Chapter 7 can prevent a tax lien. Here’s what happens with and without that recorded tax lien.
A tax lien recorded before you file bankruptcy can force you to pay taxes you could otherwise not pay. You can prevent that lien recording.
Resolving your tax debts through Chapter 13 “adjustment of debts” can cost you less than Chapter 7.
With interest rates low, it doesn’t cost all that much to pay back taxes in monthly installments. File bankruptcy so you can afford to do so.
If you owe income taxes, with the right timing you may be able to pay less taxes and pay no more into your Chapter 13 case.
If you owe income taxes for 2013, filing a Chapter 13 “adjustment of debts” would enable you to pay that tax under very favorable terms.
Can anything about taxes ever be fun?! We honestly think this is interesting stuff. Happy April 15th!
By following 5 steps, you can discharge (write off) more of the income taxes you now owe.
Your tax debt has to jump over 4 hurdles to be forever written off in bankruptcy. But if it does, that tax is history.
Simplistic but often true: Chapter 7 deals better with simpler debts, while Chapter 13 with more complicated debts. What ARE more complicated debts?
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