Tag Archives: Chapter 7

What Should I Do Before Filing for Bankruptcy?

There is a lot to consider if you are thinking about filing for bankruptcy. The first determination you should make is that bankruptcy is the best way for you to deal with your financial problems. Bankruptcy is an incredibly valuable tool to help you dig yourself out of a financial hole, but every case is different. As such, you will want to go through your finances with someone who is familiar with the field of bankruptcy – your attorney. Before you file, there are some things you have to do first. Within the 180 days prior to your bankruptcy filing, you must receive budget and credit counseling from an approved credit counseling agency. During this counseling, you and your counselor will go over all possible options for your finances and budgeting. Once you complete the counseling, you will receive a certificate stating that you received the counseling. You need this…
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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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