Last time, our blog discussed how those who are filing for Chapter 7 or Chapter 13 bankruptcy will more than likely be entering uncharted territory, such that they have little to no familiarity with the hearings, the parties or even the terms.
Once the important decision to file for either Chapter 7 or Chapter 13 bankruptcy is made, individuals may soon find themselves in unfamiliar territory, attending proceedings, encountering parties and hearing terms that are all entirely foreign to them.
There is perhaps no better feeling for those who have made the decision to file for Chapter 7 or Chapter 13 bankruptcy than the day their discharge becomes official. Indeed, this means they are no longer under any legal obligation to pay the specified debts while their creditors are forbidden from taking any collection actions.
Last week, our blog spent some time discussing how those who discount bankruptcy as an option owing to the size of the filing fees might want to reconsider their position due to the availability of both fee waivers and installment payments.
In our last post, we discussed how the first budget proposal released by President Trump earlier this month contained a provision calling for bankruptcy filing fees to be increased by almost $150 million "to ensure that those that use the bankruptcy court system pay for its oversight."
While the notion of securing a fresh start via bankruptcy is undoubtedly an appealing proposition to those in dire financial straits, the process of actually getting to this point can seem more than a little intimidating. Indeed, that's because those filing for Chapter 7 will see some of their assets liquidated, while those filing for Chapter 13 will see themselves tied to a three- to five-year repayment plan.
Last week, we began discussing how Tax Day 2017 is rapidly approaching, and how the already complicated process of completing a federal income tax can become even more so for individuals who have filed for bankruptcy given that it might be unclear as to what they are even required to file.
It's hard to believe, but Tax Day 2017 is now just a little over six weeks away. This means that at some point in the near future people will need to sit down with either their accountant or their favorite tax preparation software to initiate the sometimes arduous process of completing their return.
If you are considering filing for bankruptcy or have filed in the past year, it is important to understand how that impacts the preparation of your tax returns. Filing taxes after a bankruptcy should be no problem - as long as you understand when and how to file.