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.

Truths And Myths Regarding The Bankruptcy Process

What are some of the truths and myths regarding the bankruptcy process? Attorney Michael Ziegler explains that the most essential truth is that bankruptcy offers a pathway for consumers to control and often eliminate their debts that is incomparable to any other alternative.

The amount of debt that can be eliminated for a modest expense through bankruptcy is incomparable to debt consolidation or other debt negotiation alternatives.

The myth about bankruptcy is that the bankruptcy benefit of eliminating or reorganizing your debt comes without any sacrifice on the part of the consumer. Particularly in chapter seven cases, many consumers are of the impression that they get the benefit of the bankruptcy discharge without any commitment except for the filing fees. Chapter seven is a trade-off.

The bankruptcy benefit of the discharge is provided in exchange for agreeing to start over with limited assets. So sometimes consumers have to commit some of their assets in order to obtain the bankruptcy benefits.

Contact attorney Michael Ziegler in Florida for a free case evaluation today. He founded his law firm on the principles of professional quality and personal care.

Clearwater: (727) 538-4188 Tampa: (813) 225-3111

Mt. Dora: (352) 600-1326

Truths And Myths Regarding The Bankruptcy Process

Related Videos

CLEARWATER LOCATION

(727) 538-4188

TAMPA LOCATION

(813) 225-3111

ALTAMONTE SPRINGS LOCATION

(352) 600-1326