How Will My Personal Bankruptcy Affect My Business?

bankruptcy

If you’re not running a sole proprietorship, lawsuits against your business aren’t automatically “stayed” by your personal bankruptcy filing. In most instances, a bankruptcy filing, through the power of the automatic stay, halts any lawsuit against you and your business or prevents a threatened lawsuit from being filed in court. But there are a few exceptions to this rule; situations in which the automatic stay would not apply. In these cases, a creditor’s lawsuit could continue in spite of your bankruptcy filing. Because stopping such a lawsuit is likely one of the reasons you’re filing bankruptcy, it’s extremely important to …

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What Type of Bankruptcy Is Best For Tax Debts?

satisfy tax debts with bankruptcy

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 Debts you Cannot Discharge in Bankruptcy. If your debts are not priority, you may have options: You can repay them through a chapter 13 plan or an IRS installment agreement. If paid through chapter 13, you will save money as you won’t pay any interest or …

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