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

Writing Off Student Loans from the Closing of ITT Technical Institute

Wasson and ThornhillStudent Loans

  On September 6, 2016 the parent company of 136 ITT Technical Institute branches announced that it was closing. It immediately closed all of its classroom and online instructions across the country. It canceled the academic quarter that was to start on the following Monday, September 12, leaving about 45,000 students scrambling. ITT Tech had two locations in Louisville. One’s … Read More

Simple Debts Discharged in Chapter 7

Wasson and ThornhillChapter 7

In most straightforward Chapter 7 cases all debts not secured by any collateral are discharged–forever written off. You pay nothing on them.

Judgment Liens that Can Be “Avoided”

Wasson and ThornhillBankruptcy Procedure

Bankruptcy can’t get rid of most creditor liens on what you own. But judgment liens that can be “avoided” on your home are an exception. Our last blog post was about judgment liens, why they are so dangerous, and how both Chapter 7 and 13 types of bankruptcy can deal with them. Today’s blog post explains what determines whether a … Read More