Yes, bankruptcy can discharge certain older tax debts, but there are specific conditions that must be met for this to happen. Generally, these conditions apply to federal income tax debts: Conditions for Discharging Tax Debts in Bankruptcy: The Three-Year Rule: The tax return for the debt must have been due at least three years before […]
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Filing for bankruptcy significantly impacts your credit, and it usually takes time before lenders are willing to extend credit to you again. Here’s a general overview of what you can expect: Immediate Impact: After filing for bankruptcy, your credit score will likely drop significantly, making it harder to get credit in the short term. Credit […]
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Whether you get to keep most of your assets in bankruptcy depends on several factors, including the type of bankruptcy you file, the value of your assets, and the exemptions available in your state. Chapter 7 Bankruptcy Liquidation Bankruptcy: In Chapter 7, the bankruptcy trustee may sell some of your non-exempt assets to pay off […]
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Deciding whether to withdraw from retirement accounts to pay off unsecured debt is a significant financial decision and depends on several factors: Interest Rates and Debt Type: Consider the interest rates on your unsecured debt versus the potential growth of your retirement savings. If your debt has high interest rates, paying it off might save […]
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Avoiding wage garnishment usually involves addressing the issue before it gets to that point. Here are some steps you can take: Communicate with Creditors: If you’re struggling to make payments, contact your creditors as soon as possible. They might be willing to work out a payment plan or settlement. Seek Legal Advice: Consult with a […]
