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Most borrowers repay their debts in a timely manner. But what happens when they don’t? What are the rights of creditors? What rules must creditors follow?

Is your tax debt part of your overwhelming debt? You may have heard that you can discharge tax debt through bankruptcy, but which taxes can you discharge?

Tax debt is dischargeable if you filed the tax return at issue at least two years ago. This year, taxes were due on April 17th and tax debts from 2009 returns may be dischargeable. In addition, the IRS must have assessed your taxes at least 240 days before you can file for bankruptcy.

In our law blog post, we mentioned that Octomom Nadya Suleman had filed for bankruptcy. Last week, we learned that her bankruptcy case was thrown out of court. Why? She failed to file all of the paperwork required by the court by last Monday’s deadline.

“Octomom” Nadya Suleman has filed for Chapter 7 bankruptcy. “I’ve had to make some very difficult decisions. Filing Chapter 7 was one of them. But I have to do what is best for my children and I need a fresh start,” she told reporters.

Individuals considering Chapter 7 bankruptcy in California often think they will have to give away all of their property. This bankruptcy myth can keep some people from filing bankruptcy for months, even years. Meanwhile, they continue to build debt and fall further into financial turmoil.

The Los Angeles Dodgers are one step closer to emerging from Chapter 11 bankruptcy after a Delaware bankruptcy court scheduled a hearing next week to approve a new reorganization plan that would sell the team to new management on April 30.

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