With the downturn in the economy, new laws pertaining to debt relief have been passed in recent years to protect the rights of homeowners and individuals with overwhelming debt. At Resnick & Moss, P.C., we help clients through the bankruptcy process and help them understand how changes in the law may impact their case.
Our attorneys will help you explore every option to get the debt relief you need. Contact our firm online or call us at 248-642-5400 to discuss your goals and your situation with an experienced debt relief lawyer.
Recent Changes in Debt Relief Law
Debt relief and bankruptcy laws are constantly evolving to help meet the needs of individuals who are struggling with debt. Our attorneys stay up-to-date on the new laws in Michigan so that we can help our clients find effective solutions to their debt problems. Some recent changes include:
- Debt relief during foreclosure — In 2009, the legislature passed a law to protect homeowners in the event of foreclosure. This law significantly changed the foreclosure process, giving homeowners an extra 90 days to seek the debt relief they need. This new law is set to expire in 2011. We can help you understand how this changing foreclosure law will impact your foreclosure and guide you through the foreclosure process.
- Tax relief when debt is forgiven — Generally, if a debt is forgiven, income tax would be owed on the amount of the loan that you do not have to repay, "Forgiveness of debt income" is typically taxed at your standard income tax rate. However, The Mortgage Forgiveness Debt Relief Act of 2007 provides tax relief to homeowners who reduce the debt on their principal residence through debt settlement or refinancing. This applies only to debt forgiven from 2007 to 2013. Additionally, debts forgiven through bankruptcy are not considered taxable income.
Contact a Detroit Tax Relief Lawyer
Our attorneys help clients in the Detroit area and throughout southeast Michigan file for bankruptcy and seek "Solutions Without Bankruptcy®." Contact our law firm online or call our firm's Bloomfield Hill law offices directly at 248-642-5400 for advice and representation.
