Unexpected Benefit: Dealing with a Recorded Income Tax Lien with Chapter 13

Wasson and ThornhillIncome Taxes

Chapter 13 is better with a recorded tax lien because it protects you permanently from the IRS/state. And saves you big money on that tax.   Last week’s blog post was about dealing with a recorded tax lien by filing a Chapter 7 “straight bankruptcy” case.  Usually the IRS’ or state’s recording of a tax lien against you effectively requires … Read More

Unexpected Benefit: Dealing with a Recorded Income Tax Lien with Chapter 7

Wasson and ThornhillIncome Taxes

If you don’t file bankruptcy fast enough to prevent a recorded tax lien, sometimes filing a Chapter 7 still allows you pay less of that tax.   The last two blog posts have been about the benefits of preventing an income tax lien recording by filing bankruptcy. That’s especially helpful if the tax at issue is an older one that can be … Read More

Unexpected Benefit: Use Chapter 13 to Permanently Stop Income Tax Collection

Wasson and ThornhillIncome Taxes

Bankruptcy can help you permanently stop income tax collection. That’s true even with more recent taxes that cannot be written off.   The Automatic Staying, and the Discharge, of Income Tax Debts Sometimes people are surprised to learn that filing bankruptcy gives you power over income taxes. It does so in two big ways. First, filing bankruptcy stops the IRS … Read More

Unexpected Benefit: Use Chapter 13 to Escape a Tax Payment Plan

Wasson and ThornhillIncome Taxes

Chapter 7 can sometimes help you deal with unaffordable income tax payment plan. But Chapter 13 is often a better way to escape a tax mess.   Tax Agreement Payments Too High We laid out the problem last week. You’d entered into a monthly payment plan with the IRS or your state because you couldn’t pay what you owed. But … Read More

Unexpected Benefit: Use Chapter 7 to Escape a Tax Payment Plan

Wasson and ThornhillIncome Taxes

Breaking an IRS/state income tax payment plan usually has very bad consequences. But filing bankruptcy lets you escape a tax payment plan.        Tax Installment Agreement You Can’t Afford It’s a common problem. You owed income taxes a year or two ago when you sent in your tax returns. Money was very tight so you couldn’t just pay it … Read More

Stop Tax Collections to Start Monthly Payment Plan

Wasson and ThornhillIncome Taxes

Filing Chapter 7 bankruptcy gives you a break from income tax collections, precious time to deal with a recent tax you must still pay.   We ended the last blog post saying that sometimes a Chapter 7 bankruptcy will stop a wage garnishment only temporarily. One such situation is if the IRS (or state tax agency) is chasing you on … Read More

Defeating a Recorded Tax Lien with Chapter 13

Wasson and ThornhillIncome Taxes

Use Chapter 13 to defeat the leverage that a recorded tax lien on your home gives the IRS/state. Buy valuable time and flexibility.   Stopping Tax Liens by Filing Bankruptcy In our last blog post we showed how Chapter 13 can buy you more time and flexibility than Chapter 7. We showed an example how that’s especially true if you … Read More

Dealing with Multiple Years of Income Tax Debts through Chapter 7

Wasson and ThornhillIncome Taxes

If you owe some income tax which qualifies for discharge and some that doesn’t, can Chapter 7 “straight bankruptcy” help you?   Tax Liens under Chapter 7  Last week we showed how Chapter 7 can sometimes permanently prevent an income tax lien from hitting your home. It does that by stopping the recording of the tax lien, and then discharging … Read More

Chapter 7 May Forever Stop a Tax Lien on Your Home

Wasson and ThornhillIncome Taxes

Filing a Chapter 7 case stops a tax lien recording on your home, and so may stop that tax from turning into one you must pay.   Our last blog post was about how filing a Chapter 7 case buys you time with debts on your home. It’s worth expanding on one of those Chapter 7 benefits, one that can … Read More