Tag Archives: chapter 13

What to Expect When Filing for Bankruptcy

The decision to file for bankruptcy is not an easy one. The stigma, the damage to your credit and the loss of certain assets can be a struggle. However, filing for bankruptcy is often the best option to reset your finances and move forward into the future without the burden of mounting debt. For individuals considering bankruptcy for the first-time, here is some important information that will prepare you for the process. The Difference Between Chapter 7 and Chapter 13 Bankruptcy Chapter 7 bankruptcy involves liquidating assets in order to discharge most or all of your debt. If you opt for Chapter 7, then you may be able to keep some of your assets. However, you will most likely have to give up the majority of your non-exempt assets. On the other hand, Chapter 13 bankruptcy involves creating a payment plan to pay creditors over a period of time. Chapter…
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What Taxes Do I Still Owe After Bankruptcy?

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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Should I File for Bankruptcy Before Divorce?

Many people who end up filing for bankruptcy cite their recent divorce as the primary cause. If you plan ahead, however, you may be able to save a lot of time and money. Depending on your unique situation, there may be benefits to filing bankruptcy before divorce. Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy If you are wanting to file bankruptcy before divorce, Chapter 7 is likely to be the better option. Chapter 7 bankruptcy typically only takes about three to four months to complete. That’s usually short enough to get done before filing divorce. Chapter 13 on the other hand takes anywhere between three and five years. That’s a long time to wait if you want to get a divorce. Also, Chapter 7 allows you to offload most of your debt, whereas Chapter 13 bankruptcy still requires you to pay most of it off. However, when you go to…
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