Are you facing serious debts from income taxes or other tax debts? Are you wondering if your debts might be dischargeable through bankruptcy?
Contact the attorneys from our law firm to discuss your bankruptcy and tax debt options.
Are Taxes Dischargeable In Bankruptcy?
In Chapter 7, many taxes are not dischargeable, but some might be if you qualify under an analysis. Even if you qualify, only tax debts that are more than three years old are generally eligible for bankruptcy discharge. Even with the debts that cannot be discharged, we are often able to do a debt consolidation plan in a Chapter 13 filing, which can stop interest and penalties and structure a repayment plan that works for you, the debtor.
Even if your tax debts are not dischargeable, there are benefits from bankruptcy that could help you if you are facing serious tax debts:
- The automatic stay: Under the automatic stay, creditors are not allowed to continue any collection efforts against a debtor. This limitation applies not only to private creditors, and it applies to the IRS, as well.
- Chapter 13 payment plan: Chapter 13 can stop collections and pay debts over time, usually based on what you can afford rather than how much is owed. Chapter 13 can often stop penalties and interest on tax debts.
Our experienced attorneys can talk with you about what assets you wish to keep. If there is potential of losing something in a Chapter 7 bankruptcy, we will explore the possibility of a Chapter 13 bankruptcy.