Tag income tax

Bankruptcy

Protecting Yourself When Your Business Has to Throw in the Towel

If you're seriously considering closing down a struggling business, you are likely very concerned about personal damage control: how do you end the business without being pulled down with it?

Jeffrey K. Greenwell
April 18, 2012

Bankruptcy

Your Sole Proprietorship Business Rescued by Chapter 13

Do you have a small business in your own name that would be successful if it only got a break from its debts? A Chapter 13 case would likely greatly reduce both your business and personal monthly debt service while you continued to run your business.

Jeffrey K. Greenwell
April 16, 2012

Bankruptcy

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…

Jeffrey K. Greenwell
March 2, 2012

Bankruptcy

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…

Jeffrey K. Greenwell
February 29, 2012

Bankruptcy

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…

Jeffrey K. Greenwell
February 27, 2012

Bankruptcy

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…

Jeffrey K. Greenwell
February 24, 2012

Bankruptcy

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.

Jeffrey K. Greenwell
February 24, 2012