BANKRUPTCY VIDEOS
- Introduction to Bankruptcy
- Types of Bankruptcy
- Limits of Bankruptcy
- Filing for Bankruptcy
- Meeting of Creditors
- Bankruptcy Court Hearings
- The Bankruptcy Discharge
- The New Bankruptcy Law
- The Credit Damage Myth
- Chapter 7 Bankruptcy Explained
- Chapter 13 Bankruptcy Explained
Blog
- Will Filing Bankruptcy, Cause Me To Lose My Recreational Vehicle(s)?
- Am I Better Off Trying to Work with a Credit Counseling Agency?
- Will I Loos My Retirement Account If I File Bankruptcy?
- Will Filing Bankruptcy Ruin My Credit?
- Will The Bankruptcy Trustee Take All My Belongings?
Assuming you own the recreational vehicle free and clear or have substantial equity in it, the answer as to whether you will be able to keep it depends... Read more
Honestly, I cannot think of any situation where working with a credit counseling agency would be better than filing bankruptcy. I would suggest pursuing... Read more
In nearly all bankruptcy cases, you will not lose your retirement account. The bankruptcy code specifically provides certain exemptions. These bankruptcy... Read more
The truth is, if you are contemplating filing bankruptcy, the chances are your credit has already been ruined. Bankruptcy will negatively affect your... Read more
The answer to this is absolutely not. The government views bankruptcy as a way to give citizens a fresh start. It does this by eliminating debt legally... Read more
How Bankruptcy Law Protects You
MEMBER OF
Avoid Tax Consequence of Foreclosure or Shot Sale
Many people are unaware that when their home is sold at foreclosure or in a short sale, Banks will issue them a 1099 for any deficiency the Bank incurred as a result of the sale. For example, if you owed $200,000 on your home, and it sold for $125,000 in a foreclosure or short sale, then the Bank will have lost $75,000. That is a $75,000 deficiency.
In Arizona, the bank cannot pursue a homeowner for this deficiency, so long as the home was their primary residence. Consequently, the federal government views the $75,000, that must be forgiven, as taxable income to the homeowner. So even though a homeowner may have escaped the debt that the Bank could not recover through the sale, the homeowner must face the tax consequences of the benefit from avoiding that debt. A bankruptcy eliminates both the underlying debt/deficiency and the tax consequences.
If you do not wish to pursue Bankruptcy and end up with a 1099 on the amount of your deficiency, my law firm may be able to help you eliminate the 1099. For free information on how to avoid the 1099 consequences without a bankruptcy, just follow this link on avoiding deficiency tax consequences on your primary residence.