Do I have to pay taxes if I file bankruptcy?
What is forgiveness of debt income?
When you owe money and do not pay the full amount of the debt the lender is required to file a 1099 form with the IRS showing that you had phantom income in the amount the creditor forgave.  This is referred to as ‘forgiveness of debt’.
Exceptions to forgiveness of debt:

At least once or twice a week someone asks if they have to pay a judgment when trying to sell their home.
The answer is probably ‘no’, but depends on certain facts.  It depends on the law of the state where the judgment debtor lives.  It also depends on the type of assets the judgment debtor has – exempt versus non-exempt.
I want to sell my home but the title company says I have to pay a judgment.

If you are considering bankruptcy in Seattle, you must already be in a dire financial situation. As such, you probably think it is better if you file bankruptcy on your own to save on attorney’s fees. However, you may not be aware that it is a big and expensive mistake. The fact remains, working with an experienced Seattle bankruptcy attorney will not only save you money but also time and the stress brought about by bankruptcy proceedings.

As the new year has begun, it is time to look at the bankruptcy filing statistics from the first part of 2019 as compared to the first part of 2018. This fact will dictate where we may be heading for the rest of 2019. As expected, total bankruptcy filings in January 2019 increased 5 percent+ Read More

As the new year has begun, it is time to look at the bankruptcy filing statistics from the first part of 2019 as compared to the first part of 2018. This fact will dictate where we may be heading for the rest of 2019. As expected, total bankruptcy filings in January 2019 increased 5 percent+ Read More

If you are considering filing for bankruptcy in California, you should understand what type of debt you can discharge. The debts you are permitted to discharge in a Chapter 7 bankruptcy may be different from the debts discharged with a Chapter 13 bankruptcy filing. That is why it is important to understand the difference between […]

If you've fallen behind on a private student loan, the possibility of being sued can be terrifying. Every knock at the door causes anxiety, causing you to wonder whether you're being dragged into court. It's natural to fear a private student loan lawsuit. The court system can be confusing, with exacting procedural rules and Read the article

If you’ve fallen behind on a private student loan, the possibility of being sued can be terrifying. Every knock at the door causes anxiety, causing you to wonder whether you’re being dragged into court.
It’s natural to fear a private student loan lawsuit. The court system can be confusing, with exacting procedural rules and severe penalties for stepping over the line. Losing a lawsuit involves the prospect of wage garnishments, bank account levies, and additional costs that can wreck you financially.

By Winnie Hu

You may be thinking of filing for Chapter 7 or Chapter 13 bankruptcy in Seattle if you are in the midst of a challenging financial situation. But, at the back of your mind, you are thinking of its possible negative impact on your credit score and how a bankruptcy on record can affect your ability to take out loans or get approved for financing in the future.
Even if your credit score may be affected by a bankruptcy filing, it is not for the long-term. In fact, there are some circumstances where a bankruptcy filing is actually what will work best in your financial situation.