Bankruptcy Tax Issues
Field of Study:
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 became effective October 17, 2005, and was enacted “to provide curbs to perceived bankruptcy abuses.” The prior Bankruptcy Code, enacted in 1979, had been debated for a number of years and Congress was slow to adopt the 2005 Act changes.
While there are few tax law changes, a number of changes to bankruptcy procedure and qualification have been enacted. The 2005 Act sets up an income-based test for measuring a debtor's ability to repay debts. Under this test, debtors who make more than the state's median income and can pay more than $6,000 over five years are required to file bankruptcy under a Chapter 13 wage earner plan. Debtors with insufficient assets or income can still file a Chapter 7 bankruptcy.
This course addresses tax consequences of Chapter 7 Liquidation, Chapter 11 Reorganization, and Chapter 13 Wage Earner Plan.
After completing this course you will be able to:
- Identify changes made by the 2005 Bankruptcy Act, the common types of bankruptcy and filing qualifications.
- Determine the impact of an automatic stay, the treatment of preferential transfers, the priority of claims, and the discharge of debts.
- Recognize the creation and taxation of an individual bankruptcy estate noting partnership & corporate bankruptcy differences.
- Identify the scope of and special rules for homesteading and garnishment.
Type of delivery method:
Recommended CPE credits:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and final examination.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org