If your debt has been forgiven, you may be wondering if or how it impacts your tax obligations. The IRS considers any cancellation of debt as ordinary, taxable income. Although forgiveness of debt on a Form 1099 comes with tax consequences, there are some exceptions and exclusions. Today, we will take a look at debt forgiveness income and its...
Continue ReadingBankruptcy is a powerful tool for improving your spot in life. If you’re struggling to pay your bills, exhausting your savings, and dodging collection calls day and night, you might have options. For the right individual, there can be several advantages to filing bankruptcy in Hawaii. This can help eliminate the amount you owe and give you a fresh...
Continue ReadingWhat Are the Benefits of Debt Negotiation? Debt negotiation can be an attractive alternative for debtors that do not want to declare bankruptcy. Some of the advantages compared to bankruptcy include: Unlike bankruptcy, it does not require a court filing or financial counseling. You can pick or choose the debts that will be included. A debt negotiator can alter payment...
Continue ReadingFiling bankruptcy is typically a last resort action for most people. It is a process in which individuals eliminate different types of debt they might have. Deciding to file for bankruptcy is a life-altering decision— one of the main reasons why is the lowering of one’s credit score. Consumers usually file one of two chapters of bankruptcy, while others...
Continue ReadingIn 1967, the Hawaii State Legislature made “for-profit” debt settlement illegal in Hawaii. The legislature explained that prohibition is the only feasible way to control the abuses of debt settlors. A usual sequence of events is that either the creditors, or some of them, fail to accept the plan or the debtor finds it impossible to live with; and...
Continue ReadingIn 1967, the Hawaii State Legislature made “for-profit” debt settlement illegal in Hawaii. The legislature explained that prohibition is the only feasible way to control the abuses of debt settlors. A usual sequence of events is that either the creditors or some of them, fail to accept the plan or the debtor finds it impossible to live with; and...
Continue ReadingHave you found yourself in a situation where you owe unpaid income taxes to the IRS? Is the IRS using aggressive efforts to collect back taxes from you? If you are stressed and feeling overwhelmed because you have substantial tax debt, then filing for Chapter 7 bankruptcy might be the solution to put a stop to IRS collection actions. When the...
Continue ReadingAlthough bankruptcy can eliminate a substantial portion of your overall debt, you need to be cautious if you want to use it to get rid of your tax debt. If you owe back taxes and file for Chapter 7 bankruptcy, the tax debt likely won’t be wiped out, and you will still need to pay what you owe after the...
Continue ReadingAre you struggling to pay off your credit card debt? Are you feeling overwhelmed because of the penalties and extra interest charges that are assessed when you’re late on credit card payments? If so, then debt settlement might be the right option to help get your finances back on track. What Is Debt Settlement? At Blake Goodman, PC, Bankruptcy...
Continue ReadingAlthough many hardworking people fall behind on their mortgage payments, most lenders aren’t willing to work out deals with homeowners to pay off what they owe. If you are facing foreclosure on your home and feel like you are all out of options, then filing for bankruptcy might be the solution to save your home and help you get on track...
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