Bankruptcy can do so much more than write off old taxes and buy time to pay newer ones. So if you owe lots of taxes, it’s worth considering.
You can usually spend your anticipated tax refund on something important, but may first have to get permission from the bankruptcy judge.
If you owe income taxes, with wise timing you may be able to be in Chapter 13 for much less time.
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 a whole lot of income taxes, especially if you owe for multiple years, bankruptcy can get you tax debt free surprisingly fast.
As soon as 2014 arrives, your Chapter 13 case can cover, and protect you from, more tax debt.
To demystify how Chapter 13 works, see how a relatively straightforward one pencils out.
Chapter 7 can only help in certain tax debt situations. Chapter 13 “adjustment of debts” is both more powerful and more flexible.
Even though a 3-to-5-year Chapter 13 case is often the best option for income tax debts, sometimes all you need is a simpler Chapter 7.
Just because you owe income taxes, that doesn’t necessarily make your bankruptcy case complicated.
With the income tax return filing deadline of April 15 now one month away, here is our effort at making taxes interesting.
If you can’t discharge your income tax debt through Chapter 7, or make workable payment arrangements on your remaining tax debt, then Chapter 13 can be a good solution