IRS Postpones Tax Deadline to July 15

Wasson and ThornhillIncome Taxes

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

Don’t Pay a Debt to a Prior Employee

Wasson and ThornhillBusiness Bankruptcy

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

Wasson and ThornhillBusiness Bankruptcy

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

Debt for Independent Contractor’s Commissions

Wasson and ThornhillBusiness Bankruptcy

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

Example: Catch up on Past-Due Support

Wasson and ThornhillChild & Spousal 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

Conditions to Stop Past-Due Support Collections

Wasson and ThornhillChild & Spousal Support

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 7 and Unpaid Child or Spousal Support

Wasson and ThornhillChild & 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

Income Tax Penalties and Interest in Chapter 13

Wasson and ThornhillIncome Taxes

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 Priority Debts through Chapter 13

Wasson and ThornhillChapter 13

One of the smartest ways to pay your priority debts—including recent income taxes or child/spousal support arrearage—is through Chapter 13.   Priority Debts under No-Asset and Asset Chapter 7 Our last two blog posts described how Chapter 7 can sometimes be a sensible way of dealing with priority debts. (Those are ones you can’t “discharge”—legally write off–the most common being … Read More

Priority Debts in an Asset Case

Wasson and ThornhillChapter 7

If you have a Chapter 7 asset case, your bankruptcy trustee collects and sells your asset and pays your priority debt with the proceeds.   Our last blog post was about what happens to priority debts in a no-asset Chapter 7 case. Most consumer “straight bankruptcy” Chapter 7 cases are no-asset ones. This means that the bankruptcy trustee does not … Read More

Challenged Co-Signed Debt

Wasson and ThornhillBankruptcy Advice

If you have a co-signed debt, your discharge of that debt may be challenged by either the cosigner or the underlying creditor.   Last week we discussed obligations on co-signed debts, both to the joint creditor and to your co-signer. In that discussion we assumed that both those obligations could be discharged (written off) in bankruptcy. But what if the … Read More

More Resolving Mortgage Accounting Disputes

Wasson and ThornhillHome Mortgages

Chapter 13 gives you a good way to resolve accounting disputes about a lender’s additional fees and charges, and whether you’ve cured the default.   Last week we described a Chapter 13 procedure to force mortgage lenders to resolve mortgage accounting disputes. This procedure focuses on changes to the monthly mortgage payment amount during the case. These are often just … Read More

Resolve Mortgage Accounting Disputes

Wasson and ThornhillHome Mortgages

It’s often hard to get straight answers from your lender about the right monthly payment amount. Here’s one way to resolve mortgage accounting disputes.   Catching Up on Your Mortgage over Time A Chapter 13 case gives you the power to catch up on your home mortgage(s) over an extended period.  This “adjustment of debts” type of bankruptcy can give … Read More

Bankruptcy Buys Time to Sell Your Home

Wasson and ThornhillSelling Your Home

Chapter 7, in the right situations, buys time to sell your home. It may buy only a couple of crucial months, or sometimes much longer.   Our last several blog posts have been about using bankruptcy to either prevent various kinds of liens hitting your home or deal with those liens if they happen. For example, in the last few … Read More

Bankruptcy Protects You from Your Homeowners’ Association

Wasson and ThornhillBankruptcy Options

Homeowners’ association debts are dangerous. Chapter 7 may help, but Chapter 13 protects you better by giving you lots of time to catch up.   Filing bankruptcy gives you limited, but potentially very useful protection from your homeowners’ association liens and debts. A Chapter 13 “adjustment of debts” filing could especially help. Your Homeowners’ Association Is a Particularly Dangerous Creditor … Read More