I keep seeing posts that say insolvent, what does this actually mean & is there a way to see if you are?
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Insolvent means "broke." When your debts exceed your assets._________________________________________
Filed 5 Year Chapter 13: April 2002
Early Buy-Out: April 2006
Discharge: August 2006
"A credit card is a snake in your pocket" -
I guess that would be me. Thanks!Comment
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Or when your 'income' can't keep up with your 'outgo'.
Good luck to you!
"To go bravely forward is to invite a miracle."
"Worry is the darkroom where negatives are formed."Comment
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Also, the IRS has a format to determine (for their purposes only) if you are insolvent for tax purposes. If you go to IRS.gov and do a search, you can find that information. Otherwise, if you take all your bills and amounts owed and compare it to all your assets and your debt exceeds the worth of your assets, there you go..._________________________________________
Filed 5 Year Chapter 13: April 2002
Early Buy-Out: April 2006
Discharge: August 2006
"A credit card is a snake in your pocket"Comment
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If you are declared to be "insolvent" then do you not have to pay taxes on that money that was issued on the 1099?Comment
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When your outgo exceeds your income, then your upkeep has became your downfall.........Originally posted by AngelinaCat View PostOr when your 'income' can't keep up with your 'outgo'.
Good luck to you!
All information contained in this post is for informational and amusement purposes only.
Bankruptcy is a process, not an event.......Comment
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Insolvent means your debts exceed your liabilities.
You can be insolvent and yet still have enough income to service your debts.
Normally once you're insolvent people are no longer willing to loan you money to rollover your debts.
Unless you happen to be a Too Big To Fail financial institution.
filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!Comment
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Originally posted by ChrissyF View Post
ChrissyF: it depends... IRS standards are 'different' ....
i.e.: by IRS standards you need to include your IRA as assets (exempt by bk standards).
Hence it is very important to first go to the IRS site and check out their definition of 'insolvency', and also to run the numbers using their standards.Comment
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Insolvent: n. See JustBroke
(Just kidding. The IRS definition was provided by catlet. Yeah, look what the cat dragged in!)Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.Comment
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Oops. Goofed it up. Meant to say:
Insolvent means your debts exceed your assets.
Be careful because the IRS definition of assets picks up things which are normally exempted in bankruptcy court, i.e IRA and 401k money, and they don't provide for net value after taxes either.
Here is the link to the IRS doc including worksheet: Pub 4681filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!Comment
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And I suppose if you owe the IRS money and are on a payment plan, this also counts as liability...Comment
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