FLINT BANKRUPTCY SERVICE ARE OFFERED BY FLINT BANKRUPTCY LAWYER TERRY BANKERT 235-1970

FLINT BANKRUPTCY SERVICE ARE OFFERED BY FLINT BANKRUPTCY LAWYER TERRY BANKERT 235-1970

Genesee County Bankruptcy cases in Michigan are governed by the U.S Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and detailed local rules. Cases are adjudicated by Genesee County Bankruptcy judges appointed in each district court. Genesee County Bankruptcy judges may hear and decide all core proceedings, i.e., those that are integral to the core Genesee County Bankruptcy function of restructuring Flint or Genesee County debtor-creditor rights. However, in noncore proceedings, the Genesee County Bankruptcy judge may only submit proposed findings of fact and conclusions of law to the district court. Appeals from final orders and judgments of Genesee County Bankruptcy courts are heard by federal district courts or Genesee County Bankruptcy appellate panels (BAPs).

For additional information contvat Bankruptcy Lawyer Terry Bankert http://www.attorneybankert.com


A Genesee County Bankruptcy case is commenced when a Flint or Genesee County debtor files a voluntary petition or is forced into Genesee County Bankruptcy by an involuntary petition.

When you seek Genesee County Bankruptcy relief, we must select the chapter best suited to your needs. In most cases involving individuals, that will be either Chapter 7 or Chapter 13, unless you are a family farmer or family fisherman eligible for relief under Chapter 12. Involuntary petitions may be filed under Chapters 7 and 11; there is no such thing as an involuntary Chapter 12 or 13 petition. Farmers and charitable corporations may not be forced into involuntary Genesee County Bankruptcy.


Once a Genesee County Bankruptcy petition is filed and the case is commenced, a new entity called the estate is created. The estate consists of all of the Flint or Genesee County debtor’s interests in real and personal property as of the date the petition is filed. The Flint or Genesee County debtor, his or her trustee, and their attorneys are the persons primarily responsible for administering this estate.


The Flint or Genesee County debtor must cooperate with the trustee in the execution of the trustee’s statutory duties, file certain documents, and attend and submit to examination under oath at the creditors’ meeting. In Chapter 7, 12, and 13 cases, the U.S. trustee appoints a trustee to administer the assets of the Flint or Genesee County debtor for the benefit of creditors.


The Chapter 7 trustee’s primary duty is to reduce all nonexempt property to cash as quickly as possible and distribute the money to creditors. Chapter 12 and 13 trustees are primarily responsible for analyzing proposed payment plans and ensuring that Flint or Genesee County debtors comply with the terms of their confirmed plans, especially the payment provisions.

Exempt property is not subject to distribution by the trustee; it forms the basis of the individual Flint or Genesee County debtor’s fresh start.

Once the Genesee County Bankruptcy petition is filed, the Flint or Genesee County debtor’s exempt property, and property of the estate are all protected by automatic stay provisions.

This protection gives the Flint or Genesee County debtor a breathing spell from his or her creditors by stopping all collection efforts, harassment, and foreclosure actions. However, criminal proceedings and actions taken by governmental units to enforce their police or regulatory power may continue.


Once the trustee or Flint or Genesee County debtor-in-possession collects and liquidates the nonexempt property of the estate, the resulting proceeds are distributed to holders of claims.

Claims are classified as secured, unsecured, or priority. A secured claim is one that has a valid and perfected lien or a security interest in property of the estate as collateral. Unsecured claims are those not collateralized by any property of the estate or resulting from the undersecured status of a secured creditor.

The aim of a Chapter 7 Genesee County Bankruptcy case is to give the honest Flint or Genesee County debtor a fresh start in life by discharging most of his or her debts and allowing the Flint or Genesee County debtor to retain his or her exempt property. The entry of a discharge order relieves the Flint or Genesee County debtor of all personal liability on any debts dischargeable under the Bankruptcy Code and acts as an injunction against creditors’ actions to collect discharged debts.

FLINT BANKRUPTCY SERVICE ARE OFFERED BY FLINT BANKRUPTCY LAWYER TERRY BANKERT 235-1970

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NEED A LAWYER ? CALL FLINT BANKRUPTCY ATTORNEY TERRY BANKERT 810-235-1970

File Flint Chapter Seven Bankruptcy you will not be alone. Call 235-1970

September 23, 2012

HAVING PROBLEMS PAYING YOUR DEBTS?

FLINT BANKRUPTCY Lawyer Terry R. Bankert 235-1970

Because of our poor economy nationally, and in Michigan, many families have economic problems.

Do you?

Are you having problems paying your debts?

Is your family threatened with garnishment, foreclosure or repossession?

If yes you are not alone.
see  http://goodmorningflint.blogspot.com/2012/09/having-problems-paying-your-debts-flint.html

We are a debt relief agency helping you as a Flint Bankruptcy Lawyer. We will help you   file and get debt relief.

Bankruptcy is a way to deal with your  financial problems , get a fresh start and care for your family.

You Did know you have the right under federal law to file for bankruptcy relief from your creditors just like General Motors, Big Banks and Wall Street..

The theory of Bankruptcy is that it is a legal proceeding in which a person can get a fresh financial start. Do you need as fresh start?

First try to pay your bills before filing bankruptcy because you can do so only once every six years and it is the right thing to do.

In most cases, you will want to save this valuable option until you really need it. Also, you may not need to file bankruptcy even though creditors are threatening you because you may have no nonexempt property or you wages are too high.


Just like Wall Street got their Fresh start a chapter seven Flint Bankruptcy it is your fresh start.

http://dumpmycreditors.wordpress.com/2011/11/15/your-persoanl-wall-street-type-bailout-a-chapter-sebven-bankruptcy-810-235-1970/

Some things bankruptcy can do:

Eliminate the legal obligation to pay most or all of your debts. This is called a “discharge” of debts.

Stop foreclosure of your home and allow you to catch up on missed payments.

Stop repossession of a car or other property, or, in some situations, force the creditor to return property even after it has been repossessed.

Stop wage garnishments.

Stop debt collection harassment.

Restore or prevent termination of utility service for nonpayment of previous bills (you will probably have to pay a deposit, but the deposit cannot be more than 1-1/2 to 2 times your previous regular bills according to the Arizona Administrative Code).

Get your drivers license back if it has been suspended because you didn’t pay court-ordered damages for a driving accident (unless you were driving under the influence of drugs or alcohol).

Some things bankruptcy can’t do.

Eliminate certain rights of secured creditors. Some examples of secured debts are car loans and home mortgages. You can force secured creditors to take payments over time, but generally, you cannot keep the collateral unless you continue to pay the debt.

Discharge debts that arise after the bankruptcy has been filed.

Discharge certain types of debts, such as child support, alimony (spousal maintenance), certain other debts related to divorce, most student loans, court restitution orders, criminal fines, and most taxes.

Eliminate the obligation of a co-signer on your loan in most cases.

Chapter Seven Bankruptcy is known as a “fresh start” bankruptcy, or “liquidation”. Your debts are discharged (canceled), but you must give up any nonexempt property to the trustee to pay to your creditors. You can keep secured property if you are current on the payments and continue making the payments regularly.

When you file for bankruptcy you will not be alone.

http://occupyflintlegal.wordpress.com/2012/09/11/when-you-file-for-chapter-seven-bankruptcy-you-will-not-be-alone-810-235-1970/

In Chapter 7 bankruptcy, the trustee must take your nonexempt property and use it to pay your creditors.Most debtors in Genesee County because of our loss of residential value keep all of their possessions that are not encumbered by a loan or mortgage.

If you have property, which is non-exempt, you could sell it before filing bankruptcy and use the money to purchase things, which are exempt; such are food, furniture, or clothing.

However, you cannot give property away to friends or relatives, and have them give it back to you after the bankruptcy.

Any transfers of property without receiving fair value for it within one year before filing bankruptcy are called a fraudulent transfer.

The property could be taken by the bankruptcy court and sold to pay some of your debts.

If the court finds you have been dishonest in your bankruptcy, you could be denied your discharge. You could also be charged with federal or state crimes, which carry serious fines and jail sentences.

Also, you cannot prefer one creditor over another by making payments on the debt within 90 days before filing bankruptcy (one year if the person paid is an “insider” (family, friend, etc.)

If you do so, the bankruptcy court can take that money away from the person you paid. This is to insure that all creditors are treated equally. This does not apply, however, to regular monthly payments such as your car payment, house payment, rent, utilities.

Call my office at 810-235-1970 andm make a free initial appointment so we can continue this discussion to gice you a fresh financial start.

 

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HAVING PROBLEMS PAYING YOUR DEBTS? FLINT BANKRUPTCY 235-1970

Because of our poor economy nationally and in Michigan many families have economic problems. Do you? Having  problems paying your debts? Is your family  threatened with garnishment, foreclosure or repossession? If yes you are not alone. see http://goodmorningflint.blogspot.com/2012/09/having-problems-paying-your-debts-flint.html

We are a debt relief agency helping you as a Flint Bankruptcy Lawyer h file and get relief.

Bankruptcy is a way to deal with these problems.

You Did  know you have the right under federal law to file for bankruptcy relief from your creditors.

The theory of Bankruptcy is that it is a legal proceeding in which a person can get a fresh financial start. Do you need as fresh start?

Try to pay your bills before filing bankruptcy because you can do so only once every six years. In most cases, you will want to save this valuable option until you really need it. Also, you may not need to file bankruptcy even though creditors are threatening you because you may have no nonexempt property or wages.

This means you have nothing the creditors can take from you. You can't be put in jail for failing to pay your civil debts (other than fines or other court ordered amounts).

Some things bankruptcy can do:

• Eliminate the legal obligation to pay most or all of your debts. This is called a "discharge" of debts.
• Stop foreclosure of your home and allow you to catch up on missed payments.
• Stop repossession of a car or other property, or, in some situations, force the creditor to return property even after it has been repossessed.
• Stop wage garnishments.
• Stop debt collection harassment.
• Restore or prevent termination of utility service for nonpayment of previous bills (you will probably have to pay a deposit, but the deposit cannot be more than 1-1/2 to 2 times your previous regular bills according to the Arizona Administrative Code).
• Get your drivers license back if it has been suspended because you didn't pay court-ordered damages for a driving accident (unless you were driving under the influence of drugs or alcohol).

Some things bankruptcy can't do

• Eliminate certain rights of secured creditors. Some examples of secured debts are car loans and home mortgages. You can force secured creditors to take payments over time, but generally, you cannot keep the collateral unless you continue to pay the debt.
• Discharge debts that arise after the bankruptcy has been filed.
• Discharge certain types of debts, such as child support, alimony (spousal maintenance), certain other debts related to divorce, most student loans, court restitution orders, criminal fines, and most taxes.
• Eliminate the obligation of a co-signer on your loan in most cases.

Chapter Seven Bankruptcy  is  known as a "fresh start" bankruptcy, or "liquidation". Your debts are discharged (canceled), but you must give up any nonexempt property to the trustee to pay to your creditors. You can keep secured property if you are current on the payments and continue making the payments regularly.

When you file for bankruptcy you will not be alone.
http://occupyflintlegal.wordpress.com/2012/09/11/when-you-file-for-chapter-seven-bankruptcy-you-will-not-be-alone-810-235-1970/

In Chapter 7 bankruptcy, the trustee must take your nonexempt property and use it to pay your creditors.Most debtors in Genesee County because of our loss of residential value keep all of their possessions that are not encumbered by a  loan or mortgage.  

If you have property, which is non-exempt, you could sell it before filing bankruptcy and use the money to purchase things, which are exempt; such are food, furniture, or clothing. However, you cannot give property away to friends or relatives, and have them give it back to you after the bankruptcy. Any transfers of property without receiving fair value for it within one year before filing bankruptcy are called a fraudulent transfer. The property could be taken by the bankruptcy court and sold to pay some of your debts. If the court finds you have been dishonest in your bankruptcy, you could be denied your discharge. You could also be charged with federal or state crimes, which carry serious fines and jail sentences.

Also, you cannot prefer one creditor over another by making payments on the debt within 90 days before filing bankruptcy (one year if the person paid is an "insider" (family, friend, etc.) If you do so, the bankruptcy court can take that money away from the person you paid. This is to insure that all creditors are treated equally. This does not apply, however, to regular monthly payments such as your car payment, house payment, rent, utilities.

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HAS THE "TEA PARTY" CAUSED NATIONAL MUNICIPAL INSOLVENCY?

IS MUNICIPAL INSOLVENCY THE FAULT OF THE “TEA PARTY” MOVEMENT?

MY OPINION.( FLINT-Terry Bankert) Narrowly focused Tea Party leadership with its  head in the sand and  sanctimonious  anti- intellectual  leadership will cost this country more than it will save. It’s time for a change. Keep Obama  and replacing by election of Democrats  the Republican Congress.What do you think?

SOME SAY INSOLVENT PUBLIC ENTITIES, CITY, TOWNSHIP, SCHOOL BOARDS,  ARE CAUSED BY MICHIGAN GOVERNOR SNYDER AND HIS WITHDRAWAL OF STATE FUNDING.

Simply put, in the aftermath of the financial crisis emanating from Wall Street, the federal financial mess is bleeding over into state budgets in profound ways, adding enormous costs to already overburdened state coffers. That spillover, in conjunction with broader national crises in finance and healthcare, is overwhelming state and federal finances. [3]

ITS TIME FOR THE PUBLIC TO ENGAGE IN THIS PROCESS OF CHANGE.

States' current spending, taxation and budget practices cannot be sustained, and the public must take action to change fiscal problems that go well beyond the 2007-09 economic recession, an independent bipartisan committee said on Tuesday.[8] The public can start by keeping Obama replacing the Republicans in Congress with Democrats.

VOLKER SAYS CITIZENS SHOULD ARISE TO DEMAND CHANGE!WHAT CHANGE?

"It's very difficult to get people interested in the problem and to do something about it," said former Federal Reserve Chairman Paul Volcker at a news conference, joking that the best result of the committee's work would be that the "citizenry arises" to demand change. "A lot has been going on in various state budgets, not much of it good."[8] It takes boots on the street and strong public voices to cause real change.

IN THIS ENVIRONMENT HOW CAN STATES DELIVERY BASIC SERVICES?

Rising Medicaid costs and pension expenses for public employees threaten states' abilities to provide basic government services as they continue struggling with unreliable tax bases in a weak economy, according to a task-force report.[5]

The public is numbed to financial chaos from Congress to the City and School Boards. Foolishly many think pensions are protected they are not. Without a critical eye we look away for public official in the  spotlight of elected office to the private sector lurks in the shadows or hiding in the bowels of hell. The citizens must stay engaged in the process of resolving our financial affairs. Others are. “ Its a core tactic of contemporary capitalism using Friedman's SHOCK DOCTRINE  to cause real structural change in our society in these crisis. Its more about long term economic and social policy that suits the private sector that solving the citizens current problem . [see generally 4 page 7]

One agenda in this turmoil is to destroy the union movement and by loss of retirements the members that had supported it.

WILL A MUNICIPAL BANKRUPTCY AFFECT THE PENSION OF CITY OF FLINT MI RETIREES? LOOK TO CALIFORNIA FOR DIRECTION.

What happens in California eventually finds its way here.

In California, the names of the latest victims are well known. San Bernardino, Stockton and Mammoth Lakes all filed for bankruptcy within the last few weeks. And Vallejo emerged from Chapter 9 protection just last year. The questions appear to be "Why all in California?" and "Who will be next?" [3]

The public pension reform legislation that the Legislature and Gov. Jerry Brown adopted very carefully avoided any changes of current pensioners' benefits and those of future recipients now on state and local payrolls.[1]

The working person’s American Idol is the the Pension. Touching that will cause a scandal far greater than Kate Middleton’s with the ferocity of Typhoon Sanba. [seo]

Presented here by Flint Divorce Bankruptcy Attorney 235-1970 Lawyer Terry R. Bankert.[seo]

DOES THE MICHIGAN CONSTITUTION HAVE A BARE ON “IMPAIRING THE OBLIGATION OF CONTRACTS”?

CALIFORNIANS THINK THEIR PENSIONS ARE SAFE-Not only would that have been politically impossible,...[eliminating pensions]... but it's widely assumed that pensions are protected by the state constitution's ban on "impairing the obligation of contracts."[1]

Therefore, all of the pension benefit changes apply only to future employees.[1]

See; Dan Walters: Bankruptcy ruling could alter California pension law [1]


As municipal bankruptcy is becoming more common Michigan officials are comparing the process to the state's revamped emergency manager law, known as Public Act 4.[2]

The moneyed class is ready to cause long term political change that benefits it in this financial crisis.

The law has been touted by Gov. Rick Snyder's administration as providing an "early warning system" and tools to help cities in financial trouble avoid municipal bankruptcy. [2]


CAN A MUNICIPAL BANKRUPTCY JUDGE BREAK THROUGH STATE CONSTITUTIONAL PROTECTIONS FOR PENSIONS? Lets  look to Stocktone CA.

But is the legal barrier to changing current pension promises absolute?

Or could Stockton's municipal bankruptcy filing punch a hole through it?

STOCKTON CALIFORNIA FILED FOR MUNICIPAL BANKRUPTCY!

Under bankruptcy protection, Stockton wants those who hold millions of dollars in city-issued bonds – or their insurers – to take a haircut, but it doesn't reduce the $29 million it pays each year to the California Public Employees' Retirement System. That doesn't sit well with the bond insurers.[1] (CalPERS)

THE BOND ISSUERS WILL HAVE A SEAT AT THE TABLE OF A MUNICIPAL BANKRUPTCY.

Assured Guaranty Ltd., which insured many of those bonds and could lose over $100 million, complained in a bankruptcy court filing that Stockton "targeted its bondholders and left CalPERS and serious labor concessions off the negotiating table."[1]

Another insurer, National Public Finance, added, "Rather than face the hard realities imposed by its unbearable liability to Cal-PERS, the city takes a pass."[1]

BONDHOLDERS WILL INSIST THAT THE PENSION DEBT MUST BE REDUCED.

The insurers, in essence, are asking bankruptcy Judge Christopher Klein to declare that the city's bankruptcy plan is inadequate because it ignores pension debt, thereby presumably requiring it to reduce pension costs. In reaction, Cal-PERS has told Klein that pensions should have more status than bonds.[1]

VALLEJO CALIFORNIA WENT THROUGH BANKRUPTCY

During Vallejo's bankruptcy reorganization a few years earlier, CalPERS warned the city not to attempt to cut pensions and it didn't. Nevertheless, Vallejo generated union-backed, albeit unsuccessful, legislation to force cities to get permission from a union-friendly state board before filing for bankruptcy protection.[1]

WHAT PROTECTION FOR A PENSION WHEN VIEWED AS A CONTRACT?

But what about the state constitution's protections of pensions as contracts? Wouldn't that shield them in bankruptcy court?[1]

CALIFORNIA BANKRUPTCY JUDGE RULED FEDERAL FEDERAL BANKRUPTCY LAW TRUMPS STATE CONSTITUTION CONTRACT RIGHT AS IT RELATES TO HEALTH CARE AND OTHER ISSUES.

Not necessarily, as Judge Klein's ruling in a related matter implies. Stockton cut health care for its retirees, and they asked Klein to restore coverage, claiming "vested contractual rights." But last month, he declared that federal bankruptcy law trumps the state constitution's contract impairment provision.[1]

CONGRESS CAN BREAK A CONTRACT WHEN A STATE MAY NOT.

"In other words," he wrote in a 40-page ruling, "while a state cannot make a law impairing the obligation of contract, Congress can do so.[1]

GOAL OF MUNICIPAL BANKRUPTCY

The goal of the Bankruptcy Code is adjusting the debtor-creditor relationship. Every discharge impairs contracts."[1]

THE PENSION IN MUNICIPAL BANKRUPTCY BATTLEGROUND IS IN CALIFORNIA

Could bond insurers force Stockton to reduce its retirees' pensions?
It's certainly possible. If it happens, long-held assumptions about the sanctity of California's public pensions will change.[1]

Although California's problems are extreme, the state is hardly alone in financial difficulties. Towns and counties in Alabama, Illinois, Michigan, New Jersey, New Hampshire, New York, Pennsylvania and Rhode Island are all having trouble meeting their financial obligations. If these conditions continue to spread, the United States will be facing a crippling debt crisis at the state and local levels, which is where Americans receive much of what matters for their quality of life.[3]

This was a central point in a report released July 17 by the State Budget Crisis Task Force headed by former Federal Reserve Chairman Paul Volcker and former New York Lt. Gov. Richard Ravitch.[3]
MICHIGAN , NEW YORK AND ILLINOIS SHOULD LOOK TO CALIFORNIA AND ACT NOW!

If they don't take action, the extremes of California will ultimately become a reality in those states too.[3]

IS MUNICIPAL INSOLVENCY THE FAULT OF THE “TEA PARTY” MOVEMENT?

For two years, the conservative Tea Party has pressed the U.S. Congress to rein in spending and cut the government's debt and deficit. In response, Congress has slashed many domestic programs, which are often carried out by states.[8]

The committee found that reducing federal grants to states by just 10 percent would equal a $60 billion cut, "equivalent to more than doubling the corporate income tax, cutting police and fire spending almost in half, or eliminating all spending on libraries, parks and recreation."[8]
States are watching tax and spending negotiations on Capitol Hill nervously, aware they could be hurt by "the fiscal cliff," a combination of expiring federal tax cuts, spending reductions made in last summer's budget compromise, and other measures.[8]


So what can be done? [3]

1.GIVE THE CITY OF FLINT AN INTEREST RATE EQUAL TO THAT GIVEN TO INSOLVENT BANKS.We can start by asking why the Federal Reserve cannot refinance municipalities to preserve essential services at interest rates comparable to what it gave to rescue the insolvent banks that created this mess. [3]

2.NO MORE SWAP CONTRACTS. ... it is high time officials moved boldly to force the banks to break off the chain of disastrous swap contracts that have cost local authorities and states so much money.[3]

3.STRONG REGULATORY AUTHORITY. Another key point to keep in mind is the importance of strong regulatory policies. In a world in which financial institutions can receive zero-interest loans from the Federal Reserve and then lend out the capital at much higher interest rates, the opportunities for financial mischief are plentiful.[3]

4. DO NOT MASK FLINT’S PROBLEMS. For years, bankers have used municipal bonds from California and elsewhere as playthings. Wall Street has consistently helped elected officials mask budgetary problems with complex derivatives that create the appearance of cash flow today by selling years of future revenue. The only purpose for these securities is to deceive the public and create fees for the financial firms.[3]

5. DEMAND FISCAL RESPONSIBILITY. Financial chicanery in these realms is demoralizing, harmful, expensive and dangerous. California experienced this type of treachery firsthand in the 1990s when Orange County declared bankruptcy after being sold highly risky securities by Merrill Lynch.[3]

LOOK TO THE VOCKER-RAVITCH TASK FORCE FOR REPORT

That's why it's important to listen to the Vocker-Ravitch task force's call for reforming budgetary systems in the states to make them accountable and transparent and expose financial scams to deter their widespread use. [3]

The report by the State Budget Crisis Task Force, which is co-chaired by Paul Volcker, a former Federal Reserve chairman, and Richard Ravitch, a one-time lieutenant governor of New York, says states' growing gaps between entitlement spending and available revenue are becoming unsustainable. [5]

The report, released Tuesday, identified six major threats to the states' fiscal sustainability, including Medicaid spending, underfunded retirement promises and accounting gimmicks designed to solve short-term budget gaps. [6]

Mr. Ravitch, who is credited with helping to rescue New York City from collapse in the mid-1970s, said too much political energy has been focused on federal budget problems and not enough at the state and local levels. [6]

While the report doesn't offer any solutions to the fiscal problems, it urged state officials to be more transparent about the true costs of pension and retiree health-care costs. It also admonished states for using one-time revenue sources--such as asset sales and pension-obligation bonds--to balance budgets. [6]

The task force focused on the finances of five states: Virginia, Texas, New York, New Jersey and Illinois, and plans to issue separate detailed reports on these states in the coming months.
While the financial troubles of states are no secret to taxpayers, the task force's effort carries the weight of its well-known co-chairmen and its financial backers. [6]

The task force received major funding from the foundation of Blackstone Group LP (BX) co-founder Peter G. Peterson and George Soros's Open Society Foundation. Task-force board members include David Crane, an adviser to former California Governor Arnold Schwarzenegger, and economist Alice Rivlin. [6]

Task-force members said federal officials have little understanding of how efforts to reduce the nation's deficit could further strain state budgets. [6]
Ms. Rivlin, who served on President Obama's commission that recommended federal deficit solutions, said they were aware of the impact that these cuts could have on states. "But we did not do a serious analysis of what would happen." [6]


MICHIGAN AND  “The people of California have a right to know how their fiscal accounts are managed.” [3]

Presented in note format by Terry Bankert 09/17/2012

[1]
http://www.modbee.com/2012/09/17/2376756/dan-walters-bankruptcy-ruling.html

[2]
http://www.mlive.com/news/flint/index.ssf/2012/07/report_municipal_bankruptcy.html
[3] July 31 2012
http://www.latimes.com/news/opinion/commentary/la-oe-ferguson-california-bankruptcy-crisis-20120731,0,7453404.story
[4]
The Shock Doctrine , The Rise of Disaster Capitalism, by Naomi Klien 2007, Picadorusa.com
[5] July 17, 2012
http://online.wsj.com/article/SB10001424052702303933704577532971037875532.html
[6]
http://www.djnewsplus.com/rssarticle/SB134254432321665939.html
[7]
http://headlinenewstv.com/report-details-threats-to-states-fiscal-health-wall-street-journal/
[8] July 17, 2012
http://in.reuters.com/article/2012/07/17/usa-states-budgets-report-idINL2E8IHCR620120717

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TAX CONSEQUENCE OF SPOUSAL SUPPORT

FYI-Flint Divorce Bankruptcy Attorney Terry R. Bankert 235-1970, www.attorneybankert.com  asks DID YOU KNOW?.From Creative Tax and Financial Planning to Settle the Challenging Divorce Case Joseph W. Cunningham Joseph W. Cunningham JD CPA PC Troy

I. Use of 71 Payments to Advantage

A. What are Section 71 payments?

1. They are essentially another name for alimony, or spousal support, payments
that qualify as taxable to the payee under IRC Section 71 and deductible by
the payer under IRC Section 215.

2. Because Section 71 payments can be used to considerable advantage in
structuring divorce settlements it is important for family law practitioners to
have a working knowledge of the rules to avoid missteps and to effectively
use Section 71 payments to save taxes and facilitate settlements.

B. What are the requirements to qualify under IRC 71?

1. Cash—Payments are in cash. Services, property, or the use of property do
not qualify.

2. Receipt—Payments are received by the payee spouse or constructively
received by a third party for the spouse’s benefit pursuant to a divorce or
separation instrument.

3. Pursuant to Qualifying Divorce Document—Payments are made pursuant
to a “divorce or separation instrument”—a judgment of divorce or separate
maintenance; a settlement agreement, incident to such a judgment; a written
separation agreement; or, a temporary support order.

4. Termination on Payee’s Death—The payer’s obligation to make the payments
terminates if the payee dies, and the payer has no obligation to make
any payment as a substitute after the payee’s death.

5. No Disqualifying Designation—The payments are expressly designated as
nontaxable/nondeductible.

6. Living Apart—The parties do not reside in the same household when the
payment is made. An exception applies if one party is preparing to leave the
home and does depart within one month of the payment date. The “not living
under the same roof” provision does not apply to temporary support payments
made pursuant to a court order or written separation agreement during
the pendency of a divorce.

7. No Joint return—If the divorce is still pending, the parties do not file a
joint return.

8. Not Child Support—The payments are not for child support.

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