Shareholder/ Director Michael R. Ford co-authors article in the November issue of the ABA Journal: The Bad-Debt Blues.

 

 

 

Turmoil in the economy has led to a rise of indebtedness among both individuals and businesses. In the face of these hardships, lenders have been focusing more on cooperating with borrowers to reduce debts, including modifying mortgages and other obligations and, in some cases, canceling indebtedness. 

 

In focusing on relief, debtors too often fail to make note of the tax consequences of restructured debt. Reduction and cancellation of indebtedness can have significant repercussions under federal tax law. This timely CLE will provide an overview of federal tax rules that apply to debt workouts, and will focus primarily on how individual debtors are affected.

 

From foreclosures and repossessions to bad-debt deductions, our panel of expert tax attorneys will provide an overview of the most important rules attorneys need to know about the tax consequences of debt modifications.

 

Michael R. Ford, Fellers Snider Law Firm, Oklahoma City, OK

 

Wm. Robert Pope, Jr., White & Reasor, PLC, Nashville, TN