Chapter 13 Plans & Trustees | Minnesota Chapter 13 Bankruptcy

Chapter 13 Plans & Trustees | Minnesota Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, the United States Trustee supervises the private trustees who administer Chapter 13 cases. In this chapter, the trustee does not liquidate the debtor’s assets, but instead evaluates the debtor’s financial affairs and makes recommendations to the court regarding the debtor’s proposed repayment plan. Purpose of Chapter 13 Bankruptcy Chapter 13 bankruptcies…

Creation of Bankruptcy and the Role of the Trustee

Creation of Bankruptcy and the Role of the Trustee

The Creation of Bankruptcy Article I, Section 8, of the United States Constitution authorizes Congress to enact “uniform Laws on the subject of Bankruptcies.” Under this grant of authority, Congress enacted the “Bankruptcy Code” in 1978. The Bankruptcy Code, which is codified as title 11 of the United States Code, has been amended several times…

Chapter 11 Bankruptcy Trustee | Minnesota Bankruptcy Trustee

Chapter 11 Bankruptcy Trustee | Minnesota Bankruptcy Trustee

The Department of Justice and the U.S. Trustee are charged with ensuring the integrity of the bankruptcy system. In order to accomplish this, the U.S. Trustee program may oversee the administration of cases and engage in litigation to enforce compliance with the law. While both individuals and corporations or partnerships are permitted to file bankruptcy…

From the Petition to the End | Minnesota Bankruptcy Procedure

From the Petition to the End | Minnesota Bankruptcy Procedure

A bankruptcy case normally begins by the debtor filing a petition with the bankruptcy court. A petition may be filed by an individual, by a husband and wife together, or by a corporation or other entity. The petition will be filed in accordance with a chapter in the United States Bankruptcy Code. A determination of…

Benefits and Consequences of Filing for Bankruptcy | Minnesota Bankruptcy

Benefits and Consequences of Filing for Bankruptcy | Minnesota Bankruptcy

Minnesota Bankruptcy Pros & Cons Are creditors calling relentlessly? Do your monthly bills for past debt far exceed your monthly ability to pay? Do you lay awake at night trying to figure out what to do? Are you among the many individuals considering bankruptcy in this economy? Who Files for Bankruptcy? If you are considering…

Bankruptcy Discharge: What is a Discharge in Bankruptcy?

Bankruptcy Discharge: What is a Discharge in Bankruptcy?

Discharge in bankruptcy refers to permission to no longer repay certain debts. Certain debts are “dischargeable” in bankruptcy. Credit card debt is dischargeable. Student loans, tax debt, and court ordered child support obligations are not dischargeable through bankruptcy. Purpose of a Discharge The purpose of a discharge is to provide relief from some or all…

Litigation and Appeals in Minnesota Bankruptcy Courts

Litigation and Appeals in Minnesota Bankruptcy Courts

Each of the 94 federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court. Bankruptcy cases cannot be filed in state court. Types of Bankruptcy Cases Each bankruptcy court hears a variety of bankruptcy cases. Debtors applying to the bankruptcy courts for financial relief may seek…

Tax Form 8832 Part II. Late Election Relief

Tax Form 8832 Part II. Late Election Relief

Complete Part II only if the entity is requesting late election relief under Rev. Proc. 2009-41. An eligible entity may be eligible for late election relief under Rev. Proc. 2009-41, 2009-39 I.R.B. 439, if each of the following requirements is met. The entity failed to obtain its requested classification as of the date of its…

When To File

When To File

Generally, an election specifying an eligible entity’s classification cannot take effect more than 75 days prior to the date the election is filed, nor can it take effect later than 12 months after the date the election is filed. An eligible entity may be eligible for late election relief in certain circumstances. For more information,…

Effect of Election | Tax Form 8832

Effect of Election | Tax Form 8832

The federal tax treatment of elective changes in classification as described in Regulations section 301.7701-3(g)(1) is summarized as follows: If an eligible entity classified as a partnership elects to be classified as an association, it is deemed that the partnership contributes all of its assets and liabilities to the association in exchange for stock in…

Who Must File Tax Form 8832?

Who Must File Tax Form 8832?

File this form for an eligible entity that is one of the following: A domestic entity electing to be classified as an association taxable as a corporation. A domestic entity electing to change its current classification (even if it is currently classified under the default rule). A foreign entity that has more than one owner,…

Default Rules and Definitions | Tax From 8832

Default Rules and Definitions | Tax From 8832

Default Rules for Tax Form 8832 Existing entity default rule Certain domestic and foreign entities that were in existence before January 1, 1997, and have an established federal tax classification generally do not need to make an election to continue that classification. If an existing entity decides to change its classification, it may do so…

Tax Form 8832 | New Instructions January 2012

Tax Form 8832 | New Instructions January 2012

General Instructions Section references are to the Internal Revenue Code unless otherwise noted. What Is New: A checkbox was added for explanatory language of the Rev. Proc. 2010-32, foreign entities that meet the requirements of Rev. Proc. 2010-32, 2010-36 I.R.B. 320. The IRS has created a page on IRS.gov for information about Form 8832 and…

Before You File S Corporation Form M8

Before You File S Corporation Form M8

Before You File, Complete Your Federal Return Before you complete Form M8, complete federal Form 1120S and supporting schedules. You will need to reference them. Minnesota Tax ID Number Your Minnesota tax ID is the seven-digit number you’re assigned when you register with the department. Generally, this is the same as your sales and use…

Minnesota Termination of Sales Representatives Act

Minnesota Termination of Sales Representatives Act

 In this video, you get answers to these questions: Does this law only protect the rights of manufacturer reps? Does this law only protect the rights of reps who live in Minnesota? Can sales reps sue for violations of the Minnesota Termination of Sales Representatives Act? Can a manufacturer sue for violations of the…

Minnesota S Corporation M8 Filing Requirements

Minnesota S Corporation M8 Filing Requirements

Filing Requirements Corporations doing business in Minnesota that have elected to be taxed as S corporations under section 1362 of the Internal Revenue Code (IRC) must file Form M8. Who Must File Any corporation with a valid federal election under IRC section 1362 is considered an S corporation for Minnesota purposes. The entire share of…

Bankruptcy Discharge: When is it Automatic and When May a Creditor Object?

Bankruptcy Discharge: When is it Automatic and When May a Creditor Object?

A dischargeable debt is a debt that does not have to be repaid after bankruptcy. It is discharged or eliminated from the debtor’s obligations. Not all debts may be discharged. Whether a debt is dischargeable will depend on the type of bankruptcy filed. The United States Bankruptcy Code contains a list of debts that are…

The Duties of the Chapter 7 Trustee | Bankruptcy Trustees

The Duties of the Chapter 7 Trustee | Bankruptcy Trustees

Chapter 7 bankruptcy is known as the “liquidation” bankruptcy process. There are other processes under other chapters of the United States Bankruptcy Code, however. Statistics show that debtors file Chapter 7 bankruptcy petitions more frequently than petitions under any other chapter. This is likely due to the discharge of many assets available to individual debtors…

Essential Bankruptcy Terminology | Bankruptcy Terms

Essential Bankruptcy Terminology | Bankruptcy Terms

The bankruptcy court system uses many terms in the course of its proceedings that may not be commonly understood. Many people will have some idea of the meaning of the terms without having complete understanding. The Importance of Understanding Bankruptcy Terminology If you are filing for bankruptcy, it is important to understand each term so…

What’s new for 2011 | S Corporation Form M8

What’s new for 2011 | S Corporation Form M8

What’s new for 2011 Factor Percentages Have Changed The property and payroll factors on Schedule M8A have changed from 6.5 percent to 5 percent each, and the sales factor has changed from 87 percent to 90 percent. Effective for tax year 2011. Federal Legislation Update Several modifications that Minnesota did not conform to in the…

Franchise Disclosure Documents – Additional Prohibitions

Franchise Disclosure Documents – Additional Prohibitions

Additional Prohibitions In addition to the prohibitions concerning the making of financial performance representations, discussed above, the amended Rule prohibits seven specific acts or practices. Each of the seven is discussed immediately below. Prohibition Against Contradictory Information The amended Rule prohibits a franchise seller from making any statement that contradicts the information disclosed in the…

Minnesota Franchise Regulatory Considerations – Federal Exemptions

Minnesota Franchise Regulatory Considerations – Federal Exemptions

Federal Exemptions (15 United States Code § 77) Small Offerings – Regulation A Regulation A (17 Code of Federal Regulations § 230.251 to § 230.262) permits the offering of up to $5 million of securities in a year without complying with all registration and disclosure requirements. If the Regulation A exemption is available, a shorter…

Public Figures | Franchise Disclosure Document | Item 18

Public Figures | Franchise Disclosure Document | Item 18

Item 18: Public Figures Item 18 of the amended Rule requires the disclosure of certain information about a public figure’s involvement in the franchise system. This covers public figures who lend their name or image to the franchise, control or manage the franchisor, or invest in the franchisor. Who Qualifies as a “Public Figure”? A…