Is my paycheck income, or is it an asset?

The answer to this question might surprise you. Because most paychecks are delivered into the employee’s hand a week after the end of the payment period, between the end of that period and the time the employee actually receives the paycheck that income to be received actually represents an account receivable for the employee. As […]

My borrower has abandoned his home and stopped paying the mortgage. Can I change the locks and secure the property while I am in the process of foreclosing?

The answer to this question is almost certainly yes, you can and should take these steps to protect your mortgage investment. Almost every standard loan document provides that the secured creditor can protect their collateral by securing it against the elements and against theft or vandalism or to deal with other common problems like frozen […]

My company shipped goods to another company that filed bankruptcy right after and that doesn’t seem fair. Can we do anything?

The answer to this question is yes, provided that the creditor actually shipped the goods within 20 days before the bankruptcy was filed. When a debtor receives goods while insolvent, the creditor has what’s called the right of R\reclamation to recover the property or its value from the debtor. In the bankruptcy code, that right […]

We’re Living Paycheck To Paycheck. Will Bankruptcy Help Me?

If you’re struggling to make it from paycheck to paycheck because you’re paying credit card bills, medical bills, very old taxes or other claims that could be discharged in bankruptcy, or if your wages are being garnished from a judgment, then getting out from under those debts in a Chapter 7 or Chapter 13 bankruptcy […]

Do I Have To Pay Tax When A Creditor Writes Off My Debt?

When a creditor writes off or writes down your debt, they frequently tell the IRS that you’ve received income for the amount written off. Called “discharge of indebtedness” income it’s a terrible trap for debtors/taxpayers because under the Internal Revenue Code this income can be taxed. There are two exceptions worth thinking about: First, if […]


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