You’re considering bankruptcy, and you have some unfiled tax returns for the IRS and/or your state. Should you prepare and file them, and when? Our last two blog posts have been about what you should and should not do before filing bankruptcy. These are important to consider even if you hope to avoid bankruptcy but are sensibly admitting it’s possible. … Read More
Timing for Writing Off Income Taxes
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.
Chapter 13 Buys Time and Protects You
Chapter 13 is very different from Chapter 7 “straight bankruptcy.” It buys you time to deal effectively with your special debts.
Proofs of Claim of Priority Creditors in Chapter 13
Priority proofs of claim need to be carefully monitored in a Chapter 13 case. Make sure one’s filed so it gets paid, and at the right amount.
Treatment of “Priority” Debts under Chapter 7
Here’s what happens to “priority” debts in an “asset case.”
The Special Role of “Priority” Debts in Bankruptcy
What makes “priority” debts so special?
Stop a Creditor from Turning its Unsecured Debt into a Secured One
Because of Chapter 13’s much more powerful automatic stay, its ability to prevent judgment liens and tax liens is extremely valuable.
Safely Addressing a Tax Lien FULLY Secured by Home Equity
A tax lien fully encumbered by the equity in your home is dangerous. Chapter 13 may be your best option.
A Recorded Tax Lien Only Partly Secured by Home Equity
Chapter 13 forces the IRS/state to accept only partial payment on an income tax debt that is only partially secured by a tax lien.
Defeating an Income Tax Lien against Your Home
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.
Preventing a Tax Lien on Your Home
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.
Income Taxes that Are Discharged in Bankruptcy
Bankruptcy DOES discharge–permanently write off–certain income taxes. It’s mostly just a matter of time.
A Fresh Start for Your Home Equity Encumbered by a Tax Lien
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
A Fresh Start on the Income Tax Lien against Your Home
If the IRS or state has recorded a tax lien on your home, sometimes a Chapter 13 “adjustment of debts” can get rid of both the tax and the lien. Income Taxes that Can Be “Discharged” (Legally Written Off) If you owe an income tax debt, it can be discharged like most other debts. The tax debt just needs to meet … Read More
Timing Your Bankruptcy: Include Income Taxes Owed for 2015 by Filing Chapter 13 in Early 2016
As of January 1, 2016 you can include any taxes you owe for the 2015 tax year in your Chapter 13 payment plan.