An Income Tax Chapter 13 Plan

Wasson and ThornhillIncome Taxes

An income tax chapter 13 plan lets you to pay the IRS whatever you can afford, avoid some or all penalties, and stop interest from accruing.   Today we put the facts of last week’s blog post into a Chapter 13 plan, showing how it actually works. You’ll see how Chapter 13 saves you money and avoids stress as you … Read More

Income Tax Penalties and Interest in Chapter 13

Wasson and ThornhillIncome Taxes

Chapter 13 can save you money with both already accrued and ongoing income tax penalties and interest. So you pay less and finish faster.   Last week we got into the advantages of paying priority income taxes through a Chapter 13 “adjustment of debts” case. Those are the usually-recent income taxes which cannot be written off (“discharged”) in bankruptcy. Today … Read More

Pay Income Tax Debts through Chapter 13

Wasson and ThornhillIncome Taxes

One of the smartest ways to pay your priority income tax debts—ones that can’t be discharged, written off—is through Chapter 13.   Last week we discussed the advantages of paying priority debts through a Chapter 13 “adjustment of debts” case. We referred to recent income taxes as one of the most important kinds of priority debt. Today we show how … Read More

Pay Priority Debts through Chapter 13

Wasson and ThornhillChapter 13

One of the smartest ways to pay your priority debts—including recent income taxes or child/spousal support arrearage—is through Chapter 13.   Priority Debts under No-Asset and Asset Chapter 7 Our last two blog posts described how Chapter 7 can sometimes be a sensible way of dealing with priority debts. (Those are ones you can’t “discharge”—legally write off–the most common being … Read More

Priority Debts in an Asset Case

Wasson and ThornhillChapter 7

If you have a Chapter 7 asset case, your bankruptcy trustee collects and sells your asset and pays your priority debt with the proceeds.   Our last blog post was about what happens to priority debts in a no-asset Chapter 7 case. Most consumer “straight bankruptcy” Chapter 7 cases are no-asset ones. This means that the bankruptcy trustee does not … Read More