Income taxes that can and canât be discharged. Recorded tax liens. Here are straightforward examples of how Chapter 13 works with each.
Yes, the “discharge”–write-off–of your debts does not happen until the end of your 3-to-5-year case. Thus there are some resulting risks.
Yes, but barely. Chapter 13 can deal much better with many kinds of debts, but it can only discharge one kind that Chapter 7 can’t.
We end this series on Chapter 13 with some illustrations of how it works and why it can be so great.
You and your spouse may need the extraordinary benefits of Chapter 13, but things get awkward if your marriage ends before the case does.
Chapter 13 has huge advantages in many situations, often making any extra cost well worthwhile.
Under Chapter 13 some special creditors may be paid in full, while others are paid much less, sometimes even nothing. What determines this?
Chapter 13 has many benefits not available under Chapter 7. So what determines whether you can file under Chapter 13?
Whether you must pay for 3 years or 5 depends mostly on your income. Exactly how long it last depends on the many moving parts of your case.
It’s a formal proposal about how much you’ll pay your creditors. It is, often after some adjustments, “confirmed” by the bankruptcy court.
Save your home by “avoiding” judgment liens and “stripping” your second (or third) mortgage off your title.
Save your home by catching up on real property taxes and securing the release of recorded income tax liens.
Chapter 13 protects you from collection of back child/spousal support and income taxes, & can save you a ton of money on your vehicle loan.
Chapter 7 gets rid of judgment liens and older income taxes, lets business debtors avoid the “means test” and lets you keep a vehicle loan.
If your possessions are not fully protected by the available property exemptions under Chapter 7, Chapter 13 can save the day.