Pay Income Tax Debts through Chapter 13

Wasson and ThornhillIncome Taxes

One of the smartest ways to pay your priority income tax debts—ones that can’t be discharged, written off—is through Chapter 13.   Last week we discussed the advantages of paying priority debts through a Chapter 13 “adjustment of debts” case. We referred to recent income taxes as one of the most important kinds of priority debt. Today we show how … 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

Stop Tax Collections to Start Monthly Payment Plan

Wasson and ThornhillIncome Taxes

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

Dealing with Multiple Years of Income Tax Debts through Chapter 7

Wasson and ThornhillIncome Taxes

If you owe some income tax which qualifies for discharge and some that doesn’t, can Chapter 7 “straight bankruptcy” help you?   Tax Liens under Chapter 7  Last week we showed how Chapter 7 can sometimes permanently prevent an income tax lien from hitting your home. It does that by stopping the recording of the tax lien, and then discharging … Read More