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THE CONSUMER BANKRUPTCY LETTER
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In This Issue:
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Dec. 8, 2003
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FEATURED BOOK: King's Discharging Taxes
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DEBTOR LIABLE FOR TRUST FUND TAXES
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ENRON TOWER AUCTIONED IN BANKRUPTCY
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UPCOMING ABI CONFERENCES
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NO ACTION ON REFORM THIS YEAR
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YOU ARE PRE-APPROVED . . .
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The One-Stop site for Consumer Bankruptcy Lawyers
Books / Software / Periodicals
FEATURED -
King's DISCHARGING TAXES IN BANKRUPTCY ed. 2000
5th ed. • 915 pages • 75 exhibits and checklists • over 1,000 cases cited • indexed $95 - 2002 Supplement available
This book has been called "the bible" for discharging taxes in consumer bankruptcy cases. Used by thousands of lawyers, trustees, judges and other tax professionals across the country, it explains in simple yet comprehensive terms what kinds of taxes can be erased, when they can be erased, and how they can be erased in chapter 7, 13, or 11. It covers all the issues and traps for the unwary. This book is even used by revenue officers!
Says Ike Shulman, former President of the National Association of Consumer Bankruptcy Attorneys, "Every serious bankruptcy practitioner should have this book!"
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OTHER POPULAR TITLES -
King, Discharging Taxes in Bankruptcy with 2002 supplement $135
King, Marketing A Consumer Bankruptcy Practice $89
King, Chapter 7 Law & Practice $129.50
King, Chaper 13 Law & Practice $129.50
King, Fees & Ethics in Consumer Bankruptcy Cases $79.95
NCLC, Consumer Bankruptcy Law & Practice $140
James Pub, Bankruptcy Courts & Procedures $110
Aspen, Basic Bankruptcy Law For Paralegals $79.95
Aspen, Automatic Stay Litigation $195
Juris, Fundamentals of Bankruptcy & Corporate Reorganization $80.75
CD TimeValue, TValue5 Interest Calculator $149.00
CD Gold, Tax Discharge Chronometer $139.00
CD Collier TopForm Bankruptcy System $700
OVER 100 SELECTIONS TO CHOOSE FROM
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SOLE SHAREHOLDER HELD LIABLE FOR PAYROLL TAXES
A person may be a responsible person even though he does not know that the withholding taxes have not been paid. [cite] Chabrand meets the recognized indicia of responsible person status because he: (i) was the sole shareholder in Trailnor; (ii) was president and the sole member of the board of directors; (iii) had the authority to sign, and in fact signed, corporate checks; (iv) obtained financing and loans for Trailnor, and personally guaranteed those obligations; (v) negotiated, purchased and sold assets on behalf of the corporation; (vi) had the corporate authority to hire and fire employees, negotiate contracts, and all other corporate duties associated with being the senior executive in the company. Accordingly, the Court finds that Chabrand was a responsible person of Trailnor under Section 6672.
Willfulness is normally proved by evidence that the responsible person paid other creditors with knowledge that withholding taxes were due at the time to the United States.
This includes a responsible person's failure to investigate or correct mismanagement after being notified that withholding taxes have not been duly remitted.
A taxpayer cannot satisfy the burden of proof as to willfulness merely by showing that he delegated his responsibilities to someone else. A fiduciary cannot absolve himself merely by disregarding his duty and leaving it to someone else to discharge.
IN RE CHABRAND, (S.D.Tex. 2003)
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NO SUBSTANTIAL ABUSE FOUND WHERE DEBTOR COULD PAY 36% OF CONSUMER DEBT
Debtor's Schedule I and J indicate that Debtor has insufficient income to repay all her outstanding debts. After adjusting Schedule J for the payroll deductions accounted for in Schedule I, Debtor still has a current monthly shortfall. Even under the UST's analysis, at most, the Debtor would able to pay 36% of her unsecured debts through a 36 month Chapter 13 plan. The Court finds that an ability to repay this amount, absent other indications of substantial abuse, is insufficient for dismissal under 11 U.S.C. § 707(b).
Although Debtor helps support her two adult sons and her two grandchildren, dependents she is not legally obligated to support, Debtor does not have an extravagant lifestyle. Her reported expenses are not excessive. Nothing in the Debtor's testimony leads the Court to conclude that she is not deserving of the fresh start afforded by the Bankruptcy Code.
IN RE O'NEILL, (N.M. 2003)
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