Chapter 13 can save you money with both already accrued and ongoing income tax penalties and interest. So you pay less and finish faster. Last week we got into the advantages of paying priority income taxes through a Chapter 13 “adjustment of debts” case. Those are the usually-recent income taxes which cannot be written off (“discharged”) in bankruptcy. Today … Read More
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
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
Priority proofs of claim need to be carefully monitored in a Chapter 13 case. Make sure one’s filed so it gets paid, and at the right amount.