WHY would a debtor want to compel bank to foreclose on his house? Recently, the LA times ran a story about a man who filed for Chapter 7 bankruptcy in 2009. He had purchased a condo loft in little Tokyo in downtown LA for $670,000 with no money down. His monthly mortgage payment was $3,000….
IF you are facing the prospect of filing bankruptcy for the first time in your life, it could be a frightening process. I bet you have a thousand questions going through your mind right now. Is bankruptcy the right thing to do or will it only make my situation worse? Will I lose everything that…
“THE family company is an inheritance to be protected and handed in the outcome of the last geeration and each generation’s commitment to the next” – Gianni Agnelli Late President of Fiat, founded 1899 Most of the wealth in the Philippines is first generational in nature and many of these family businesses are set to…
IN an effort to keep labor costs down, some companies take shortcuts and break the law. One of these shortcuts is to classify workers as “independent contractors” so that they do not have to be paid minimum wage, overtime, missed breaks, and other benefits. There are also no deductions for taxes and Social Security. Some…
HERE’S a bit of good news for a change, for homeowners in California. More than 22,000 homes sold in Southern California in August, showing a 14 percent increase from a year ago. The median price rose more than 10 percent from about $290,000 to $309,000. Does this mean prices will shoot straight up? What about…
SUPPOSE that you lost your finger in a work related accident. You filed a worker’s compensation claim for that, then you filed a Chapter 7 bankruptcy. A day after you file your bankruptcy, you receive $193,000 as your worker’s compensation payment. In your bankruptcy petition you exempt your worker’s compensation claim pursuant to Section 522(d)(10)(C)…
FOR about 150,000 homeowners with a second mortgage held by Bank of America, it seemed too good to be true. In the last couple of months, a lot of my clients received letters in the mail saying that their second mortgage is being automatically forgiven and wiped out. And they don’t even have to do…
EMPLOYEES who are “on the clock” know that the employer must pay for work performed during this time. However, there are situations where it is not quite clear whether a work-related activity performed by an employee outside the regular 8-hour framework would still be compensable. The most important rule to remember is this: Time spent…
IF CONGRESS does not extend the Mortgage Forgiveness Debt Relief Act of 2007 by the end of the year, homeowners will have to start paying income taxes on the portion of their mortgage that is forgiven in a foreclosure, short sale or principal reduction. So if you owe $350,000 on your home and it sells…
HOW long should you retain records? I have some clients who throw away everything instantly. Can’t stand records. I also have clients who keep records forever. Rat packs. There must be some balance in between. Unfortunately, there is limited guidance from the IRS. Fortunately, there are relevant statutes of limitation – the period when you…
LET’S assume that you lost your job and are no longer able to make the mortgage payments on your house, so you quitclaim the house to your son who takes over the mortgage payments. Your house has equity of $70,000. Next week, you decide to file for Chapter 7 relief because you owe $50,000 of…
“HOW can I pay my creditors when my income is not even enough to cover my basic living expenses?’. This is a question that I hear everyday from people in my bankruptcy practice. We are living in tough times. Some people resort to more borrowing to make up the shortage in income. So they are…
Q: I WORK as a “caregiver” for a disabled senior at a private residence. In addition to caring for the senior, I also cook, clean the house, and do the laundry. I work 5 to 6 days a week, at least 12 hours per day and as much as 14 hours per day. My employer…
MANY homeowners are still left with a mortgage balance that worth more than the value of the property. With the economy still being badly affected by the possibility of a fiscal cliff and the European crisis. A lot of homeowners are still uncertain with their homes or properties underwater. Fannie Mae and Freddie Mac’s new…
WHY would single or separated taxpayers file as Heads of Household? Let us count the ways: 1. You have a lower tax rate than a single or married person filing separately. 2. You receive a higher standard deduction ($8,500 versus $5,800 for single and separate filers). 3. You may be entitled to childcare credit, 4….
THE bankruptcy petition must be as accurate as possible, otherwise, debtor may have to go to jail for bankruptcy fraud. I cannot overemphasize the fact that the bankruptcy petition must provide an accurate picture of the financial transactions of the debtor as of the date of filing of the petition. Debtor has the opportunity of…
Strategy development is a question-based process: Where are we now? Where would we like to go? How do we get there? Strategic planning—for both business and family—can help to strengthen the family enterprise and extend its lifespan. Strategic planning for family-owned businesses differs from planning for other types of companies largely because the family firm…
Could the secret to perpetual youth be found in your smile (wink, wink)? Well, that’s probably a bit of an exaggeration! But as you know, here at our practice, we obsess over our patients’ smiles. We know that a confident smile can be life changing. But what does your smile have to do with aging?…
ARE you struggling with debt problems? Are you doing your best to pay but simply can’t? Have you thought of filing bankruptcy but are afraid that this might not be the right solution to your problems? Filing bankruptcy is a personal decision that should be taken seriously. Whether or not it is necessary for you…
ACCORDING to recent statistics, there are about 950 million active users on Facebook, 500 million on Twitter, and 150 million on LinkedIn. Not to mention the active users on MySpace, Google+, Instagram, Pinterest, and Flickr, to name just a few of the most popular social media sites that people frequent. The internet has become the…
I BELIEVE that the housing market will improve moderately in 2013, but nobody will mistake this for a boom. A favored 3-5% growth and appreciation definitely is better than a negative growth in your home equity. Some better areas might see about an 8 percent increase in equity it will all depend on your location….
1. GAMBLING winnings are always taxable and must be reported on your tax return – with or without form W-2G. 2. Gambling income includes winnings from lotteries, raffles, horse and dog races and casinos. It also includes the fair market value of prizes such as cars, houses, trips or other noncash prizes. 3. Complimentary goods…
SECTION 707 of the bankruptcy code provides for the court’s authority to dismiss a bankruptcy case for abuse. What kind of conduct amounts to abuse of bankruptcy law by the debtor depends on the totality of circumstances surrounding the case. For instance, if the debtor files a bankruptcy despite the fact that his means test…
FOR years, special interest groups funded by big business have been perpetuating the myth of “litigation explosion” to justify limiting the legal rights of consumers. Under the guise of “tort reform,” the myth is used to limit recoveries for financial losses or personal injuries suffered by consumers. (Tort deals with laws on personal injuries, wrongful…
WE HAVE earned a right to vote here in this great nation. We should all make time to exercise that right and study the issue and vote according to our beliefs. Regardless if you think it will make a difference or not, please do vote it should make you feel proud to be an American,…
THE name of the game is keeping a low audit profile. It means getting lost in the crowd. It reduces the risk of an audit. Here are 12 tips to keep the IRS from auditing your tax returns: 1. Make sure that social security numbers and names that you use on your income tax match…
IMAGINE you won the new Prius in your church lottery. Instead of keeping the car, you sold it for $25,000. You use the $25,000 to pay down the mortgage on your house. After six months, you decide to file for Chapter 7 relief because you owe $100,000 of credit card debt of which $40,000 is…
One of the most dangerous survival tests for family businesses is their succession. It is no surprise therefore that many successors and heirs feel relief and complacency once the transition period is completed. However, the handing down of power and money is not an end point, but a new beginning of an ongoing process —with…
A LOT of people end up filing bankruptcy when they get to the point of feeling hopeless about their financial problems. Despite what others may think, there is no shame in needing a second chance to secure your financial future. Bad things can happen to good people as the saying goes. Sometimes, people simply make…
IN 2008, the California State Controller’s office led a multi-state audit of the practices of 21 national insurance companies, to determine these companies’ compliance with state unclaimed property laws. California’s unclaimed property program generally provides that businesses must send lost or abandoned financial accounts to the State after three years of inactivity in order to…
