Gadda Law Offices, P.C. provides personal legal services designed with you in mind. Whether it is relief from crushing debt or defense of a lawsuit that has been filed against you, you can rest assured that your attorney will represent your interests and no one else’s. Mr. Gadda has practiced law in the Treasure Valley for more than fourteen years and will put his experience to work for you. The purpose of this blog is to keep the reader up to date on new trends and issues in law as it is practiced in Idaho.
Recently, because of the economic downturn Mr. Gadda has been specializing in debt relief and in particular Chapter 7 bankruptcies. Whether it is crushing credit card debt, financial crises’s due to medical emergency, lost employment or business reverses a Chapter 7 bankruptcy can be your opportunity for a fresh start and the beginning of the future you deserve.
In a Chapter 7 bankruptcy THE GENERAL RULE IS NO- BUT THERE ARE EXCEPTIONS TO THIS. There are five hoops you must jump through to navigate such a discharge.
1. The tax return upon which the tax is based had to have been due at least 3 years ago.
2. The tax debt must be related to a tax return that was actually filed two years or more before the bankruptcy was filed.
If you receive a 1099-C from a creditor its purpose is to alert you that they have notified the IRS of some cancellation of debt. In most instances you can be liable for "forgiveness of debt income". There are some instances where no 1099C should issue and if it does you have a defense.
If you receive a 1099-C after a short sale of your house (it must be your primary residence) you are protected from forgiveness of debt taxation by the operation of the Mortgage Debt Forgiveness Act. (see previous posting.
If you receive a 1099C from a creditor its purpose is to alert you that they have notified the IRS of some cancellation of debt. In most instances you can be liable for "forgiveness of debt income". There are some instances where no 1099C should issue and if it does you have a defense.
If you receive a 1099C after a short sale of your house (it must be your primary residence) you are protected from forgiveness of debt taxation by
Only a small percentage of small businesses make a go of it and recently it has been much worse. The economic crash of the last few years left many owning failed businesses and the debt that goes with them. Depending on the nature of the business there are numerous solutions.
BE PREPARED! You need to do your research up front in order to know what a bankruptcy is and how it could help your financial situation and what the downsides might be.
There is currently a bill before Congress, the goal of which is to allow the discharge of private student loans in chapters 7, 11, & 13 of the bankruptcy code. This bill was first introduced in 2010 and again in 2011. The Fairness for Struggling Students Act of 2013 was reintroduced Jan. 23, by Senantor Dick Durbin and five other Senators, aiming to reverse legislation enacted in 2005 that allows private student loans to get the same treatment in bankruptcy as federal loans.
A study was recently published where a group of radiologists were asked to review a series of x-ray films. These were trained professionals who were skilled at spotting abnormalities. Each of the subjects was shown at least one image that contained a picture of a gorilla. Eighty three percent of the subjects did not spot the gorilla. This is reminiscent of another study where a group of students were shown a film of a basketball game. During the game a man in a gorilla suit ran across the court. Again, the great majority of the viewers did not “see” the gorilla.
GOOD NEWS seems like a rare thing these days, but if you have been contemplating a short sale of your home or trying for a deed in lieu of foreclosure with the lender there is a slim ray of hope. As of last night, the United States Senate and House have passed the 2013 American Tax Payer Relief Act. In section 202, the bill calls for the Mortgage Debt Relief Act to be extended until 1/1/2014. This means if you avoid owing a deficiency to your lender by means of a short sale or a deed in lieu you will not be socked with a big income tax bill for the forgiven debt.
Safe? What could happen if I forget to list an asset or skip one of my creditors? In short your bankruptcy could take more time, both yours and your attorneys and it could cost more- a lot more. A recent article on this topic, published on the internet by the Bankruptcy Law Network, and written by Susanne Robicsek, a North Carolina bankrupty attorney, can be found at http://www.bankruptcylawnetwork.com/bankruptcy-and-the-unknown-asset/ . Susan points out that you can file bankruptcy without all of your information, but is firm that doing so in not a good idea.