Category Archives: Bankruptcy and Taxes

Exception for 1099-C Tax Liability for Debts Discharged in Bankruptcy

It’s that time again. Time to explain why filing personal bankruptcy can provide enormous tax savings. Every year, several of our bankruptcy clients contact us in January or February because they have received a 1099-C form filed with the IRS by one of their former creditors. In case you don’t know, debts that are “canceled” […]

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Can Income Tax Debts Be Discharged in a Chapter 7 Bankruptcy in California?

Today is April 15, and while taxpayers get two additional days to file their income tax returns this year, today presents the perfect opportunity to discuss one of the most vexing issues in consumer bankruptcy—whether or not taxes can be discharged in bankruptcy. The short answer is that while most tax debts cannot be discharged […]

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Thinking About Filing Chapter 13 Bankruptcy in San Jose? Be Sure to File Your 2011 Taxes Right Now!

The deadline to file your 2011 taxes (this year we have until April 17) is just about three weeks away. It happens every year around now. San Jose Chapter 13 Bankruptcy clients need to file their bankruptcy urgently to stave off a pending foreclosure, stop a lawsuit, bank levy or wage garnishment. But they haven’t […]

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Unlike Bankruptcy, Private Debt Settlement Can Lead to Big Tax Problems

It’s another symptom of this prolonged recession. Private debt settlement companies are cropping up like mushrooms all over the Bay Area. Their advertisements urge people not to consider filing bankruptcy and promise that they can negotiate settlements with your creditors instead. In general these debt settlement outfits are not attorneys, and they cannot offer any […]

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