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.
You will be able to discharge (wipe out) debts for federal income taxes in Chapter 7 bankruptcy only if all of the following conditions are true:
• The taxes are income taxes. Taxes other than income, such as payroll taxes or fraud penalties, can never be eliminated in bankruptcy.
• You did not commit fraud or willful evasion. If you filed a fraudulent tax return or otherwise willfully attempted to evade paying taxes, such as using a false Social Security number on your tax return, bankruptcy can't help.
The preparation of a perfect soft boiled egg is not easy. You can begin with a raw egg and end up with either a semi raw soupy mess or a sulfuric smelling hard boiled egg. Neither one is fit to eat. Proper timing is the key. The same might be said of your chapter 7 bankruptcy.
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.