Today I had a referral from a colleague whose client is facing a judgment related to personal injury that occurred on the job site. The question I was presented is whether a debtor, who is an employer, can discharge a debt that is the result of an employee's workman's compensation claim. This is an issue because the debtor chose to be self-insured (i.e., he/she does not have workman's compensation insurance).
Short sales and purchases of homes undergoing foreclosure made up 24% of real estate sales in the 4th quarter of 2011 according to CNN Money.
It's that time of the year. People are checking their bank accounts daily to see if large tax refunds from the IRS and State of Maryland are in their bank accounts. But one minority owner of the Baltimore Orioles received disappointing news on February 24, 2012 about her tax refund and she was reminded that there are two things certain in life: taxes and death.
When clients come to my firm seeking assistance with their debt, one of their major concerns is the effect of bankruptcy on their credit. My concern is that they will become prey to creditors taking advantage of their bankruptcy.
Recently, debt settlement companies have been flooding the radio airwaves advertising their superior option of resolving consumer debt. These commercials discuss the dangers of bankruptcy and how credit counselors work for the bank. What these commercials don't tell you is the dangers of their service.
Many of my clients attempt some type of debt settlement prior to seeking bankruptcy assistance. Unfortunately, my clients learn the truth of the adage that what appears to be too good to be true usually is.
I recently attended a Continuing Legal Education (CLE) on Offers and Compromises. An Offer and Compromise is a technique that Lawyers and Accountants use to settle past due income taxes with the IRS and Maryland Comptroller of the Currency. What amazed me is that the attorneys teaching the CLE have the same perspective that many of my clients have that bankruptcy is not an option to discharge taxes. While taxes are not automatically dischargeable in Chapter 7, usually if sufficient time passes and the taxes are not the result of evassion and/or fraud, income taxes can be discharged in Chapter 7 Bankruptcy.
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