How are income taxes dealt with in Chapter 13 bankruptcy?
Income taxes are paid without interest and without penalties. This allows you to pay these debts off much more rapidly than trying to pay principal, interest, and penalties all at the same time. Can I keep any credit cards in Chapter 13 bankruptcy? No, at least not without a court order. In Chapter 13, your are expected to stay on a cash basis. This means that you are not allowed to incur new debt while in the Chapter 13. In some limited circumstances, you are allowed to incur new debt while in a Chapter 13; however, it can only be done after a hearing and only upon approval by the bankruptcy judge. Can I sell any of my property while in a Chapter 13 bankruptcy? No, at least not without a court order. In Chapter 13, you are expected to not sell or otherwise dispose of your property without a court order. In some limited circumstances, you are allowed to dispose of property while in a Chapter 13; however, it can only be done after a hearing and only upon approval by the bankruptcy judge
