Monthly Archives: October 2024
Bankruptcy or Debt Negotiation: Which is Best?
The answer to this question, and most others like it, is “it depends.” Most financial planners believe a family’s debt-to-income ratio (DTI) should not exceed 15 percent of net income. That’s unrealistic for most people. If a family earns $6,000 a month and pays $1,500 rent, that’s already 15 percent, before they make their… Read More »
How Much Will the IRS Accept for an Offer in Compromise?
“Compromise” usually implies give and take. But for a taxpayer, an IRS offer in compromise is all give and no take. IRS bureaucrats decide if a taxpayer qualifies for OIC relief. IRS bureaucrats also decide whether an offer in compromise is reasonable. So, the IRS could easily insist that OIC applicants pay the entire… Read More »
Is Chapter 13 Right for Me?
Especially for some people, the moral imperative to repay debts is very high. But reality gets in the way. Credit cards are a good example. The average credit card interest rate is so high that these debts quickly spiral out of control. Similarly, there’s a practical obligation to pay secured debts, like a home… Read More »
What Can I Do About Back Taxes?
Many people falsely believe they don’t have to do anything about back taxes. The overall audit rate is less than 1 percent (the audit rate for high-earning taxpayers is significantly higher). So, quite frankly, many people think they can owe back taxes and the IRS won’t do anything about it. The formal audit rate… Read More »