You may have heard that tax debts are not dischargeable in bankruptcy. While this is true in many cases, your unique financial circumstances may qualify you for tax debt relief through bankruptcy.
Tax Debt Discharge Through Chapter 7 Bankruptcy: Is It An Option In Your Case?
Your back taxes, interest and penalties could be wiped out by filing a Chapter 7 bankruptcy. If you qualify, bankruptcy can be the best solution to resolve your crushing tax problems altogether.
Unfortunately, not everyone qualifies to wipe out their tax debt in bankruptcy. Certain rules must be met first. If you file bankruptcy and don't meet the rules, the IRS will still be in hot pursuit after your bankruptcy is over.
Repayment Of Back Taxes Without The Pressure Through Chapter 13 Bankruptcy
Some debtors find help with tax debt by filing Chapter 13 bankruptcy, which involves debt reorganization. If the bankruptcy trustee and the IRS approve of your tax debt repayment plan, you may reduce or eliminate interest and penalties while repaying your back taxes over several years.
Plan To Manage Or Eliminate Tax Debt Through Bankruptcy Or Bankruptcy Alternatives
Proper prebankruptcy planning is key to determining if Chapter 7 or Chapter 13 bankruptcy may be a viable solution in your case. Timing is important, among other factors.
Bankruptcy may be a possibility for you to manage or get rid of tax debt. An offer in compromise may accomplish a similar goal even more effectively. A personalized review of your overall financial picture will help determine the best path to resolution of tax debt. Please contact attorney Allen Schuldenfrei at
Call 410-358-7435 or through the online form to arrange a time to talk about your options. I serve clients throughout Harford, Howard and Anne Arundel counties.