Previously, we began looking at the issue of discharging tax debts in bankruptcy. As we noted, it is possible to discharge tax debts, but certain requirements must be met and not all types of tax debt will qualify for discharge. We’ve already spoken briefly about the rules that apply to tax debt discharge.
As we quickly approach open enrollment season, many people are taking time to assess their options when it comes to health insurance. In the last week or so, headlines are popping up talking about the increase in premiums for exchange plans under the Affordable Care Act. As we are finding out, more young people are opting to forego health insurance because of the high costs and to pay the federal fine instead, taking their chances on avoiding the extra costs.
Those who file for bankruptcy may bring all kinds of debts to bankruptcy protection. Some of the more common forms of debt include credit card debt, unpaid medical bills, mortgage and car loans, student loans, and business debts. Another common type is tax debt.
If you are behind on your bills, it may be tempting to withdraw from a 401(k) account to pay off creditors or at least make a dent in the bills. But don't do it.
We’ve been looking in previous posts at the so-called means test, breaking it down into its various parts to get a better look at what the test actually is. We’ve already looked briefly at the first and second parts, which calculate the debtor’s adjusted gross income and deductions, as well as the third part, which is aimed at determining whether the filing is presumptively abusive.
In our last post, we looked briefly at the first two parts of the bankruptcy means test. As we noted, these include determination of the debtor’s adjusted gross income and calculation of deductions for certain expenses.
Qualifying for Chapter 7 bankruptcy is not a given, and those who file a petition must go through the process to determine whether they meet certain eligibility requirements. One of the primary requirements a debtor must submit to is the so-called means test, which determines whether a debtor’s filing is appropriate.