Prevent Income Tax Liens with Chapter 13

Wasson and ThornhillIncome Taxes

Chapter 13 can prevent income tax liens on dischargeable taxes. But it’s riskier. It takes years, and you may pay some of that tax.     Two weeks ago we showed how the filing of a bankruptcy case stops the recording of an income tax lien.  A bankruptcy filing imposes the “automatic stay.” That law makes it illegal for the … Read More

Prevent Income Tax Liens with Chapter 7

Wasson and ThornhillIncome Taxes

Chapter 7 can effectively prevent income tax liens if it’s filed before a tax lien is recorded and the tax qualifies for bankruptcy discharge.   Last week’s blog post was about filing bankruptcy to prevent the IRS/state from recording income tax liens on your home. The “automatic stay”—bankruptcy’s broad freeze of creditor collection actions—stops tax lien recordings immediately when you … Read More

Protect Your Home from Income Tax Liens

Wasson and ThornhillIncome Taxes

Bankruptcy can protect your home from income tax liens. In the right situations you pay nothing on the tax, instead of needing to pay it all.     Income Tax Liens Are Dangerous Our last two blog posts were about judgment liens. First was about how filing bankruptcy can sometimes remove, or “avoid,” a judgment lien from your home. Second … Read More