Tag Archives: Chapter 7

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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How Do You Know When It’s Time to File Bankruptcy?

Declaring bankruptcy doesn’t have to be intimidating or scary; in fact, the process is quite simple and can leave you feeling immensely relieved. Filing bankruptcy is often the best solution for people struggling with debt, but it’s not the only option. You may be wrestling with the decision to either continue paying off debt or file bankruptcy. Sometimes, knowing when it’s time to file bankruptcy can be difficult. The short answer is to file when you have more debt than you could feasibly pay off, but situations are often more complicated than that. Benefits of Bankruptcy Both Chapter 7 bankruptcy and Chapter 13 bankruptcy offer what is called an “automatic stay”, which effectively stops all harassment, collection, repossession, and foreclosure actions. Chapter 7 bankruptcy often allows individuals to walk away from most or all of their debt, completely free of it, within a few short months. Chapter 13 bankruptcy can…
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