Bankruptcy Blog Archives

Nature of the IRS on Income Tax Debt The Internal Revenue Service (IRS) understands that its tax payers can have financial difficulties ultimately causing you to go bankrupt. Contrary to the myths and images you might have about the IRS, the government is only interested in getting what it is realistically owed them. The IRS [...]

Many of you who are needing to file bankruptcy sometimes come into a small financial windfall in the form of an inheritance. What are your options on inheritance before filing bankruptcy? To help you understand your options if you suddenly come into an inheritance and are considering bankruptcy, lets assume you shared an inheritance with [...]

We need help with modifying our home mortgage.  It is already an interest-only loan, but because of an increase in property taxes, we can no longer afford to make the payment. If you can no longer afford to pay your home mortgage, you can consider one or more of the following approaches.  These approaches include [...]

If you are experiencing financial difficulties because of a loss of employment, divorce, a lawsuit or judgment, or for other reasons, you may be considering bankruptcy as an option to alleviate the financial liabilities and accompanying stress.  Bankruptcy is a legal process a person can use to get a fresh start—that is, to restructure or [...]

Since bankruptcy laws are somewhat complicated, many questions arise about the laws, especially from first time filers. One such question is, “Can filing a bankruptcy help your tax matters? Most debtors who want to file for bankruptcy protection that ask this type of question usually have income taxes that are past due, and they want [...]

Many consumers facing bankruptcy have back income tax issues. Back taxes can be discharged in a bankruptcy under certain federal guidelines. The following is a brief summary of the federal guidelines that must be met before a personal income tax may be discharged in a bankruptcy case: The tax must be due and owed for [...]

From politicians to businessmen, bankruptees display wide variety of circumstances March 30, 2011 By Mike Hinshaw Sometimes high-profile bankruptcies are celebrities such as movie stars, sports figures or high-roller business types. Sometimes, though, they’re politicians. For instance, just last month we learned of Rep. Ruben Hinojosa’s (D-TX) filing, apparently driven by being unable to repay [...]

After you have filed your Chapter 13 bankruptcy, it is still important for you to file your income taxes with the IRS. Many people have the notion that they don’t have to worry and they don’t have to file. That is incorrect. When you file for a Chapter 13 bankruptcy, the IRS monitors your case [...]

Our office recently had a Debtor come in wanting to file a Chapter 13 on the IRS debt that he has. The year the tax return was supposed to be filed was in 2000. He didn’t file the return until 2005. The way that the law reads is that the debt is considered a priority [...]

Many Debtors decide to file a Chapter 13 Bankruptcy because they owe IRS debt. Some know exactly how much they owe because they have filed all their tax returns and have just been unable to pay the IRS the money due. Others know they owe the IRS, but are unsure of how much they owe [...]