Tax season can be a stressful time. But as a Memphis bankruptcy lawyer, I know that if you have tax debt, this time of year can feel particularly overwhelming. With the pandemic leaving so many Americans grappling with illness and job loss, making it hard to accomplish everyday tasks, it can seem impossible to think about paying your back taxes. I’ve met countless folks who feel completely helpless and overwhelmed by their tax debt. But I’m here to tell you that there is a way out.
Bankruptcy is the simple way to get rid of tax debt.
Bankruptcy is a viable path to tax debt relief. It has been a powerful solution for many families. Depending on your circumstances, you have different options of which kind of bankruptcy to file.
Chapter 7 bankruptcy and tax debt
If your tax debt meets the criteria below, a Chapter 7 bankruptcy could help wipe away all of your debt.
- The returns must have been filed on time. It’s perfectly fine if you’ve filed for an extension in the past, as long as you filed your taxes by that deadline.
- The tax debt must be at least 3 years old.
- It must be simple income tax.
Chapter 13 bankruptcy and tax debt
If your tax debt isn’t at least 3 years old, you can still file for bankruptcy through a Chapter 13 consolidation plan. Chapter 13 can help you tackle your tax debt by spreading the payments out over time with affordable monthly payments. This means that in about five years, you could be living completely debt free.
Call a bankruptcy lawyer Memphis TN trusts for a FREE consultation.
Many of our clients come to us during tax season for a fresh start. Regardless of your situation, I can help you make sure you no longer have to worry about IRS collection efforts or seizure of assets – allowing you to let go of financial worries and finally have some peace of mind.
If you’re considering filing, or would like to explore other options around resolving your debt, call us today at (901) 327-2100 or contact us online to speak with a bankruptcy lawyer Memphis trusts — no strings attached.
Bankruptcy can be confusing, we’ll look at your situation together, discuss your goals, and create a plan to help you achieve the financial freedom you deserve.