Archive for November, 2015

Giving Thanks for Chapter 13 “Adjustment of Debts”

Although it’s way past Thanksgiving, Chapter 13 has many features for which to be thankful.   During Thanksgiving week we told you about 10 features of Chapter 7 “straight bankruptcy.” It only seems fair to bring you the same for Chapter 13 “adjustment of debts.” These are mostly ones that are not at all available under Chapter 7. Here are the first 3 of these features, with more to come a couple days from now. 1) The Long “Automatic Stay” The “automatic stay” stops against almost all collection actions against you and everything you own as of the moment your bankruptcy…

Giving More Thanks in Utah for Chapter 7

Here are 5 more features of Chapter 7 that are worth knowing, appreciating, and using.   The day before Thanksgiving we talked about the following features of “straight bankruptcy”:

1) The “Automatic Stay”: The IMMEDIATE stopping of virtually all collection actions against you and everything you own. 

2) Property “Exemptions”: Protection for ALL you own, for most people who file bankruptcy.

3) “Reaffirmation” of Vehicle Loans and Other Secured Debts: The ability to be selectively choose to keep SELECT secured debts and the collateral securing them—if and only if you want to.

4) Paying Favored “Creditors” If You Want: The …

Giving Thanks in Utah for Chapter 7

Chapter 7 “straight bankruptcy” has many important features worth getting to know and even worth appreciating.   Filing a Chapter 7 bankruptcy case gives you many astounding benefits. We’ll start with 5 of them today, the day before Thanksgiving, and give you another 5 the day after Thanksgiving: 1) The “Automatic Stay” The moment your case is filed you and everything is own gets covered by a blanket of protection against virtually all the collection activities of your creditors. All the laws that provide procedures for creditors to get you to pay their debts are automatically thrown out the window.…

Thanksgiving for Finanical Options and the Rule of Law in Utah

This Thanksgiving, even in the midst of scary personal financial pressures, there is much for our Utah clients to be thankful for.   We all can make a list of things for which we are grateful.   Here is a short list of what to be thankful for in the world of bankruptcy: 1. The Rule of Law: We’re thankful that we live in a country that, for all of its continuous challenges, is a civil society. Without getting into the politics of it all, we can generally rely on our local, state, and national governments to fulfill their basic functions. We…

Chapter 7 and Chapter 13–Income Tax Lien Partly Secured by Equity in Your Utah Home

How can you get rid of an IRS or Utah tax lien on your home if the home doesn’t have much equity and the tax lien eats up all that equity and more?   Our last 2 blog posts discussed your options if the IRS or Utah State Tax Commission records a tax lien against your home. We first got into what happens if your home has no equity so that the tax lien does not attach to anything of value. And second we looked at your options if your home has plenty of equity so that there is more…

Chapter 7 and Chapter 13–An Income Tax Lien Secured by Equity in Your Utah Home

If your home has enough equity to cover a tax lien, you have to pay that tax. Here’s how bankruptcy helps do that and preserve your home.   Our last blog post laid out the options if a tax lien was recorded against your home but there WASN’T equity in the home to cover that tax lien. Today’s blog post is about dealing with an income tax lien recorded against a home which DOES have enough equity to cover the full amount of the income tax owed on that lien. Let’s make this clearer with an example. Assume your home…

What Bankruptcy Chapter Should you File if You have an an Income Tax Lien on Your Utah Home?

Does your home have enough equity to cover the tax lien? Can the underlying income tax be forever discharged? These determine what you need.   If you’ve had an income tax lien recorded on your home, there are two big considerations about how that tax and that lien will be handled in a bankruptcy. These two considerations will also affect whether you would want to file a Chapter 7 “straight bankruptcy” or a Chapter 13 “adjustment of debts” to deal with that tax and lien. Equity to Cover the Tax Lien First, there can be a world of a difference whether…

Chapter 7 and Chapter 13–Owe Both Newer and Older Income Taxes in Utah

If you owe more than 1 year of income taxes, some may be dischargeable and some may not.  What happens if you owe both newer and older income taxes in Utah?   If you owe more than a single tax year of income taxes, the first thing that you and your attorney will determine is whether any or all of those taxes can be “discharged.” That means permanently, legally, written off. If all of your taxes can’t be discharged, usually because they are too new to meet the required conditions, then look at our last blog post a couple days ago…

Chapter 7 and Chapter 13 — How to deal with Newer Income Taxes in Utah

Utah Income tax debts that can’t be written off must be paid, either after a Chapter 7 case or during a Chapter 13 one.   The Two Options Handling newer income tax debt is possible.  Income tax debt can be discharged —written off in bankruptcy—if it meets certain conditions, mostly by being old enough. (See the conditions laid out at the end of our last blog post a couple days ago.) But if those conditions are not met and that tax debt must be paid, either a Chapter 7 “straight bankruptcy” or a Chapter 13 “adjustment of debts” can help tremendously.…

Chapter 7 and Chapter 13 in Utah–Older Income Taxes

Income tax debts can be written off when meeting certain conditions, mostly by being old enough. Here’s what happens in Chapter 7 and 13 in Utah.   The Choice Simplified Income tax debt can be discharged—written off in bankruptcy—if it meets certain conditions. If those conditions are met, those income taxes can be discharged in either a Chapter 7 or Chapter 13 case. So you would usually make your choice between these two options based on other reasons. There ARE reasons why Chapter 7 would be the better way to go strictly as far as the tax debt is concerned. But…