Clint W. Smith, P.C. named one of Arizona’s Top Bankruptcy Lawyers

May 4th, 2010

We are proud to announce that our bankruptcy law practice and Clint W. Smith were both honored this April by Arizona Business Magazine.

Clint W. Smith was named Arizona’s Top Lawyer in the Bankruptcy practice category.

Thank You

May 4th, 2010

We just wanted to thank all of our neighbors, colleagues and clients for stopping by last Friday for our new office’s open house at our new locations at:
1423 South Higley Road
Building 8, Suite 120
Mesa, Arizona 85206

We had a great time and enjoyed meeting many of our new neighbors!

What is a 1099-C

March 5th, 2010

A form 1099-C is a document issued by a creditor, typically a mortgage or vehicle lender or credit card company, which reports that income to a borrower for tax purposes. The “C” stands for cancellation of debt, which can, under certain circumstances, be translated into “income” for calculating income taxes. This can be a potentially very large and troubling issue; many borrowers unknowingly become responsible for large tax debts because of a 1099-C, which debt cannot be typically discharged in bankruptcy for several years. There are many remedies for this problem; specifically, in the event of the filing of a bankruptcy, a 1099-C generally becomes irrelevant.

A recent Arizona Court of Appeals Opinion provides further help for borrowers in this situation. The Court essentially held that the lender in this situation (foreclosure or short sale, or a vehicle deficiency) may not attempt to collect on a deficiency while issuing a 1099-C. This was held in the opinion of December 15, 2009, entitled AMTRUST BANK V. FOSSETT, Case Number. 1CACV 08-0840. This case was sent back to the trial court for further review. A person who has this situation should promptly seek legal advice, and stand up to a creditor who is attempting to collect on a debt which is already a loss. The link to review this opinion is http://www.cofad1.state.az.us/opinionfiles/CV/CV080840.pdf