Photo by Olga DeLawrence on Unsplash. You’re considering bankruptcy, and you have some unfiled tax returns for the IRS and/or your state. Should you prepare and file them, and when? Our last two blog posts have been about what you should and should not do before filing bankruptcy. These are important to consider even if you hope to avoid bankruptcy … Read More
Income Tax Penalties and Interest in Chapter 13
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
Timing for Writing Off Income Taxes
Usually you can discharge–write off–an income tax debt by just waiting long enough. Here’s how to discharge a tax debt under Chapter 7.
Post-Petition Income Tax Debts in Chapter 13
File your Chapter 13 “adjustment of debts” case at the right time to include all possible tax debts. Then budget right to prevent new ones.
Summary about the Automatic Stay
During the last 13 blog posts we’ve covered the automatic stay–crucial protection that filing bankruptcy gives you. Here’s a helpful summary.
Resolving Income Tax Liens and Preventing New Ones
Chapter 7 sometimes doesn’t give much help with tax liens. But Chapter 13 hugely helps with tax liens already recorded, and stops new liens.
Preventing a Tax Lien on Your Home
The recording of an income tax lien turns your home into collateral on the tax you owe. Stop the IRS/state from getting that huge advantage.
Income Taxes that Are Discharged in Bankruptcy
Bankruptcy DOES discharge–permanently write off–certain income taxes. It’s mostly just a matter of time.
A Fresh Start on the Income Tax Lien against Your Home
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
Timing Your Bankruptcy: Cover More Income Taxes
During the first months of 2016 your bankruptcy can write off more of your tax debts.
Chapter 7 vs. Chapter 13–Income Tax Lien Fully Secured by Home Equity
If you have enough equity in your home to cover a recorded tax lien, to keep your home you must pay that tax. Hereâs how bankruptcy helps.
Chapter 7 vs. Chapter 13–An Income Tax Lien on Your Home
Which kind of bankruptcy to file depends on whether there is equity for the lien and whether the underlying tax can be discharged.
Chapter 7 vs. Chapter 13–If You Owe Both Newer and Older Income Taxes
If you owe more than 1 year of income taxes, some may be dischargeable and some may not. What happens if you owe both kinds?
Should You Sell Your Home Because You’re Behind on Income Taxes?
If you owe a bunch of income taxes, and have a tax lien on your home, it’s tempting to try to fix everything by selling your home.
Watch Out for These Exceptions to the “Automatic Stay”
Almost all attempts by creditors to collect debts are immediately stopped when you file bankruptcy. But here are some special exceptions.