Archive for the ‘Small Business Bankruptcy’ Category
*Criminal fines or restitution or drunk driving injury claims
*Guaranteed Educational Loans
*Fine or penalty owed to governmental unit
*Damages arising from willful injury to person or property
*Spousal or child support, or ex-spouse attorney fees for obtaining support
*Income taxes less than three years old
*Income taxes over three years and tax return not filed more than two years ago
*Income taxes not assessed at least 240 days
*Payroll taxes and sales taxes
As reported in the Milwaukee Journal by Paul Gores on July 28, 2010 Bankruptcy filings in Wisconsin rose 16% during the first half of this year, an increase lawyers say was driven largely by consumers and small-business operators who couldn’t find enough work in the slow economy to keep up with their debts. Bankruptcy filings in Wisconsin rose 16% during the first half of this year, an increase lawyers say was driven largely by consumers and small-business operators who couldn’t find enough work in the slow economy to keep up with their debts. There were 16,021 bankruptcy petitions filed in federal court through June, compared with 13,802 during the same period a year ago. See the rest of the article at www.jsonline.com
1. All debts must be listed. It is illegal to pick and choose when listing your creditors. All creditors must be listed even the ones you intend to pay after filing i.e. your mortgage
2. You may have to turn over tax refunds to the bankruptcy trustee. Part or all of any tax refunds due for the tax year a bankruptcy case is file may be required to be turned over to the trustee.
3. You must list all business information if you are self-employed. You must list all personal and business debts, assets and income.
4. You need to refrain from incurring new debts before filing. Intentionally incurring debts with the intent not to pay may be a crime.
5. Keep making your house and car payments if you intend to keep the property.
6. Lying can get your case thrown out of court. The Court may disallow a bankruptcy if a client misrepresents any facts or otherwise lies on the papers filed in the bankruptcy.
7. Bankruptcy stops all bill collectors. The creditors including tax collectors are barred from attempting to collect any debt from you the instant the petition is filed. Bankruptcy does not stop any criminal proceeding or government regulatory proceeding.
Most people are aware that there are three main debts that are non-dischargeable; (1) Student Loans, (2) money owed to IRS or state taxing agency, and (3) back child support. However, that is not the end of the list. Here are other non-dischargeable debts that are less common, but still important to note:
(1) A judgment against you for a willful and malicious injury (i.e., assault & battery)
(2) An obligation arising from auto accident that involved alcohol
(3) If a creditor alleges false pretenses, false representations, or actual fraud
(4) If a debt is based on a false (or falsified) financial statement (i.e., a lie on a loan application)
(5) Cash advances of $750 or more taken within 70 days of filing
(6) Debts arising while acting as a fiduciary (i.e. embezzlement or larceny)
(7) Fines or penalties owed to a governmental unit
(8) Condominium dues (if the condominium is not surrendered)
LAST – AND MOST IMPORTANTLY
(9) Any debts not originally listed on your bankruptcy petition
Will I lose all of my property in bankruptcy? No, the bankruptcy laws are designed to allow a fresh start. A fresh start would be impossible if one was to lose all of their property in bankruptcy. The fact is that most people do not lose anything in their bankrutpcy. In Wisconsin you are allowed to keep most personal and household property, equity in your home up to $75,000 for a single person or $150,000 for a married couple, most equity in a car, most retirement plans, and many tools of the trade.