Bankruptcy and Tax in Madison County, GA
When you are an individual debtor in Madison County, GA filing for bankruptcy under chapter 7 or 11 of the Federal Bankruptcy Code in , an independent ‘‘estate’’ is established comprising of property which belonged to you prior to the filing date. This bankruptcy estate is a new taxable entity, totally separate from you as an individual taxpayer.
A penalty for failure to pay tax, including failure to pay estimated tax, will not be imposed for any period during which a title 11 bankruptcy case is pending provided:
1. The tax was incurred before the earlier of the order for relief or (in an involuntary case) the appointment of a trustee, and
2. The bankruptcy petition was filed before the due date for the tax return (including extensions) or the date for imposing the penalty occurs on or after the day the bankruptcy case was filed.
The relief from the failure-to-pay penalty does not apply to any penalty for failure to pay or deposit tax withheld or collected from others and required to be paid over to the United States government. Nor does it apply to any penalty for failure to timely file a return.
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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy
Evans, Georgia Bankruptcy discharge
Chapter 7 bankruptcy is a process in which an individual petitions the court to discharge all of their debts. The individual can have secured debt as well as unsecured debt and how each of these is dealt with can change from case-to-case. A debtor seeking protection under chapter 7 of the Federal Bankruptcy Code may have to surrender a part of their personal property in order to satisfy some of the debts owed to the creditors.
The usual grounds for denying a discharge to an individual debtor in Evans, Georgia include:
1. Debtor’s failure to keep or produce adequate books or financial records;
2. The debtor failed to explain satisfactorily any loss of assets;
3. The debtor is guilty of a bankruptcy crime such as perjury;
4. The debtor failed to obey a lawful order of the bankruptcy court; or
5. Fraudulent transfer, concealment or destruction by debtor of property that would have become property of the estate.
The Chapter 13 debtor in Evans, Georgia is entitled to get a discharge upon successful completion of all payments under the Chapter 13 plan. In exchange for the willingness of the Chapter 13 debtor to maintain the discipline of a repayment plan for three to five years, a wider discharge is available under Chapter 13 than in a Chapter 7 case.
Usually, the debtor in Evans, Georgia is discharged from all debts under the plan or debts that are rejected, except for the following:
1. Certain long-term obligations such as a home mortgage;
2. Alimony and Child support;
3. Debts for most government-funded or guaranteed educational loans or benefit overpayments;
4. Debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, which also refers to debts for restitution or a criminal fine included in a sentence on the debtor’s conviction of a crime.
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We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.