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Category: Taxes, accounting and bookkeeping. Country: United States (USA).
Bankruptcy means an inability or worsened ability of individuals or companies to pay their debts. The term “bankruptcy” supposedly originates from Middle Age Italy, where a merchant, who could not pay his debts, usually had his trading bench destroyed, that is “banka rotta”, Italian for “broken bench”. The rules and practices of the medieval bankruptcies were very tough towards the bankrupts and only backed the interests of the creditors. The first bankruptcy law was passed in England in 1542. All bankrupts were asserted criminals and were subject to punishment, which varied from imprisonment to death penalty. Over the years as bankruptcy laws developed, they became more favorable towards debtors in distress, giving them an opportunity to get rid of some or all their debts to get a fresh start... Sections of site: Personal Bankruptcy, Business Bankruptcy, Chapter 7, Chapter 11, Chapter 13, Bankruptcy Forms, Filing Bankruptcy, Taxes, Debt Consolidation, US Bankruptcy Courts, California Bankruptcy Exemptions. Taxes: Back Taxes are often one of the biggest debt burden faced by a person contemplating bankruptcy. There is a great deal of confusion about getting tax relief in bankruptcy. Many tax debtors are convinced that back taxes will never go away in a bankruptcy. Although the rules for tax relief in bankruptcy are very technical and pose numerous traps of unsuspecting taxpayers, generally income taxes can be discharged in bankruptcy if a stringent set of criteria are met, Tax liabilities are divided into two categories; dischargeable and non-dischargeable. Dischargeable taxes are those that the debtor will not have to pay after the bankruptcy is over. Non-dischargeable taxes do not go away in a bankruptcy and the taxpayer remains responsible for their payment. Generally, income taxes may be discharged in bankruptcy if they meet certain age, assessment and filing requirements. Such taxes may be dischargeable in Chapter 7 if all of the following requirements are met. Tax is for a tax period for which a return was due more than 3 years before to the filing of the bankruptcy petition; A tax return was filed more than two years prior to the filing of the bankruptcy petition; The tax was assessed more than 240 days prior to filing of the bankruptcy petition; The tax was not due to a fraudulent tax return, nor did the taxpayer attempt to evade or defeat the tax; The tax was not assessable at the time of the filing of the bankruptcy petition; and The tax was unsecured. Debt Consolidation: Debt Consolidation is one of the most effective tools for debt management. By consolidating several debts into one, you can lower your monthly payments and actually see your debts dissolving every month. There is no more trying to keep track of whom you can pay this month or harassing calls from the reditors you could not pay last month. You deal with one bill, one check, one company, and you have the pride of knowing you are on your way to being debt free for good.
Address: California CA Phone: 888 829 52 93
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