Unexpected Benefit: An Income Tax Lien on a Nondischargeable Tax

Wasson and ThornhillTax Debts

Hit with an income tax lien on a tax that bankruptcy can’t discharge? Bankruptcy is all the more valuable so that you can afford to pay off that tax.   We’ve been talking about the effect of an income tax lien on an income tax that bankruptcy CAN discharge–legally write off. A tax lien can turn that tax from one you don’t … Read More

Unexpected Benefit: Use Chapter 13 to Escape a Tax Payment Plan

Wasson and ThornhillIncome Taxes

Chapter 7 can sometimes help you deal with unaffordable income tax payment plan. But Chapter 13 is often a better way to escape a tax mess.   Tax Agreement Payments Too High We laid out the problem last week. You’d entered into a monthly payment plan with the IRS or your state because you couldn’t pay what you owed. But … Read More