Hit with an income tax lien on a tax that bankruptcy can’t discharge? Bankruptcy is all the more valuable so that you can afford to pay off that tax. We’ve been talking about the effect of an income tax lien on an income tax that bankruptcy CAN discharge–legally write off. A tax lien can turn that tax from one you don’t … Read More
Falling being on home property taxes creates problem with your tax collector but much more urgently with your mortgage lender. Why Your Mortgage Lender Gets Upset With virtually all mortgage contracts, falling behind on your home property taxes puts you in default on the mortgage itself. That means that even if you are current on the mortgage payments your … Read More
Usually you can discharge–write off–an income tax debt by just waiting long enough. Here’s how to discharge a tax debt under Chapter 7.
Catching up on property taxes benefits both you and your mortgage lender. Chapter 13 helps you pull this off under much less pressure.
Employee withholding taxes can’t be written off in bankruptcy. But still, either Chapter 7 or 13 may provide your best solution.
Bankruptcy does not writes off newer income taxes, but Chapter 7 and Chapter 13 both still have ways of helping.
Bankruptcy writes off income taxes, if they meet certain conditions. These conditions are relatively, but not completely, straightforward.
Income taxes can be legally written off in bankruptcy under the right conditions. With careful planning, you can meet those conditions.
If you can afford your monthly installment agreement with the IRS/state, it may be an appealing solution. But often not the best one.
If you can’t afford your current IRS monthly payment plan, or are about to break it with a new year of taxes due, bankruptcy can save you.
You can be in a streamlined monthly installment plan to pay back income taxes even if you owe the IRS a lot of money. But should you be?
You may not think of bankruptcy as a solution to your tax problems. But do look into it before the tax collector starts grabbing at you.
You get more control than with Chapter 7 over the amount of your tax payment, who you can pay ahead of taxes, & adjustments to the payments.
Resolving your tax debts through Chapter 13 “adjustment of debts” can cost you less than Chapter 7.
Bankruptcy can do so much more than write off old taxes and buy time to pay newer ones. So if you owe lots of taxes, it’s worth considering.
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