Bankruptcy Resource Group

April 24, 2009

How (And Why) To Adjust Your Tax Withholdings, Part II

Filed under: Attorneys, Budgeting, Online resources, Taxes, Uncategorized — Tags: , , , , — C.Welch @ 4:49 am

Yesterday, we talked about why a taxpayer might want to change their W4s to have less taken out.  Today, we’ll cover why you might find yourself in the opposite situation–choosing to ask the government to take out more money next year. That last sentence probably left many of you about ready to call me crazy, but there are some times when this makes sense.  Despite the economic downturn, for instance, some people made more last year than they did in 2007.

When tax time rolled around, these people found themselves in an irksome situation–they had to write the IRS a big check.  To prevent such financial irritation the next year, such taxpayers should adjust their w4s to reflect their new income.

New freelancers often find themselves in a new, confusing world of actually owing taxes.  Since freelance work is usually done according to a contract, payroll taxes are not taken out.  This means that the freelancer has to pay all of those federal taxes him or herself.  One accounting rule of thumb holds that freelancers should save about a quarter of their income for taxes.  Those who meld freelance work and traditional employment may choose to ask their traditional employers to withhold more, to save up for that big tax burden from freelancing.

Tomorrow, in the final part of this series, we’ll talk about other times when taxpayers should check and probably change their W4s.

Top photo by Paul Sapiano.

February 9, 2009

What qualifies as an asset in personal bankruptcy?

Filed under: Attorneys, Mortgages, Taxes — Tags: , , , , , , — C.Welch @ 5:45 am

415534472_6ed594a861_mFiling for personal bankruptcy is a good idea for consumers who can’t keep up with the bills. If you’re wondering whether bankruptcy is a good idea for you, read our article to help you decide. As you prepare your files for filing for bankruptcy, you may have questions about common terms.

One term that will come up frequently as you move through your bankruptcy proceedings is asset. In simple terms, an asset is anything of value that is owned by an individual or business. Depending on your state of residency, you may be required to allow the judge to use property and other assets to pay off your debts. There are two categories of assets: tangible and intangible. Nearly all of the assets listed in a personal bankruptcy case will be tangible; intangible assets, like goodwill, copyrights, and trademarks, are generally carried by businesses. For your reference, here’s a list of common assets.

  • Your house. If you’re paying off a mortgage, your house could be the largest asset on your books.
  • Your car. Even if you’re still paying off your car, it is considered an asset by the court.
  • Cash, savings accounts, and checking accounts. Even though you may not have much in these accounts if you’re going through a bankruptcy, their contents are considered assets.
  • Other property. Real estate holdings, material goods, and sometimes even edibles may be included in your list of assets.
  • Stocks and other investments. Savings bonds, stocks, mutual funds, and other investments are assets.
  • Amounts you are owed. As we recently discussed, even your tax refund may be considered an asset, as it is an amount that the government will pay you.

To be sure you’re including the right assets, and keeping as many as possible for life following your bankruptcy, find a good bankruptcy attorney.

And if you’ve already emerged from your bankruptcy, and are looking for an easy way to obtain new assets, give Bankruptcy Resource Group a call. They can help you find a local car dealership that specializes in helping consumers who have been through a bankruptcy.

Top photo by PAM.

February 6, 2009

Exempting Tax Refunds from Bankruptcy Proceedings

Filed under: Attorneys, Mortgages, Taxes — Tags: , , — C.Welch @ 8:01 am

If you went through a bankruptcy in 2008, you might be wondering how your bankruptcy could complicate your taxes, and for good reason. The state certainly considers your bankruptcy a significant event. Otherwise they wouldn’t require you to keep it on your record for ten years. Although it’s always a good idea to be careful when filing your taxes, it’s crucial following a bankruptcy. Starting today, Bankruptcy Survivor will examine issues surrounding bankruptcy and taxes.

Some Americans are lucky enough to look forward to a tax refund. If you happen to belong in this elite group, congrats. The government effectively owes you money. In this sense, your tax refund is an asset. And as you know if you’ve been through one, the bankruptcy trustee could decide to use assets may to pay debts.

Some states allow people to “exempt” their tax refunds, meaning that they are beyond the reach of bankruptcy suits. If you’re lucky enough to live in one of those states, you won’t have to give your upcoming tax refund up during your bankruptcy settlement.

We’ll keep digging up information on just which states allow exemptions, and how to file for them, but until then, consult with an experienced bankruptcy attorney to make sure you get to keep the most money for living expenses following your bankruptcy.

If you are up for a refund this year, and you’re considering applying for a car loan, here’s a tip: rather than researching, calling, and being rejected by nearby car dealerships, just give Bankruptcy Resource Group a call. They’ve already built a nation-wide network of car dealerships that specialize in working with people who have been through bankruptcy.

Via JD Supra.

Top photo by Michael Karshis.

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