Filing Bankruptcy in South Carolina and the Government Shutdown

Once again, we’re facing a possible federal government shutdown. (See Shutdown Nears as House Votes to Delay Healthcare Law and, for comic relief, Boehner Advises Americans to Delay Getting Cancer for a Year). How will this affect operations of bankruptcy courts? The Bankruptcy Court for the District of South Carolina has issued a statement through Chief…

home values in bankruptcy

Determining the Value of Your Home for Bankruptcy

Written by Charleston Bankruptcy Lawyer, Russell A. DeMott Determining what the value of your home is when you file your bankruptcy is a difficult, but important, task. Years ago… Years ago, tax assessment values (called various things in various states–here in South Carolina called the “tax appraisal”) tended to be low. Taxing authorities generally could…

IRS substitutes for returns and bankruptcy

The MOST IMPORTANT Thing You Need to Know About Bankruptcy and Taxes

Written by Charleston Bankruptcy Lawyer, Russell A. DeMott File your taxes! That’s right. Filing your income taxes is the key to discharging tax debt in bankruptcy.  The 3/2/240 rule There are numerous bankruptcy blog posts out there about discharging taxes in bankruptcy. It boils down to the 3/2/240 rule. You can read about there here in…


U.S. Trustee Suspends Debtor Audits

The United States Trustee’s Office announced that it has suspended debtor audits. The 2005 Bankruptcy Code (BAPCPA– “Bankruptcy  Abuse Prevention and Consumer Protection Act”) required the audits, which are performed by accounting firms under contract with the U.S. government. The suspension is solely due to budgetary constraints–the government is up to its eyeballs in debt…


South Carolina Median Income Update: April, 2013

  Twice a year median income figures are updated. These figures drive the consumer bankruptcy process. If you’re the  below median income for your household size, you usually (but not always) qualify for a Chapter 7 bankruptcy.  If you’re above median income, your chances of qualifying for a Chapter 7 are less likely.  The “means test”…


Should You Use a Credit Card to Pay Your Taxes?

Written by Charleston Bankruptcy Lawyer, Russell A. DeMott Using your credit card to pay taxes may make sense–sometimes. However, there are important considerations to using credit cards for this purpose. Kelly Phillips Erb, a Philadelphia tax lawyer and blogger at “Tax Girl,” recently wrote a great post entitled, “Five Ways to Pay Your Taxes When…

student loan probelms in bankruptcy

Student Loans: Know What You’re Buying

I’ve said that buying college is like buying anything else: you need to be wise consumer. I came across this interesting infographic a few days ago at, a great website for money-saving tips. What follows below is a short post following the graphic by my friend and law school classmate, Dr. James Klauber. Dr.…

confused man

Student Loan Discharge Due to Disability

Written by Charleston Bankruptcy Lawyer, Russell DeMott There’s some good news for disabled student loan borrowers. Student loans are a huge problem. Absent “undue hardship,” which is nearly impossible to prove in most instances, student loans are non-dischargeable in bankruptcy. However, bankruptcy isn’t your only option. Anyone with student loan problems should first try every…