Severance Pay FICA Tax Treatment May Change

October 2012 In a decision having significant impact, the Sixth Circuit ruled that payments to employees as part of a severance program are not subject to tax under the Federal Insurance Contributions Act, or FICA.  The IRS is fighting the decision.  Employers should file protective claims before the statute of limitations runs out. The case involves [...]

New Caution Warranted When Selling To Entities In Bankruptcy

April 2010 Most businesses assume that payments they receive from an entity in bankruptcy for post-petition transactions can be kept. A new bankruptcy case instructs those doing business with entities in bankruptcy to exercise more caution than commonly occurs. Suppliers should not make post-petition sales until their customer in bankruptcy provides a cash collateral order [...]

A Graphical Explanation Of The Financial Restructuring Process

April 2013 Troubled company restructurings are complex endeavors. To be successful, a company must fix both the challenges that caused the problem in the first place, and create revisions to the debt that accumulated from past transactions. Most companies are ill-equipped to address even one of these two problems without assistance from financial advisors experienced [...]

Home Equity Lines Of Credit May Be Dischargeable Even When Borrower Lies

June 2008 Last week, Judge Leslie Tchaikovsky, a bankruptcy judge in the Northern District of California (National City Bank v. Hill, United States Bankruptcy Court, Northern District of California, Case No. A.P. 07-4106 (May 28, 2008)) issued a ruling that could have enormous impact on future lending practices and workouts in the current subprime meltdown.  [...]

2019-02-06T13:26:10-08:00Bankruptcy and Restructuring|