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Bankruptcy Mitchell SD

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 Mitchell, SD listed below.

Total Bankruptcy has a participating attorney in BROOKINGS
(866) 525-2557
317 Sixth Avenue
BROOKINGS, SD
Description
Take control of your finances today! We have an extensive nationwide network of local, sponsoring bankrupcty attorneys. Call to discuss your options for stopping creditor harassment. We also have information on filing for chapter 7 and chapter 13 bankruptcy. Personal bankruptcy may be an option for you. Call today!
Phone Hours
SUN - SAT 12:00AM - 12:00AM

Spencer Carl Mosness
(605) 343-2410
704 St Joseph St, Po Box 290
Rapid City, SD
Specialties
Bankruptcy, Debt Collection, Business, Insurance, Oil & Gas, Fraud, Probate, Personal Injury, Real Estate
Education
South Texas College Of Law
State Licensing
Texas

Steven K. Huff
(605) 665-5009
200 West Third Street, P.O. Box 667
Yankton, SD
 
Todd V. Meierhenry
(605) 336-3075
315 South Phillips Avenue
Sioux Falls, SD
 
Dave L. Claggett
(605) 642-7708
522 Main Street
Spearfish, SD
 
Spencer Carl Mosness
(605) 343-2410
704 St Joseph St, Po Box 290
Rapid City, SD
Specialties
Bankruptcy, Debt Collection, Business, Insurance, Oil & Gas, Fraud, Probate, Personal Injury, Real Estate
Education
South Texas College Of Law
State Licensing
Texas

Candi L. Rawdon Thomson
(605) 347-3624
850 Main Street, P.O. Box 729
Sturgis, SD
 
Scott Perrenoud
(605) 336-0828
River Centre, 200 East 10th Street, Suite 200, P.O. Box 1157
Sioux Falls, SD
 
Henry K. Evans
(605) 367-9755
629 South Minnesota Avenue, Suite 103
Sioux Falls, SD
 
David L. Nadolski
(605) 332-5999
U.S. Bank Building, 141 North Main Avenue, P.O. Box 1920
Sioux Falls, SD
 

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 ...

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