Why now may the best time to file bankruptcy

   Many people wonder if there is one time of year that is more advantageous to file bankruptcy.  When you decide to file a bankruptcy, one of the potential assets that the trustee will look at is your expected income tax refund.  The trustee will look at the month that you file and determine any percentage of non-exempt portion that belongs to the estate.

(This means they can take the money.)  The exempt portion of your tax refund is any earned income tax credit you may be entitled to.  (This means they can not take earned income tax credit.)  They can however look at any portion of your refund that is child tax credit, education credit or withholding.

     When planning the best time to file, there are a couple of considerations.  The most important of course is whether or not you are being garnished.  If you are, then the analysis must include whether you will lose more in garnishment than potential tax refund.  If the answer is yes, then you file immediately in order to stop the garnishment.

     Another important consideration is whether you are trying to stop a foreclosure or repossession. These are not usually issues that you can do a whole lot of waiting, as there is often a strict deadline involved.

     If you can wait and time your filing, try to file after you have received your tax refunds and have spent them.  They can not be sitting in the bank for a rainy day. Many of my clients will use their tax refund in order to pay they attorney fees and filing fees associated with filing their bankruptcy.

     It is important to consult with an attorney regarding what you are allowed to spend your tax refund money on and not run into any trouble with the bankruptcy court.  For example, do not go buy a car or a big screen television.  You could very possibly lose it as a non-exempt asset.

     Contact our office for a free initial consultation.  We will be happy to provide you with guidance on proper planning for a smooth and stress free filing that still ensures you are in compliance with the bankruptcy rules.

     Remember, we are a debt relief agency.  We help people file for relief under the U.S. Bankruptcy Code.

Angela Boeck-Giscombe P.C. 

A Law Firm of Straight Talk, Straight Answers

719-638-8877

Important Tidbits For Your 2014 Taxes

Rumors of delays in getting your refund..
The 2014 tax season is under way.  The first day of electronic filing to the IRS was January 20, 2015 and for the most part things went off without a hitch.  While the rumor is that the IRS suffered a major budget cut and refunds would be substantially delayed, the direct deposit refunds seem to be arriving in the standard 7-14 days.

Noncustodial Parents...

Please remember some important points for this tax filing season.  If you are the noncustodial parent claiming a child this year, make sure you have a signed Release of Claim to Exemption, Form 8332.  The IRS does not care what the final court orders say regarding who is entitled to claim the child.  Protect yourself with the signed form for the file.  If you need a blank copy, IRS.gov has them, or you can contact the office and we will be happy to provide one.

More on Health Insurance...

Additionally, the open enrollment for health insurance is ending on February 15, 2015.  While the penalties for not having health insurance during 2014 was seemingly small compared to the cost of health insurance, the penalties increase substantially for 2015.  The health insurance companies will be sending you a form to show the time periods you had health insurance.  If you are not sure what time periods you had coverage, wait for this form in order to properly file your taxes.

The office is currently scheduling appointments for tax preparation.  Don't forget the deadline for Corporate Tax returns is March 16 and for personal returns, April 15.

Give us a call 719-638-8877  or visit us at www.AngieLawCS.com