Archive for May, 2016

A Tax Lien FULLY Secured by Home Equity

A tax lien fully secured by the equity in your home is trouble. Chapter 13 may be your safest option. 

  Today we finish a short series of blog posts on income tax liens recorded against your home. Last time we explained how to use Chapter 13 “adjustment of debts” to get the release of a tax lien when there is SOME equity in your home to secure the tax debt. The time before we got into what happens when there’s NO equity in your home to which the tax lien can attach. Today is about tax liens that secure the…

A Tax Lien Partially Secured by Your Home Equity

Chapter 13 forces IRS/Utah State Tax Commission to accept only partial payment on an income tax debt only partially secured by a tax lien.

  We’re in the midst of a short series of blog posts on income tax liens recorded against your home. Last time we explained how to use Chapter 13 “adjustment of debts” to get the release of a tax lien when there is no equity in your home securing that tax lien. That happens when the mortgage(s), property taxes, and other prior liens soak up the whole value of the home.

But what if there is enough…

Forcing the Release of a Recorded Tax Lien on Your Utah Home

Here’s a tool against a recorded tax lien that results in you paying no more than if you had no tax lien and yet gets it released.

  Our last blog post was about using bankruptcy to prevent the IRS or state income tax authority from recording a tax lien on your home. But what if a tax lien has already been recorded?

The Challenge of a Tax Lien

In our last blog we also focused on how bad it is for you if the IRS/state records a tax lien 1) on an income tax debt that could otherwise be…

Stopping a Utah Tax Lien on Your Home

Prevent the recording of an IRS or Utah State Tax Commission income tax lien turn your home into collateral on the tax you owe. 

  Assume you owe an income tax debt of $20,000. Assume also that if you filed a bankruptcy case today that $20,000 would be “discharged”—legally written off—in bankruptcy since that tax meets the conditions for discharge. You would not have to pay a dime of this $20,000. Ever.

But now instead assume that you didn’t file bankruptcy today. Then tomorrow the IRS or Utah State Tax Commission records a tax lien against your home on this $20,000…

“Strip” Your Underwater Second Mortgage

If your second mortgage (or 3rd) is not backed by any of the home’s equity, “strip” that mortgage off your home’s title and stop paying it.  

Our last two blog posts were about using Chapter 13 “adjustment of debts” as a practical way to catch up on late mortgage payments and property taxes. You always have to get current on property taxes and virtually always have to with your primary mortgage obligation. Chapter 13 gives you the time and protection to do this.

But if you have a second or third mortgage, you might not have to catch up…

Past Due Property Tax on Your Home

Curing  property tax benefits your home as well as your mortgage lender. Chapter 13 enables you to do this under much less pressure.

Slipping Behind on Property Taxes

If you’ve fallen behind on your mortgage payments, you’ve likely also fallen behind on your property taxes. You may be required to pay those taxes as part of your mortgage payment. So not paying the mortgage automatically means you’re not paying the property taxes. Or you may be supposed to pay the property taxes directly, separate from your mortgage. So you’ve not paid the property taxes because the mortgage lender is much…

Keep Your Utah Home through Chapter 13

If you need more time to catch up on your unpaid mortgage payments, Chapter 13 provides that better than Chapter 7.

  Filing either a Chapter 7 “straight bankruptcy” case or a Chapter 13 “adjustment of debts” one stops a pending home foreclosure. And they can both prevent one from begin started. Assuming you’re behind on your mortgage and want to keep your home, whether you should file under Chapter 7 or Chapter 13 depends on how far behind you are and how much help you need in catching up.

Protection through the “Automatic Stay”

Filing either a Chapter 7…

Keep Your Utah Home in Chapter 7

You can usually retain your home in a Chapter 7 case if you are current (or not too far behind) on your mortgage payments.



Whether you can keep your home when filing a Chapter 7 “straight bankruptcy” mostly depends on two questions: 1) Are you current or close to current on your mortgage and other debts against your home, and 2) Is the equity in your home protected by the applicable homestead exemption? Today we focus on your mortgage. Upcoming blog posts will hit other possible kinds of liens against your home, and then the homestead exemption.

Chapter 7 in

Using Chapter 13 to Get Out of Your Vehicle Lease

To escape your vehicle lease when filing a Chapter 13 case for other reasons, usually you don’t have to pay any more to write off the lease.

  Our last blog post was about how a Chapter 7 “straight bankruptcy” allows you to get out of a car or truck lease in Utah by discharging (permanently writing off) whatever liability would arise from surrendering that car or truck.

Whether you end a vehicle lease early or at the end of its term, you could still owe the lessor thousands of dollars in a combination of contractual fees. If you decide…

Using Chapter 7 to Get Out of Your Vehicle Lease

A vehicle lease may cost less up-front and monthly, but is actually very expensive. Bankruptcy may be your best way to break the contract.

The Big Disadvantages of Vehicle Leasing

  Leasing has become an attractive way of getting into a new vehicle. The reasons seem sensible.  A vehicle lease often requires less money down, and the monthly payments are usually less than with a vehicle loan.

But like any deal that looks too good to be true, there’s a catch. In fact, there are several.

1. At the end of the lease term you own nothing. Pay off …