Michigan taxpayers with past-due tax debts should be aware of a new scam making the rounds through the U.S. Postal Service, according to the Michigan Department of Treasury. In the scheme, taxpayers are sent what appears to be a government-looking letter about an overdue tax bill, asking the taxpayer to immediately call a toll-free number…
What does a Proof of Claim regarding an automobile have to show to allow for treatment as a secured claim?
In a recent case before Judge Daniel S. Opperman, Chapter 13 Trustee, Thomas W. McDonald, Jr., objected to the Proof of Claim filed by the Wanigas Credit Union on a “secured” auto loan. Wanigas claimed that its lien was perfected despite the absence of a title stamp. Wanigas argued that because the Debtor had failed…
What happens to my Federal Income Tax Refund after I file a Chapter 13 Bankruptcy and I still owe the IRS Pre-Petition Income Taxes?
In the Eastern District of Michigan, Judge Opperman concluded that the IRS permitted to set off prepetition tax refunds against prepetition debts. However, the IRS is not permitted to offset postpetition tax refunds against prepetition debt, without first obtaining relief from the Automatic Stay. See In re Marcola, No. 07-23438-dob, 2011 WL 7789569 (Bankr. E.D. Mich….
WHY REAFFIRM A MORTGAGE LOAN IN MICHIGAN?
Entering into a reaffirmation agreement on a fixed term mortgage is not generally advised. The vast majority of attorneys will advise their clients not to sign reaffirmation agreements regarding fixed term mortgage loans, unless there is a specific benefit to be obtained in signing the agreement. For example – if the mortgage loan was not…
EXCEPTIONS TO REPORTING 1099-C FORGIVENESS OF INDEBTEDNESS
You do not have to report 1009-C income on your current year income tax return for the following types of debts: 1. Debts discharged in bankruptcy. If you filed for bankruptcy protection, do not report the canceled debt as income. 2. Mortgage debt forgiven due to foreclosure. Undert the Mortgage Forgiveness Debt Relief , you…
Consumer Financial Protection Bureau Develop the First Ever Industry-Wide Standards for Student Loan Servicing Companies
As reported by DeWayne Sheaffer, President of NEA’s National Council for Higher Education, this past summer the Consumer Financial Protection Bureau (CFPB) listened to the voices of more than 30,000 frustrated Americans, including thousands of NEA members, who were tired of receiving bad or unclear information from their student loan servicers. Thanks to the efforts of…
Michigan Bankruptcy Court Judge Rules that Unemployment Insurance Agency Quadruple Damage Penalties are Dischargeable in Chapter 13!
Eastern District of Michigan Bankruptcy Court Judge Mark Randon ruled that the “super discharge” provisions of Chapter 13 operate to discharge the quadruple damage penalty assessed by the Michigan Unemployment Insurance Agency. The Michigan Unemployment Insurance Agency (“the Agency”) determined that the debtor was overpaid $6,897.00 in unemployment benefits because she intentionally failed to report…