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…

Discharging Income Taxes in Bankruptcy

To permanently write off income taxes, most of the time you just need to meet two conditions.      

Taxes Can Be Discharged (Legally Written Off)

Some special kinds of debts can never be discharged through bankruptcy. Examples are child and spousal support, and criminal fines and restitution. A bankruptcy filing does not write off these kinds of debts.

Income taxes are not like these. Almost all income taxes can be discharged, once a few conditions have been met.

Once the tax you owe meets those conditions, it is discharged exactly like any other debt. The IRS and your state taxing authority…

The Chapter 13 Option if Your Home Equity is Partly Encumbered by a Tax Lien

When a tax lien exceeds the amount of equity in the home, Chapter 13 provides an extraordinary way to reduce what you pay on that lien.   In our last two blog posts we dug into tax liens, and we do so one more time today. Two blog posts ago it was about tax liens that have no equity at all to attach to. Then the last blog post was about tax liens that have enough equity in the home to cover the entire amount of the tax lien. Today we get into the in-between situation—where there’s enough equity in the…

Utah Home Equity and a Tax Lien

A tax lien encumbering the equity in your Utah home is dangerous. Chapter 13 takes away the danger.    If the IRS or your state tax collector records an income tax lien against your home, and you want to keep the home, sometimes through bankruptcy you don’t have to pay the tax. If there’s no equity at all in the home to cover the tax lien, and if the tax meets the conditions for being “discharged” –written off, mostly by being old enough—you may not have to pay most of that tax. You might even not have to pay any…

2015 Taxes – 2016 Bankruptcy

2015 Taxes – 2016 Bankruptcy:  As of January 1, 2016 you can include any taxes you owe for the 2015 tax year in your Chapter 13 payment plan in Logan Utah.   If you’ve been thinking about filing bankruptcy, and expect to owe income taxes for 2015, you have an extra reason to file a Chapter 13 “adjustment of debts” now that we’re in the new year. That’s because now that 2016 has begun you can include income taxes owed for the 2015 tax year in your new Chapter 13 case and payment plan. Being able to include taxes owed…

Write Off Income Taxes: Chapter 13 Logan Utah

Write off  income taxes with Chapter 13.  You may have to pay some part of the taxes that you could just discharge under Chapter 7, but it may be worth it.   Last week just before New Year’s Day we showed how to discharge (legally write off) more of your tax debts (likely for the 2012 tax year) under a Chapter 7 “straight bankruptcy.” Today we show how that’s done under the Chapter 13 “adjustment of debts” form of consumer bankruptcy. Dealing with Income Tax under Chapter 13 The most direct way bankruptcy deals with older income taxes is by…

Filing in 2016 to Cover More Income Taxes

During the first months of 2016 your bankruptcy can write off more of your older tax debts.     Filing bankruptcy at the right time in 2016 can help you deal with income tax debts in two main ways:
  • Discharging (legally writing off) more of your tax debts (likely for the 2012 tax year), under a Chapter 7 “straight bankruptcy” or a Chapter 13 “adjustment of debts”
  • Including any taxes owed for the 2015 tax year in your Chapter 13 payment plan, with the advantages that provides
Today we’ll show the first step to this—how to write off more income taxes…