Chapter 13 Bankruptcy Fundamentals

Since 2010, David Gomez and Platinum Law Group have assisted clients deal with their legal challenges. David Gomez and Platinum Law Group offer a variety of services, including filing for chapter 13 bankruptcy. 

Also known as a wage earner’s plan, a chapter 13 bankruptcy allows an individual with a regular income to create a plan that will enable the partial or full repayment of debts. The repayment plan involves making regular payments over a period of three to five years. It will be a three year payment plan if the current monthly income of the debtor is below the applicable state median, though the court can approve a lengthier period “for cause.”

If the current monthly income of the debtor is above the applicable state median, then typically the plan will be for five years and in no cases will it be longer than five years. During this period, creditors are forbidden by law from initiating or continuing collection activities. Filing for chapter 13 bankruptcy involves knowledge about many fine points in the law, and seeking counsel from a qualified legal expert is advised.

Calculating Federal Estate Tax

David Gomez and the Platinum Law Group provide bankruptcy counsel to clients. Besides bankruptcy, David Gomez and the Platinum Law Group also provide estate planning services to help clients reduce their estate tax burden. 

Estate tax is a form of tax paid by a decedent’s estate. It is often considered a tax on the right to transfer property to descendants or other heirs. It is imposed at the federal level, though some states also levy an estate tax. 

The estate tax due is calculated from the net value of a deceased person’s estate. First, the decedent’s gross estate is calculated by adding probate assets such as individual accounts and shares in property to non-probate assets such as IRAs and life insurance. Afterward, the gross estate figure is reduced by funeral expenses, estate administration expenses, and claims against the estate. Marital deductions and charitable deductions are also made. Afterward, taxable gifts are added and the result is the taxable estate value. It is to this figure that the estate tax rate is applied to calculate the estate tax liability.