Business Tax Recovery Logo


Bankruptcy Hockessin DE

It’s not easy to file for bankruptcy. Bankruptcy is a complicated matter and if it’s your only alternative then it’s best to find a good bankruptcy lawyer that can help you understand bankruptcy and taxes. You also need to figure out which bankruptcy you are eligible for and is best for you to file. The most common bankruptcies for individuals are chapter 7 bankruptcy (liquidation) and chapter 13 bankruptcy (restoration). Your bankruptcy lawyer can explain how to handle tax debts such as tax liens and also how to repay non dischargeable debt and take advantage of the automatic stay. Please scroll down for more information and get access to the best bankruptcy lawyers in Hockessin, DE listed below.

Tiffany A Poole
(302) 892-9200
2055 Limestone Rd, Suite 211
Wilmington, DE
Specialties
Family, Bankruptcy, Divorce, Child Support, Domestic Violence
Education
Widener University School of Law,North Carolina State University
State Licensing
Delaware

Jacqueline M Feely
(800) 632-9230
1202 Kirkwood Highway
Wilmington, DE
Specialties
Bankruptcy, Probate, Real Estate, Business
Education
Widener University School of Law,University of Delaware
State Licensing
Delaware

Eric M Doroshow
(302) 998-0100
Dorowshow Pasquale Et Al, 1202 Kirkwood Highway
Wilmington, DE
Specialties
Personal Injury, Workers Compensation, Bankruptcy
Education
College of William and Mary, Marshall-Wythe School of Law,Albright College
State Licensing
Delaware, DC, Pennsylvania

Daniel K Hogan
(302) 656-7540
1311 DELAWARE AVENUE
Wilmington, DE
Specialties
Bankruptcy, Real Estate, Commercial
Education
Widener University School of Law
State Licensing
Delaware

Michael Gary Busenkell
(302) 425-0430
300 Delaware Avenue, Suite 1210
Wilmington, DE
Specialties
Bankruptcy, Credit Repair
Education
Temple University - James E. Beasley School of Law,Villanova University
State Licensing
Florida, Pennsylvania

Leo J Boyle
(302) 994-1300
5197 West Woodmill Drive, Suite 26
Wilmington, DE
Specialties
Personal Injury, Bankruptcy, Estate Planning, Criminal Defense, Real Estate, Social Security
Education
Widener University School of Law,University of Delaware
State Licensing
Delaware

Matthew R Fogg
(800) 632-9230
1202 Kirkwood Highway
Wilmington, DE
Specialties
Bankruptcy, Workers Compensation, Personal Injury
Education
Widener University School of Law,Mansfield University of Pennsylvania
State Licensing
Delaware

Christina Pappoulis
(800) 632-9230
1202 Kirkwood Highway
Wilmington, DE
Specialties
Bankruptcy, Real Estate, Wills
Education
Widener University School of Law,University of Delaware
State Licensing
Delaware

Joshua E Zugerman
(215) 864-8217
919 N. MARKET STREET, 12TH FLR
Wilmington, DE
Specialties
Litigation, Bankruptcy
Education
Temple University - James E. Beasley School of Law,Drexel University
State Licensing
Delaware

Fotini A Antoniadis
(215) 564-8536
300 Delaware Avenue, Suite 800
Wilmington, DE
Specialties
Financial Markets And Services, Litigation, Bankruptcy
Education
Pennsylvania State University, Dickinson School of Law,Columbia University
State Licensing
Delaware

Bankruptcy

Will Bankruptcy Stop Tax Liens?

Tax liens are a brutal tactic used by tax agencies to collect past taxes. In this article, we cover the question of will bankruptcy stop tax liens?

Bankruptcy is the do over tactic for many Americans. They get up to their eyeballs in debt, often credit card debt, and seek to wipe the slate clean. This used to be a fairly simple process, but bankruptcy laws have been tightened up over the years. It is no longer a piece of cake to just walk away from your debts. Bummer, eh?

Tax liens are used by tax agencies to secure a claim for past taxes. The most common tactic is place tax liens on real property, to wit, homes. The tax lien, however, only applies to the equity on the property. It does not jump in front of the mortgage or other liens already on the property. Let's look at an example.

Assume you own a home worth $300,000. Assume further that you have a $450,000 mortgage on it. Now throw in the fact the IRS claims you owe $60,000 in back taxes. If the agency files a tax lien against you, it can only attach the $50,000 in equity you have. In short, the tax lien will be secured in the amount of $50,000 and unsecured in the amount of $10,000. If the home is sold, the mortgage is paid off and the IRS gets $50,000. You still owe it $10,000.

So, will bankruptcy stop tax liens? This is a common thought for many people in trouble with the IRS. The answer is dependent on the specifics of your case. Of course, you don't want to hear that, so let's talk generalities. In general, the portion of the tax lien that is not secured may be discharged in bankruptcy.

Will bankruptcy stop tax liens in our previous example? In general, it will stop part of the lien. The $50,000 secured portion of the tax lien would survive bankruptcy. The $10,000 unsecured portion will not. Regardless, you still lose the house!

There is a huge caveat when considering if bankruptcy will stop tax liens. Bankruptcy is a federal law, but it is interpreted in ...

Click here to read the rest of this article from BusinessTaxRecovery.com