Timing Chapter 13 to Discharge Income Taxes
Chapter 13 can discharge income taxes (write them off forever) if you wait long enough to file bankruptcy. Here’s how it works.
Priority Debt for Driving While Intoxicated
If you injured someone by unlawfully driving while intoxicated, the resulting personal injury debt would be a priority debt in bankruptcy.
Paying Employee Debt in Chapter 13
If you prefer to pay back wages to a present or prior employee, you can do so in Chapter 13 especially well if that debt is a priority one.
New Modified 7-Year Chapter 13 Plans
The coronavirus CARES Act temporarily allows ongoing Chapter 13 plans to be amended or "modified" to last a total of 7 years (instead of 5).
A Chapter 13 Plan to Catch up on Past-Due Support
Here's an example of a Chapter 13 payment plan to pay past-due child and/or spousal support, showing how you can catch up safely and sanely.
Catching up on Support through Chapter 13
Chapter 13 gives you a powerful, reasonable, flexible, and even calm procedure for catching up on your past-due child or spousal support.
A Chapter 13 Plan That Involves Income Tax
Here's an example of a Chapter 13 payment plan to pay income tax, showing how you pay what you can afford and avoid some interest, penalties.
Paying Income Taxes through Chapter 13
Chapter 13's advantages in paying off your priority income taxes become clearer when you see what you don't have to pay.
Priority Income Tax Debts under Chapter 13
Chapter 13 gives you huge advantages for paying off your priority income tax debts. You're protected while you pay what you can afford.
Use Chapter 13 To Delay Your Home Sale
Chapter 13 gives you much more power over your mortgage and other home-related debts so that you can sell your home when it's best for you.
Protection from Your HOA
Bankruptcy gives you protection from your HOA. Chapter 7 may be enough, but Chapter 13 buys much more time.
Chapter 13 Gives the Most Time to Cure Your Mortgage
Chapter 7 provides no mechanism to cure your mortgage. But Chapter 13 does provide a powerful, realistic, and practical way to do so.
Cramdown on Furniture and Other Personal Property Debts
Cramdown lowers vehicle loan payments and the total paid on the loan. But you can also get similar benefits on other personal property debts.
Successfully Completing a Chapter 13 Case
A Chapter 13 case lasts a long time, but can have many advantages. Many of those advantages come only if you successfully finish it.
Debts Voluntarily Paid in Chapter 7
Chapter 7 is usually much better if one of your high priorities is to favor a debt by paying it. You can do so more easily and flexibly.
