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THE CONSUMER BANKRUPTCY LETTER
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In This Issue:
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Sept. 22, 2003
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BANKRUPTCY THIS WEEK . . .
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LEGISLATION & REFORM NEWS . . .
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CURRENTLY FEATURED . . .
KING'S DISCHARGING TAXES IN BANKRUPTCY
5th ed. 915 pages 75 exhibits and checklists over 1,000 cases cited indexed
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!"
2002 SUPPLEMENT AVAILABLE
Gold's TAX DISCHARGE CHRONOMETER also available
BankruptcyBooks.com . . . LARGEST SELECTION OF BOOKS, SOFTWARE & PERIODICALS FOR BANKRUPTCY PROFESSIONALS . . .
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THREE IMPORTANT TAX DISCHARGE OPINION THIS WEEK
NINTH CIRCUIT RULES TAX LIENS ON RETIREMENT PLANS ARE UNSECURED IN CHAPTER 13
Unsecured delinquent taxes over three years old are typically dischargeable in Chapter 13 bankruptcy. Where the IRS has a filed tax lien and the taxpayer has an ERISA retirement plan, the IRS has argued the tax debt is secured and must be paid up to the value of the taxpayer's ERISA plan. If unsecured, the taxpayer could probably pay only a fraction and discharge the rest.
This week the Ninth Circuit Court of Appeal held that for purposes of Chapter 13 a tax liability secured on an ERISA plan is treated as unsecured in Chapter 13, because the debtor in Chapter 13 is required to treat a lien as secured only on "property of the bankruptcy estate," and the Supreme Court has held that ERISA retirement plants are not property of the estate. Robert Kolb, Esq., for the Debtor.
For an explanation of what this means for taxpayers in chapter 13, click on NEWS UPDATE, above.
In re Snyder, __ F.3d __ (9th Cir. Sept. 15, 2003)
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NINTH CIRCUIT RULES LACK OF FINAL ADMINISTRATIVE DETERMINATION OF STATE TAX LIABILITY MEANS BK COURT COULD ADJUDICATE
Because there was no final administrative determination of the California debtors' tax liability prior to the commencement of bankruptcy proceedings, the bankruptcy court had jurisdiction to consider the debtors objection to the claim of the taxing agency.
In re Mantz __ F.3d __ (9th Cir. 2003)
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IRS SHOULD NOT REFUSE TO CONSIDER AN OFFER-IN-COMPROMISE BASED ON TAXPAYER BEING IN BANKRUPTCY
The IRS' refusal to consider offers-in-compromise during the pendency of a bankruptcy frustrates the basic policy of bankruptcy and can be enjoined.
In re Holmes __ B.R. __ (Bkrtcy.M.D.Ga. 2003)
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NACBA MOVES TO EXPAND MEMBERSHIP - ANNOUNCES STATE CHAIRS
The National Association of Consumer Bankruptcy Attorneys (NACBA) has recently instituted a state chair program in an effort to foster the goals of NACBA in individual states; increase NACBA membership in individual states; and advise the Board of issues of interest among members and prospective members. The following NACBA members are serving as state chairs:
Dave Tilem (Central CA), Audrey Blondin (CT), Doug Neway (Bob Adams (IL), Scott Borison (MD), Peter Bagley (MI), Brad Botes (MS), Colleen Nunnelly (MO), Geoff Giles (NV), Jim King (OK), Tom Black (South TX), Neal Allen (West TX), Denice Patrick (WA), and Bob Michelson (WI). We will be announcing additional state chairs very shortly (we are in the process of confirming the appointments and dont want to announce them prematurely!).
For more information visit NACBA.com.
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