By: Darrell Castle
You CAN get rid of your tax debt through a bankruptcy… sometimes.
Your tax debt must meet the four criteria below:
- It has to be income tax. It can’t be sales tax. It can’t be payroll tax. It can’t be anything BUT income tax.
- No fraud. You can’t make any intentional attempt to evade taxes. If you do, then your tax debt will forever be non-dischargeable.
- Your taxes must be at least 3 years old. So that means this year – as of April 15 (the day your taxes are due) – your 2011 taxes will be dischargeable.
- Last but certainly not least, you HAVE TO file your tax returns. And they have to be filed ON TIME.
As with many things, there are complications to each of the 4 criteria above. And that’s something your bankruptcy attorney can go over with you.
Including taxes in Chapter 13 bankruptcy
You can also get rid of tax debt by making AFFORDABLE payments on the debt through a Chapter 13 bankruptcy. And with Chapter 13, you can get rid of ALL your tax debt – not just 3 year old tax debt.
Your bankruptcy attorney will put you in a payment plan, and over a 3-5 year period you’ll pay those taxes back. At the end of that payment plan period, your taxes will be COMPLETELY paid.
Caution – DO NOT let the IRS file a lien on your property. If the IRS does, then you can’t remove that lien until you sell your house. And you can’t sell your house until you pay that lien. Or you can remove the lien by paying EVERYTHING the IRS says you owe.
Instead of letting that happen to you, talk to a bankruptcy attorney if you’re behind on your taxes.
Our team of Memphis bankruptcy attorneys can help
For decades, Darrell Castle & Associates has practiced bankruptcy law in Memphis. We’ve helped people get out of all sorts of debt and onto a better life. And we can help YOU too.
Our team is very detailed and responsive, and that’s why our clients like us. Your case will be handled the RIGHT way because that’s what you deserve. You’re not just a case number, but you’re a real person with real problems. Problems we have the ability to help you with. And of course everything is kept confidential!
Those are some of the reasons we’ve received multiple Client Distinction Awards from Martindale-Hubbell for client satisfaction. You’re in good hands here.
Want a free consultation?
If you’re struggling financially and want to talk to someone experienced about your options, then our FREE bankruptcy consultation is perfect for you.
Call (901) 327-2100 today to schedule your appointment. Or you can fill out the form to the right of this page to have someone from our office contact YOU.