Should I Reaffirm my mortgage?

What is debt reaffirmation? In almost all cases where the debtor has a car loan or a mortgage, the creditor asks that the debt be reaffirmed. Except in rare instances, we strongly recommend against reaffirming any debt. Reaffirming a debt is promising all over again to pay the debt even though it is discharged in the bankruptcy case. Being discharged means that the person filing for bankruptcy never has to…

Taxes in Chapter 13

Filing timely tax returns is key if you wish to discharge tax debt in bankruptcy. It is possible to discharge income tax debt in bankruptcy, however, not all taxes are eligible and timing plays a very important role. If you’re anticipating tax troubles on the horizon, it is always best to go ahead and file a tax return. Failure to do so can result in the IRS preparing a “Substitute…

Retirement Accounts in Bankruptcy

Generally speaking, retirement accounts are exempt when you file for bankruptcy including: 11 U.S.C. § 522 – Tax exempt retirement accounts (including 401(k)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans). 11 U.S.C. § 522(b)(3)(C)(n) – IRAS and Roth IRAs to $1,171,150. State Pers. & Pen. 21-502 – State employees 11-504 – ERISA-qualified benefits, including IRAs, Roth IRAs and Keoghs. However there are exceptions.…