Tag discharge of debts

Crucial Question: When Can I File Another Bankruptcy?

It's a matter of timing. And that timing depends on whether you previously filed under Chapter 7 or 13, and what you are filing under now.

Bankruptcy permanently writes off income taxes, as long as the tax meets certain conditions. For some taxes the conditions are easy to meet.

Bankruptcy is about writing off or discharging debts. The timing of discharge is quite different in Chapter 7 and 13; both are permanent.

Here's why you usually don't pay more in a Chapter 13 case to get rid of taxes that you could simply write off in a Chapter 7 case.

If you owe too much debt but still need the benefits of Chapter 13, consider "Chapter 20."

Give gladly to your Chapter 7 trustee assets that you don't need, if most of the proceeds of sale of those assets are going to pay your taxes.

Protect your business assets immediately with the "automatic stay" and permanently with property exemptions.

Ongoing litigation, or the threat of it, against you and/or your business usually dies with your bankruptcy filing.

Closing down a failing business can be a lot smoother with a Chapter 7 case.

Filing Chapter 7 bankruptcy in the midst of letting go of your home can be a smart combination.

When you start a Chapter 13 plan, it's good to have Chapter 7 available as a backup plan.

You can usually get out of an ongoing Chapter 13 "adjustment of debts" bankruptcy case by simply asking to do so.