The North Carolina Bankruptcy Information Blog

It may seem strange, the whole prospect of turning a timely tax return into a bankruptcy, but in a nation currently dealing with a healthy debt load, the whole idea that half of Americans get some form or return, comes at a good time for those looking to pay down those debts, or, better yet, find a longer-term solution for their cash-strapped situation.

And so, with tax deadlines just around the corner, and with millions of people just like you expecting returns, if not significant refunds averaging several thousand dollars, some of you may consider using this money for luxury items or a start on a pretty, new car.…

As we’re all aware, this decade’s Great Recession has dealt, and continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, underwater in their mortgages, and looking for any means necessary to get back on a financially-healthy course.  Now, in the weeks following this tax season’s deadline, important financial news abounds for many cash-strapped citizens and the struggling states they live in.

Looking for good news amid the bad? Take a gander at the latest economic outlook and what it might mean for you.

Our Great Recession Continues (Or Not)
Last week, the Business Cycle Dating Committee of the National Bureau of Economic Research, a group responsible for determining official start and end dates for recessions based on analysis of financial indicators, announced that it cannot yet officially declare an end to the recession.…

As we’re all aware, this decade’s Great Recession has dealt, and continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, underwater in their mortgages, and looking for any means necessary to get back on a financially-healthy course.  Now, we’re finding that tax time is also yielding it’s own set of challenges for some cash-strapped citizens and the struggling states who owe them.

Today, many cash-strapped states such as North Carolina, Alabama and Hawaii have delayed issuing income tax refunds to individuals and businesses; Kansas has suggested similar delays, while Iowa has slowed down the process because it doesn’t have enough employees to process the refunds more quickly.  Further, New York, has considered following the lead of its fellow states by stalling their own state income tax refunds.…

As we’re all aware, this decade’s Great Recession has dealt, and continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, out of work, underwater in their mortgages, and looking for any means necessary to get back on a financially-healthy course.  Now, we’re finding that tax time 2010 is also yielding it’s own unique set of challenges for some cash-strapped citizens who may have had some of their debt forgiven or settled a debt for less than the full amount in 2009.

Have you had some of your considerable student loans forgiven? Have you recently reached a debt settlement with your credit card company?  Have you had a car loan settled or the debt forgiven?…

As we’re all aware, this decade’s Great Recession has dealt, and continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, underwater in their mortgages, and looking for any means necessary to get back on a financially-healthy course.  Now, tax time can  yield a long-term solution for some cash-strapped citizens.

With tax deadlines just a few weeks away, many people just like you are expecting significant refunds, with the average being several thousand dollars. Some of you may consider using this money for major purchases or down payments on a new car. Many more may even want to pay off credit cards and other debts.…

As you know by now, this country’s recent Great Recession has dealt, and continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, underwater in their mortgages, perpetually jobless and looking for any means necessary to get back on a financially-healthy track.

However, there may be a silver fiscal lining to this year’s spring season: The Recovery Act’s tax credits. Now we’re seeing that tax time—normally considered a harrowing economic experience for many Americans—is yielding it a bit of a reprieve for some cash-strapped citizens struggling to stay afloat amid rising education costs, mortgages, and even car payments.…

It’s almost February and ‘tis the season for thinking about tax time—even more so if you find yourself considering the benefits of bankruptcy. So, if you believe bankruptcy is the right option to help you start fresh in 2010, in addition to trying to get your 2009 taxes filed in a timely manner, and wondering whether you can discharge any income tax debt in your bankruptcy filing, you may also be thinking about how you can protect your precious tax refund from creditor claims.

The holidays are now officially over. The New Year has begun in earnest. And ‘tis the season for tax time. If you believe you’re bankruptcy bound in 2010, that definitely means it’s also time to get your 2009 returns in order.

Thinking About Chapter 13 Bankruptcy?

Chapter 13 bankruptcy helps restructure your debt into a more manageable payment plan—allowing you to pay back what you owe over time, often at a percentage of the cost. If you’re considering this type of bankruptcy, it’s important to remember that tax returns should be provided in Chapter 13 cases.  You must file all tax returns for all tax years – including returns for 2009.  Bankruptcy Code Section 1308 provides:

(a) Not later than the day before the date on which the meeting of the creditors is first scheduled to be held under section 341(a), if the debtor was required to file a tax return under applicable non-bankruptcy law, the debtor shall file with appropriate tax authorities all tax returns for all taxable periods ending during the 4-year period ending on the date of the filing of the petition.…