Monthly Archives: February 2017
A common motivation people have for filing bankruptcy is that it will wipe out their tax debts. While some debts are discharged during bankruptcy, not all are. It depends, in part, on whether you filed for Chapter 7 bankruptcy or Chapter 13 bankruptcy. Let’s take a deeper look at the taxes in bankruptcy you still owe. Taxes You Still Owe After Bankruptcy Chapter 7 bankruptcy – You can discharge tax debts in Chapter 7 bankruptcy so long as they meet the following requirements. Income-based taxes. The only kind of debt that is dischargeable in Chapter 7 is that of federal or state income taxes. Due greater than three years ago. The taxes must be for a tax return that was due at least three years before you filed for bankruptcy. Filed at least two years ago. You must have filed the tax return two years or more prior to filing for bankruptcy. Assessed…
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Bankruptcy was created to help people navigate financial difficulties by giving them a chance to start from scratch. This start comes with a negative impact to your credit, but this drawback is generally worth it. If you find yourself in the position where you’re considering Chapter 7 bankruptcy, don’t let the possible hit to your credit deter you. There are plenty of benefits of filing for bankruptcy, as well. The Possible Benefits of Bankruptcy An end to phone calls – Being in debt comes with a daily bombardment of calls from creditors. Filing for bankruptcy gives you refuge from these phone calls, because it makes it illegal for creditors to call you with the intent of threatening repossession, foreclosure, or wage garnishment. Pardon for negative account reports – Any credit reports with late payments and high credit balances are typically wiped clean in bankruptcy. Debts go from being reported as…
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After filing for bankruptcy and receiving a discharge, the court will close your case. Sometimes, it may even close your case without issuing a discharge. If you need to reopen your case, you may be able to, so long as you have a valid reason to do so. Even though you may be able to later reopen a case, you should always take filling out bankruptcy forms seriously. If not, mistakes made can come back to haunt you by prohibiting you from getting your discharge or causing your case to be dismissed. That said, here are some situations where you might want to reopen a bankruptcy case. Common Reasons to Reopen a Bankruptcy Case Forgot to file a mandatory certificate – The credit counseling session is a mandatory requirement when filing for bankruptcy. The United States Trustee’s Office must approve this, and it is accompanied by a debtor education course….
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