The Mortgage Forgiveness Debt Relief Act of 2007 has been extended through 2012. This Act allows homeowners to exclude income from the discharge of debt on their principal residence. Despite this Act, your lender may still send you a Form 1099 A or a Form 1099 C. This form must be addressed – otherwise the…
Archives for 2012
Can the Loan Modification Program be Saved?
Following the lead of several Bankruptcy Courts across the country, Local Chapter 13 Trustee Thomas W. McDonald Jr. has proposed a Mortgage Modification Mediation program that would function through a Chapter 13 proceeding. McDonald’s proposal addresses several of the major complaints about the voluntary Making Home Affordable Program (HAMP). The Obama Administration designed HAMP to…
The Mortgage Debt Relief Act Prevents You From Getting Taxed on Discharged Mortgage Debt
The Mortgage Debt Relief Act of 2007 – which was extended through 2012 – allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring and mortgage debt forgiven in connection with a foreclosure also qualifies for the relief. So, if you filed for bankruptcy in Michigan…
Can Federal 1040 Income Taxes be Discharged in a Chapter 7 Bankruptcy in Michigan?
Michigan Bankruptcy and 1040 Income Taxes. Yes, provided the 5 following rules are met: 1. The taxes at issued must be 1040 Income Taxes. Taxes such as payroll taxes, trust fund taxes, sales tax or fraud taxes are treated differently. 2. The 3 Year Rule. The income tax return for which the taxes are owed…
Scam Alert – Global Client Solutions & The World Law Group rip off Michigan couple!
Michigan Bankruptcy SCAM ALERT. I just retained a client who had been scammed by Global Client Solutions based out of Tulsa Oklahoma and The World Law Group based out of Austin Texas. These slick grifters convince people that they can eliminate all of your unsecured credit card debt in as little as 4 years. My…