If you lost money through garnishment during the 90 days BEFORE filing bankruptcy, that money may be returned to you or a favored creditor.
Filing bankruptcy doesn’t just stop creditors’ present and future collection efforts against you. It might recoup money you’ve already lost.
You may have assets not protected by the property exemptions. If you owe recent income taxes, surrender the assets so the taxes get paid.
If you owe taxes on more than one tax year, Chapter 7 may discharge the older year(s) so you can make low monthly payments on the rest
If you owe income taxes, with wise timing you may be able to be in Chapter 13 for much less time.
Take advantage of the fact that the law happens to treat certain creditors better than others.
Chapter 13 can be the best way to protect assets. All the more so if you are led there for other reasons, especially for “priority” debts.
What are the roles of the debtor, the creditors, the bankruptcy clerk, the judge, the Chapter 7 and 13 trustees, and the U. S. Trustee?
Just because you owe income taxes, that doesn’t necessarily make your bankruptcy case complicated.
Would you like to favor certain important creditors over others? Often, Chapter 13 makes this possible.
To avoid owing income taxes April 15 of NEXT year, file a partial-year tax return and pay the tax on it through your Chapter 13 case.
Give gladly to your Chapter 7 trustee assets that you don’t need, if most of the proceeds of sale of those assets are going to pay your taxes.
Give the bankruptcy trustee the headache of dealing with your final business assets
If you expect to owe 2012 income taxes, and you file bankruptcy after December 31, that tax can be “included” in your case.
It’s human nature to hold off filing bankruptcy until after the holidays. Here’s what you need to know once you think again about filing.