Certain types of income taxes that are owed may be discharged under the current bankruptcy laws, but there are certain requirements that must be met for income tax debt to be eliminated through bankruptcy. One of the qualifying factors is that the income tax must be filed, taxes that are not filed can not be discharged even if your tax debt meets all of the other qualifying criteria.
Chapter 7 of the bankruptcy code may allow for the complete elimination of the tax debt that you owe on your past tax returns in some cases. Chapter 13 of the bankruptcy code allows a repayment plan so you can make payments on all of your debts for a specific time period, and after the time period determined by the court any unpaid taxes owed may be eliminated.
Each Case And Tax Debt Is Different And Unique, Requiring Professional Legal Assistance
Each case regarding bankruptcy and unpaid tax debt is different, and the available options and debt management solutions may also be varied. To determine whether any unpaid taxes that you owe can be eliminated through a bankruptcy discharge you should seek the advice of a qualified bankruptcy attorney. Your financial and tax situation will need to be reviewed to determine whether the tax debt qualifies for discharge under the bankruptcy code, and whether you are up to date on filing any required tax returns. If you owe unpaid taxes then it is very likely you have not filed the proper or amended tax returns, and this can affect your ability to list these debts and have them eliminated. A tax professional may be needed to sort out your tax situation and liabilities.
If you are filing for chapter 7 bankruptcy then there are a number of requirements before any unpaid income tax debt can be discharged. The taxes owed must be a specific length of time past due, and you must have filed tax returns for subsequent years as well. With the option of chapter 13 bankruptcy the court will look at your income, expenses, and debts, and then schedule a repayment plan that is manageable. Once this repayment schedule has received approval from the bankruptcy court the Internal Revenue Service must accept the payments made as long as the schedule is followed.
The bankruptcy attorneys at Richard West Law can help provide a free debt consolidation consultation to find the right answer for your unique income tax debt problems and circumstances. Visit https://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.