Bankruptcy Options
While not everyone facing bankruptcy has a tax problem,
almost everyone with a tax problem could be helped
with a bankruptcy! Using bankruptcy to resolve a tax
problem is what I call a "tax bankruptcy" -
a term of art I coined because someone with a tax problem
who is also contemplating filing bankruptcy for other
reasons, should NEVER do one without realizing the
impact of the other.
Generally, "older" income taxes and related
penalties and interest CAN be discharged through a
bankruptcy. It is the TIMING of the bankruptcy that
is crucial. To learn more about bankruptcies in general,
please read below, then call me.
Chapter 7 Bankruptcy
- The most common type of bankruptcy
- Debtor generally
loses all his assets (except "exempt" assets)
- Debtor
generally wipes out (discharges) all his debts
(except certain "non-dischargeable" debts
)
- Still available if debtor's debts are not "primarily" consumer
- More
Chapter 7 Bankruptcy Information
Chapter 13 Bankruptcy
- Increasing in popularity
- Debtors generally keep
their assets
- Debtors generally pay their debts according
to a "plan"
- Debtors commit their income,
in excess of necessary living expenses, to repay
all or a portion of their debts
- Plan life is 5-8
years
- At end of plan life, unpaid debts are discharged
- Useful
for mortgage foreclosure
- Still discharges tax debts
that would have been discharged in a 7
- More Chapter
13 Bankruptcy Information
Do I Have A Choice?
Do I have a choice between chapters 13 and 7? Usually
no. Under the "new bankruptcy law" (called
the "Bankruptcy Abuse Prevention and Consumer Protection
Act of 2005," but referred to as BAPCPA), most debtors
are forced to go through chapter 13 (a repayment arrangement)
rather than the faster chapter 7 process. > Read
more
We know the answers and we can help
solve your tax problems
Contact
us now to get your life back.
Also visit Larry Heinkel's web site for Bankruptcy
Law:
www.MyFloridaBankruptcyLawyer.com
