Courtesy of King Bankruptcy Media
The number of consumer filings in Q1 07 was 187,361 – a 66% increase over the same period last year and a 9% increase since Q4 06. By contrast, the # of consumer filings for all of 2006 was only 112,685. Source: Administrative Office of the Courts. Samuel L. Geraldo Director of the American Bankruptcy Institute, attributes the rise to a generally high debt burden among American consumers.
Study on Repeat and Serial Filers
Get the ABI Study on Repeat and Serial Filers here
Failure to File Tax Returns = Dismissal
In re McCluney, 06-21175 (Bkrtcy.D.Kan. 2007) §§1307, 1308
Under the scheme established by the BAPCPA a debtor must file state and federal tax returns for the 4 years preceding date of filing with the case trustee. Under §1308 those returns must be tendered not later than the day before the 341 meeting, with failure resulting in dismissal or conversion per §1307(e); or non-confirmation per §1325(a)(9). On motion of the IRS a Kansas bankruptcy court dismissed a chapter 13 case when a debtor failed to file returns for 1 of the required 4 years until several weeks after the 341 meeting. The court called the infraction in this case “minor” was careful to point out that once grounds for invoking §1308 have been established “the court has no discretion on whether to act; Congress has directed that it shall dismiss or convert.”
Getting IRS Transcripts from the Source
Press 3 for “other automated services”
Enter Debtor’s SSN and press 1 to confirm
Press 1 then 3 then enter # in debtor’s street address
Press 2 then enter the year of the desired return
Press 1 if correct and 3 to end
To request a federal tax transcript by mail use IRS Form 4506T.