What Will Bankruptcy do to IRS Tax Debt?
A San Diego bankruptcy attorney asks: What will bankruptcy do to IRS tax debt?
A San Diego bankruptcy attorney answers: What Will Bankruptcy Do To IRS Tax Debt?
As a rule of thumb, assume your IRS tax debt is not going to be dischargeable through bankruptcy. This, as it turns out, is the case in most instances where a debtors owes IRS tax debt. Nonetheless, there are means by which IRS tax debt can be discharged just like a credit card debt or medical bills. If the debt was filed on time in the year it was due and if the debt is now three years old or order, there is a good chance this debt might be dischargeable. IRS tax debt does not include property tax: such debt is linked to the property. Similarly, IRS tax debt does not include payroll taxes owed for employees of the debtor.
A bankruptcy can help with repayment owed on IRS tax debt – even if, as discussed, that debt will not be discharged. Consider that a Chapter 13 repayment plan can allow for the repayment of taxes over the course of the plan. It would work similarly to student loan debt: they are both not dischargeable but may be treated as priority debts over the course of the plan. This means that since you would have to pay them anyway, you have basically lost nothing…except the unsecured debt that would subject to discharge. When considering if bankruptcy is right for you, whether you have IRS tax debt, student loans, or just a lot of credit card debt, consultation with a bankruptcy attorney can help get you answers to difficult questions.
If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Southern California!
