Pre-Bankruptcy Tax Strategies
Get the maximum benefit from your bankruptcy against your taxes by following these sophisticated strategies.
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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…
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…
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.
