Timing to Avoid Tax Interest and Penalties

Wasson and ThornhillIncome Taxes

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Photo by Nick Fewings on Unsplash. How you time your bankruptcy case filing can affect whether, or how much, you pay the accrued, or future, income tax interest and penalties. This blog post is in a series about the importance of smart timing of your bankruptcy filing. Today we cover how good bankruptcy timing can prevent you having to pay … Read More

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

Unexpected Benefit: Dealing with a Recorded Income Tax Lien with Chapter 13

Wasson and ThornhillIncome Taxes

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

Unexpected Benefit: Use Chapter 13 to Permanently Stop Income Tax Collection

Wasson and ThornhillIncome Taxes

Bankruptcy can help you permanently stop income tax collection. That’s true even with more recent taxes that cannot be written off.   The Automatic Staying, and the Discharge, of Income Tax Debts Sometimes people are surprised to learn that filing bankruptcy gives you power over income taxes. It does so in two big ways. First, filing bankruptcy stops the IRS … Read More

12 Unexpected Benefits of Bankruptcy

Wasson and ThornhillBankruptcy Options

Bankruptcy gives you immediate and long-term relief from your creditors. But there are many other unexpected benefits of bankruptcy.      The next 12 blog posts will be about some of the most powerful and surprising benefits of bankruptcy. You’re likely considering bankruptcy because you need financial relief. You need immediate relief from debt collection pressures. You need long-term relief from having to pay … Read More

Defeating a Recorded Tax Lien with Chapter 13

Wasson and ThornhillIncome Taxes

Use Chapter 13 to defeat the leverage that a recorded tax lien on your home gives the IRS/state. Buy valuable time and flexibility.   Stopping Tax Liens by Filing Bankruptcy In our last blog post we showed how Chapter 13 can buy you more time and flexibility than Chapter 7. We showed an example how that’s especially true if you … Read More