If You Owe Income Taxes
What do you do and not do if you owe income taxes or have ongoing tax liabilities?
Category Tax Debts
Chapter 13 prior to Mortgage and Property Tax Foreclosure
Chapter 13 stops both mortgage and property tax foreclosures. Then you have up to 5 years to catch up on the property taxes.
The Effects of an Income Tax Lien
Try to file bankruptcy before an income tax lien gets recorded. But if you can't, here are the effects of a tax lien under Chapter 7 and 13.
Priority Income Tax Debts under Chapter 13
Chapter 13 gives you huge advantages for paying off your priority income tax debts. You're protected while you pay what you can afford.
Priority Debts
One of the most important aspects of bankruptcy is that all debts are not equal. "Priority" debts are treated special in a number of ways.
Nondischargeable Co-Signed Debts
Co-signed debts get tougher if your co-signer challenges the discharge of your obligation to him or her, or if the debt isn't dischargeable.
Prevent Future Income Tax Liens
Bankruptcy can prevent future income tax lien recordings against your home. The result: paying nothing on the tax vs. paying it in full.
Bankruptcy Can Help You When Faced With A Property Tax Foreclosure
Bankruptcy can help if you are facing a property tax foreclosure — Chapter 7 by getting rid of other debts, Chapter 13 by buying you lots more time.
Bankruptcy’s Many Benefits for Your Home
Bankruptcy can save and protect your home in many different ways. One of these may be just what you need. Or you may use them in combination.
Bankruptcy Writes Off (Some) Income Taxes
Bankruptcy permanently writes off income taxes, as long as the tax meets certain conditions. For some taxes the conditions are easy to meet.
Do you owe income taxes for 2018 AND Earlier Year
Do you owe income taxes for the 2018 tax year AND already owe for one or more tax years? Chapter 13 may be an especially good tool for you.
Dealing with your 2018 income taxes through a Chapter 13 Case Filed in 2019
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.
Filing Chapter 13 in 2019 to Write Off More Income Taxes
Chapter 13 is a riskier, longer, and maybe more expensive way to escape a dischargeable income tax deb--but may still be your best option.
Filing Bankruptcy in 2019 to Write Off More Income Taxes
With smart timing you can discharge--legally and permanently write off--more income tax debts, even with a standard Chapter 7 case.
Disadvantages of a Badly-Timed 5-Year Chapter 13 Case
Following up on last week's scenario, here are the financial, credit record, and other disadvantages of a forced 5-year Chapter 13 plan.
