04.30.09
Posted in Bankruptcy/Creditor Rights at 3:22 pm by Eric
This blawg is geared more toward businesses, but I thought it might be worth pointing out this short article about debt management plans (”DMPs”). DMPs are like Chapter 13 Bankruptcy Plans: A consumer agrees to pay $___________ to unsecured creditors (generally, credit card companies) for ______ months/years. Upon successful payment, the credit card balances are wiped clean. In the meantime, the credit card companies agree not to undertake any collection actions.
In order to enter into a DMP, you need to consult with a credit counseling agency recognized by major credit card companies. The agency had pre-approved forms and a general idea of what type of payment concessions they could get from the credit card companies.
DMPs have been growing less popular because credit card companies have been offering less concessions, but that trend is apparently going to stop. “[M]ore recent reports indicate that creditors and agencies are co operating in launching a new DMP which they assert will be more valuable to more of the consumers who are defaulting on credit card debt but who cannot not make the payments required under traditional DMP’s.”
It’s worth it for businesses and banks to keep this in mind. They might have customers who can’t pay or need some help, but they don’t want to file bankruptcy. DMPs might become a viable resort again. If your customers get healthier, you’re healthier.
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04.24.09
Posted in Bankruptcy/Creditor Rights at 11:38 am by Eric
I’ve always considered myself a curmudgeon for not appreciating Brandi Chastain’s (oh so) spontaneous removal of her shirt after making the penalty kick that won the 1999 Women’s World Cup. Other people gushed about it, but it struck me as specious (I wouldn’t celebrate by whipping my pants down . . . at least when sober).
Anywaaaaay, she did a nice thing by donating the black sports bra to the fledgling Sports Museum of America. Unfortunately, the Museum has gone bankrupt. Its memorabilia has been hauled away and put into storage. If she wants The Bra back, she has to pay $250. The Wall Street Journal has the story. Excerpt:
The black sports undergarment she famously exposed to the world after a game-winning goal in the 1999 World Cup had been taken into custody by U.S. bankruptcy court. To secure its release from a storage facility in Newark, N.J., Ms. Chastain would have to pay $250 — plus shipping. “Thank goodness I have another one,” she jokes.
The sports bra is joined by Tony Hawk’s childhood skateboard, race-car driver Richard Petty’s trademark sunglasses and about 500 or so other famous sports artifacts swept up in a unique bankruptcy case. All of the items had been loaned to the Sports Museum of America in New York, a for-profit organization that recently declared Chapter 7 bankruptcy after opening to great fanfare in May. To satisfy creditors, all of the museum’s assets were seized, and if they aren’t claimed promptly, they may face the auction block.
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04.22.09
Posted in Tax at 12:40 pm by Eric
“National Taxpayer Advocate Nina E. Olson announced today (IR-2009-43) that the IRS has awarded $9.5 million in matching grants to Low Income Taxpayer Clinics (LITCs) for the 2009 grant cycle (Jan. 1, 2009, through Dec. 31, 2009). Through the LITC program, the IRS awards matching grants of up to $100,000 a year to qualifying organizations. For the 2008 grant cycle, the IRS awarded LITC grants to 162 organizations representing all 50 states, plus the District of Columbia, Puerto Rico, and Guam.” Link.
Maybe I should be ashamed, but I didn’t even know such things exist. We give low-wage people the earned income credit and low marginal rates. We also pay money so they can get free help when they don’t pay the right amount?
According to the IRS publication, incidentally, a family of nine (yes, those freaks do exist) qualifies for LITC assistance if the family income level is below $101,876.
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04.21.09
Posted in Uncategorized at 11:50 am by Eric
If you hadn’t noticed, the Supreme Court has been awfully quiet. There have been no media-circus rulings or other major developments. That’s about to change:
It’s the final argument cycle of the current term, stocked with cases that could define the Roberts Court anew, on issues ranging from search and seizure to Iraqi immunity, affirmative action to voting rights. Parties include a swashbuckling CBS newsman, a middle school student accused of possessing ibuprofen, and a group of white New Haven, Conn., firefighters.
For now, everyone seems to be buzzing about a case to be argued tomorrow called Safford Unified School District #1 v. Redding. At issue: whether officials at an Arizona middle school acted within the bounds of the Fourth Amendment when they strip-searched a female student after suspecting she was hiding prescription-strength Ibuprofen in her underpants. (The suspicion was based largely on a “tip” from a fellow student.)
The upcoming session has it all: sex, race, drugs. We won’t even have time to watch the NBA and NHL playoffs.
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04.07.09
Posted in Corporate Law at 12:11 pm by Eric
The days of the “one man nonprofit corporation” are gone: Effective January 16, 2009, every Michigan nonprofit must have three directors serving on its board.
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04.06.09
Posted in Tax at 8:46 pm by Eric
The Top 10 Tax Procrastinating Cities in America determined by the number of tax returns electronically filed online via the TurboTax Online service from April 13-April 17, 2008 (previous year ranking in parenthesis):
1. San Francisco, Calif. – (#5) – The Golden Gate City takes the gold this year when it comes to tax procrastinators, moving up from number 5.
2. Houston, Texas – (#3) – After being booted from the number 1 spot last year, which they have claimed more than any other city (three times), Houston barely misses out this year coming in at number 2.
3. New York, N.Y. – (#2) – The “City that Never Sleeps” has made a habit of snoozing through tax season. Although it has dropped one spot to number 3, New York has made it onto the top 10 list the last eight years.
4. Chicago, Ill. – (#1) – After taking the crown last year, the “Windy City” drops to number 4 on the list.
5. San Diego, Calif. – (#6) – The sun and sand are good distractions for San Diegans. Despite being home to TurboTax, San Diego manages to move up to number 5 this year.
6. Phoenix, Ariz. – (#13) – Returning to the list this year and making the biggest jump (from 13 to 6) is Phoenix.
7. Seattle, Wash. – (#7) – Seattle coffee must come in handy for all those procrastinators at tax time. For the second year running, Seattle comes in at number 7.
8. Los Angeles, Calif. – (#10) – Too busy chasing down celebrities? Los Angeles has once again made its way onto the list at number 8.
9. Dallas, Texas – (#11) – The 9th largest city in the U.S. has gotten even bigger when it comes to tax procrastinators. Returning to the list this year is Dallas.
10. Las Vegas, Nev. – (#8) – Sin City proved to be too big of a temptation for taxpayers last year. Wrapping up the top 10 list this year is Las Vegas.
Link.
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04.01.09
Posted in Employment Law at 12:34 pm by Eric
Under new final regulations issued by the U.S. Department of Homeland Security (DHS), an employer may be deemed to have constructive knowledge that it’s employing an illegal alien if the employer receives a “no-match” letter from the Social Security Administration (which says, “The SSN submitted for this employee does not match any of our records”).
If you receive a no-match letter from the SSA, you need to follow the guidelines provided by the Immigration Control and Enforcement branch of the DHS for obtaining safe-harbor protection against prosecution.
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