New York Bankruptcy Litigation » Personal Finance

Do You Need To File A Tax Return?

Jay Fleischman, New York Bankruptcy Attorney — Wed, 24 Jan 2007 03:48:23 +0000

When you file for bankruptcy you are required to provide the trustee with a copy of the tax return you filed for the most recent year in which a tax return was due. If you file for Chapter 13 you are required to have filed your last four tax returns.

So the question becomes one of whether you need to file a return at all. In this post from Gina’s Tax Articles, a CPA gives your the lowdown on the 20 questions that must be answered in order to determine whether you are required to file a tax return.

Technorati Tags: bankruptcy, chapter 7, chapter 12, taxes

New Report Links High Credit Card Debt to Medical Expenses

Jay Fleischman, New York Bankruptcy Attorney — Thu, 18 Jan 2007 11:42:49 +0000

Based on data from a national survey of low- and middle-income households with credit card debt, “Borrowing to Stay Healthy” illustrates that those who identified medical expenses as a factor in their credit card balances had much higher credit card debt than those who did not.For a copy of the report, click here.
As health care costs continue to rise faster than incomes, families are turning to credit cards to pay for medical care, according to new research by Demos and the Access Project. The public policy groups published the findings today in a report entitled “Borrowing to Stay Healthy: How Credit Card Debt Is Related to Medical Expenses.”

Based on data from a national survey of low- and middle-income households with credit card debt, “Borrowing to Stay Healthy” illustrates that those who identified medical expenses as a factor in their credit card balances had much higher credit card debt than those who did not. Americans with insurance, the report shows, increasingly find themselves paying unmanageable out-of-pocket expenses for health care - and do not have assets or income safety nets to cover the extra, often significant costs.

“Too many working people are piling up debt on high interest credit cards, and risking their financial security, simply because they have the misfortune of getting sick,” said Mark Rukavina, Director of the Access Project and co-author of the report. “We can’t let this happen in America.”

16 Ways Being Disorganized Can Cost You Money

Jay Fleischman, New York Bankruptcy Attorney — Mon, 15 Jan 2007 12:28:51 +0000

Mighty Bargain Hunter, a personal finance blog I read on a regularly basis, has just recently posted an incredibly comprehensive list of the 16 ways being disorganized costs you money. The post is interesting not only because it covers just about everything, but also because it highlights how our collective desire to run around causes us to take our eye off the financial ball.

Lots of people who go through personal bankruptcy come to me with their finances in disarray. When asked how much they spend on such basics as transportation, food and clothing they look at me blankly. It is only after a significant amount of time that we are able to puzzle through where the money goes each month.

Once the bankruptcy case has been completed, the consumer is still faced with the problem of budgeting. The absence of debt makes a difference, but it doesn’t help to fill the savings account each month. Rather, the individual exiting the bankruptcy court should take a hard look at where the money goes and attempt to spend smarter.

I highly recommend that you print out the list from Mighty Bargain Hunter, tape it to the refrigerator, and review it often.

Behind On Your Bill Payments? You’re Not Alone.

Jay Fleischman, New York Bankruptcy Attorney — Tue, 09 Jan 2007 23:51:10 +0000

A new report from the American Bankers Association shows that in the third quarter of 2006, the percentage of credit card payments 30 or more days past due increased to 4.57%. That was the highest rate since the third quarter of 2005, when the delinquency rate stood at 4.74%. In the second quarter of 2006, the late payment rate was 4.41%.Said James Chessen, ABA’s chief economist commented in a release:

The pressure points that squeeze consumers’ budgets still remain, making it difficult for some people to meet their debt obligations. Energy costs are still taking their toll on consumer budgets, as is the cumulative effect of the Fed’s 17 interest-rate hikes. With savings rates negative and home values stagnant, the spring has gone out of shock absorbers that handle life’s financial bumps in the road. Fortunately job and income growth remain strong and the stock market shows renewed strength.

The delinquency rate on other types of loans, including auto and certain home-equity loans, rose from 1.96% in the second quarter to 2.12% in the third quarter.

Drilling down on other types of loans, the ABA released the following delinquency rate movements:

Personal loan delinquencies increased to 1.91% from 1.86%.
Direct auto loan delinquencies increased to 1.87% from 1.72%.
Indirect auto loan delinquencies increased to 2.35% from 2.14%.
Recreational vehicle loan delinquencies increased to 0.89% from 0.79%.
Marine loan delinquencies increased to 1.04% from 0.98%.
Home equity loan delinquencies decreased to 1.79% from 1.89%.
Property improvement loan delinquencies increased to 1.68% from 1.48%.
Mobile home loan delinquencies decreased to 3.24% from 3.61%.

35 Outrageous Fees That Drain Your Wallet

Jay Fleischman, New York Bankruptcy Attorney — Tue, 02 Jan 2007 07:13:54 +0000

By Jay S. Fleischman, Esq.

This month’s Money Magazine has a great article titled, “35 most outrageous fees (and how to avoid them)“. I thought the article was interesting, and highly recommend that you read it carefully. The parts of the article about closing costs and bank fees were particularly helpful.