Tax Debts
Facing overwhelming tax debt can be a stressful and daunting experience. It can feel like a weight hanging over your head, impacting your financial well-being and peace of mind. If you’re struggling with tax debt, you might be wondering if bankruptcy can provide a solution.
Understanding Tax Debt and Bankruptcy
While bankruptcy can offer relief from various types of debt, it’s important to understand that not all tax debts are dischargeable. The specific circumstances surrounding your tax debt will determine whether bankruptcy can help.
Get Expert Guidance on Your Tax Debt
Navigating the complexities of tax debt and bankruptcy requires expert knowledge and guidance. The experienced attorneys at Rulon T. Burton & Associates are here to help you understand your options and develop a personalized strategy to address your tax debt and achieve financial relief.
Rulon T. Burton Can Help
Schedule a Free Consultation: Don’t let tax debt overwhelm you. Contact us today to schedule a free consultation with one of our experienced bankruptcy attorneys. We’ll assess your situation, answer your questions, and help you explore the best path forward.
When Can Tax Debt Be Discharged in Bankruptcy?
Income Tax Debt:
To be eligible for discharge, the income tax debt must meet certain criteria:
- The tax return must have been due at least three years before you file for bankruptcy.
- The tax return must have been filed at least two years before you file for bankruptcy.
- The tax assessment must have been made at least 240 days before you file for bankruptcy.
- You must not have engaged in any fraudulent activity or willful tax evasion.
How Can Bankruptcy Help with Tax Debt?
Even if your tax debt is not dischargeable, bankruptcy can still provide some relief by:
- Stopping Collection Actions: Filing for bankruptcy triggers an automatic stay, which immediately halts most collection actions by the IRS or other tax authorities. This can give you breathing room to reorganize your finances and develop a plan to address your tax debt.
- Restructuring Payment Plans: In certain bankruptcy chapters, such as Chapter 13, you may be able to include your tax debt in a repayment plan, potentially reducing the amount you owe or extending the payment period.
- Protecting Your Assets: Bankruptcy can help safeguard your assets from seizure or levy by tax authorities, allowing you to retain essential property and rebuild your financial foundation.
Remember: Taking action is the first step towards resolving your tax debt and regaining control of your finances. Let us help you navigate the process and achieve a fresh start.