In a recent bankruptcy court decision, a 45 year old unemployed, disabled woman was not able to get rid of $37,000 in student loans. The bankruptcy court ultimately decided that she did not make a good enough effort to repay her student loans and therefore she could not get rid of her student loan debt. The woman only borrowed $13,250 for school, but due to interest and penalties, the debt increased to $37,000. Student loan debt is almost never discharged in bankruptcy. In order to get rid of student loan debt in bankruptcy, you must show that repaying the loans would cause you an undue hardship. If you are thinking of filing for bankruptcy, contact our law office at 816-524-4949 or Choorfar@Hoorfarlaw.com.
A question often asked is whether there are any tax implications to paying a debt for a family member. The answer is yes.
Every year, a person can give a gift up to $14,000.00 to one person without having to report the transaction to the IRS. Any amount above the $14,000.00 must be reported to the IRS on Form 709.
In addition, for 2015, you can transfer up to $5.43 million federal tax free over a lifetime.
If you are having tax issues, contact our law office at 816-524-4949 or Choorfar@Hoorfarlaw.com.
A charging order allows a creditor to receive the distributions of a debtor’s business to the debtor in order to pay off a debt. This allows the creditor to stand in the shoes of the debtor when receiving any money from the business. Charging orders apply to LLCs. However, you cannot foreclose on a debtor’s LLC interest, you can only go after their portion of the business’ distributions. If you find yourself in this situation, contact our law office at 816-524-4949 or www.Hoorfarlaw.com.
If you engage in a transaction or business with someone or a company that is outside Missouri, but you are located in Missouri, and the transaction goes awry, you are able to sue that person or company in Missouri. Missouri states that a Missouri court has jurisdiction over a person or company if they have connections with the state that are systematic, continuous and substantial. Missouri has held that transacting business online with Missouri residents is enough for Missouri courts to have jurisdiction over that person doing business with Missouri residents. If you have been wronged by a person or business out of Missouri, contact our law office at 816-524-4949 or www.Hoorfarlaw.com.
If you are a small business with a retirement plan, here are a few tips you should check out:
- Plan administrators and sponsors who fail to file the required forms can face up to $15,000 in penalties per return.
- There is a special penalty relief program with the IRS that late-filers can apply for as long as the late returns were filed before June 2.
If you are facing a tax problem, contact our office at www.Hoorfarlaw.com or 816-524-4949.
If you are an employer, the IRS requires that you make your payroll tax deposits through the Electronic Federal Tax Payment System (EFTPS). However, if you fail to use the EFTPS to make the deposits, the IRS will assess a 10% penalty of the amount that should have been deposited. But if you did not make the deposits electronically because you were unable to get a bank account, you may be able to remove the 10% penalty. If you are having tax issues, contact our law office at 816-524-4949 or www.Hoorfarlaw.com.
In order to have a valid contract in Missouri, there must a meeting of the minds. This means that one person must offer the terms, and the other person involved must accept those terms. If the other person sends different terms instead, then a contract has not been formed. If you are having problems with a contract, feel free to contact our law office at Hoorfarlaw.com or 816-524-4949.
When trying to modify or stop your child support or alimony payments, the courts cannot consider the actions of your ex-spouse or your children. Despite your ex-spouse being mean to you or your children treating you with disrespect, the courts should only consider your current income when modifying or terminating your alimony payments. If you are receiving or paying alimony and need help, contact our law office at 816-524-4949 or www.Hoorfarlaw.com.
Missouri statutes state that child support generally ends at age 18. However, child support can extend longer than age 18 if the child attends college or is handicapped. If the child attends college, then the obligation to pay child support can extend to age 21. If you are requesting or paying child support and needing assistance, contact our law office at 816-524-4949 or www.Hoorfarlaw.com.