Tax Deductions Hidden in Chapter 13

True. Most people no longer itemize under the current Tax Code. However, the amount of money involved varies and should be considered.

The same very important debts that a Chapter 13 plan pays are often tax deductible.

And your client is still the person who’s paying, even if the trustee writes the check. Don’t allow them to miss out on these deductions.

Tax deductions in bankruptcy

Let’s look at some common deductions lurking in the Chapter 13 disbursements.

Mortgage interest

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Cathy Moran, Esq.

Head of Moran Law Group

Cathy Moran has headed her own small firm Moran Law Group in Mountain View, California, for nearly 30 years. Family law and tax issues as they play out in bankruptcy are areas of particular interest to Cathy.

Kristina Stanger and Jessica Hopton Youngberg

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Kristina Stanger is an attorney and shareholder at Iowa’s Nyemaster Goode, P.C. She is also a combat-experienced Lieutenant Colonel in the Iowa Army National Guard. She is currently one of Iowa’s highest ranking females and is the Chief of Plans and Operations for the Iowa Army National Guard. Jessica Hopton Youngberg is Senior Staff Attorney for Veterans Legal Services in...

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Lawrence R. Ahern, III

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Taggart v. Lorenzen: Supreme Court Stakes Out Middle Ground on Contempt Standard for Discharge Injunction Violations, Leaves Clues About Automatic Stay Violations

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By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Introduction – The Taggart Ruling Last year, the Ninth Circuit in In re Taggart1 ruled that an act in violation of the discharge injunction did not empower a court to find a creditor in contempt, if the creditor believed in good faith that the discharge injunction did not apply—even if...

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NCLC Seeks Signers Urging Foreclosure Pause When HAF Applied For

The Academy

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NCLC seeking non-profit organizations to sign two letters (one to the CFPB and one to FHFA, FHA, VA, and USDA) urging the agencies to require servicers to pause foreclosure activity for at least 60 days after being notified that a borrower has applied for HAF assistance and meets conditional program eligibility. We ask organizations to sign both letters, and the...

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