|
 |
THE CONSUMER BANKRUPTCY LETTER
|
|
|
In This Issue:
|
Sept. 29, 2003
|
|
|
|
•
|
BANKRUPTCY THIS WEEK . . .
|
|
|
|
|
|
|
|
|
|
|
|
•
|
LEGISLATION & REFORM NEWS . . .
|
|
|
|
|
|
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 . . .
|
|
|
|
|
6th CIRCUIT HOLDS CASH IS “INTANGIBLE“ PROPERTY
The question presented by this appeal was whether U.S. currency is "tangible" or "intangible" personal property within the meaning of an Indiana statute that places some of the property of a bankrupt or other judgment debtor beyond the reach of his creditors. See Arnold v. Melvin R. Hall, Inc., 496 N.E.2d 63, 65 (Ind. 1986); State ex rel. Wilson v. Monroe Superior Court IV, 444 N.E.2d 1178, 1178 (Ind. 1983); In re Salzer, 52 F.3d 708, 711 (7th Cir. 1995). The statute exempts $4000 worth of tangible property, but only $100 of intangible property, Ind. Code §§ 34-55-10-2(b)(2), (3), which is why it makes a difference how currency is classified. The statute is applicable to this bankruptcy case because the Bankruptcy Code allows a state to substitute its own system of debtor exemptions for the Code's, 11 U.S.C. §§ 522(b)(1), (2)(A), and Indiana has taken up this option. Ind. Code § 34-55-10-1; In re Salzer, supra, 52 F.3d at 711 n. 2.
Thomas Oakley declared bankruptcy under Chapter 7 of the Bankruptcy Code and claimed an exemption of $2700 in cash, which was too much by $2600 if cash, like a bank account, corporate stock, Treasury note or other bond, or promissory note, is intangible property within the meaning of the Indiana statute. The only uncontroversially tangible property that Oakley sought to exempt consisted of household goods and furnishings ($500), necessary wearing apparel ($250), and a watch ($150), which add up to only $900.
In re Talbert, __ F.3d __ (6th Cir. 09/24/2003)
______________________
TAX EVASION FOUND FOR PURPOSES OF DISCHARGEABILITY
Debtor, Sudderth, willfully engaged in conduct to evade or defeat the tax within the meaning of § 523(a)(1)(C). The bankruptcy court found that he had; concealed income on Internal Revenue Service's Form 443-A to defeat the collection of taxes, overstated his debt to the State of Louisiana, diverting income to a third party, and transferring ownership of his company's stock to a third party without an adequate explanation.
SUDDERTH v. U.S., __ B.R. __ (E.D.La. 2003)
|
|
|
|
|
WORCESTER, Mass., Sept 25 /PRNewswire/ -- A Goshen woman was charged last week in federal court with bankruptcy fraud for concealing her half-interest in 120 acres of land in Chesterfield, Massachusetts.
The indictment alleges that GREENE owned a half-interest in about 120 acres of undeveloped real property located in Chesterfield, Massachusetts which she concealed from her creditors and the bankruptcy trustee when she filed for bankruptcy in 2000. The indictment alleges that GREENE failed to list the Chesterfield property in her bankruptcy schedules, nor did she disclose it when asked under oath during a bankruptcy meeting of creditors about real property that she owned. The indictment alleges that the bankruptcy trustee learned about the property in December 2002, shortly after GREENE and the co-owner signed a purchase and sale agreement to sell the property for about $122,000.
If convicted on these charges, GREENE faces up to 5 years' imprisonment, to be followed by 3 years of supervised release, and a $250,000 fine.
The case was referred to the U.S. Attorney's Office by the U.S. Trustee's Office in Worcester and was investigated by the Federal Bureau of Investigation.
|
|
|
|
|
|
|
|
