Bankruptcy and the Bible We live in a time like no other. Here in Michigan, many of us are struggling to just to keep up with our day to day living expenses. As a result of divorce, job loss or illness, many of us have incurred debts that we can never repay. Many Christians feel…
Archives for bankruptcy
What’s the difference between the cancellation of a debt or the discharge of that same debt in a Michigan bankruptcy?
The difference has huge tax implications. Discharged debt is not taxed as income to you – BUT canceled debt is treated as income and taxed. Let’s say that you owe $100,000 on an unsecured loan. You default after paying off $50,000 and you still owe $50,000. If your banks writes off the $50,000 balance and…