priority tax debts Archives

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.

Your Chapter 7 trustee may pay your priority debts--in full or in par--through the proceeds of the sale of your unprotected, not exempt assets.

Filing Chapter 7 bankruptcy stops an IRS/state garnishment and other collection activities, even if it's for a tax you still have to pay.

You pay your general unsecured debts only as much as you can afford during a Chapter 13 plan, with the rest then legally written off forever.