Pre-Bankruptcy Tax Strategies
Get the maximum benefit from your bankruptcy against your taxes by following these sophisticated strategies...
Income Tax Refunds In a Chapter 13 Case
Chapter 13 gives you more flexibility about what you can do with your current income tax refund. As I said in my last blog, if you file a Chapter 7 bankruptcy after the beginning of the year when you’re due a tax refund, and before you receive and appropriately spend it, your trustee is going... Read More...
The Benefits of a “Short Tax Year Election” in an Asset Chapter 7 Case
Your Chapter 7 trustee can use your unneeded assets to pay current-year income taxes if you split the calendar tax year into two: the pre-bankruptcy and post-bankruptcy “short years.” Let’s first set the scene. If you have substantial income tax liabilities, especially if they are spread over a number of years, Chapter 13 is often... Read More...
Income Tax Refunds In Chapter 7 Bankruptcy
Can you keep your tax refund if you file a Chapter 7 case? It’s mostly a matter of timing. Here are the bullet points: Everything you own at the time your Chapter 7 bankruptcy case is filed becomes your “bankruptcy estate.” Usually, most or all of that “estate” stays in your possession and you get... Read More...
Writing Off Income Taxes Forever through Bankruptcy
What income taxes can a Chapter 7 bankruptcy completely write off? Chapter 13 lets you pay off certain income taxes much more conveniently because you’re protected from the tax collector and can usually avoid paying substantial amounts of interest and penalties. But that’s for taxes you can’t write off. What exactly does it take to... Read More...
Getting rid of taxes through a Chapter 13 bankruptcy requires you to complete a plan
A Chapter 13 case can be such a good tool for dealing with income tax debt, especially if you owe more than just a year or two of taxes. BUT, you lose those benefits if you don't successfully finish paying off the Chapter 13 plan. So, go into it only if you have both a burning desire to make it all the way, and a truly feasible plan with which to do so...
