When you owe back taxes, this time of year can feel particularly stressful — but it doesn’t have to. Bankruptcy is a viable path to tax debt relief, and, depending on your circumstances, it could be a powerful solution for you. Watch my video to learn more about getting out of tax debt with a Chapter 7 or Chapter 13.
Chapter 7
Owe taxes from 2014 or earlier? As of April 15th of this year, they will be dis-chargeable in a Chapter 7 bankruptcy, which allows you to get rid of unsecured debts like taxes, credit card bills, and medical debt without paying them back. It does not matter how many years of taxes you owe as long as you filed your return on time.
Chapter 13
A Chapter 13 bankruptcy is a powerful tool that combines your debts into affordable monthly payments and stops the interest and penalties that may be accruing. It can help you tackle your tax debt by spreading the payments out over five years rather than having them taken from you by force. This could be an option for you if your debt is not dischargeable. That means you:
- Did not file your return on time.
- Owe money from 2015, 2016, or 2017.
Using Your Tax Refund to Buy Freedom From Debt
In my opinion as a Memphis bankruptcy lawyer, if you are struggling with debt, there’s no better way to use your tax return than filing for Chapter 7. Many of our clients come to us during tax season for a fresh start and peace of mind. If you are considering filing for bankruptcy, or would like to explore other options around resolving your debt, please call a leading bankruptcy law firm Memphis, TN residents have been relying on for over a decade.
Ready to take control of your debt? When your refund comes in, call (901) 327-2100 to speak with a qualified bankruptcy attorney in Memphis or contact us here. We’ll look at your situation and discuss your goals — no strings attached.