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THE CONSUMER BANKRUPTCY LETTER |
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In This Issue:
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September 6, 2004
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LAST CHANCE TO ENROLL FOR LAS VEGAS ACADEMY
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BankruptcyBooks.com - FEATURING KINGSPRESS
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RUMBLINGS ABOUT BANKRUPTCY REFORM
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HEADS-UP ON RECENT CASES
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BANKRUPTCY FILINGS SLIGHTLY DOWN
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LAS VEGAS ACADEMY ON DISCHARGING TAXES STARTS WED A.M.
Time is running out to enroll in the Academy program on discharging taxes in Las Vegas, Nevada, which runs Sept 8-10. To assure seating advance registration is recommended. The program is repeated in San Francisco and San Antonio at later dates - see below.
CLE CREDITS APPROVED IN ELEVEN STATES TO DATE
The Academy on Discharging Taxes in Bankruptcy has been approved for CLE credit in ten states, for from 16 to 19 hours. The states approved so far are: Arkansas, California, Colorado, Florida, Indiana, Iowa, Minnesota, Ohio, Tennessee, Texas and Utah. Accreditation from all other states having mandatory CLE is expected.
KING BANKRUPTCY ACADEMY - DISCHARGING TAXES MADE SIMPLE!
THREE SEMINARS ON DISCHARGING TAXES - LAS VEGAS, SAN FRANCISCO & SAN ANTONIO
The first dates scheduled for the 5th annual 3-day Bankruptcy Academy 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. Also appearing - enrolled agents Jerry Satterberg and Bobby Covic.
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.
CPE accreditation from the IRS for enrolled agents has been approved.
TUITION
Single attorney registration for Las Vegas - $695
Single attorney for Fisherman's Wharf or San Antonio $645
Double attorney registration any location $995 (saves $400!)
Paralegal or other office staff any location $350
Enrolled agent or CPA any location $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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PERSONAL & CORPORATE BANKRUPTCIES TAKE DIP
Some believe downturn may be only temporary
Bankruptcies, dominated by personal filings, fell by about 1 percent in the year that ended June 30, with business bankruptcies falling almost 4 percent, the Administrative Office of the U.S. Courts said Friday.
The drop, to 1.63 million from 1.65 million, is the first since 2000 for the 12-month period ending in June, the office said in a prepared statement. Four years ago, in the same period, there were 1.27 million filings, the office said.
SOURCE: PHIL MILFORD, Bloomberg News
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E-Debt USA FILES FOR BANKRUPTCY
How’s this for irony? E-Debt Financial Services Inc., an Akron company that enabled its clients to buy and sell portfolios of distressed debt over the Internet, has filed for bankruptcy.
The company, doing business as EDFS Inc., filed for Chapter 7, a total liquidation of all its assets, in U.S. Bankruptcy Court’s Northern District of Ohio on Aug. 6. E-Debt Financial Services has no assets, according to court documents.
However, the company listed its liabilities as $1.27 million. The liabilities stem from judgements against the company — one levied in 2003 for $1 million in favor of Levin M&A Consulting Inc. of Cleveland, and a second for $270,994 in favor of eCredit.com Inc., a Dedham, Md.-based provider of credit risk management and collections software and services, in 2002.
SOURCE: Creditman.biz
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AFFECT ON DEBTOR'S MENTAL HEALTH MAY BE A FACTOR IN UNDUE HARDSHIP DISCHARGE OF STUDENT LOAN
The chief issue on appeal is whether the Bankruptcy Court properly Reynolds's student loans after determining that this oblgation would put an undue hardship on her mental health, despite her ability to repay some portion of the debt. Student loan debt is exempt from in bankruptcy
proceedings unless retention would impose an undue hardship on the debtor and her dependents.
The Eighth Circuit's adherence to a highly particularized approach suggests that non-financial concerns may authorize discharge even when the debtor has some disposable income. Further, the Eighth Circuit has recognized that a debtor's illness or disability is a factor in analyzing undue hardship. See In re Andrews, 661 F.2d at 704-05.
UNITED STATES DEPARTMENT OF EDUCATION v. REYNOLDS, (Minn. 2004)
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DEBTOR FILES RETURN AFTER IRS SFR AND ASSESSMENT - MAY OR MAY NOT BE A VALID RETURN FOR TAX DISCHARGE PURPOSES
The IRS filed substitutes-for-returns for the taxpayer because he did not file his own returns. Subsequently, the IRS assessed the liabilities. Following this, the taxpayer filed his returns, showing the same math and the same liability as the IRS assessments. The District Court held that there is no "bright line" rule that a taxpayer's return filed after the taxes are assessed cannot ever be deemed a valid return. All circumstances, including debtor's intent when filing his return, should be taken into consideration.
U.S. v. KLEIN, (S.D.Fla. 2004)
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Rooker Feldman, the noted physicist and genius who came up with the famous formula FR=afXB (financial relief equals attorney's fees times the speed of bankruptcy squared) has discovered the long sought "invisible matter" that explains why the economy keeps expanding.
“You see,” explains Feldman, puffing his pipe, "something is causing the economy to expand. We have been launching satelites for years to observe Main Street looking for the hidden force causing this expansion.”
In a swirl of white pipe smoke, he continues. “What we have discovered is a huge moving mass of economic deadwood. Upon closer examination this mass can be seen to be people filing bankruptcy. Having filed bankruptcy, they cannot get any new credit, and because of this become invisible in the economic cycle.
But, once out of debt, these folks now have new disposable income, which they immediately spend on non-essentials, and thus stimulate the economy to keep growing, especially in the area of cheap, useless electronic trinkets and designer coffee.”
“However, we also discovered the reason this expansion is much slower than we projected. In fact, the rate of increase is slowing as the mass of bankrupts grows. What can explain this contradictory force?”
Here, Professor Feldman smiles, and says, "Trustees! You see, the more people file bankruptcy, the more trustees are appointed. The purpose of the trustee is to spend all the money in the estate on the trustee's fees, and his or her attorney's fees, incurred recovering the money for the estate that is needed to pay the costs of recovering the money”
“This process creates a little leak in the system, an economic worm hole so to speak, out of which trickles just enough of the money to act as a drag on the economic system.”
“So, we have revised our formula. It is now, IE=bldxafXtg squared (the inertia of economic growth equals the bankrupt's last dollar times his attorney's fees, divided by the speed of the trustee's greed, squared).”
For this brilliant insight, Feldman has been awarded the coveted Nobel Prize For Devising Totally Useless Mathematical Formulae.
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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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