Legal Question in Bankruptcy in New York

Re: Filing bankrupcy creates tax liabilty on forgiveness

Your questions raise many more questions

that require extensive financial analysis

The size of your monthly award and other income needs to be

compared with your monthly budget on one

level before an answer as to filing bankruptyc

can be made

the nature of your income tax liability also

must be examined. The discharge of debt

does not always result in an income tax

liability for "forgiveness of indebtedness"

income. Your balance sheet and prior

years income tax returns also need to be examined.

Any Bankruptcy Court will also ask what the credit

card debt went to pay. This will affect dischargeability

There is no listing of any assets that you may

or may not own, so there can be no analysis

or comparison between straight bankruptcy and

reorganization

You truly need an hour long conference with a

person who concentrates in these areas before

you make any decisions

Time is also a factor. Giving your condition,

I would suspect that some of your debt is medical

This could be affected by the proposed

Bankruptcy Law changes. These changes also

affect dischargeability and reorganization.