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Bankruptcy is Very Common and Can Happen to Anyone

Bankruptcy does not respect age, social status, fame, or circumstance: It can happen to anyone. Even multi-million dollar companies can find themselves on hard financial times, with no other option than to file for bankruptcy. Don’t believe us? In this video, Illinois Representative Kinzinger discusses Ener1, a successful alternative energy company that filed for bankruptcy on January 26, 2012. 

As you can see from this video, bankruptcy is very common in today’s day and age. If a multi-million dollar company can file for financial protection, why can’t you? The answer is that you can and that you should. To discuss your options with an experienced bankruptcy attorney, contact Cutler & Associates, Ltd. by dialing (847) 849-1834. For over 20 years, Cutler & Associates has been helping people in the greater Chicagoland area with quality legal services. 

Filing Your Income Taxes If You've Filed for Bankruptcy

Claiming bankruptcy forces many taxpayers to learn about the associated tax implications. In other words, you need to be extremely careful when filing your income taxes to avoid the penalties and consequences of misfiling. For example, did you know that the IRS can actually dismiss your bankruptcy case if you fail to file any of the required tax forms? 

To help you avoid making any mistakes while filing your income taxes, here are a few tips from the bankruptcy attorneys here at Cutler & Associates:

• Contact the IRS to determine what remaining tax liability you have after your bankruptcy filing. Although you likely did this before you filed for bankruptcy, your owed back taxes could have increased between the time you filed and now.

• Although the cancellation of debt is a taxable event, taxpayers claiming bankruptcy may avoid claiming the canceled amount of debt as income by checking box 1a on IRS Form 982 and placing the total amount of canceled debt shown on IRS Form 1099 under line 2 of Form 982.  

• Because filing for bankruptcy creates a bankruptcy estate, the IRS requires that an estate producing any income become taxable entities. Individuals with income-producing bankruptcy estates are required to file a Form 1041 tax return. This form is filed separately from your individual income tax return.  

If you are planning on filing your own income taxes this year, be sure to contact the experienced bankruptcy attorneys here at Cutler & Associates, Ltd. before you do. As one of the premier bankruptcy law firms in Illinois, Cutler & Associates, Ltd. will protect you from the IRS for any mistakes made on your filings. For more information, contact us online or dial (847) 849-1834.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. 

For Tax Information And More About Bankruptcy, Take A Look At These Resources

Depending on your financial situation, bankruptcy may be the best option for you and your family. However, that doesn’t mean bankruptcy isn’t confusing. Take a look at the following resources to get more information:

• The key benefit of bankruptcy is the discharge of your debts. To learn more about the advantages of bankruptcy, head over to NACBA.org.
• To learn how canceled debts affect your taxes, take a look at this publication from the Internal Revenue Service.
• Visit MakingHomeAffordable.org to learn more about the Home Affordable Modification Program.
• For more information about the different programs available to help you avoid foreclosure, visit HUD.gov.  
• Visit USCourts.gov to learn more about the different types of bankruptcy you can file for.

For more information, contact the Illinois bankruptcy law firm Cutler & Associates, Ltd. at (847) 849-1834. We are happy to help you find an acceptable solution to your situation. We are dedicated to helping our clients get through this difficult process. 

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Don't Pay Off Debt with Your Tax Return - Here's Why

Its tax season, and that means more and more people are starting to receive a tax refund. But unless your tax return is large enough to pay off all of your debt, don’t waste a single penny of your tax money trying to pay back your creditors. Even if you’re facing bankruptcy, it’s better to set aside your tax money rather than waste it all trying to pay off a small portion of your debt. Here are a few smart things you can do with your tax return: 

• Build Your Emergency Savings – If you don’t have at least a month’s worth of expenses in your emergency fund, you should put most of your tax return into savings. This emergency savings fund will allow you to cover any expenses that arise in case of an emergency, such as being laid off from work or facing unexpected medical bills.

• Save For Retirement – If you have several months’ worth of living expenses saved up and you want to strengthen your financial position even further, consider putting your tax refund into a Roth IRA. This individual retirement plan bears many similarities to a Traditional IRA, but distributions are tax free.   

• Start a College Savings Fund – The earlier you start saving for your children’s tuition bills, the less you will need to save. Why? Because compound interest will do much of the work for you. You may want to look into a Coverdell Education Savings Account, a tax-deferred savings account that will help accelerate your savings and reach your goal in less time.  

If you’re worried about bankruptcy, you may think you need to spend all of your hard-earned tax money paying off your debts. However, one phone call to Illinois bankruptcy lawyers Cutler & Associates, Ltd. is all it takes to get the IRS off your back. If you want to stop the collection calls and notices once and for all, contact the professional bankruptcy attorneys here at Cutler & Associates by calling (847) 849-1834.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.