During the Covid-19 crisis many small businesses have struggled with reduced incomes and lower revenues. To help offset the hardships small businesses have faced Congress has provided additional funding to the Paycheck Protection Program.
Read here to learn what type of debt cannot be discharged in an Illinois bankruptcy
Going through bankruptcy is stressful enough, but when you think you’re doing something perfectly legal like paying down debt to a family member, the wrong decision can raise red flags and place your bankruptcy discharge in jeopardy. Below are some of the more common mistakes people make before filing for bankruptcy.
.png){kind=small}
.png){kind=small}
Bankruptcy is a legal process designed to help individuals or corporations restructure their debts. There are different types of bankruptcy proceedings, the most common types occurring under Chapter 7 and Chapter 13 of the Bankruptcy Code. This is a big decision and before deciding to file for bankruptcy, you should consider all of your options.
When a person owes a debt to another person, this other person may get a judgment from the court to begin collecting debts. The person who owes the debts is called the “debtor.” The person to whom the debts are owed is called the “creditor.” If the creditor wants to collect the debt, they can ask for something called a Debtor’s Exam. This is a court proceeding where the court, creditor, and debtor will discuss the debtor’s assets and abilities to repay the debt.
Going through bankruptcy is stressful enough, but when you think you’re doing something perfectly legal like paying down debt to a family member, the wrong decision can raise red flags and place your bankruptcy discharge in jeopardy. Below are some of the more common mistakes people make before filing for bankruptcy.
Don't fear the tax audit. If you're not engaged in illegal activity, you have little to fear beyond some extra administrative work. That being said, having your financials reviewed by the IRS isn't ideal. There's no guaranteed strategy to avoid an audit; roughly 1% of taxpayers are audited each year. However, understanding what the IRS looks for when considering an audit can go a long way to avoiding a tax headache.
An important consideration for a separation or divorce is taxation. During marriage, spouses can be in the dark regarding their household finances and, more specifically, anything their spouse may be hiding from the IRS. This may come to bite the spouse post separation when the IRS sends you a notice of proposed deficiency, attempting to hold you liable for underreported income to the IRS while you were together.
Our team of friendly professionals are standing by to take your call now at (630)324-6666.
Going through bankruptcy is stressful enough, but when you think you’re doing something perfectly legal like paying down debt to a family member, the wrong decision can raise red flags and place your bankruptcy discharge in jeopardy. Below are some of the more common mistakes people make before filing for bankruptcy.
Don't fear the tax audit. If you're not engaged in illegal activity, you have little to fear beyond some extra administrative work. That being said, having your financials reviewed by the IRS isn't ideal. There's no guaranteed strategy to avoid an audit; roughly 1% of taxpayers are audited each year. However, understanding what the IRS looks for when considering an audit can go a long way to avoiding a tax headache.
Should we fear being audited? Generally, no. Only around 1% of taxpayers are audited each year. For the great majority of Americans, their only interaction with the IRS will be the yearly filing of taxes. And even if the IRS audits you, if you’ve kept your taxes in order, you have nothing to worry about. Learn more about taxpayer audits here.
As part of the bankruptcy process, you must include all secured, unsecured, priority, and nonpriority debts, regardless of whether the property securing the debt is considered essential for your livelihood; this is the case for both Chapter 7 and Chapter 13 bankruptcy. We're assuming that those filing Chapter 13 are doing so because they can afford the new payment plan and wish to keep some or all of their personal property. But what if you're filing Chapter 7 bankruptcy and you don't want to lose your home or car? Enter the reaffirmation agreement.
The pressure of student loan debt isn't limited to new grads. Americans fifty and older make up roughly twenty percent of those paying down student loans. The number of people sixty and older with student loan debt has grown faster than any other age group. Many who owe student loan debt acquired it as a consignor or by taking out loans to pay for their children and grandchildren's education. The CARES Act has given breathing room to many struggling to pay for baseline living expenses such as rent, mortgage, food, and utilities. Keeping spirits high is the Biden administration's indication that student loan forgiveness may be closer than most think.
With tax season right around the corner, Americans collect their W-2s, 1099s, deductible receipts and start warming up their calculators. It’s estimated that between forty and fifty percent of taxpayers that file electronically complete their taxes on their own with little or no outside help. With more than 100 million people filing individual or joint income tax returns, it’s a wonder how the IRS can track them all. It begs the question, “How does the IRS know if someone commits tax fraud, tax evasion, or is just being negligent?” The quick answer is computer software. The long answer is below.
Make a consultation reservation online using our online scheduling tool.
Our team of friendly professionals are standing by to take your call now at (630) 324-6666.
.jpg)
