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In the case of Susan G. Brown v. Douglas Ellmann [1], the U.S. Court of Appeals for the Sixth Circuit (the “Sixth Circuit”) recently affirmed a bankruptcy court’s decision to deny a Chapter 7 debtor’s proposed exemptions for the value of redemption rights she enjoyed under Michigan law related to the sale of a property she surrendered to the bankruptcy estate. [1] Case No. 16-1967 (6th Cir., March 20, 2017). Read More ›
Tags: 6th Circuit Court of Appeals, Chapter 7

Debt Collectors abusive shakedown
April, 2017 – according an article in the New York Times, Congress instructed the Internal Revenue Service is going to use private debt-collection companies to collect overdue payments from taxpayers, despite this idea being a complete failure in 1996 and again in 2006.  This new provision was buried in a $305 billion highway funding bill – a great place to hide a significant change in the IRS tax debt collection policy.
Who will be harmed?

Nina E. Olson, whose job at the Internal Revenue Service is to be an advocate on behalf of taxpayers, believes that assigning collection to debt collectors is “a bad idea,” she wrote in a letter to Congress. “It disproportionately impacts low-income and other vulnerable taxpayers, and despite two attempts at making it work, the program has lost money both times, undermining the sole rationale for its existence.”

Ms. Olson refers to psychological tricks that may have coerced some debtors into payments they could not afford forcing them to chose between housing or paying tax obligations.  Tactics that are not used by IRS collection agents.
Why is this a problem with this type of tax debt collection?
For many years criminals have preyed on taxpayers, most who are elderly and other vulnerable groups, lying that they represent the IRS.  For years consumer protection groups have been educating the public that IRS agents do not call or email a delinquent taxpayer, instead those contacts are made by letter. For more on that subject read: impersonating I.R.S. collectors.
What companies were hired?
Congress wants taxes paid before food or housing.
Four – Pioneer Credit Recovery, a subsidiary of Navient, who has a tortured history of poor debt collection practices (fired by Education Department for misleading borrowers) so of course another government agency should offer them the same opportunity to abuse the vulnerable.  CBE Group, ConServe and Performant.  Could there be a problem in giving an organization with a proven history of abuse authority to collect from a vulnerable community?  Now what could possibly happen?
What is the benefit to the collection companies?
They will work on commission, earning up to 25 percent of debts collected.This will definitely encourage abusive behavior!
If history bears out this program will be another complete failure and result again in abuse of the vulnerable.
Proponents of the tax debt collection plan say the potential gain will net $2.4 billion over the next 10 years, yet the two past failed attempts show it cost the tax payer more than was collected.

According to Morgan King:
Key provisions governing private collection of IRS taxes:

• Taxpayers will be protected by rights provided under the Fair Debt Collection Practices Act (FDCPA).
• Both private collector and IRS will send letters to the taxpayer informing them about assignment to private collector.
• Payments are to be made directly to the IRS.

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About the Author:
Diane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys.
I would be flattered if you connected with me on GOOGLE+
*From Diane: This article/blog is available for educational purposes only and does not provide specific legal advice. By using this information, you agree there is no attorney client relationship between you and me, and that this information should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*

The post Despite Dismal Past Failures Congress Unleashes New Tax Debt Collection Policy appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

This is the bankruptcy case study for Mr. C., who resides in Geneva, Kane County, Illinois. He is in the office to determine whether or not chapter 7 bankruptcy will provide the relief that he is seeking. Let’s look at the facts of this particular case. He is currently the owner of a piece of+ Read More
The post Bankruptcy Case Study For T.C., From Geneva, Illinois. appeared first on David M. Siegel.

Each California bankruptcy case formally begins with a document known as the “voluntary bankruptcy petition,” regardless of whether the debtor is filing under Chapter 13 (wage earner’s plan, reorganization) or Chapter 7 (straight bankruptcy, liquidation). However, while the bankruptcy petition gets the process started, the debtor will also need some additional forms in order to successfully complete the case and obtain a discharge. Our Roseville bankruptcy attorneys list some of the bankruptcy papers and legal documents a debtor may need to complete their case in California. The exact forms each debtor will file depend on his or her financial circumstances, the type of bankruptcy being declared, and other factors, which is one of the reasons it is so important to be represented by an experienced lawyer.

List of Forms for Debtors Filing Bankruptcy in CA
Not every debtor will need to file all of the following forms in order to receive a bankruptcy discharge. For example, a debtor under Chapter 7 will not be required to file Form B 2300B (Order Confirming Chapter 13 Plan), for obvious reasons. To provide another example, there are many Chapter 7 debtors who choose not to file Form B 103B, which is a voluntary application to have the Chapter 7 filing fee of $335 waived. Likewise, only members of the U.S. Armed Forces need concern themselves with Form B 2020 (Statement of Military Service). Your Chapter 7 bankruptcy lawyer or Chapter 13 bankruptcy attorney will analyze your debts, assets, income, and other factors, such as whether you are filing jointly or individually, in order to determine which forms need to be filed and signed, where, and on what dates.
Debtors should keep in mind that failure to submit the necessary documents with complete, accurate, and up-to-date information could cause detrimental delays, or even result in the dismissal of your case by the U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division. If you are suspected of intentionally submitting incomplete or false information on your bankruptcy papers – for example, intentionally concealing assets or failing to list creditors – you could even be prosecuted for fraud.
With that information in mind, California bankruptcy forms include the following documents:

• Means Testing Forms
  • Form B 122A-1 – Chapter 7 Statement of Your Current Monthly Income
  • Form B 122A-2 – Chapter 7 Means Test Calculation
  • Form B 122B – Chapter 11 Statement of Your Current Monthly Income
  • Form B 122C-1 – Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period
  • Form B 122C-2 – Chapter 13 Calculation of Your Disposable Income

It is unusual for individual debtors to file under Chapter 11, which is more commonly used by corporations, limited liability companies (LLCs), and other business entities. However, regardless of whether you are a business owner or simply an individual whose financial circumstances happen to be suited to Chapter 11, our Chapter 11 bankruptcy attorneys can help you through the process.

• Bankruptcy Forms for Individual Debtors
  • Form B 106Dec – Declaration About an Individual Debtor’s Schedules
  • Form B 106Sum – Summary of Your Assets and Liabilities
  • Form B 106A/B – Schedule A/B: Property
  • Form B 106C – Schedule C: The Property You Claim as Exempt
  • Form B 106D – Schedule D: Creditors Who Hold Claims Secured by Property
  • Form B 106 E/F – Schedule E/F: Creditors Who Have Unsecured Claims
  • Form B 106G – Schedule G: Executory Contracts and Unexpired Leases
  • Form B 106H – Schedule H: Your Codebtors
  • Form B 106I – Schedule I: Your Income
  • Form B 106J – Schedule J: Your Expenses
  • Form B 107 – Your Statement of Financial Affairs for Individuals Filing for Bankruptcy
  • Form B 121 – Your Statement About Your Social Security Numbers

• Additional Forms for Chapter 7 Debtors
  • Form B 108 – Statement of Intention for Individuals Filing Under Chapter 7
  • Form B 318 – Discharge of Debtor in a Chapter 7 Case

• Additional Forms for Chapter 13 Debtors
  • Form B 2830 – Chapter 13 Debtor’s Certifications Regarding Domestic Support Obligations
  • Form B 3180W – Chapter 13 Order of Discharge (or Form B 3180WH, which is used for Chapter 13 hardship discharges)

Where Can I Get Bankruptcy Forms for Chapter 7 or Chapter 13?
All of the bankruptcy forms listed above are available on the internet and can be individually downloaded from the official website of the United States Courts. Alternately, debtors in the Roseville, Sacramento, or Folsom area can download bankruptcy forms by following three steps:

1. Visit the website for the U.S. Bankruptcy Court for the Eastern District of California at caeb (dot) uscourts (dot) gov.
2. Scroll down to the section on “Court Information” and click the “Filing and Fee Information” link.
3. Click on the link to “Forms Package” and wait for the documents to download.

Contact Our CA Bankruptcy Lawyers for a Free Consultation
The Bankruptcy Group assists individual debtors, married couples, and business owners file for bankruptcy in the Sacramento area. If you’re thinking about filing for bankruptcy in California, our Folsom Chapter 7 lawyers, Sacramento Chapter 7 lawyers, or Folsom Chapter 13 attorneys can help. For a free and confidential legal consultation about personal bankruptcy or business bankruptcy in California, contact our law offices at (800) 920-5351 today.
The post What Forms Do I Need to File for Bankruptcy in California? appeared first on The Bankruptcy Group, P.C..