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Debt Relief – Insolvency – Bankruptcy Information » Entries tagged with "Implications"

Repairing Credit – The Tax Implications of Settling A Debt

Article by Mark Andrade You may be lucky enough to have all or part of your debt wiped clean when you offer to settle with a creditor. This sometimes happens when you negotiate a reduced payoff and the creditor agrees to designate your account paid in full for less than the original debt. However, your initial peace of mind could leave you with a higher tax bill. People experiencing financial setbacks sometimes approach their creditors to obtain debt relief, either directly or through an intermediary such a credit counseling company. While this is relatively easy to do and more and more creditors are open to it, you should know that such a debt settlement could have negative tax ramifications. If you settle a debt with a creditor, or the creditor writes it off, … Read entire article »

Filed under: Debt Relief, Insolvency

Are There Tax Implications for Short Sales?

Article by Mayer Dallal What does it all mean? Choosing to do a short sale can be a good option for you and your family when you find that you can no longer carry the burden of the payment. However, you do want to be informed as to how the short sale will affect you. The end result of doing a short sale will keep you credit in a better position, but there are short sale tax implications. A short sale is when the lender will allow the home to be sold for less than what is owed, allowing the homeowner to get out of the loan. The home does not have to be in foreclosure to choose a short sale, but the homeowner must be upside down in the home in order … Read entire article »

Filed under: Foreclosure Help, Insolvency

Tax implications of cancellation of debt

Article by Ask Bill You have opted for cancellations of debt as a way out of the increasing sums you owe your creditors. However, you do not know about the implications behind the cancellation of debt and whether it will be considered as an income, thus, making the forgiven sum taxable. Many questions are probably whirling around in your mind now and you are worried no end about possibly having to fork out thousands to the Inland Revenue Service. Just to put your mind to rest, you may want to read on to learn more about the implications, especially the tax implications, behind this method of resolving your debt issues. First things first. If you are forgiven a sum more than $ 600 by a lender, the lender is required under the … Read entire article »

Filed under: Insolvency

Are there tax implications when parents take a 2nd mortgage and repay a (non-dependent) child’s student loan?

My parents are refinancing their house and offered to pay off my student debt (~$90k) with money from a 2nd mortgage on the house. The interest rate would be lower than the student loan. I would then pay my parents back and our family will save on interest paid. I am married and not a dependent anymore. Are there any tax implications for myself or my parents if they do this? Is there anything else I should consider? Thank you for taking the time to look at my question! … Read entire article »

Filed under: Student Loan Help

Question about refinancing a mortgage and the tax implications?

My future son-in-law is trying to refinance his home mortgage. The man handling the refinance suggested that he might get a lower interest rate if he included my daughter’s income and assets. They are unmarried, living together in Minnesota and expecting their first child in December. There are two parts to this question: Part One – Is this true about the possible lower interest rate and a good idea? and Part Two – Would they have to file taxes together from that point on? I would appreciate any advice and comments. … Read entire article »

Filed under: Mortgage Refinancing

What are the credit implications of foreclosure and for how long?

We live in Hawaii and our mortgage has become unmanageable. We just found out our house is worth 64k less than we owe. We have good credit though are overextended because of mortgage. No defaults and one 30 day late pay. We want to sell but do not have the credit left to get a 64k loan to pay off the rest of the loan. We desperately do not want to go into foreclosure. Any options anyone is aware of? … Read entire article »

Filed under: Foreclosure Help

What would the legal implications be if a car manufacture knowingly releases a car with defects that could be?

What would the legal implications be if a car manufacture knowingly releases a car with defects that could be fatal? Ie.e. toyotas recent recall that has resulted in death. Ford Pinto… Etc. What constitutional laws protect me in this situation? What laws in general apply and how would the process go about? I appreciate all of your help on this one! Thank You! … Read entire article »

Filed under: Legal Help

Debt Resolution FAQ13 What are the Tax Implications of DebtPro123

Clients are advised to consult a tax advisor to determine whether their individual circumstances may allow them to exclude any such discharge of indebtedness income from their reportable income–due to insolvency. see also www.justsettlemydebts.com For more information on tax ramifications personally regarding a client, you should consult a CPA or Tax Attorney and refer to the IRS website www.ustreas.irs.gov IRS Publication 908 Bankruptcy Tax Guide and IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness available on the IRS Website. … Read entire article »

Filed under: Insolvency

Potential Implications of Insolvency for Directors

Here is a note of the issues that a director of an insolvent company or potentially insolvent company has to take into account. The relevant legislation is primarily contained in the Insolvency Act 1986 (the “Act”). Definition of Insolvency – Section 123 of the Act states that a company is “unable to pay its debts” (i.e. it is insolvent) when the company is unable to meet its debts as and when they fall due. This is commonly referred to as a “Cash Flow Insolvency”; or the amount of the company’s liabilities (including its actual and contingent liabilities) exceeds the value of its assets on a balance sheet basis. This is commonly referred to as a “Balance Sheet Insolvency”. Where a company is or is about to become insolvent its directors … Read entire article »

Filed under: Uncategorized

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