Articles Tagged with bankruptcy discharge

Bankruptcy Lawyer Bryan W. Stone answers the question: “What are my alternatives to bankruptcy?”

Anyone with a job understands that if you get paid you must pay taxes on what you earn. The same thing goes for those who receive other material benefits, even if it isn’t a paycheck, some tax must be paid for the benefit you received. An example of a situation where tax can be owed despite no cash changing hands is when a loan is forgiven. If a credit card company decided to settle a $25,000 debt for $15,000, you would need to report the difference, $10,000, on your taxes. Not only would you need to report the $10,000, but you’d be required to pay tax on the value of the loan that was forgiven. This leads to a question about the debt discharged in a bankruptcy. Do you have to pay tax on that too?

Bankruptcy Lawyer Bryan W. Stone answers the question: “What are my alternatives to bankruptcy?”

Filing for bankruptcy protection can be a tremendous relief for many people. Bankruptcy protection can stop the harassing phone calls and give you peace of mind. It also gives you hope of moving forward with a clean slate and a way to put a crushing debt burden behind you. Though this works well for many people, there are plenty of others who may not benefit from bankruptcy protection or may not be able to take advantage of bankruptcy protection given time restrictions. To learn more about instances where it may make sense not to file for bankruptcy, keep reading.

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I get credit after filing personal bankruptcy?”

Two large banks in the United States are taking steps to delete negative credit marks from credit reports of consumers whose debts with the banks or their affiliates have been discharged in bankruptcy.

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Should I file bankruptcy ?”

 

When financially faltering individuals weigh their options, in addition to considering what they may gain through bankruptcy, they should develop a clear understanding about the ills bankruptcy will not cure.

Overwhelmed Man Charlotte Chapter 7 Lawyer Mecklenburg Debt LawyerIn a Chapter 7 bankruptcy, the bankruptcy trustee—a person appointed by the Bankruptcy Court to oversee a bankruptcy—will marshal the debtor’s assets, or take title to the debtor’s property. That means, in general, that whatever a debtor owns, the debtor surrenders to the bankruptcy trustee. The trustee then uses these “assets,” if any, to pay off debts.

Chapter 7 bankruptcies may seem appealing to individuals in financial dire straits because the perception is that the proceedings will erase all of an individual’s debts, enabling the debtor to start afresh after a bankruptcy discharge. Individuals considering a Chapter 7 bankruptcy should know, however, that it is difficult to qualify for this type of bankruptcy, and it is likely that a Chapter 7 debtor will have to enter into a repayment plan to repay “at least a portion” of one’s debts, according to Tushar Mathur of GoBankingRates.com.

If you are considering declaring bankruptcy under Chapter 7, give me a call today and we can see whether you qualify.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is a bankruptcy discharge ?”

 

Anyone who has passed through the bankruptcy process and received a bankruptcy discharge notice in the mail may experience an understandable sense of joy and relief. It is over. Or is it?

House Auction Charlotte Bankruptcy Lawyer Mecklenburg Chapter 7 AttorneyAt the risk of sounding like a lawyer, whether “it” is “over” depends upon what one means by “it’ and what one means by “over.” In the world of bankruptcy, very little is ever really over, and even the bankruptcy discharge—while an important formality—does not end any actions that are still pending in a bankruptcy.

A bankruptcy, at its essence, is less like a lawsuit and more like probate—gathering the assets of a dead person and using them to pay off the person’s debts. The difference is the person is not dead; the person is you, and sometimes the best recourse you have against creditors is to sue. In bankruptcy, your trustee may sue creditors for a variety of reasons, and your trustee may answer and defend against creditors or others who sue you, for whatever reason. These cases can drag on long after a person has received one’s bankruptcy discharge.

A bankruptcy discharge does not, as many believe, wipe the proverbial slate clean, so if clearing yourself of any and all debts is what you define as having “it” over and done, then you may misunderstand the effect of a bankruptcy discharge.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is Chapter 11 Bankruptcy?”

 

A Texas bankruptcy court ruled late last month on two issues that commonly arise in business reorganization bankruptcies—also known as Chapter 11 actions.

Plumbing Charlotte Mecklenburg Bankruptcy Lawyer North Carolina Chapter 11 AttorneyThe issues concerned the notice due to putative creditors who are doing business with a company at or shortly before the time a company enters bankruptcy, as well as the effect a subsequent bankruptcy discharge has on claims later brought by creditors.

The case involved a plumbing company named AMPAM Power Plumbing L.P. The company filed for bankruptcy in 2003 and sought to reorganize its business under Chapter 11 of the Bankruptcy Code. Chapter 11 reorganizations must be approved by a bankruptcy court. AMPAM’s reorganization was confirmed on July 30, 2004.

Before AMPAM’s bankruptcy confirmation, the company entered into a contract with Capstone Building Corporation. Capstone hired AMPAM to provide plumbing services on a construction project at a university. The work was largely complete by August 2004, and Capstone issued a certificate of substantial completion.

Nearly seven years later, on February 16, 2011, Capstone became aware of issues related to AMPAM’s plumbing work on the project. It sued AMPAM in state court, seeking contractual indemnity and contribution, or reimbursement for damages it paid out on claims that it alleged resulted from AMPAM’s work.

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