The Parrish Law Firm, LLC. Bankruptcy Legal Blog Articles - Philadelphia & new Jersey

Bankruptcy is not a single process. It is a set of legal tools, each designed for a different financial situation. The three most common types that individuals and businesses encounter are Chapter 7, Chapter 11, and Chapter 13. Understanding the differences between them is the first step toward choosing the right path forward. This guide breaks down each chapter in plain language so you can understand what to expect, who qualifies, and how each option affects your finances, y

The short answer to the question is: yes, no, and depends.    Debts arising from income taxes can be classified as secured, priority and unsecured debts. The classification of the debt determines its dischargeability. That is, secured debts and priority debts are non-dischargeable. Unsecured debts are dischargeable. The factor that determines how an income tax debt is classified depends on when an income tax return is filed or whether the taxing authority has filed a tax lien

Now May Be The Time To File A Chapter 7 Bankruptcy! Filing a Chapter 7 Bankruptcy requires that you submit to a "means test" to determine whether your household income for your household size is equal to or less than the median income in your county to qualify. If your household income is typically higher than the median income in your county but during the Pandemic you had a reduction or loss of income in the last six (6) months, you may now qualify to file a Chapter 7 Bankr