Chapter 13 is better with a recorded tax lien because it protects you permanently from the IRS/state. And saves you big money on that tax. Last week’s blog post was about dealing with a recorded tax lien by filing a Chapter 7 “straight bankruptcy” case. Usually the IRS’ or state’s recording of a tax lien against you effectively requires … Read More
Prevent an income tax lien by filing under either Chapter 7 or 13. But if the tax qualifies for discharge Chapter 13 is slower and riskier. Last week we showed how detrimental the recording of an income tax lien can be for you. It can turn a tax that you could fully discharge (legally write off in bankruptcy) into … Read More
Use Chapter 13 to defeat the leverage that a recorded tax lien on your home gives the IRS/state. Buy valuable time and flexibility. Stopping Tax Liens by Filing Bankruptcy In our last blog post we showed how Chapter 13 can buy you more time and flexibility than Chapter 7. We showed an example how that’s especially true if you … Read More
Statutory liens survive bankruptcy. Chapter 7 may still be able to help in various ways and be your best solution.
Chapter 13 forces the IRS/state to accept only partial payment on an income tax debt that is only partially secured by a tax lien.
Once an income tax lien is recorded, Chapter 13 gives you a tool that may enable you to pay no more and yet get a release of that tax lien.