Monthly Archives: January 2024
FAQs About IRS Installment Agreements
According to the IRS, about 85 percent of Americans voluntarily pay their taxes in full and on time. That figure, although high, creates a tax gap of over $400 billion per year. Recent budget cuts have reduced the size of this federal agency, but it’s still the world’s largest collection agency. Furthermore, it has… Read More »
Is It a Good Idea to File Chapter 7?
The knee-jerk answer to this question is “no.” Most people believe a real-life Chapter 7 is similar to a Monopoly bankruptcy. Bankrupt players in this board game lose all their money, all their assets, and are permanently expelled from the game. Chapter 7’s nickname, the liquidation bankruptcy, supports this idea. Real life is completely… Read More »
Will I Lose My Retirement If I File Bankruptcy?
No. If you file bankruptcy, you won’t lose pension plan benefits, nest egg savings accounts, like IRAs, or government Social Security benefits. All these things are protected assets in California, even if they resemble income benefits, which are normally not exempt. But the news isn’t all good. The law is unclear on some points…. Read More »
Bankruptcy and Past-Due State Taxes
Mostly because of its recent and well-chronicled budget problems, the Golden State has one of the highest state income tax burdens in the country. Most of that burden falls on self-employed people. When their incomes drop, they often suspend estimated tax payments. That suspension comes back to haunt them in the spring, when they… Read More »
How Does Bankruptcy Affect My Ability to Buy a Car?
Bankruptcy adversely affects your ability to buy a car. There’s no two ways about it. However, the adverse effect normally isn’t that bad. Credit score effect is a good example. Since bankruptcy is usually a last resort, most people already have poor credit scores when they file. So, the filing only moves a credit… Read More »