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THE CONSUMER BANKRUPTCY LETTER |
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In This Issue:
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July 5 2004
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BankruptcyAcademy.com - Paralegal tuition only $350!
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THE TAX DISCHARGE UPDATE LETTER
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PRIVATELY HELD COMPANIES CLEANING UP THEIR ACT
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DEBTOR REFUSES TO TURN OVER INHERITANCE
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BAR SUSPENDS BK LAWYER - UNREASONABLE FEES
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DISCHARGING TAXES IN BANKRUPTCY
KING BANKRUPTCY ACADEMY SCHEDULES 3-DAY SEMINARS ON DISCHARGING TAXES - LAS VEGAS, SAN FRANCISCO & SAN ANTONIO
The first dates scheduled for the 5th annual Bankruptcy Academy program on discharging taxes in bankruptcy cases have been scheduled for
LAS VEGAS, Nevada, on Sept. 8, 9 and 10, 2004;
FISHERMAN'S WHARF, S. F., on October 27, 28 & 29, 2004,
SAN ANTONIO, Texas, January 27, 28 & 29, 2005.
Additional 2005 dates are pending for Atlanta, Georgia, and Boston, Mass.
Principal presenters will be; Morgan King, attorney and author of Discharging Taxes in Bankruptcy; Charles F. Rosen, former chief of the Los Angeles IRS office of Special Procedures (bankruptcy, insolvency); Eric M. Casper, formerly Senior Trial Attorney, Tax Division, U.S. Department of Justice - Washington, D.C.; and Robert N. Kolb, formerly with the IRS and recently the prevailing attorney for the debtor/taxpayer in two important appellate cases.
The 3-day seminar and workshop will be a thorough exploration of bankruptcy remedies for delinquent taxes and tax liens in consumer bankruptcy cases (chapter 7 and chapter 13), emphasizing practical handlng of tax discharge cases from A-to-Z.
CLE ACCREDITATION
Previous programs have qualified for CLE in all states for which CLE accreditation was requested. The Academy is applying for attorneys' CLE accreditation in all states for which CLE is mandatory. We are also applying for CPE accreditation from the IRS for enrolled agents, as well as CPE with the national association of CPAs.
TUITION
Single attorney registration $645 until Aug. 2 (then $695)
Double attorney registration $995 (saves $400!)
Paralegal or other office staff $350
Enrolled agent or CPA $495
For more information about the Tax Discharge program, or to enroll, click on red below or call (925) 829-6460 west coast time.
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$ BILLION DELINQUENT TAXES THREATEN RUSSIA'S OIL COMPANY
Russia's damaged oil company billed another $3.4B in back taxes for 2001 on top of $3.4B for 2000.
MOSCOW (Reuters) - Russian oil company YUKOS was slapped with another huge tax bill Thursday for $3.4B, after it warned it could be bankrupted by the $3.4 billion in back taxes for 2000 it must pay within five days.
The Interfax news agency quoted a tax ministry source as saying YUKOS owed $3.4 billion in back taxes for 2001, almost identical to the bill for 2000. The company did not confirm the latest demand, but said the court had ordered the freezing of its bank accounts.
"The accounts have been frozen. That means in five days we are going to be unable to carry out our operations properly," YUKOS spokesman Alexander Shadrin said.
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COLLECTING UNREASONABLE BANKRUPTCY FEE ONE OF GROUNDS FOR LAWYER'S SUSPENSION
A Burlington lawyer had his license suspended for the sixth time in the less than eight years since he was admitted to practice in Wisconsin.
Previous suspensions for Albert J. Armonda, 67, include four for failing to meet continuing education requirements and pay bar dues.
The Wisconsin Supreme Court suspended Armonda's license Tuesday on the strength of several allegations, including, among other things, charging a client in a bankruptcy case $6,500, which the Office of Lawyer Regulation deemed unreasonable; violating a federal court order about that fee, and; Failing to cooperate in multiple ways with investigators about the bankruptcy fee.
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Keep up-to-date on the ever-changing laws regarding discharging taxes in bankruptcy with Morgan King's Tax Discharge Update E-Letter!
Sent monthly directly to your PC, the e-letter reports all significant new case decisions, legislative enactments, and IRS policy changes relevant to tax discharge. Categories of information include discharge in Chapter 7, discharge in Chapter 13, tax liens and levies, automatic stay, transcripts, tax litigation in BK court, and practice tips.
For those who already have King's book, Discharging Taxes in Bankruptcy, each section of the e-letter references the applicable section in the book covering the respective topic, and thus is a monthly supplemental update for the book.
Subscription fee is $95/year, or about $8 per month (about the price of a burger and a beer).
For a sample of the most recent Update E-Letter, click on image at right.
To subscribe, click on red, below.
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CAUSE OF ACTION FOR MALPRACTICE OCCURRING POST-PETITION IS NOT PROPERTY OF THE ESTATE
State law controls a debtor's s legal malpractice cause of action and determines whether that claim existed at the time the debtor filed his bankruptcy petition. Under Florida law, a debtor's legal malpractice claim does not exist until an action concluded with an adverse outcome that was proximately caused by his attorney's negligence. Thus, a debtor's legal malpractice claim was not property of his bankruptcy estate where the adverse legal result occurred after the petition date even if some of the attorney's acts occurred prepetition.
In re Witko (7th Cir. 2004)
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REFUSAL TO TURN OVER INHERITANCE FUNDS TO TRUSTEE WARRANTS ENHANCED CRIMINAL SENTENCE
For bankruptcy crime sentencing purposes, concealment of assets from a bankruptcy estate is a "violation of judicial process" as a matter of law warranting a two-level increase under the sentencing guidelines.
After the Waldron's filed their petition, Waldron's father died.
Waldron's brother Gary went with Waldron to a bank with her share of the inheritance, $22,832, and she deposited the money into two accounts jointly held by her and Gary. Gary did not ask for his name to be on the accounts, which were opened after the bankruptcy was filed and thus were not disclosed on Waldron's bankruptcy schedules.
The trustee learned that the $22,832 inheritance had been distributed, that Waldron had bought a car with part of the money, and that only $12,000 remained unspent. The trustee called Waldron and told her to provide the remaining funds to the bankruptcy estate and to provide a detailed accounting for the rest. Waldron refused, stating she wanted to talk to her attorney first. The trustee wrote to Waldron's attorney, who then wrote to Waldron and told her to turn the funds over to the trustee immediately. Despite the repeated demands of the bankruptcy trustee and the admonitions of her own attorney, Waldron never relinquished the funds to the bankruptcy trustee for distribution to her creditors. Instead, she continued to spend the money, and withdrew the remaining balances in August and October 2000.
U.S. v. Waldron (8th Cir 2004)
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DEBTOR COULD NOT PROVIDE FOR PRIORITY TAX CLAIM TO BE PAID OUTSIDE THE CHAPTER 13 PLAN WITHOUT IRS CONSENT
Debtor proposes to modify his confirmed chapter 13 plan pay Respondent's priority claim outside the plan. If allowed to do so, he can pay the Chapter 13 Trustee $7,000.00. Such amount that will allow him to complete scheduled payments to his general unsecured creditors and pay anticipated administrative expenses. Respondent IRS objects to both motions.
Section 507 priority claims may be paid other than as prescribed in Section 1322(a)(2) only if the claim holder agrees. See In re Jones, 231 B.R. 110, 112 (Bankr. N.D. Ga. 1999). Motion denied.
IN RE DRISKELL, (M.D.Ga. 2000)
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TIMING OF FILING, LACK OF CANDOR CAUSE TO DISMISS CHAPTER 13
At issue here is whether this debtor is making a sincere effort to repay the obligations to the Creditors or whether his intent is to manipulate the chapter 13 remedy in a manner that allows him to discharge debts which at least potentially, would not be dischargeable were this a chapter 7 case.
Creditor Frederick Rice's action alleges that the debtor committed an assault and battery against him which resulted in bodily injury. His action seeks $25,000 in damages, costs and attorney fees and punitive damages.
It is clear that this case was filed solely to deal with debtor's obligations to the Objectors. Initially, those were the only debts to be paid. It also appears that even though the obligations to the Objectors are not liquidated, the nature of those debts is such that they would not be dischargeable in chapter 7. And, the Court cannot find that this debtor has been candid or forthcoming about his access to financial information. The Chapter 13 case is dismissed.
IN RE STEIN, (S.D.Ohio 2004)
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PUBLISHED BY KING BANKRUPTCY MEDIA FOR BANKRUPTCY PROFESSIONALS 7080 Donlon Way Suite 222 Dublin California 94568 (925) 829-6460
© King Bankruptcy Media 2004 CONTACT US AT editor@bankruptcymedia.com
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