There are many benefits of filing business bankruptcy. A few include: Asset Protection. Once your bankruptcy petition is filed, your creditors are prohibited from contacting you and must halt all collection efforts. Your assets are protected from seizure, and business equipment and vehicles cannot be repossessed. Debt Reorganization.. You can reorganize your business debts, present…
While some tax debts can be discharged through bankruptcy liquidation, there are exceptions. Section 523 of the Bankruptcy Code identifies three debts you must repay: 1. Unfiled tax returns. If you did not file a tax return for the year the debt is assessed, you cannot obtain a discharge. If you filed late tax returns,…
Chapter 13 is the go-to bankruptcy for taxpayers who owe IRS debts that cannot be discharged in chapter 7. But before you file that petition, you should know: All priority debts must be paid in full. They cannot be reduced or discharged in bankruptcy. Not sure if your debt gets priority status? Read our article Tax…
In bankruptcy, a discharge is a term used to describe a debt that doesn't have to be repaid. But not all debts are dischargeable. Those that are include: business loans, unpaid rent and credit card expenses. Debts that cannot be discharged include: some taxes, salaries owed to employees, penalties and fines that have been imposed…