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
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
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
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
Statutory liens survive bankruptcy. Chapter 7 may still be able to help in various ways and be your best solution.
Bankruptcy can’t write off certain kinds of debts. Chapter 13 enables you to prevent liens hitting your home from those debts.
Chapter 7 sometimes doesn’t give much help with tax liens. But Chapter 13 hugely helps with tax liens already recorded, and stops new liens.
The recording of an income tax lien turns your home into collateral on the tax you owe. Stop the IRS/state from getting that huge advantage.