Monthly Archives: June 2025
Can I File Bankruptcy on Back Taxes?
Yes, bankruptcy takes care of back taxes. In fact, in many cases, back taxes are dischargeable in bankruptcy. Since back taxes are priority unsecured debts, like student loans and most employee wage claims, certain additional eligibility requirements apply. We’ll examine these requirements for discharge below. The modern, slimmed-down IRS often doesn’t start aggressive collection… Read More »
Which is Better: Chapter 7 or Chapter 13?
Debtors with excessive unsecured debts, like credit cards, usually file Chapter 7. Debtors with unpaid secured debts, like past due mortgage payments, usually file Chapter 13. Though they go about it in different ways, both these kinds of consumer bankruptcy accomplish the same goal , which is giving honest yet unfortunate debtors a fresh… Read More »
Is Bankruptcy Really a Fresh Start?
Congress enacted the Bankruptcy Code for just this purpose. This legal debt relief program eliminates burdensome unsecured debts, like credit card bills, and gives debtors a chance to catch up on past-due secured debt payments, like home mortgage payments. However, bankruptcy isn’t a magic wand that reverses financial fortunes. Unless debtors have an exit… Read More »
Why Do People File Bankruptcy?
Quite simply, people file bankruptcy because they owe more money than they can pay, and they need a fresh start. This fresh start is available to honest yet unfortunate debtors. Honest debtors complete paperwork accurately, are forthcoming about all their debts and assets, fully cooperate with trustees (people who supervise bankruptcies for judges), and… Read More »