What if you can’t write off all the income taxes you owe with a Chapter 7 case but can’t afford to pay those taxes in a Chapter 13 one?
To forever discharge a tax debt, technically you must meet each of 4 conditions. But practically speaking, you meet 2 of them automatically.
Income taxes CAN be discharged under Chapter 7. Chapter 13 can be great with taxes BUT sometimes is neither necessary nor the best option.
Bankruptcy can do so much more than write off old taxes and buy time to pay newer ones. So if you owe lots of taxes, it’s worth considering.
Don’t let what you’ve heard about “losing” your tax refunds be a factor in deciding whether to file a Chapter 13 “adjustment of debts.”
If you owe income taxes, with the right timing you may be able to pay less taxes and pay no more into your Chapter 13 case.
If you owe income taxes, not only can you write off most older ones, you may have some control over which taxes you can write off.
As soon as 2014 arrives, your Chapter 13 case can cover, and protect you from, more tax debt.
What happens if you file a Chapter 13 case to save your home but then later decide NOT to keep it after all?
Even though it’s already past Thanksgiving, there’s plenty more to be thankful for in the bankruptcy laws.
You’ll likely be much more comfortable with the Chapter 13 “adjustment of debts” procedure once you read this story about how it plays out.
Chapter 13 can be the best way to protect assets. All the more so if you are led there for other reasons, especially for “priority” debts.
Chapter 7 can only help in certain tax debt situations. Chapter 13 “adjustment of debts” is both more powerful and more flexible.
Even though a 3-to-5-year Chapter 13 case is often the best option for income tax debts, sometimes all you need is a simpler Chapter 7.
When it’s smart to file a 3-to-5-year Chapter 13 case to prevent a home foreclosure and be able to keep it permanently, or to sell it later.