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Michigan’s Attorney General Bill Schuette filed a request with the 6yh Circuit Court of Appeals this week asking for an expedited decision regarding proposed pension cuts through Detroit’s bankruptcy case.  Schuette argues that the state constitution contains a clause that prevents cuts to retiree benefits that would override a ruling by the bankruptcy judge in the Detroit case.  Schuette is not seeking to reverse the ruling that Detroit may file a Chapter 9 bankruptcy just that it cannot cut … [Read more...]

If you are thinking about buying a home in 2014, there are hundreds of articles about what you should do and how you can increase your chances of getting the home you want at the best mortgage rate.  However, there are also certain things you should not do when planning to buy a home.  For example, job-hopping can hurt your chances of being approved for the loan that you want.  Co-signing a loan for a family member may seem harmless; however, mortgage lenders do not view your willingness to be … [Read more...]

Each one of us wants to get a bigger tax refund each year by reducing the amount of money we owe Uncle Sam.  Many of us take advantage of popular tax write-offs such as the deductions for alimony payments and moving expenses as well as contributions to our IRA and health savings accounts.  We also take tax credits for dependent care and childcare costs, tuition credits and credits for the payment of student loan interest, mortgage interest and real estate taxes.  If you have run out of tax … [Read more...]

If you are dreading preparing your tax returns, you are not alone.  Many of us dread the paperwork but choose to prepare our own returns each year.  This is especially true for individuals who had only one source of income and take standard deductions.  However, as more and more individuals prepare their own tax returns to save money on tax preparer fees, the IRS is seeing an increase in errors on tax returns.  To help you avoid some common tax return errors, read, “8 Errors You're Most Likely … [Read more...]

In 2013, the number of new home equity loans rose by 30.8% in the first nine months of the year. This is due, in part, to the rise in home values as the real estate market continues to recover from the housing crisis.  Even though you may qualify for a home equity loan, it may not be a wise decision.  Before tapping into the equity in your home you should ask yourself three questions – “What am I using it for?” “What’s best a loan or a line?” and “Can I deal with the interest rate and the … [Read more...]

The general rule of thumb for most banks and credit card companies is to cancel a debtor’s credit card account once it receives the notice of a bankruptcy filing.  However, as with any rule there are exceptions.  Whether you will be able to keep any of your credit cards after you file for bankruptcy relief will depend on the type of bankruptcy case that you file.  It will also largely depend on the company that issued the credit card. For more information about credit cards after filing … [Read more...]

If you owe back taxes, you may have been told that you cannot discharge or wipe out personal taxes through bankruptcy.  However, there are circumstances where you may be able to discharge taxes owed to the IRS through a bankruptcy filing if you meet all of the requirements.  For example, the taxes must be at least three years old and you must have filed the tax returns at least two years prior to the filing of the bankruptcy petition. For more about taxes and bankruptcy read, “Bankruptcy and … [Read more...]

A new federal rule will make it easier for homeowners and homebuyers to gain access to the information used by their mortgage lender when determining the amount of the loan that the lender will approve. Before the new rule, a mortgage applicant could only obtain a copy of the written appraisal by requesting it from the mortgage company; however, the mortgage company was not required to disclose other information it used in the evaluation process.  The new rule will add much more transparency to … [Read more...]

Each year when we prepare to file our tax returns, we must deal with changes in the U.S. Tax Code.  Just when we adapt to the new rules they change again making it frustrating for tax preparers and taxpayers alike.  Even though you are working on your 2013 tax returns, several key changes to the tax code for 2014 may affect your tax return next year and are worth taking note of now.  For example, the penalty for failing to comply with Obamacare and the new $500 carry-over for health care FSAs … [Read more...]

The Public Bike System Co., known as Bixi, based in Montreal filed for bankruptcy relief this week.  Bixi is the equipment supplier for the company that operates Chicago’s bicycle-sharing program.  Bixi has supplied thousands of bicycles, equipment and computer software to operate the city’s program which is managed by Alta Bicycle Share, Inc. out of Portland, OR.  A city official said that the bankruptcy should not have a negative impact on the Divvy program. For more details read, “Divvy … [Read more...]