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Chapter 13 bankruptcy is a powerful tool that may be able to help you end your bill problems. Here are 13 reasons Chapter 13 bankruptcy makes sense written by my Bankruptcy Law Network colleague, Doug Jacobs.
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Payments to the Topeka Chapter 13 Trustee should be mailed to a new lock box address starting March 1, 2011:
Chapter 13 Trustee
PO Box 2159
Topeka Kansas 66601-2159
You may also hand deliver to the 24 hour drop box at the trustee’s office at 507 SW Jackson, Topeka, Kansas.
Make checks payable to “Jan Hamilton, Chapter 13 Trustee” and print your name and case number on the check.
Do not send correspondence to the payment post office box. It is for payments only. It is opened by bank personnel not the trustee. There is a good chance your papers will not get delivered to the trustee if you use the payment address. Correspondence should be sent to Jan Hamilton Trustee, PO Box 3527, Topeka, KS 66601. Print your name and case number on your correspondence.
How do I know the chapter 13 trustee got my payment, you ask. Sign up for free online access to your account so you can monitor your payments in and the trustee disbursements out.
In re Karr, (Bkrtcy.D.Kan.) (Judge Somers Case No. 09-20008. February 24, 2011: Discharge – Intent to defraud could be inferred from circumstances surrounding diversion of funds. A Chapter 7 debtor’s conduct in the year preceding the bankruptcy filing of his wholly-owned corporation, in using the corporation as a piggy bank to pay personal expenses of himself and his family even as the company’s cash flow problems worsened and it was unable to pay corporate creditors, warranted a denial of the debtor’s individual Chapter 7 discharge under 11 U.S.C.A. 727(a)(7) on a fraudulent transfer theory. An intent to defraud corporate creditors could be inferred from circumstances surrounding the diversion of corporate funds, notwithstanding that the debtor did not attempt to conceal this diversion and testified, after-the-fact, that he intended to repay the corporation for any funds diverted.
Summary by West Highlights
The Internal Revenue Service is making it easier to set up payment arrangements on delinquent taxes and file less tax liens according to its press release today. The press release is below in its entirety.
IRS Announces New Effort to Help Struggling Taxpayers Get a Fresh Start; Major Changes Made to Lien Process
IR-2011-20, Feb. 24, 2011
WASHINGTON — In its latest effort to help struggling taxpayers, the Internal Revenue Service today announced a series of new steps to help people get a fresh start with their tax liabilities.
The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
“We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start,” IRS Commissioner Doug Shulman said. “These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.”
Today’s announcement centers on the IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers. The changes include:
* Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
* Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
* Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
* Creating easier access to Installment Agreements for more struggling small businesses.
* Expanding a streamlined Offer in Compromise program to cover more taxpayers.Continue Reading
2011 POVERTY GUIDELINES FOR KANSAS, THE 48 CONTIGUOUS STATES AND THE DISTRICT OF COLUMBIA
Persons in family Poverty guideline
1 ………………………………………… $10,890
2 ………………………………………….. 14,710
3 ………………………………………….. 18,530
4 ………………………………………….. 22,350
5 ………………………………………….. 26,170
6 ………………………………………….. 29,990
7 ………………………………………….. 33,810
8 ………………………………………….. 37,630
For families with more than 8 persons, add $3,820 for each additional person.
The poverty guidelines issued here are a simplified version of the poverty thresholds that the Census Bureau uses to prepare its estimates of the number of
individuals and families in poverty.
As required by law, this update is accomplished by increasing the latest published Census Bureau poverty thresholds by the relevant percentage change in the Consumer Price Index for All Urban Consumers (CPI–U). The guidelines in this 2011 notice reflect the 1.6 percent price increase between calendar years 2009 and 2010. After this inflation adjustment, the guidelines are rounded and adjusted to standardize the differences between family sizes.
Here is an excellent post on credit scoring by my blogging colleague, Gene Melchionne of Connecticut, on Money Heath Central.
How many times have you heard, “What is your credit score?” Or someone talking about how to keep your credit score up? Or keep it from going down? Or read an article about what makes up your score?
Americans like to reduce concepts to numbers. We do it in sports; number of games unbeaten; batting averages, etc. We do it in the economy; stocks increasing on the Dow Jones , the unemployment rate. We do it in cars, miles per gallon or horsepower. We do it in health; blood pressure, body mass index. It is easy to compare on number to another and decide which is better.
Somewhere, somehow, we were sold on the idea that a good credit score is important. And then the idea was sold to others so employers think a good credit score is an indication of a good employee and insurance comanies think a good credit score is also somehow a good insurance risk. Like somehow paying the minimum payments on your credit cards everymonth somehow makes you a good driver.
Now the credit score is taking on the important task of measuring self-worth. If you don;t have enough debt and enough monthly payments to worry about, then you just aren’t a success.
The real truth is that you are better off without debt. If you can pay off your bills, then you can’t get into financial trouble. If you live within your means, you will have the means to live. If you want something, pay cash and if you can’t pay cash then save up to buy the thing you want so bad. It will feel even better when you do get it because you earned it. That will feed your self-worht more than anything. If an employer can’t see your worth as an employee based on your character, then you don’t need them. While you need insurance for some things, you can shop around. There are many companies who will take your business. Don’t be a number, be you first and don’t focus on your credit score as measure of your life.
February 16, 2011 By Gene Melchionne
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Housing and Credit Counseling, Inc.
Offers Property Management Training
In celebration of Fair Housing Month this April, HCCI is offering Property Management Training for landlords, property managers, social workers, social service providers and any other interested parties. Training on how to handle common mistakes property managers and landlords encounter. Get an overview of the Kansas Residential Landlord/Tenant Act regarding tenant and landlord rights and responsibilities.
Visit www.hcci-ks.org/Propmangtrain.pdf for details.
A common question I get this time of year is whether the trustee will take the debtor’s tax refund if he files for bankruptcy. The answer depends upon many factors. Talk to your bankruptcy lawyer. Don’t spend your tax refund until you know for sure your bankruptcy trustee does not claim it. Spending a tax refund instead of paying it to the bankruptcy trustee can get you arrested.
The Trustee has a duty to administer non exempt assets if those assets are worthy of administration. For a tax refund to be worthy of administration the refund must be large enough to justify the time and effort to take and distribute the money to unsecured creditors.
If you can wait to file bankruptcy, then often the simplest solution to the problem is to your return, then receive and use the refund. We do need to help you spend the refund in ways that will not jeopardize your bankruptcy case. One huge no-no is paying back relatives with your refund. You will get your relatives sued by the bankruptcy trustee, which is worse than not paying them back at all. You may use your refunds to pay for your bankruptcy and will be expected to do so.
However, waiting to file bankruptcy is not always possible. If you are having your wages garnished or a garnishment is scheduled to begin, it may be necessary to file before a refund can be received. Timing issues will also occur if a house is in foreclosure, or a car is about to be repossessed.
If you cannot wait for whatever reason, the following factors will determine whether the refund will be taken:
As can be seen the timing of a bankruptcy when a tax refund is expected depends on many factors. Local practice and state law being the major considerations.
Consult us. As your attorney, we will help you maximize the amount of tax refunds you can lawfully keep and minimize the amount you lose to the bankruptcy trustee.
Hat tip to my blogging colleague, Kevin Gipson of New Orleans, who wrote the original version of this post in Bankruptcy Law Network.
