What if I filed for bankruptcy in the past?

A Chapter 13 bankruptcy is a way for those who do not qualify for a Chapter 7 bankruptcy, or do not want to file a Chapter 7 bankruptcy, to ease their financial burden. In a Chapter 13 bankruptcy, you may repay all, some or even none of your unsecured debt in a 3-5 year payment plan. Upon successful completion of all your payments, the remaining unsecured debts will be wiped out by the court. Chapter 13 bankruptcy is ideal for those who have filed for bankruptcy in the past and are not eligible to file a Chapter 7 bankruptcy, or whose income is too high to qualify for a Chapter 7 bankruptcy. A Chapter 13 is also a way for homeowners to save their homes from foreclosure. Once you have filed for bankruptcy under this chapter, the arrears can be paid back over the life of the payment plan. At the end of the payment plan, the mortgage will be current and you will no longer be facing foreclosure.

What is the connection between Chapter 13 bankruptcy and taxes?

Many people are facing Chapter 13 bankruptcy and taxes are often one of their financial problems. If you owe taxes, Chapter 13 bankruptcy is a way for you to possibly eliminate or reduce penalties, interest, or even the total tax debt. In a Chapter 13 bankruptcy, you can resolve the leftover tax debt through a 3-5 year payment plan. By understanding this relationship between Chapter 13 bankruptcy and taxes, you can be in control of repaying this debt, not the IRS. At the end of the Chapter 13, you will have the fresh start you’ve been looking for and the satisfaction of knowing your tax debts have been resolved.