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
One of the smartest ways to pay your priority debts—including recent income taxes or child/spousal support arrearage—is through Chapter 13. Priority Debts under No-Asset and Asset Chapter 7 Our last two blog posts described how Chapter 7 can sometimes be a sensible way of dealing with priority debts. (Those are ones you can’t “discharge”—legally write off–the most common being … Read More
In a Chapter 7 no-asset bankruptcy case, the trustee collects nothing from you and pays nothing on your debts, including your priority ones. Most Chapter 7 Cases Are No-Asset Cases Chapter 7—“straight bankruptcy”—is the most common type of consumer bankruptcy case. They are generally the most straightforward, lasting about 4 months start to finish. Usually everything you own is … Read More
In bankruptcy some debts are treated much, much better than others. Priority debts are treated much better in various important ways. Debts Are Different So the Law Recognizes Some Differences The law does not treat all debts the same. That’s because you have different kinds of creditors that you owe for very different reasons. The law tries to be … Read More
A Chapter 13 payment plan gives you more flexibility, much more time, and other advantages to resolve multiple years of income tax debts. Stopping Tax Liens through Chapter 13 In our last blog post we showed how Chapter 7 might prevent an income tax lien from hitting your home. It stops the recording of the tax lien through the … Read More
What does the completion of a successful 3-to-year Chapter 13 case look like?What happens to your assets and debts?