Herrin Law | Blog
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My Debt Was Forgiven, Now What? When a mortgage company or even credit card company cancels or forgives your debt, there could be serious IRS implications. In other words, you are not out of it. Typically, when a company forgives or cancels a debt, they will mail out a form 1099-C to the individual debtor. If you do nothing at this point, that debt will become part of your gross income and you will be required to...

A recent case out of Alaska (In Re: Thomas Mortensen) held that a transfer to a trust was a fraudulent conveyance. I disagree but the issues presented can help future debtors avoid some of the pitfalls made in this case. The debtor purchased a property in 2004. In 2005, the debtor transferred the property to an Alaskan Self-Settled Trust. The express purpose of the trust was "to maximize the protection of the trust estate or estates...

It all starts with the Client.  Remember, a client who is sued or about to be sued and has his life savings on the line will do almost anything.  As an attorney, it is imperative that you counsel your client against doing anything that is illegal. The sooner you and your clients begin to plan, the more protective and effective your protection plan will be.  If your client has been sued it is likely too...