Yes. You can repay unsecured income taxes at 0% interest through the Chapter 13 plan and avoid interest and penalties. Secured taxes (tax liens) can be repaid at low interest. Some of the old personal taxes can be wiped out completely. Past due property taxes, not just personal taxes, can …
How much do you pay back in Chapter 13?
In any Chapter 13 case, monthly payments are sent to a bankruptcy trustee over a period of three to five years. Some creditors usually get repaid fully, for example, IRS and your car lender if you are keeping the car, and some creditors get nothing or some percentage of what’s …
Do you have to be in default on your loans to file bankruptcy?
No. However, be sure that you don’t favor some creditors over the others before the bankruptcy case is filed – for example, don’t send a huge payment to credit card A while credit card B gets a minimum payment. Don’t repay personal loans at the expense of other debts – …
What is “notice only” in bankruptcy schedules?
In your bankruptcy petition, you would describe all of your actual or potential debts, but you don’t have necessarily need to have a specific dollar amount for each creditor or creditor’s agent. You may list some parties for notice purposes only, and instead of the amount, say that it’s a …
Is discharge of the debts possible if a person dies or becomes disabled during the case?
Fairly often people ask what would happen if they file a bankruptcy case and die or become disabled during the case. They wonder if their debts can still be discharged. The answer is yes, although your attorney may need to explain the circumstances to the court and ask for changes …
When you file bankruptcy, can you a claim a homestead exemption for the home you are not planning to keep?
Yes. In an interesting new update, U.S. 6th Circuit Court of Appeals recently held in Re Wengerd that the debtors rightfully claimed homestead exemption for their property, even though at the time the bankruptcy petition was field, they had a pending contract to sell the property. As a side note, …