Prevent Income Tax Liens with Chapter 13

Wasson and ThornhillIncome Taxes

Chapter 13 can prevent income tax liens on dischargeable taxes. But it’s riskier. It takes years, and you may pay some of that tax.     Two weeks ago we showed how the filing of a bankruptcy case stops the recording of an income tax lien.  A bankruptcy filing imposes the “automatic stay.” That law makes it illegal for the … Read More

Prevent Income Tax Liens with Chapter 7

Wasson and ThornhillIncome Taxes

Chapter 7 can effectively prevent income tax liens if it’s filed before a tax lien is recorded and the tax qualifies for bankruptcy discharge.   Last week’s blog post was about filing bankruptcy to prevent the IRS/state from recording income tax liens on your home. The “automatic stay”—bankruptcy’s broad freeze of creditor collection actions—stops tax lien recordings immediately when you … Read More

Protect Your Home from Income Tax Liens

Wasson and ThornhillIncome Taxes

Bankruptcy can protect your home from income tax liens. In the right situations you pay nothing on the tax, instead of needing to pay it all.     Income Tax Liens Are Dangerous Our last two blog posts were about judgment liens. First was about how filing bankruptcy can sometimes remove, or “avoid,” a judgment lien from your home. Second … Read More

Bankruptcy Discharges Income Tax Debts (Some of Them)

Wasson and ThornhillIncome Taxes

Bankruptcy discharges income tax debts. They just need to meet some conditions, mostly based on when they were due and whether and when filed.   Bankruptcy DOES Write Off Income Taxes There are certain very special debts that bankruptcy never discharges (writes off). Child and spousal support is a good example. See Sections 523(a)(5) and 101(14A) of the U.S. Bankruptcy Code. Income taxes are … Read More

Resolve Your 2018 and Earlier Income Tax Debts through Chapter 13

Wasson and ThornhillIncome Taxes

Do your 2018 taxes just add to your earlier income tax debts, making it all the more unmanageable? Chapter 13 may be your best solution.   Last week we got into a big advantage of filing a Chapter 13 “adjustment of debts” case in early 2019. Doing so enables you to include 2018 income taxes into your Chapter 13 payment … Read More

During 2019 You Can Include 2018 Income Tax Debt in Chapter 13

Wasson and ThornhillIncome Taxes

If you owe 2018 income tax you can now include that tax into a new Chapter 13 case and payment plan.     Have you been considering filing bankruptcy and now also expect to owe income taxes for 2018? If so, the start of 2019 gives you more reason to file a Chapter 13 “adjustment of debts” case. Why? Because … Read More

Get Rid of More Income Tax Debts through Chapter 13 in 2019

Wasson and ThornhillIncome Taxes

If you need to file a Chapter 13 case for other reasons, you can discharge more income tax debts in 2019 by timing it right.   Last week we showed how to permanently write off (“discharge”) more of your tax debts through Chapter 7 “straight bankruptcy.” Today we show how to do this with Chapter 13 “adjustment of debts.” Why … Read More

Get Rid of More Income Tax Debts through Bankruptcy in 2019

Wasson and ThornhillIncome Taxes

Discharge more income tax debts through smart timing. You may be able to do so by filing your bankruptcy after certain dates of 2019.   The right timing of the filing of a bankruptcy case can make a tremendous difference. Our last 8 blog posts have all been about smart timing. If you need to use the bankruptcy laws to … Read More

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