The best Raleigh bankruptcy attorney 2021? Repo Under the Uniform Commercial Code, any repossession (repo) of any property must be done in a commercially reasonable manner and with notice to the Debtor. If a car lot fails to sell the car or truck in a reasonable manner or if it fails to give you notice, you may not be liable for the deficiency (you may own nothing). If the sale is not commercially reasonable, or if proper notice is not given, you may sue a bank for conversion (theft). Auto sales and financing are full of consumer law violations including fraud and high-rate home-secured loans that strip equity from senior citizens.
Make 401(k) and HSA Contributions: People can make tax deductible contributions to traditional IRAs up to April 15 of next year. However, the door closes on Dec. 31 for 401(k) and health savings account contributions. “It’s a hard stop,” says Wendy Barlin, a Los Angeles-based CPA and author of “That’s Deductible!: Simple Tips and Tricks to Find More Business Tax Deductions.” “Whatever opportunities you have at work (for retirement savings), make sure you maximize them before the end of the year,” she says. Taxpayers with a qualified high-deductible family health insurance plan can deduct up to $7,000 in contributions to a health savings account. Individuals with self-only coverage can deduct $3,500. Those age 55 or older are eligible for an additional $1,000 catch-up contribution. Tax deductible contributions to a traditional 401(k) are capped at $19,000 for 2019. Workers age 50 and older can make an additional $6,000 in catch-up contributions.
In Chapter 7 Bankruptcy, the immediate impact of filing bankruptcy is that all collection efforts are stopped by a Federal Court Order called a stay. The IRS is included in this stay. The only way a collector can overcome the automatic stay while your bankruptcy case is still open is to apply to the Bankruptcy Court for relief from stay. Judges will rarely lift a stay for the IRS, unless the IRS can prove some kind of fraud is being perpetrated by the bankrupt taxpayer. Unfortunately, the statute of limitations for collections runs only while a person is not in bankruptcy. If the bankruptcy is not finished (discharged), the tax bill will not age for purposes of the statutes of limitations. If you go into bankruptcy and emerge from the process still owing the IRS, it gives the IRS extra time to collect the balance. This often happens if the Taxpayer has some, but not all, of their taxes erased in a Chapter 7. As a result, many taxpayers end up filing a “Chapter 20,” wherein they first file a Chapter 7 to eliminate what tax can be eliminated and then file a Chapter 13 to deal with what is left. The IRS can have a total of ten years to collect taxes, penalties, and interest. Once a bankruptcy case is over, the IRS gets whatever time remained on the original ten years, plus the time the bankruptcy case was pending-plus an additional six months to collect the remaining debt (if any). Chapter 7 cases will add about 4 months to this. Discover additional info on Raleigh bankruptcy attorney.
Child and Dependent Care Tax Credit: A tax credit is so much better than a tax deduction—it reduces your tax bill dollar for dollar. So missing one is even more painful than missing a deduction that simply reduces the amount of income that’s subject to tax. But it’s easy to overlook the child and dependent care credit if you pay your child care bills through a reimbursement account at work. The law allows you to run up to $5,000 of such expenses through a tax-favored reimbursement account at work. Up to $6,000 in care expenses can qualify for the credit, but the $5,000 from a tax favored account can’t be used. So if you run the maximum $5,000 through a plan at work but spend more for work-related child care, you can claim the credit on up to an extra $1,000. That would cut your tax bill by at least $200 using the minimum 20 percent of the expenses. The credit percentage goes up for lower income households.
We believe in excellency as both a virtue and a compulsion. We are workaholics, both passionate and personable. We believe success is measured by action, not wealth. We believe in doing the right thing for the right price. We are family, and will treat you like family, too. We are Cameron Bankruptcy Law. Sheree Cameron’s double undergraduate degree came from the University of Tennessee where she graduated “Summa Cum Laude”. Sheree received a scholarship for the UNC Chapel Hill School of Law, where she received her Doctorate in Law. She has helped people find relief from their debts as a Bankruptcy Lawyer for over 10 years, and carries an “A+” rating with the BBB® under “Cameron Bankruptcy Law”. Discover additional info on cameronbankruptcylaw.com. Price Match Guarantee! We have bankruptcy payment plans!
What Can I Do with Secured Debt in Chapter 7 Bankruptcy? Reaffirm the debt – If your payments are not current, you can try to negotiate a reaffirmation agreement with the creditor that allows you to catch up your payments. The downside to reaffirmation agreements is that signing one reinstates your personal liability for the debt. Should you decide in the future that you cannot pay the debt, you will be liable for it as if you had not filed bankruptcy. Redeem the property – You may redeem the collateral by paying the creditor what it is WORTH rather than what you OWE on it. For example, if you have a car worth $5000 and you owe $15,000 on it, you would pay the creditor $5000 for the car. The downside is that you have to make a lump sum payment. In the case of vehicles, you may be able to finance redemption through a particular company, and we are happy to provide you with their contact information.