One of the most defining aspects of bankruptcy is the discharge of debts that comes at the end of a case. Whether you file under Chapter 7 or Chapter 13 of the U.S. bankruptcy code, you will receive a discharge charge of your debts following liquidation under Chapter 7, or the completion of a payment [...]
If you have federal tax debt, you may be wondering if filing for bankruptcy can do anything to help your situation. You may have even heard commercials offering the hope of eliminating tax debts in bankruptcy, but it’s actually not that simple. Most tax debts can’t be discharged by bankruptcy. And unfortunately, if you are [...]
Chapter 13 Bankruptcy and Your Tax Debt If you're seeking a solution to help manage tax debt then Chapter 13 bankruptcy may be something to consider. It often depends on the type of debt in question, along with other financial obligations of the debtor. You may even gain an advantage using Chapter 13 to handle [...]
Garnishments are a legal actions enforced by the court to allow creditors to collect on outstanding debt. The most common is wage garnishment when funds are deducted from paycheck earnings. Bankruptcy may stop pending and active garnishment activity against you. When bankruptcy is filed an action called the automatic stay goes into effect. The stay [...]
Does Bankruptcy Protect Income Tax Refunds? January through April is tax season and like many consumers you may be anticipating a tax refund. If you plan on filing bankruptcy during this time period, you may have concerns about how you can protect your refund from creditors. While many debtors may not want to disclose they [...]
Taxpayers are often under the impression they cannot discharge tax debt . While bankruptcy is a powerful legal tool that may help you gain control of your finances and eliminate qualifying debt, it can help discharge tax debt in certain circumstances. There are different types of tax debt consumers deal with, yet in bankruptcy income [...]
Bankruptcy may stop collection attempts from the Internal Revenue Service (IRS), but depending on taxes owed and the chapter you file, it may only be temporary. The automatic stay in bankruptcy helps halt collection attempts from creditors including the IRS. It also helps stop legal proceedings such as wage garnishment . The automatic stay prevents [...]
Getting Sued for Past Due Debt? Being sued for unpaid debt is a possibility but you may be able to avoid legal action. It's common for debtors to forget or ignore the fact they owe money on an old or past due debt until a summons is received catching you off guard. Avoiding a lawsuit [...]
Chapter 13 Bankruptcy and Tax Debt Chapter 13 bankruptcy is a repayment plan approved by the court.While the filing may not allow for elimination of all outstanding taxes owed, you may be able to discharge some of the debt at the end of your case. Chapter 13 can help you repay tax debt within 3 [...]
Many are under the impression that tax debt cannot be discharged through bankruptcy. Yet, tax debt could qualify for elimination under certain conditions in either Chapter 7 or Chapter 13 bankruptcy . Tax debt may be eligible for discharge under these requirements: Three years before filing your petition your taxes were due. The timing may [...]
