Timing to Avoid Tax Interest and Penalties

Wasson and ThornhillIncome Taxes

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Photo by Nick Fewings on Unsplash. How you time your bankruptcy case filing can affect whether, or how much, you pay the accrued, or future, income tax interest and penalties. This blog post is in a series about the importance of smart timing of your bankruptcy filing. Today we cover how good bankruptcy timing can prevent you having to pay … Read More

Income Tax Penalties and Interest in Chapter 13

Wasson and ThornhillIncome Taxes

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

A Fresh Start on the Income Tax Lien against Your Home

Wasson and ThornhillTax Liens

If the IRS or state has recorded a tax lien on your home, sometimes a Chapter 13 “adjustment of debts” can get rid of both the tax and the lien.   Income Taxes that Can Be “Discharged” (Legally Written Off) If you owe an income tax debt, it can be discharged like most other debts. The tax debt just needs to meet … Read More

A Fresh Start on Unpaid Property Taxes

Wasson and ThornhillTaxes

Having unpaid property taxes is dangerous, and violates the contract with your mortgage lender. Bankruptcy addresses both issues. Is Chapter 7 “Straight Bankruptcy” Enough Help? It possibly can give you enough of a fresh start with your other debts so that you can catch up on your property taxes. But doing so while keeping your mortgage lender also satisfied is difficult to pull … Read More