Free Online Case Evaluator
Directions to our Office
Call (937)240-0344 Today!

Taxes & Bankruptcy

Many people think that bankruptcy can’t help with taxes. This is not true.

Our office has filed hundreds of bankruptcy cases to help people deal with back taxes. Probably one of the worst creditors was the IRS.

They can wipe out your bank account and take your paycheck, and leave you without enough money to pay your living expenses.

Believe it or not, filing a bankruptcy will stop the IRS instantly.

Some taxes can be discharged in bankruptcy, depending on how old they are and what kind of tax is involved.

Even if the taxes that you owe are non-dischargeable bankruptcy, you can pay them back in a bankruptcy and get up to five years to pay these taxes back to the IRS.

And, as you might expect, because the IRS takes priority over other creditors like medical bills and credit cards, what you pay back to your creditors goes first to the IRS, and then after the IRS is paid whatever is left over can be paid to other creditors.

So, what you pay goes to eliminate debts that can not be discharged, the ordinary creditors get whatever is left over, if anything.

Some taxes are not dischargeable all, like payroll or withholding taxes and sales taxes.

But ordinary income taxes can be discharged in bankruptcy. And, filing a bankruptcy may be the very best way to pay back these taxes.

While it’s true that discharging taxes in bankruptcy is possible, it is a lot more complicated than I’ve explained in this brief video.

This is only general introduction and your specific situation may or may not result in your ability to discharge your tax obligation.

The only way for you to find out is to sit down with one of our attorneys and discuss all of your personal circumstances in detail.

Free eBook - The Truth About Bankruptcy Bankruptcy Evaluation

Our Clients Tell Us...

  • quality Excellent
    A friend of mine told me West & Hurley really knew their stuff about bankruptcy and that is why I chose them to represent me. Everyone treated me with dignity. They didn't make me feel any less of myself for filing bankruptcy. They treated me as a valued client. Whenever I had a question, the secretaries were eager to help me. I always felt satisfied and more knowledgeable in my particular situation at the end of the conversation. I think very highly of all the people at West & Hurley and would recommend their services.Diane Parthe

  • quality Excellent
    Me and my wife went though bankruptcy, it's been 6 months and we have a credit card and a 2012 bought new GMC truck. Richard West and Associates did an excellent job helping us file, and help us get our credit back on track. Our paralegal Lisa, did an excellet job helping us with our paperwork. We highly recomend filing with them, we had tried with a different firm, and they didn't help us in the same way, we are happy we had their help and expertise getting us back on track.Janie Wright

  • quality Excellent
    My wife and I filled for bankruptcy in 2008 with the help of West & Associates. Mr. West told us in our initial consultation that if we followed his advice and stuck to a plan we could rebuild our credit to a better state than it was before we filled. Though skeptical my wife and I worked hard on things like paying bills on time or early and building our credit little by little. By doing things like this and learning from past mistakes we were able to pay off our bankruptcy a year early and raised our credit score to just under 700 points. That is a 200 point difference from our score prior to getting help from West & Associates. We were also able to buy a new car 6 months after discharge with a very low interest rate. So when people tell you that filling will ruin your credit forever it just isn't true.Sherman Thatcher

  • quality Excellent
    I would like to thank the West & Hurley team for their hard work. They did an excellent job and were very professional. The staff was friendly and helpful. I will recommend West & Hurley to my friends.Christina Anglin

  • overall Excellent
    It was simply an easy process. They made absolutely sure I fully understood all of my choices. It was vital to me how they wasn't trying to sell bankruptcy since they also told me about other options like credit counseling as well as others. I felt like these people were taking care of My personal best interest...not just trying to find yet another client. I recommend them.A Google User