Bankruptcy Can Provide Relief for Tax Debts
Given the power of the Internal Revenue Service to assess penalties and attach liens on property, tax debts are one of the most serious types of financial problems that anyone can face. For many types of tax debts, however, bankruptcy provides a solution.
At UHLLAW, PC, we offer a free initial attorney consultation to discuss your options if you have a problem with tax debts. We have offices in Worcester, Fitchburg, Boston, Orange and New Bedford in Massachusetts.
Are Tax Debts Discharged by Filing Bankruptcy?
Filing Chapter 7 or Chapter 13 bankruptcy will allow you to discharge some types of tax debts. To be discharged, the tax debt must be at least three years old and you must have filed an income tax return for that year. To find out if your tax debt is dischargeable, it's best to talk to a bankruptcy lawyer about your particular situation.
If your tax debt is not dischargeable, you may be able to place it in a Chapter 13 repayment plan and pay it off over a three- to five-year period with no interest or penalties.
Are There Non-Bankruptcy Solutions to Tax Debts?
You may be able to reduce tax debts by making an offer in compromise to the IRS. However, it is best to review your situation with a lawyer. If you have other types of debt in addition to taxes, filing bankruptcy can help you solve all of your debt problems, not just your taxes.
Beware of tax negotiation services that are run by companies located outside of Massachusetts. You may end up paying thousands of dollars in fees and not receiving any reduction in the amount of taxes you owe.
Free Bankruptcy Lawyer Consultation
Come with questions and leave with answers about how we can eliminate or reduce tax debts and give you a fresh financial start. Call 888-219-3993 or fill out our contact form to schedule a free initial consultation with a bankruptcy lawyer.
