I’m filing for Bankruptcy. Can I Discharge taxes?
It is possible in some cases to file for bankruptcy and still discharge taxes. An experienced bankruptcy lawyer such as Richard Croak can help make this happen when he helps you to file for a Chapter 7, Chapter 11, or Chapter 13 bankruptcy..
Most people think that you can’t discharge taxes when you file for bankruptcy. However, if the taxes are more than three years old, and they are income taxes that are owed, then they can be discharged. Payroll taxes, withholding taxes sales taxes, and other business taxes are not dischargeable. In those instances, an experienced tax lawyer would file an offer and seek to reach a compromise with the IRS or other agency for a lesser amount. A few years ago, bankruptcy attorney Richard Croak was able to achieve the largest offer ever claimed in Upstate New York when a $5 million dollar tax debt was compromised down to $40,000. That is still a significant amount of money, but also is significantly less than what was originally owed.
The tax dischargeability rules are very specific – and depend upon which Chapter bankruptcy is being filed.
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If you haven’t filed your return for two years prior to the filing, then you can not discharge your taxes when you file a Chapter 7 bankruptcy.
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Chapter 13 bankruptcy rules state that you can discharge your income taxes even if you filed late, as long as the tax report was due more than three years prior to the bankruptcy filing. [Please note this may soon change so call today.]
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Timing is critical. If the bankruptcy is filed just one day too soon, then the taxes may not be discharged because of the date of the filing in comparison to the date of the back taxes owed. The timing of the rule is inflexible.
Our bankruptcy law firm has more experience than the typical bankruptcy attorney. Bankruptcy lawyer Richard Croak worked in the Department of Justice for six years, and so has experience on both sides of the tax / bankruptcy issue.
We Can Save You Today; Make the Call, We’ll Save You From Seizure of Assets
If you want to file bankruptcy and discharge taxes at the same time, an experienced bankruptcy lawyer is a great asset. If you have questions or concerns about tax discharge ability and filing for bankruptcy, please call our law office today, or contact our bankruptcy law firm via the Internet. For your convenience, we have two office locations for in-person consultations.
