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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…

Chapter 7 vs. Chapter 13–Unsecured Debts

If you owe much unsecured debts, which of the two consumer bankruptcy options is better for you depends on the kinds of unsecured debts owed.   Unsecured Debts Debts that are unsecured are those which are not secured by anything you own. The creditor has no “security interest” in anything, no right to repossess anything if you don’t pay the debt. In general it’s easier to deal with unsecured debt than secured ones in bankruptcy. Unsecured Debts Turning into Secured Ones Unsecured debts can turn into secured ones if you don’t pay them. A credit card holder or medical provider can…

Chapter 7 vs. Chapter 13–Delayed Sale of Your Home

Under Chapter 13 case you can schedule a delayed sale your home within your court-approved plan. Or leave things more open-ended.   In our last blog post we described briefly how Chapter 13 can often give you tremendous flexibility about the timing of the sale of your home. Here we expand on your options. A Scheduled Home Sale If you definitely plan on selling your home and you know when you want to do so, you can build your Chapter 13 plan around that sale. Depending on your situation, you may be able to schedule selling your home anytime during…

Chapter 7 vs. Chapter 13–Sell Your Home When You Want While Protecting Its Increased Equity

Have the flexibility to sell your home on your schedule and giving time for it to gain value, protecting that value from your creditors.    If you are feeling overwhelmed by debts and wondering if you should file bankruptcy, and if in the midst of this you own a home, you might also be wondering whether you should be selling it. Let’s assume that you’d rather not sell right now, because it’s not the right time for personal or family reasons. Or maybe the home doesn’t have much equity now but its value is increasing and so you think it will…

Chapter 7 vs. Chapter 13–Child/Spousal Support Lien on Your Home

One of the biggest differences between these two consumer bankruptcy options are how they help with support arrearage debt.   Support Liens If you are behind on your child or spousal support payments and you own a home, most likely there is a lien on that home for that unpaid support debt. This means that your ex-spouse (or the support enforcement agency in his or her name) may be able to foreclose on your home through that lien. In any event, the lien is a cloud on your title, very likely hurting your credit and potentially jeopardizing your ability to refinance…

Chapter 7 vs. Chapter 13–Second (or Third) Mortgage Strip

Stripping a mortgage from the title to your home could save you a tremendous amount of money.   Two blog posts ago our topic was getting rid of judgment liens, which can be done under either Chapter 7 “straight bankruptcy” or 13 “adjustment of debts.” So if you have a judgment lien (or two) on your home’s title, that will not push you towards one Chapter or the other. But stripping a second mortgage can only be done through Chapter 13. Because stripping a mortgage from your home’s title can save you so much money, it is often the major reason…

Chapter 7 vs. Chapter 13–Property Tax Debt

Solve your property tax problem by writing off your other debts or by buying more time to catch up.     Discharge Your Other Debts with Chapter 7 So You Can Pay Your Property Taxes  If you’ve fallen behind on your property taxes, presumably your income has not been enough to meet your expenses plus payments on your other debts. Sometimes just writing off your other debts would give you enough financial breathing space so that you can catch up on your property taxes. Find out from your attorney how much time you would have to catch up on your property taxes.…

Chapter 7 and Chapter 13 in Logan Utah — A Utah Home Mortgage Overview

How do these two consumer options help with your Utah home mortgage(s)?   Chapter 7 “Straight Bankruptcy” A Chapter 7 case usually lasts about 3-4 months. It doesn’t reduce your monthly mortgage payment, and doesn’t directly help you deal with your mortgage lender if you’re behind. Instead through Chapter 7 most or all of your other debts are gotten rid of so that you are better able to catch up if you’re behind, and can better afford your mortgage and other home-related debts and expenses overall. Chapter 13 “Adjustment of Debts” A Chapter 13 case usually takes 3 to 5 years.…