Litvak Legal Group, PLLC (LitvakLegalGroup.com) continues to follow the news and developments regarding Covid-19 and bankruptcy. As many of you know, the recent CARES stimulus act included some very important bankruptcy-related provisions. First, CARES act excluded all unemployment-related payments from the “income” form means testing purposes. The Act also excluded the payments to individuals and […]

CARES Act payments to individuals and couples along with $500 per child payments are fair game for bankruptcy purposes. As many of us know under the latest stimulus package called CARES act individuals and married couples are supposed to receive checks of $1,200 to a single taxpayer and $2,400 to a joint filers. In addition […]

Lemon Law Update: Some Manufacturers just don’t get it: they are responsible for the attorney fees if they lose their lemon law case. In Hinkley v. Mercedes-Benz USA, the original dispute of approximately $6,000 turned into a legal battle over $400,000 legal fees and the manufacturer ultimately lost in the Wisconsin Court of Appeals upheld […]

Another out-of-trust dealer files for Chapter 11 Bankruptcy in an attempt to protect its assets and keep operating or orderly liquidate. Last week, on August 1, 2018, Reagor-Dykes Auto Group, a franchised Ford Dealer of Lubbock, Texas filed for Chapter 11 bankruptcy in Texas. The voluntary petition was filed in the Bankruptcy Court for the […]

The IRS recently issued guidance providing penalty relief for certain partnerships that did not file the required returns in 2017 for the 2016 tax year. Notice 2017-47 provides penalty abatement for these partnerships only if certain circumstances apply: The partnership filed the returns with the IRS and furnished Schedule K1 to its partners (as appropriate) […]

Filing a tax return after the assessment by the IRS will not be considered a “proper tax return” under Beard standard and would not make the tax debt dischargeable. The 3rd Circuit court has just decided a case regarding the dischargability of the tax debt, when a taxpayer files his “tax return” after the Service […]

NJ finally reconsidered its long-standing requirement ( Rule 1:21-1(a)) of a physical or, in the words of the rules, “bona fide” office location in the state. Effective February 1, 2017, the rule change allows a virtual office under a few conditions. First, the practitioner “must structure his or her practice in such a manner as […]

In my consumer bankruptcy practice, I often encounter questions regarding the dischargeability of financial obligations. A person on the phone or face-to-face, usually at the first meeting or case evaluation, wants me to draw a quick conclusion and tell from a simplified fact pattern, if the debt is dischargeable or not. I am often pressed […]

From April 21, 2017 to June 19, 2017 the Department of Revenue will waive all penalties and half of the interest on eligible tax delinquencies for anyone who participates in the 2017 Tax Amnesty Program. One must file all missed tax returns and/or extensions to take advantage of the program. This will be one of […]

Geisler v. IRS, A Chapter 7 debtor appealed dismissal of his adversary proceeding against the IRS. In his proceedings, he argued that the Service only had a claim to the extent of his owned property and absent an additional ground, excess should be void. The Court disagreed. Based its opinion on Dewsnup v. Timm, 502 […]