Sader Law Firm Blog - Kansas City Bankruptcy Attorney Blog

What to Know About Cancellation-of-Debt Income and Its Exclusions

Posted on February 28, 2025 by Sader Law Firm

Tax professionals receive questions related to cancellation-of-debt (COD) income, ramifications of debt workouts and restructurings quite frequently, especially in times of economic uncertainty. With tax season in full swing, it is important for individuals and businesses to understand the basics of COD income and what exclusions are common for businesses in this situation. COD income can occur in many circumstances, including the modification of a debt, the issuance of equity in satisfaction of debt, the acquisition of outstanding debt at a discount by a party related to the debtor, discharge of debt within or outside a bankruptcy proceeding, and more. Unless it is specifically excluded under the tax law, COD income is taxable under Section 61. However, there are circumstances that can lead to the exclusion of COD income based on what is stated in Sec. 108. An article from The Tax Adviser highlighted four of the most common exclusions…
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What Are The Issues to Watch in Bankruptcy in the New Year?

Posted on February 11, 2025 by Sader Law Firm

As 2025 begins, bankruptcy professionals are taking a look at the issues they predict will be most prevalent in the new year. There are mixed opinions on whether filings for bankruptcy will trend up or down, but there is more certainty from professionals that there will not be a final decision on what claims releases can be included in bankruptcy filings. According to an article from Law360, many bankruptcy professionals could see cases either rising or falling in 2025, with several thinking that the consequences of the COVID-19 pandemic still have an impact on businesses. Many companies took out loans in 2020 and 2021 in an attempt to survive the pandemic. However, the maturity dates on these loans are now looming, and businesses may begin to feel the impact. There are professionals who think these companies still have time before they have to face any challenges. In the article from…
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Neil Sader earns recertification as Consumer Bankruptcy Specialist for a fifth time

Posted on January 17, 2025 by Sader Law Firm

Sader Law Firm is pleased to announce that Managing Member Neil Sader has recently received recertification as a Consumer Bankruptcy Specialist from the American Board of Certification (ABC) for a fifth time. Neil has been a member for 25 years and he will now be certified through June 2029. ABC offers separate certification programs in business bankruptcy, consumer bankruptcy and creditors’ rights law. The certification is designed to recognize lawyers who have met discrete, rigorous and objective standards. Since 1984, Neil has litigated a wide variety of consumer and business related bankruptcy  matters throughout state, federal and bankruptcy courts in Missouri and Kansas. Since founding the Firm in 1997, he has led an accomplished and talented team of attorneys and staff. He takes pride in how he and Sader Law Firm, LLC have built a deserved reputation as a full-service bankruptcy firm serving both Missouri and Kansas. The firm is…
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