The U.S. Treasury is sending money to most adults “as rapidly as possible,” $1,200 if you make less than $75,000, plus $500 per dependent. On Friday (March 27) Congress passed and the President signed into law the Coronavirus Aid, Relief, and Economic Security Act. It’s also called the CARES Act, better known as the massive $2.2 trillion pandemic relief … Read More
An income tax chapter 13 plan lets you to pay the IRS whatever you can afford, avoid some or all penalties, and stop interest from accruing. Today we put the facts of last week’s blog post into a Chapter 13 plan, showing how it actually works. You’ll see how Chapter 13 saves you money and avoids stress as you … Read More
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
Chapter 13 is better with a recorded tax lien because it protects you permanently from the IRS/state. And saves you big money on that tax. Last week’s blog post was about dealing with a recorded tax lien by filing a Chapter 7 “straight bankruptcy” case. Usually the IRS’ or state’s recording of a tax lien against you effectively requires … Read More
Breaking an IRS/state income tax payment plan usually has very bad consequences. But filing bankruptcy lets you escape a tax payment plan. Tax Installment Agreement You Can’t Afford It’s a common problem. You owed income taxes a year or two ago when you sent in your tax returns. Money was very tight so you couldn’t just pay it … Read More
Filing Chapter 7 bankruptcy gives you a break from income tax collections, precious time to deal with a recent tax you must still pay. We ended the last blog post saying that sometimes a Chapter 7 bankruptcy will stop a wage garnishment only temporarily. One such situation is if the IRS (or state tax agency) is chasing you on … Read More
As of April 1, 2016 you can have a little more “disposable income” and still pass the “means test” to qualify for Chapter 7 bankruptcy.
As of January 1, 2016 you can include any taxes you owe for the 2015 tax year in your Chapter 13 payment plan.
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.
Employee withholding taxes can’t be written off in bankruptcy. But still, either Chapter 7 or 13 may provide your best solution.
Income taxes can be legally written off in bankruptcy under the right conditions. With careful planning, you can meet those conditions.
You’re usually completely liable on jointly filed taxes, regardless of a divorce decree saying youâre not. But the IRS may give you relief.
Chapter 7 “straight bankruptcy” may be worthwhile if it gets rid of your other debts and leaves you able to manage your taxes.
A bankruptcy filing is a matter of public record, so anybody can find out about it. But mostly just your creditors will know.
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