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

Chapter 7 is Quick. Chapter 13 Buys More Time.

Wasson and ThornhillAutomatic Stay

Both kinds of bankruptcy can use time to your advantage. Chapter 7’s advantage is it’s quick. Chapter 13 is it buys you much more time.   A Key Distinction-Treatment of Time We’re starting a series of blog posts about the practical differences between Chapter 7 and Chapter 13 bankruptcy. Before getting down into the details let’s look at a difference … Read More

Chapter 7 May Forever Stop a Tax Lien on Your Home

Wasson and ThornhillIncome Taxes

Filing a Chapter 7 case stops a tax lien recording on your home, and so may stop that tax from turning into one you must pay.   Our last blog post was about how filing a Chapter 7 case buys you time with debts on your home. It’s worth expanding on one of those Chapter 7 benefits, one that can … Read More