Category Archives: Tax Returns and Bankruptcy

What Are the Tax Consequences of a Short Sale?

There can be serious tax liabilities arising from a short sale, or the sale of real estate for less than is owed on the balances of the mortgage notes attached to the property.

Click here to read more about the tax consequences of a short sale on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please feel free to contact us at john@hillalaw.com or (866) 674-2317 to schedule a free, initial consultation.

Is My Social Security Overpayment Dischargeable in Bankruptcy?

Social security overpayments are dischargeable in Chapter 7 or Chapter 13 bankruptcy so long as no fraud was engaged in when the overpayment occurred.

But, if you just received a check in the mail and used it, how do you know if the SSA or State of Michigan might thing you’ve engaged in fraud?

Read more about the dischargeability of Social Security and other governmental overpayments here on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact me at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

Getting a Refund in a Chapter 13: Will Your Trustee Let You Have It?

Many prospective Chapter 13 bankruptcy clients are surprised (and annoyed) to learn that, typically, they will be required to turn over their annual Federal tax refunds to the Chapter 13 Trustee assigned to their case each year that they are in the Chapter 13.

However, there are Chapter 13 plans and other circumstances in which you would not have to turn the refunds over.

Read our full article about Chapter 13 bankruptcy and tax refund turnover here on the new Michigan Bankruptcy Blog of The Hilla Law Firm, PLLC, Michigan bankruptcy attorneys.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact us at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

Is Income Tax Debt Dischargeable in Bankruptcy?

Income tax debt is, under some circumstances, dischargeable in Chapter 7 bankruptcy. Even outside of those circumstances, it is at least “treatable” in a Chapter 13 bankruptcy in a manner that can be a much better deal for the taxpayer than any of the payment schemes offered by the IRS.

To read more about the discharge of tax debt in bankruptcy, click here to read our full article on this topic on the new Michigan Bankruptcy Blog of The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact me at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

Can Bankruptcy Stop My Garnishment?

Consumers who have had difficulty making ends meet often find themselves on the wrong end of a court judgement after their creditors have taken them to court to pursue their debt. These judgements typically result in wage or tax-refund garnishment, often at the expense of the consumer’s ability to pay more pressing necessities, such as rent, a mortgage payment, or medical expenses.

That being the case, the first question I often hear from potential clients is, “Can filing for bankruptcy stop this garnishment?!?” Sometimes the garnishment has already begun, sometimes it is imminent, but it is always a great worry to consumers who do not have a penny to spare from their paychecks when it comes to simply keeping a roof over their children’s heads that month.

Bankruptcy, however, can stop a garnishment cold in its tracks. To read more, click here to read our full article on stopping wage, bank account, or tax return garnishment with a Michigan Chapter 7 or Chapter 13 bankruptcy on the new Michigan bankruptcy blog of The Hilla Law Firm, PLLC.

If you are suffering from an income loss due to garnishment or will soon have your wages or other incoming funds garnished, please contact me us at john@hillalaw.com or (866) 674-2317  to schedule a free, initial consultation, and we will work together to secure the monthly income you depend on.

What Happens to My Tax-Return if I File Bankruptcy?

It’s that time of the year again, and one of the most often overlooked aspects of a prospective bankruptcy filer’s financial picture is the tax return that is expected but not yet received. It is a common misperception that, when you file for bankruptcy, the bankruptcy trustee and court are concerned only the past and the present state of your financial affairs. In fact, in many ways, they are just as concerned with future alterations to your finances.

To read more, read our full blog on the topic of tax refunds and bankruptcy in Michigan here on the new Michigan Bankruptcy Blog of The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact us at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.