Bankruptcy’s Effect on an Income Tax Lien

Wasson and ThornhillTax Liens

government

Photo by Joshua Sukoff on Unsplash. An income tax lien creates challenges, so try to file bankruptcy to prevent one. Otherwise, bankruptcy can often help deal with a tax lien. This blog post continues a series about the smart timing of your bankruptcy filing. (It was interrupted by two blog posts updating federal unemployment benefits.) The last one in this … Read More

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

Resolve Your 2018 and Earlier Income Tax Debts through Chapter 13

Wasson and ThornhillIncome Taxes

Do your 2018 taxes just add to your earlier income tax debts, making it all the more unmanageable? Chapter 13 may be your best solution.   Last week we got into a big advantage of filing a Chapter 13 “adjustment of debts” case in early 2019. Doing so enables you to include 2018 income taxes into your Chapter 13 payment … Read More

Unexpected Benefit: Dealing with a Recorded Income Tax Lien with Chapter 13

Wasson and ThornhillIncome Taxes

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

Unexpected Benefit: Dealing with a Recorded Income Tax Lien with Chapter 7

Wasson and ThornhillIncome Taxes

If you don’t file bankruptcy fast enough to prevent a recorded tax lien, sometimes filing a Chapter 7 still allows you pay less of that tax.   The last two blog posts have been about the benefits of preventing an income tax lien recording by filing bankruptcy. That’s especially helpful if the tax at issue is an older one that can be … Read More