Chapter 13's advantages in paying off your priority income taxes become clearer when you see what you don't have to pay.
Chapter 13 gives you huge advantages for paying off your priority income tax debts. You're protected while you pay what you can afford.
With smart timing you can discharge--legally and permanently write off--more income tax debts, even with a standard Chapter 7 case.
If you have an income tax debt that qualifies for discharge and also some tax debt that doesn't, Chapter 13 is often your best option.
Filing a Chapter 7 case prevents tax liens from hitting your home, and so avoids a dischargeable tax from turning into one you must pay.
Chapter 7 sometimes doesn't give much help with tax liens. But Chapter 13 hugely helps with tax liens already recorded, and stops new liens.
The recording of an income tax lien turns your home into collateral on the tax you owe. Stop the IRS/state from getting that huge advantage.
Chapter 13 handles a tax lien on a home especially well when the home has enough equity to cover some but not all of the tax lien amount.
A tax lien encumbering the equity in your home is dangerous. Chapter 13 takes away the danger.
During the first months of 2016 your bankruptcy can write off more of your tax debts.
If you don't have much equity in your home, so that a tax lien eats up all that equity and then some, how can you get rid of that tax lien?
If you have enough equity in your home to cover a recorded tax lien, to keep your home you must pay that tax. Hereâs how bankruptcy helps.
Which kind of bankruptcy to file depends on whether there is equity for the lien and whether the underlying tax can be discharged.
If you owe more than 1 year of income taxes, some may be dischargeable and some may not. What happens if you owe both kinds?
Income tax debts can be written off when meeting certain conditions, mostly by being old enough. Here's what happens in Chapter 7 and 13.