Bankruptcy can be a surprising good way to solve your tax problems. But first, got to prepare your returns to get good advice about options.
You can’t keep your refund if you owe for another tax year. But if you discharge (write off) that tax debt, you can keep future refunds.
Keep your refund if it’s small (enough) or by not filing bankruptcy until spending that refund (wisely).
Chapter 13 “adjustment of debts” gives you many tools that Chapter 7 “straight bankruptcy” does not.
Yes, if you meet certain conditions you CAN legally discharge–permanently write off–federal and state income taxes.
5 more very good reasons Chapter 13 is worth a close look, even if it takes much longer, and looks more expensive at first.
Most garnishments are stopped immediately if you file bankruptcy, but some may be able to continue later. Here’s how to prevent that.
Filing bankruptcy doesn’t just stop creditors’ present and future collection efforts against you. It might recoup money you’ve already lost.
You can be in a streamlined monthly installment plan to pay back income taxes even if you owe the IRS a lot of money. But should you be?
Can the IRS seize your car or truck in payment of a tax debt you owe? Yes, if it has substantial equity. Will it do so? Possibly.
Chapter 13 can prevent tax liens, which can be very detrimental. IF one IS recorded, Chapter 13 deals with it better than does Chapter 7.
Chapter 7 can prevent a tax lien. Here’s what happens with and without that recorded tax lien.
A tax lien recorded before you file bankruptcy can force you to pay taxes you could otherwise not pay. You can prevent that lien recording.
You get more control than with Chapter 7 over the amount of your tax payment, who you can pay ahead of taxes, & adjustments to the payments.
Resolving your tax debts through Chapter 13 “adjustment of debts” can cost you less than Chapter 7.