The IRS just postponed the April 15 deadline BOTH to file your income tax return and to pay the taxes, for individuals AND businesses. IRS Income Tax Return Deadline Postponed Responding to the COVID-19 pandemic, the IRS has postponed the deadline to file federal income tax returns by 3 months. This was announced (on Twitter, no less!) on … Read More
Driving While Intoxicated Personal Injury
If you owe someone for injuring them by unlawfully driving while intoxicated, that debt would be a priority debt in bankruptcy. So what? Priority Debts For many weeks our blog posts have been considering how bankruptcy deals with “priority” debts. Examples of these special debts that we’ve covered include child/spousal support, income taxes, and wages owed employees. Sections 507(a)(1),(4), … Read More
Don’t Pay a Debt to a Prior Employee
If you operate a business, will be filing bankruptcy, and prefer not to pay a prior employee, take action so that debt is not a priority debt. Imagine that in the near future you’re closing down a business and filing bankruptcy. You owe an employee or independent contractor back wages or commissions. But you’d rather not pay that debt … Read More
Pay Employee Debt with Chapter 13
If you’d like to pay a prior employee or independent contractor recent wages or commissions, Chapter 13 can help you prioritize that. Our last three blog posts have been about debts you owe to your employees or independent contractors. Specifically, we discussed the conditions under which past wages, commissions, or benefits qualify as a“priority” debt. These posts covered: the … Read More
Pay Your Debt to an Employee
If you operate or used to operate a business and are considering filing bankruptcy and would like to pay an employee, the law can help you. Our last two blog posts were about debts owed to your employees or independent contractors. Specifically we discussed the conditions in which past wages, commissions, or benefits qualify as “priority” debt. Two weeks … Read More
Debt for Independent Contractor’s Commissions
A debt for an independent contractor’s commissions can be a priority debt, but only if the contractor meets an extra, tough condition. Our last blog post was about conditions in which wages, commissions, or benefits owed to an employee are “priority” debt. But what if your debt was not to an employee but an independent contractor? Especially in today’s … Read More
Debts for Employee Wages
Debts for wages, commissions, and employee benefits may be priority debts, more likely paid. It depends on the timing and amount of the debt. Our last dozen blog posts have been about “priority” debts. These are special unsecured debts that bankruptcy law treats better than the rest, called “general unsecured” debts. (Secured debts are a third main category … Read More
Example: Catch up on Past-Due Support
This example shows how well Chapter 13 can protect you from aggressive collection of past-due support and give you a safe way to catch up. Today we put what we explained in the last three weeks of blog post into a sample Chapter 13 plan. It shows how powerfully Chapter 13 helps you if you owe past due child … Read More
How to Catch up on Unpaid Support with Chapter 13
If you owe unpaid support, Chapter 13 gives you a sensible, affordable, and sane way to catch up, while protected from support enforcement. The last two weeks we’ve shown how Chapter 13 can stop the collection of unpaid child and spousal support. First we talked about how this benefit is much better than Chapter 7 can provide. Then we … Read More
Conditions to Stop Past-Due Support Collections
Chapter 13 is better than Chapter 7 if you need to stop the aggressive collection of past-due support, if you meet some ongoing conditions. Last week we showed how Chapter 13 stops the collection of past-due child and spousal support, while Chapter 7 doesn’t. But we ended by emphasizing that anyone can quickly lose this huge benefit of Chapter … Read More
Chapter 13 and Unpaid Child or Spousal Support
If you are behind on child or spousal support, Chapter 13 is better because it stops collection of this unpaid support. Chapter 7 doesn’t. Last week we discussed situations in which Chapter 7 would help if you’re behind on child or spousal support payments. We made clear that Chapter 7 “straight bankruptcy” provides only limited help. Mostly it gives you relief … Read More
Chapter 7 and Unpaid Child or Spousal Support
If you are behind on child or spousal support, Chapter 7 writes off all or most of your other debts so that you can catch up on your support. If you are behind on child or spousal support payments Chapter 7 may or may not be a good solution. Chapter 7 “straight bankruptcy” is the most common type … Read More
An Income Tax Chapter 13 Plan
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
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
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