The Mortgage Debt Relief Act of 2007 – which was extended through 2012 – allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring and mortgage debt forgiven in connection with a foreclosure also qualifies for the relief.
So, if you filed for bankruptcy in Michigan in 2011 and received a 1099 from your former mortgage lender – don’t panic. Just make sure your income tax preparer is aware of the law. Or – if you do you own taxes (not such a good idea in my opinion) make sure you fill out your forms properly so that you don’t get hammered with an unforeseen tax bill.
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Michigan Bankruptcy and 1040 Income Taxes. Yes, provided the 5 following rules are met: 1. The taxes at issued must be 1040 Income Taxes. Taxes such as payroll taxes, trust fund taxes, sales tax or fraud taxes are treated differently. 2. The 3 Year Rule. The income tax return for which the taxes are owed [...]
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Michigan Bankruptcy SCAM ALERT. I just retained a client who had been scammed by Global Client Solutions based out of Tulsa Oklahoma and The World Law Group based out of Austin Texas. These slick grifters convince people that they can eliminate all of your unsecured credit card debt in as little as 4 years. My [...]
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Michigan Bankruptcy Fee or Hourly Basis Fee. Each 2016(b) statement provides for compensation to be either a stated flat fee; or payment of a stated retainer amount against which the attorney would bill at a specific hourly rate, with debtor agreeing to pay all Court approved fees exceeding the retainer. During the consideration of a [...]
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Michigan Bankruptcy Failure to list Creditor. Any time you correct or add a creditor to your michigan bankruptcy matrix you want to send them a copy of the 341 notice. You will also need to amend your Schedules including the creditor and pay the appropriate fee and file the amended Schedules and Cover Sheet for [...]
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Michigan Bankruptcy and Rental Property Rent Money. After you file for bankruptcy in Michigan, the rents from your rental property become property of the estate. The trustee exercises full authority and control over those rent monies. The only way that the mortgage company can get control of the rents is to file a motion with [...]
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Michigan Bankruptcy Undocumented Immigrant. Yes. Eligibility for bankruptcy has nothing to do with immigration status even if that person used a fake social security number or false information to obtain credit. If there is no valid social security number – then the debtor files with their ITIN. The creditors can confirm their claims with the [...]
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