Williamson & Williams - Attorneys at Law - Media, PA

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Home » Unsecured Creditors with Priority Claims

Unsecured Creditors with Priority Claims

Except for County Tax Claim Bureaus, an unsecured creditor does not have a recorded property interest in the debtor’s property. Examples of these creditors are:

  • People with child support or other domestic relations-related claims such as alimony and equitable distribution;
  • Employees to whom you owe wages (up to $12,745.00);
  • The IRS and PA Department of Revenue for unpaid income taxes when they have not recorded a tax lien;
  • County Tax Claim Bureaus for unpaid real estate taxes.

It is commonly misunderstood that income taxes are never dischargeable. However, Federal and Pennsylvania income and payroll taxes you owe are dischargeable along with interest and penalties only if four conditions are met:

  • Taxes were due at least three years before the bankruptcy filing (the “Three-year rule”) AND
  • You filed the returns at least two years before the bankruptcy (the “Two-year rule”) AND
  • The IRS or PA Department of Revenue assessed the overdue income taxes at least 240 days before the bankruptcy filing (the “240 day rule”) AND
  • There is no recorded tax lien for the taxes.

If you want to file bankruptcy to discharge delinquent taxes, Media bankruptcy lawyer Robert G. Williamson at Williamson & Williams will obtain the necessary documentation and guide you through the calculations necessary to determine if your income tax debts are dischargeable under all three of the 240 Day Rule, the Two-Year Rule and Three-Year Rule.

Certain debts are not dischargeable in a Chapter 7:

  • Child support and domestic relations-related claims.
  • Federal and state taxes other than income and payroll taxes, other than as described above.
  • Payroll taxes you withheld from employees.
  • Debts incurred by fraud.

Any of these debts could be discharged in a Chapter 13 or 11 where your Reorganization Plan provides that any particular debt of this type will be discharged when your Reorganization Plan is successfully completed and the effected creditor does not object to the Plan.

 

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Contact Information:

323 E. Front Street
Media, Pennsylvania 19063

(610) 565-8909

Office hours by appointment

Practice Areas

  • Real Estate
  • Short Sale or Deed in Lieu of Execution
  • Mortgage Problems
  • Mortgage Loan Modification
  • Mortgage Foreclosure Defense
  • Business Law
    • Incorporation or Organization as a Limited Liability Corporation (LLC)
    • Business Succession
    • Mergers and Acquisitions
    • Business Counseling & Advice
    • Contracts & Commercial Transactions
    • Business Litigation Representing Plaintiffs and Defendants
  • Construction Law
  • Bankruptcy
    • Bankruptcy FAQ’s
      • Bankruptcy – What it is and What it can do for You
      • What is the Automatic Stay and How Does it Protect You from Your Creditors?
      • Is Bankruptcy the Right Solution?
      • What are Exemptions and How do they Help You to Keep Your Property?
      • What is Property of the Estate”?
      • What are Debt and Creditor Classes?
    • Chapter 7 Bankruptcy
    • Chapter 13 Bankruptcy
  • Consumer Debt
  • Credit Card & Other Debt Collection Defense
  • Wills, Living Wills, Powers of Attorney, Estate Administration
    • Why You Need a Will
    • Wills & Estate Planning
    • Will Probate and Estate Administration
    • Durable Power of Attorney
    • Living Will – Health Care Power of Attorney
  • Welcome
  • Terms and Conditions
  • Privacy Policy

Williamson & Williams, PLLC is a debt relief agency. We help people and businesses file for relief under the Bankruptcy Act.

The material on this website has been prepared by Williamson & Williams, PLLC, for informational purposes only.

This material does not constitute legal advice and does not create any attorney-client relationship between you and Williamson & Williams, PLLC.

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