Tax Liability as a result of a 1099-C?

It is tax season again and I feel like everyone is asking me about tax liability concerning a 1099-C that they received. A 1099-C is issued by a lender as a result of a cancelled debt and is often issued as a result of a mortgage foreclosure. The Mortgage Debt Relief Act was enacted in 2007 and generally allows taxpayers to exclude from income the amount of debt discharged as a result of foreclosure. To see if this provision applies to you talk to your accountant or lawyer. There is also information on the IRS website which you may read and find informative.

Can you get back garnished money?

There have been a lot of clients with wage garnishments lately so I thought it would be helpful to make a post concerning how bankruptcy can help when you have a garnishment. If you are being garnished you can stop the garnishment by filing a bankruptcy. In many cases, even after your wages have been garnished you may be able to get the garnished money back! The earlier you see an attorney when you have been garnished increases the opportunity for getting the garnished funds back. If you are being garnished or have any questions talk to an attorney today!