want to keep your car but are behind on payments, you can catch up with your car loan or car lease payments through your Chapter 13 plan, as long as you can afford to make the regular monthly car payments outside the plan. If your car is worth less than the balance of your car loan, you can “cram down” your car to the retail value as of the date of your bankruptcy filing, and pay it off through your Chapter 13 plan at prime plus 1-3% interest.  If you are at the end of a car lease and want to purchase the car, you can pay off the lease-end balloon payment over three or five years through your Chapter 13 plan. Contact an Experienced Bankruptcy Lawyer for Help with Your Car Bankruptcy can be a powerful tool to help you deal with your auto loan or lease, discharge the underlying debt, or make your car much more affordable. Contact an experienced bankruptcy attorney to discuss your car situation and goals, and find out how bankruptcy can help you reach those goals. The post Will I Lose My Car If I File Bankruptcy appeared first on David M. Offen, Attorney at Law.

Summary: Two months prior to the filing of bankruptcy by Ms. Corbell-Dockins and her husband, Kirk Morishita died leaving Corbell-Dockins the beneficiary of his 401k, which was rolled over into a 401k account in her name. Starting from Clark v. … Bankr. W.D.N.C.: In re Corbell-Dockins- 401k Is Not an Asset of the Bankruptcy Estate Read More » The post Bankr. W.D.N.C.: In re Corbell-Dockins- 401k Is Not an Asset of the Bankruptcy Estate appeared first on .

Summary: Mr. Kalebich was the General Manager for Duke Recycling and, in the course of his duties, on November 3, 2016, signed a guaranty for financing from Ascendum Machinery. Duke Recycling eventually failed and was liquidated. Ascendum then sued Kalebich … N.C. Ct. of App.: Ascendum Machinery v. Kalebich: No Personal Liability for Guaranty Read More » The post N.C. Ct. of App.: Ascendum Machinery v. Kalebich: No Personal Liability for Guaranty appeared first on .

Summary: In an appeal from the bankruptcy court’s disallowance of late filed claims in In re Wellington, the two issues were first whether the Bankruptcy Court erred in considering only prejudice to the claims of allowed creditors and not considering … M.D.N.C.: In re Wellington- Excusable Neglect in Late Filed Claim Read More » The post M.D.N.C.: In re Wellington- Excusable Neglect in Late Filed Claim appeared first on .