If you expect to owe 2012 income taxes, and you file bankruptcy after December 31, that tax can be “included” in your case.
The risk that creditors will not allow you to discharge some of their debts can be minimized through smart timing of your bankruptcy.
It’s human nature to hold off filing bankruptcy until after the holidays. Here’s what you need to know once you think again about filing.
Your abundant love for your children, spouse, and others is not defined by an (over)abundance of holiday gifts.
When you start a Chapter 13 plan, it’s good to have Chapter 7 available as a backup plan.
One advantage of filing a Chapter 13 case is that you can get out of it at any time. But what happens if you do dismiss your case?
You can usually get out of an ongoing Chapter 13 “adjustment of debts” bankruptcy case by simply asking to do so.
You can usually change from an ongoing straight Chapter 7 case into a Chapter 13 payment plan. But getting out of bankruptcy altogether is generally not allowed.
You have some wiggle room if you either want to get out of your bankruptcy case or change to the other Chapter.
Each spouse in a marriage with significant tax debt has his or her self-interest, which may need a different solution than the other spouse.
Finding the best way out of this seeming Catch-22 depends on a full understanding of your unique situation and your goals.
Filing bankruptcy with or without your spouse, and under Chapter 7 or Chapter 13, may affect what protections you each receive.
Filing bankruptcy with or without your spouse affects the discharge of debts you each receive, and also affects whether you file under Chapter 7 or 13.