Month: February 2017

When Business Owners Should File Bankruptcy

A few days ago I posted To File or Not to File talking about my decision making process when I consult with a client. When a client is filing because of business debt then there are other considerations. A business owner may opt for a personal bankruptcy because they cannot obtain a discharge of debt if their business filed a Chapter 7 and because Chapter 11s are incredibly expensive. So, I must decide if the owner debtor can filed a personal Chapter 7 even if their personal household income is healthy. Some jurisdictions use a "totality of the circumstances approach that looks ...
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To File or Not to File: Attorney decision making

When you meet with an attorney to discuss your debt and the options for relief from the weight of that debt, he or she should engage in a decision making process. Some attorneys tend to keep that process to themselves (this is more of a style thing for the lawyer), and others, like myself, try to explain and educate the client. While I cannot lay out every twist and turn that the discussion may take with any particular situation, I will put forth a few basics. I typically start with an overview of the debt which includes the numbers of ...
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Deadlines for Filing Prepetition Tax Returns in Chapter 13 Cases

It is good practice for a Debtor's attorney's to always obtain all four years of returns prior to filing to avoid a hiccup. I often run into the challenge of my client not retaining copies ot their tax returns. This can be quickly remedied by having your client go onto irs.gov and apply for "Tax Transcripts" for the years in question. This Tax Transcript is not to be confused with an Account Transcript. The Account Transcript provides various codes and dates of events over time for a given tax year. These codes can allow an attorney to determine what taxes ...
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Troutman & Napier, PLLC