Educational Blog

Received a 1099-C After Bankruptcy? Don’t Panic!
Received a 1099-C After Bankruptcy? Don’t Panic!

If you filed for bankruptcy and had debts discharged, you might be surprised (and a little panicked) to receive a Form 1099-C, Cancellation of Debt from a creditor in January or February. Many people worry that this means they now owe taxes on the forgiven debt. The...

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Where Does Bankruptcy Come From?
Where Does Bankruptcy Come From?

Protection of Debtor and Creditor Interests. Bankruptcy was originally for the protection of creditors. It was a structured method for creditors to reclaim their debts instead of sending people to debtor’s prison as was the practice under the British. It has evolved...

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Bankruptcy Overview
Bankruptcy Overview

Chapter 7 is known as “liquidation” or “straight” bankruptcy.  It is for individuals and businesses. The goal for individuals is to ”discharge” their debts and get a ”fresh start.”  The goal for a businesses is to provide an orderly process to close-down operations. ...

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Actors in the Bankruptcy System
Actors in the Bankruptcy System

Debtor The individual or business entity filing for bankruptcy. Creditor Entities that have claims against against the debtor. United States Trustee Program The United States Trustee Program (“USTP”), a division of the United States Department of Justice (“USDOJ”),...

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