Once an income tax lien is recorded, Chapter 13 gives you a tool that may enable you to pay no more and yet get a release of that tax lien.
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.
Chapter 13 takes away the danger of a tax lien encumbering the equity in your home. If the IRS or your state tax collector records an income tax lien against your home, and you want to keep the home, sometimes through bankruptcy you don’t have to pay the tax. If there’s no equity at all in the home to … Read More
If you don’t have much equity in your home, so that a tax lien eats up all that equity and then some, how can you get rid of that tax lien?
If you have enough equity in your home to cover a recorded tax lien, to keep your home you must pay that tax. Hereâs how bankruptcy helps.
Which kind of bankruptcy to file depends on whether there is equity for the lien and whether the underlying tax can be discharged.
Sometimes it’s obvious which of the two consumer bankruptcy solutions is right for you. But not always. You might be surprised.
If you owe a bunch of income taxes, and have a tax lien on your home, it’s tempting to try to fix everything by selling your home.
A tax lien may attach to something you own, worth less than the amount of the tax you owe. How can you get rid of that tax lien?
A tax lien recorded against your home hurts even if the home has no equity. A Chapter 13 bankruptcy can often get rid of such tax liens.
Save your home by catching up on real property taxes and securing the release of recorded income tax liens.
Chapter 13 “adjustment of debts” gives you many tools that Chapter 7 “straight bankruptcy” does not.
Chapter 13 has so many benefits–some potentially worth lots of money to you–that it’s worth finding out what it can do for you.
Chapter 13 hugely helps minimize the effect of a tax lien on older, dischargeable tax debts. But it also does wonders with newer taxes.
Bankruptcy can prevent a tax lien from being recorded. But even if one IS recorded before you file, Chapter 13 can particularly benefit you.