Tax Filing Deadline This Tuesday

Chapter 7 Bankruptcy, Tax Filing Deadline, & Bankruptcy Exemptions!Written by Ken Jorgensen
The goal of Chapter 7 Bankruptcy is to provide a fresh start after suffering from financial turmoil. Most understand that filing bankruptcy is not going to cause the debtors to lose everything own, including the shirt off their backs.  The best way to understand a "fresh start" is that debtors are allowed to keep just enough to begin a successful path to financial freedom.  Thus, much of a debtor's assets are exempt from being liquidated.  Here is how exemptions work: How Much Money Can I Keep?

Here is a tool that correlates with Tuesday's tax filing deadline: Retirement Accounts.

The lawmakers wrote the code to encourage families to save for retirement.  As such, funds in IRS designated accounts are exempt.  Debtors get to keep them.

Individuals are allowed to deposit up to $4,500 in individual accounts per year.  Right now, through Tuesday, folks are allowed to contribute funds for both 2013 and 2014. Thus, up to approximately $9000 can be converted into an exempt asset status.  After Tuesday's deadline, debtors can still contribute $4,500 for the 2014 tax year.

Buying groceries, fixing cars, mortgage payments and groceries are other tools to take non-exempt cash and be able to convert it to exempt property from the bankruptcy estate.

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases.  You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com.  He can be reached at [email protected] or by telephone at 1-559-324-1882.

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