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Many people who are considering filing bankruptcy are interested in knowing how long the fact that they file bankruptcy will stay on a credit report. The answer is that proof of bankruptcy filing can last up to 10 years on a credit report. However, this fact should not dissuade one from filing for bankruptcy if+ Read More
The post Bankruptcy And Your Credit Report appeared first on David M. Siegel.

On  January 9, 2014, the U.S. Supreme Court delivered its decision in the case of  Executive Benefits Insurance Agency v. Arkison (In re: Bellingham Ins. Agency, Inc.)  573 U.S. ___ (2014)  in which it held that bankruptcy judges do have the authority under the Constitution in Stern type cases, to submit "findings of fact and conclusions of law" to the district court for its de novo review even though the bankruptcy court is constitutionally barred from entering a final judgment on such a claim that is only "related" to a bankruptcy case.  This was a question left unanswered in the Supreme Court's prior decision in Stern v. Marshall. The claim in Stern was a counterclaim for tortious interference that arose under state law. 

The Court though left Bellingham  unanswered the question  the question of whether the Constitution permits bankruptcy judges to, despite its holding, enter a final judgment based on the actual or implied consent of the parties in a Sterm claim. A more lengthly review of the case is available here. Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com

Existing tax law provides that discharged debt, whether after a foreclosure or short sale, is generally taxable income realized in the year the debt was forgiven, unless an exception applies. Generally only reductions in principal and not forgiveness of interest results in discharge of indebtedness income ("DOI"). Usually a lender is required to issue a Form 1099-C to report the DOI to the IRS. Taxpayers are required to disclose DOI to the IRS whether the lender issues a 1099-C or not. Taxpayers may be able to exclude the DOI from income if an exceptions to DOI applies.

Exceptions Expired Statute In December, 2007, Congress passed the "Mortgage Forgiveness Debt Relief Act of 2007" to alleviate tax consequence for some homeowners in foreclosure. This Act excluded from taxable gross income certain cancelled discharged debt that may otherwise arise with respect to a "qualified principal residence indebtedness."

This act was scheduled to expire on December 31, 2012, but was subsequently extended for another year.  The act expired on December 31, 2013 and has not yet been extended by Congress.

Remaining ExceptionsTwo existing exceptions to DOI are the insolvency and bankruptcy exceptions. 26 U.S.C. section 108(d). If the borrower is insolvent, DOI is not taxable. If the debt is discharged in bankruptcy, DOI is also not taxable. Another exception is the "purchase price infirmity doctrine". This allows DOI to be excluded from income where the lender agrees to write down the purchase money debt to the true value of the collateral as the purchase price was inflated in the original transaction due to fraud or misrepresentation. Another exception from DOI is when the liability was contested. Pursuant to Zarin v. Comm'r, 916 F.2d 110 (3d Cir.1990), DOI is not income where there is a legitimate basis for the borrower to claim that the debt was never owed or collectible because illegal.

Jordan E. Bublick is a Miami Bankruptcy Lawyer - www.bublicklaw.com

In bankruptcy, Oregon and Washington debtors are required to list all their assets and give a corresponding estimated value of his or her property. This is an easy task when the asset has an easily fixed cash value, like a stock, owed wages, or cash money. Household and personal items, vehicles, and even real estate are often more challenging.
Most Oregon bankruptcy lawyers advise their clients to value household and personal items at garage sale or Craig’s List prices. The reason for this is that if the asset were sold through the bankruptcy process, it would be sold at a liquidation price, usually at auction. A Garage sale more or less approximates this value. The idea is what would the property sell for if it were dumped on the open market without any attempt to market it to a particular buyer.
Most people overestimate the value of their household goods. For instance, many used household items really have little or no resale value. Ever try to sell clothes or furniture? I couldn’t get Goodwill to take a desk from me for free! Your computer main mean the world to you, but the resale value for them after they are a year old is pretty much dimes on the dollar. If you are unsure of how to value an item, the internet is a terrific resource. Sites like Ebay and Craigslist can give good examples of what your property is worth to the general public.
A good resource to obtain vehicle pricing information is to visit Kelly Blue Book on-line or the NADA motor vehicle price guide on-line at http://www.nada.com. There resources are accepted price guides and are a good starting point in valuing your vehicle.
Real estate can be more difficult to determine. Most home and landowners have a good understanding of what their property is worth. If the value of the real property is an issue in the bankruptcy case, it will likely be in the debtor’s best interest to have the property appraised by a professional real estate appraiser. I would not rely on tax values because in cities like Portland and Salem, they rarely, if ever, provide a decent estimate of what the home would actually fetch on the open market. Obtaining both the tax value and the Zillow value is a good starting point.
If you have are filing bankruptcy in Portland or Salem and have any questions about the value of your real or personal property, make sure they get answered prior to the filing of our case.
The original post is titled Values for Property in Oregon Bankruptcy , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .