Income tax can, in some instances, be discharged in a personal bankruptcy. In order for income taxes to be dischargeable, the tax returns had to have been filed at least two years prior, and the same amount of time would have to have gone by before they can become dischargeable.

Income tax can, in some instances, be discharged in a personal bankruptcy. In order for income taxes to be dischargeable, the tax returns had to have been filed at least two years prior, and the same amount of time would have to have gone by before they can become dischargeable.

What Are The Exemptions For Bankruptcy In Florida?

In a Chapter 7 case, in order to obtain the benefit of the discharge, meaning the wiping out of the debt, the tradeoff that the federal government has set is that a consumer is limited on the amount of assets they can keep. The exemptions are the list of property that comes from state and federal law, which says which things you are allowed to keep. In Florida, the abbreviated list includes your homestead or primary residence, a certain allowance of personal property, which includes basic household goods, a limited allowance of vehicle equity, retirement funds, and some other assets. In cases outside of Chapter 7, such as Chapter 13, you are allowed to keep all of your assets, but the exemptions may affect your monthly repayment plan.

Do You Need Asset Protection From Lawsuits?

May 8, 2020

Bankruptcy Lawyer

If you are working on your estate plan, have you thought about an asset protection trust? At first, you may wonder why you need an asset protection trust instead of a typical or standard trust. The answer may be in your likelihood of facing a lawsuit. Even if you do everything for your business by the book, it does not mean that you will never have a lawsuit. If you do have this as a risk, you may want to think about asset protection trusts.

Of course, depending on your industry, you may not realize the risk of lawsuits it the consequences that you may face. Here is what you need to know.

Lawsuit Reasons

There are a lot of reasons that you may face a lawsuit. In fact, there are a few different industries where lawsuits are more likely to occur. For instance, if you are a doctor, lawyer, financial planner or any other occupation that works closely with clients and handles large amounts of money, you are always at risk of a lawsuit. If a person thinks that you were unfair in any way, he or she may decide to file a lawsuit against you. Most industries are subject to lawsuits.

Lawsuit Consequences

Not everyone has the assets to pay for a lawsuit. Moreover, do you want to lose your wealth and assets because of a lawsuit? If you have the potential to lose assets, then of course you are going to want to preserve them as much as possible. Say that you are facing a lawsuit and you lose. In addition, what happens if your insurance does not cover the lawsuit or the award that the other person was given? You have to pay from your own assets. if you do not have your assets safe, then anything that you own could be fair game. This could not only harm you, but it could mean that your legacy can’t be passed on for generations. Lawsuits are not only expensive when you lose either. There are high legal costs that you may have to pay.

When it comes to estate planning, there are different trusts that you can choose between. If you are someone who is at risk of lawsuits, then you may want to consider an asset protection trust. These types of trusts can offer you protection. To find out more, contact an estate planning lawyer in Mesa, AZ today and set up a consultation!

Thanks to Citadel Law Firm for their insight into estate planning and the need for asset protection.

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About the Author

Ziegler Diamond Law: Debt Fighters, provides effective legal services to consumers in Clearwater, Florida, and throughout the Tampa Bay area who are facing home foreclosure, unmanageable debts, debt collector harassment, or other debt-related problems.

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