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OWNING SHARES IN A DENTAL CORPORATION

The shares of a dental corporation may only be owned by licensed dentists, dental assistants, and registered dental hygienists, and by other dental corporations registered with the Board of Dental Examiners. However, shareholders in a dental corporation are not required to be employees of the dental corporation, nor are they required to limit their practice to the dental corporation in …

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Funds must be paid or transferred in order to qualify as “Student Loan” for bankruptcy purposes

Often students will apply for several student loans at one time, but then only accept one or two of the loans for which they qualify. And occasionally, a student will even sign a contract/promissory note for a student loan, but never actually receive the proceeds of the loan.

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The 7 requirements for a loan to be a “qualified education loan” to be non-dischargeable in bankruptcy:

In order for a “student loan” to be non-dischargeable in bankruptcy, it must meet the following 7 requirements to be a “qualified education loan”: 1) The loan must have been incurred by an individual borrower. Loans incurred on behalf of a business or other organization do not meet this requirement.

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Some Student Loans ARE Dischargeable in Bankruptcy

While most student loans cannot be discharged in bankruptcy without meeting a very high standard of “undue hardship”, there are some exceptions that may make a student loan dischargeable in bankruptcy.

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The “Undue Hardship” Test for a Student Loan to be Dischargeable in Bankruptcy

The Bankruptcy Code allows student loan to be discharged if preventing the discharge would impose an “undue hardship” on the borrower or the borrower’s dependents. Although this is often an extremely difficult standard to meet, it is important to understand what the court will consider in your case. In California, courts apply what is called the “Brunner Test” to determine …

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Suburban

Tax Liability under Mortgage Forgiveness Act of 2007, California

Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act enacted by the Congress in 2007, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was $2 million or less. In some cases, however, other kinds of tax relief, based on insolvency, for example, may be available. Keep in …

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Available Options When Mortgage is in Default

When a homeowner is no longer able to continue to make mortgage payments to the lender, the homeowner should explore several available options before the lender begins the foreclosure process, i.e. short sale, deed in lieu of foreclosure, loan modification, and bankruptcy. When considering these options, every homeowner should be primarily concerned with the following 2 liabilities:

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What is a default judgement?

Default Judgment results when a defendant (the person being sued) fails to respond or answer a complaint filed by a plaintiff (the person filing the lawsuit).  The law affords a defendant 30 days to file an answer, and when this does not happen, the court will enter a default judgment against the defendant, and deny the defendant an opportunity to …

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