Chapter 13's advantages in paying off your priority income taxes become clearer when you see what you don't have to pay.
Bankruptcy can prevent future income tax lien recordings against your home. The result: paying nothing on the tax vs. paying it in full.
Do you expect to owe income taxes for the 2018 tax year? Starting January 1, 2019 you can wrap that tax into a new Chapter 13 payment plan.
What if you have some income tax debt that qualifies for discharge but one (or more) tax year that doesn't? Does Chapter 7 ever help enough?
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.
What makes "priority" debts so special?
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.
Once an income tax lien is recorded, Chapter 13 gives you a tool that may enable you to pay no more and yet get a release of that tax lien.
You owe income taxes, and now the IRS or state has recorded a tax lien on your home. Chapter 13 may get rid of both the tax and the lien.
Falling behind on property taxes is dangerous, and scares your mortgage lender. Bankruptcy can help you deal with both.
As of January 1, 2016 you can include any taxes you owe for the 2015 tax year in your Chapter 13 payment plan.
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 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 that can't be written off must be paid, either after a Chapter 7 case or during a Chapter 13 one.
Here's an illustration how a Chapter 13 case would pay your taxes that you could not discharge (write off) in a Chapter 7 bankruptcy.