Category Archives: Bankruptcy
Did you know the IRS launched tax season on January 29? Millions of Americans are gearing up to file their taxes, and if everything goes smoothly, receive tax refunds. In 2017, the IRS issued 108,761,000 refunds. However, your tax refund could be offset by the Department of the Treasury or the IRS if you owe government debt. Tax refund offsets can be issued for: Defaulted federal student loans: Your tax refund could be offset if you have defaulted on federal student loans. In this case, the Department of Education would refer your defaulted loans to the Department of the Treasury to initiate a tax refund offset. You are generally considered in default after 270 days of nonpayment. Unpaid child support: You could be subjected to a tax refund offset for unpaid child support. The Office of Child Support Enforcement could refer your unpaid support to the Department of the Treasury….
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Bankruptcy can be a great option for protecting important assets from creditors while discharging troublesome debts. However, there are requirements for filing that vary depending on the specifics of your case and which bankruptcy Chapter you file under. In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, which overhauled the bankruptcy code. Debtors are now required to pass the means test to file for Chapter 7 bankruptcy. However, you do not have to take the means test if your debts are primarily business debts. If your household size and income are below the average in New Jersey, you pass the means test. If your income and household size are not below the average, the court requires an analysis of your disposable income and unsecured debt before determining whether you can file. Chapter 7 bankruptcy also has other requirements, so it is important to speak with a bankruptcy…
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Bankruptcy attorneys are used to answering common questions from potential clients. Questions about the effect of bankruptcy on credit scores, employment, homes and property repossession are very common. However, another question people ask is whether filing for bankruptcy would have any effect on their student loans. It is extremely difficult to file for bankruptcy on student loans, but it is not impossible. You would have to meet very specific criteria. The bankruptcy court would require you to show that repaying the loans would pose an “undue hardship” on you or your dependents (if you have any). Different courts use different tests to determine what constitutes undue hardship. If the court evaluated your case with the original Brunner test, it would consider factors such as: Whether you could maintain a minimal standard if living if you were forced to repay the loans. Whether you had made a good faith effort to…
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