Arron Carter the brother of Nick Carter has filed for bankruptcy.
Nick Carter’s brother Aaron Carter filed bankruptcy listing virtually no assets.
3 Credit Counseling Certificate from Advisory Credit Management, Inc.
4 Meeting of Creditors on December 6, 2013
6 Notice of Appearance of Co-Counsel Daniel C. Elkins
7 Amended Summary of Schedules
7 Amended Schedule F Unsecured Creditor
Hard work ahead for Aaron Carter to rebuild his finances after his bankruptcy.
Keep going after bankruptcy is what Aaron Carter needs to do.
You can actually defend yourself against the IRS because by filing Form 982 you show that it was discharged in bankruptcy and is therefore not taxable.
I cannot even remotely count how many inquiries I get about lenders threatening to send 1099′s or sending 1099′s to clients after a bankruptcy. The good news is that the discharge of your debts in a bankruptcy is not taxable and there is a simple defense mechanism the Form 982
. (Click here to download it).
Additionally, the sending of 1099′s to those who have filed bankruptcy may be a violation of the automatic stay or discharge injunction because I think it is an attempt to collect a debt. Contact my good friend and colleague Chuck Newton who specializes in these violations if this has happened to you.
Vince Young files for Bankruptcy
Vince Young, the NFL player and college football star has filed for Chpater 11 Bankruptcy in Houston apparently to hold off a lawsuit. Since he was released last fall from the Packers it may have been hard to find other options. More will be released soon.
Documents in the Vince Young Bankruptcy case:
1 Vince Young’s Bankruptcy Petition
4 Vince Young’s Credit Counseling Certificate from Money Management International
Houston hand surgeon Michael Brown filed bankruptcy under Chapter 11, the wife filed a motion to lift stay to allow the divorce to proceed, and Brown now seeks dismissal of his bankruptcy. Like many celebrity cases this one has some interesting aspects such as the amount of payments to the wife:
“Wife receives $25,000 in monthly alimony, $5,000 in monthly child support, has all medical expenses and medical insurance paid for by the Debtor, has multiple luxury vehicles(which appearto include some or all of: a Mercedes 550, a Lamborghini, a Hummer, a Cadillac Escalade, a Maserati and a limousine), and lives in the Debtor’s multi-million dollar home in Houston, with the sizeable household expenses paid by the Debtor.” Docket No. 83 – Motion Describing Wife’s Siutation, Page 5.
The Docket Sheet can be accessed Here Other Documents can be accessed at:
33Schedules – the bulk of Michael Brown’s financial information.-
A related case against his business filed in Tyler, Texas federal court:
EDtEx30CaseListExhsee143 – Describing another state court case
EdTex 56 Motion Withdraw to Bank Court Motion for Sanctions
ED Tex Docket Report
Don’t burn down your house. There are options when you fall behind on your Chapter 13 Trustee payments!
It is not unusual that people experience job loss even while in a Chapter 13 case. Generally Chapter 13 cases almost never fail if the client can afford to make the payments. Illness and job loss are the most common reasons why a client in Chapter 13 cannot afford to make their payments. Here are the options available if you find yourself unable to pay the Trustee:
- Dismissal This is usually the least desirable option and this is what will happen if you do nothing as the Trustee will file a motion to dismiss. The main disadvantage of this option is that the moment your case is dismissed you lose your automatic stay protection from creditors and the mortgage company can start foreclosing, the auto lender can repossess, and lawsuits can come back. Another disadvantage is that when you file a new bankruptcy case within a year you may only have a 30 day stay or no stay at all to protect you. While that can be extended by the judge, it is better you do not have to do this. Don’t risk your home to the judge’s discretion!
- Modification If you can modify your plan to restructure the payments yet stay within the five year maximum this is a good option. Remember that it is like a balloon when you squeeze on one part other parts expand. If you lower the payment for a while it later has to increase. The most workable modifications often involve clients who surrender an expensive car to save money so that the house can be saved.
- Hardship Discharge This option is rarely pursued but when it is granted it is great. This way you get a discharge of your debts even though you could not finish the payments. You are eligible to be considered for a hardship discharge if your plan has already been confirmed, modification of the plan is not practical, the unsecured creditors have actually received at least as much as they would have received if you had filed Chapter 7, and your inability to make the plan payments is due to circumstances for which you should not justly be held accountable. If you meet these requirements the judge has the discretion to grant you a hardship discharge but is not required to. This option avoids the negatives of dismissal and grants you a discharge of the same kind you would get in a Chapter 7. Unfortunately these are rarely granted.
- Conversion to Chapter 7 This is often a great option. You get another three months of automatic stay protection to keep the mortgage company from foreclosing yet without Chapter 13 payments. You also get a discharge as long as you have not had a discharge in a Chapter 7, 11, or 12 filed more than 8 years before the filing of your current Chapter 13, or if the prior case was a Chapter 13 then six years unless certain exceptions apply. Even if you do not receive a discharge it is still better to have a case close without a discharge than to have a dismissal. Most importantly though, there is no dismissal and if you need to refile again you get a full automatic stay unless you have had other prior cases within a year that were dismissed. You do need to make sure you have no non-exempt property still in your possession at the time of conversion, because that would need to be surrendered to the Chapter 7 Trustee to be sold if you did, but this is almost only the negative aspect and it very rarely if ever happens.
The main thing I counsel clients is that a dismissal is usually the worst option. Not only does it hurt your credit as you do not receive the benefit of your bankruptcy and the better credit score that usually comes with it, but it also puts you in a tough position if you need to refile again. We want all of our clients to reap the benefits of bankruptcy and be rewarded for the hard work and sacrifices you have made in Chapter 13. Don’t just let your case get dismissed, schedule an appointment and meet with your attorney so we can find a better solution!
Alex Wathen files his first document from an airplane in the air.
October 21, 2011 – Over Winston-Salem, North Carolina – On board AirTran Flight 168 from Atlanta to Reagan National Airport in Washington – Alex Wathen just e-filed his first document from an airborne airplane. The document was a certificate of service for a rescheduled creditors meeting notice. Alex used AirTran’s Go Go inflight wi-fi internet service which provide excellent connectivity and is also used by other airlines. This post is also written and uploadd live from the same flight!
Harrisburg, Pennsylvania files Chapter 9 bankruptcy. Photo courtesy of Pollinator on Wikimedia Commons.
Harrisburg, Pennsylvania has filed Chapter 9 bankruptcy. A firestorm seems to be brewing as the State of Pennsylvania has objected to the bankruptcy filing and apparently there are moves to pass legislation that would strip the city of its power to be a debtor in a Chapter 9 Municipal Bankruptcy.
The documents can be read here:
Docket Report – list of filed documents and case information.
1 Chapter 9 Bankruptcy Petition for Harrisburg, Pennsylvania
5 Third Circuit order designating Bankruptcy Judge to preside over Chapter 9 bankruptcy case of Harrisburg, PA
15 State of Pennsylvania’s Objection to Bankruptcy filing of the City of Harrisburg under Bankruptcy Chapter 9
Houston Bankruptcy Attorney Alex Wathen warns people about foreclosures and short sales as the mortgage lender often sends a Form 1099 making it a non-dischargeable debt.
The widespread practice of sending Form 1099 to people who have had a foreclosure or a short sale benefits the federal government in terms of tax revenue. Now there are ways out of this such as filing for bankruptcy the same year as the foreclosure and in some other cases if you are insolvent you may get relief by filing a form with your tax return if you qualify, but the surest way to avoid it is bankruptcy. Surely a lot of people do not know this and end up paying the IRS money needlessly. Perhaps that is why Congress has not changed the tax laws to eliminate cancellation of debt as taxable income. It may also be a reason why Congress has not taken action to stop foreclosures by allowing bankruptcy courts to modify people’s loans. It is too bad that the federal government has no incentive to help people.
Houston Bankruptcy Attorney Alex Wathen handles tax issues frequently. Getting taxes discharged in bankruptcy is complicated and there are more twists than you think.
You thought Hurrican Ike was over with – wrong it is still affecting us. Other than the thousands who are still fighting over insurance proceeds and trying to get their homes repaired, it still affects your taxes.
You have probably forgotten but if you took the October 15, 2008 extension for your 2007 taxes, then IRS automatically extended your extension until January 5, 2009, which means that if you want to get 2007 taxes discharged in a bankruptcy then, in addition to meeting the other requirements, you need to wait and file your bankruptcy until after January 5, 2012, I always advise people to wait a little longer if possible. There are also other requirements such as when the return was actually filed and when the IRS assessed the taxes which are also traps.
Photo courtesy of Cliff1066 on Flickr.