Category Archives: Bankruptcy Law

Bankruptcy law news articles, reiews, notes and blog examples.

Reboot Your Life: Use Debt Sparingly

Debt is to be used sparingly.  It allows you to make purchases which you cannot afford.  In other words, debt allows people to live beyond their means or to spend more than they earn.  While this may appear to be a good thing when an emergency arises, there are serious side effects.  These side effects include 1) paying more for an item than what it’s worth in the form of interest; 2) possible inability to pay off the debt; 3) added pressure and stress which can lead to medical and relationship problems; and 4) being a “slave” to your debt. While some debt will always be necessary such as a home loan, usually a car loan, and a reasonable amount of student loans, it’s important to only take on a modest amount of debt and have a plan for repayment.  Just because a lender wants to loan you money is not a good reason to take it.  Many college students took out excess student loans to pay for all kinds of stuff.  Unnecessary….. To continue reading this legal news please click Read full information...

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What Happens to Co-debtors in Bankruptcy

Having a co-debtor situation usually occurs when one person’s income is not enough for the loan. The co-signer lends their name to the loan as an assurance that the debt will be paid. When you have a co-debtor for a loan and the original signer defaults on the loan, the co-debtor becomes responsible for the  … Read more.. To continue reading this legal news please click Read full information...

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Bankruptcy Discharge Slays IRS Form 1099

In a duel between a Form 1099 and a bankruptcy discharge, bankruptcy wins every time. The prize?  no tax on debt discharged in bankruptcy. So, if you’ve already gotten your discharge, the creditor’s 1099, with your social security number on it, is no threat. But you do need to file another form to secure the prize. Bankruptcy is exception to tax Normally, when an obligation is forgiven, the tax code treats the amount of forgiveness as if it were income.  And income is exposed to tax. Insolvency is another exception to tax on forgiven debt But forgiveness in bankruptcy in the first exception to the rule. Debt forgiven in bankruptcy is not treated as income. Creditor is clueless So, if bankruptcy is outside the IRS rule, why are you getting a form 1099? Because there’s another rule, requiring creditors to report to the IRS, just the way your employer is required to send the IRS your W-2. And seemingly, the creditor can’t figure out that the….. To continue reading this legal news please click Read full information...

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Fatal Garbage Truck Accident in Georgia Highlights Dangers of Bulky Trucks

Garbage and recycling trucks are some of the most dangerous vehicles on the roads of Georgia. These are very heavy vehicles with blind spots. Although they seldom travel at high speeds, they can be deadly on residential streets. Police are investigating a fatal garbage truck accident at the end of 2018. A Floyd County inmate lost his life on Dec. 26 in a garbage truck accident, Cartersville Patch reported. The Georgia State Patrol launched an investigation after the accident on Church Street near Jones Street. Patch reported two inmates were riding on a city of Cartersville garbage truck as it backed down Church Street from Jones Street. Georgia State Patrol reported the driver ran off the road while backing up and struck a utility pole on the right side. Fatal garbage truck accident is reported in Georgia A 43-year-old inmate ended up pinned between the truck and the pole. He suffered serious injuries and died later at Cartersville Medical Center. The deceased inmate was later….. To continue reading this legal news please click Read full information...

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Supreme Court finds that foreclosure firm engaging in non-judicial foreclosure proceedings is not considered a debt collector under the FDCPA.

In Obduskey v. McCarthy & Holthus LLP, No. 17-1307 (Sup. Ct. Mar. 20, 2019), the Supreme Court ruled unanimously that non-judicial foreclosure actions required by state law are not generally considered debt collection, and therefore are not subject to regulation under the FDCPA. The majority opinion, written by Justice Breyer, held that the firm’s foreclosure activities to enforce a valid mortgage security interest neither fell within the purview of section 1692f(6), which provides a limited purpose definition of “debt collector”, nor within the general definition of “debt collector” in section 1692a(6).  Specifically, the Court held that because  section 1692f(6) does provide that under limited circumstances an enforcer of a security instrument may be considered a “debt collector”, i.e., when there is no right or intention to possess the property or the property is exempt by law for dispossession, Congress did not intend….. To continue reading this legal news please click Read full information...

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