Tax Debt and Bankruptcy
Eliminate Your Past Debt Today!
When a person files for bankruptcy there are certain unsecured debts that can be discharged (eliminated) and some that cannot. Many people do not realize that in a Chapter 7bankruptcy any tax debts they owe that are more than 3 years old can be discharged. The type of bankruptcy that you qualify for and the date you file can be very important factors to determine which of your debts the court can discharge. For more information on how bankruptcy may be able to help you deal with old tax debts you should speak with a skilled attorney at Cain & Associates, PLLC.
The most common type of bankruptcy is Chapter 7, often called the liquidation bankruptcy. For those with little income and few assets, Chapter 7 allows the court to discharge all unsecured debts such as credit cards, medical bills as well as tax debt including interest owed for more than three years. Some debts that cannot be discharged include student loans, child support and alimony and taxes due from the prior three years. In the case ofChapter 13, the court allows you up to 5 years to pay back all your debts including any unpaid taxes from earlier than the previous 3 years. This is done without any additional penalties or interest being charged.
Vigorous Defense You Need & Deserve
Even if the IRS is threatening to collect on past tax debts, when you file for bankruptcy the IRS, just like any other creditor must cease their collection efforts and abide by the bankruptcy court’s actions. You should call our offices to make an appointment for a free consultation to discuss your finances and any taxes you owe. We can explain the various legal options you have available to resolve your financial worries including bankruptcy and other means of discharging your debt. Unpaid back taxes are often one of the largest and most threatening debts that face those considering bankruptcy. We have helped many others with serious debt issues to discharge their debts and gain control of their financial future. Call our offices and let us help you.