Discharging Tax Debt

Are you finding yourself struggling with the overwhelming stress and uncertainty of your options regarding tax debt? While it can seem like an impossible situation, there are some potential strategies to reduce or even eliminate some of your tax debt.

Chapter 7 bankruptcy offers relief from income tax debt if certain criteria is met:

•You have not filed a fraudulent tax return

•You have not evaded taxes

•You filed a tax return for said debt at least two years prior to filing for bankruptcy

•The tax debt in question was due at least three years before your bankruptcy filing

•The IRS assessed your income tax a minimum of 240 days before filing your bankruptcy petition.

Though discharging tax debt through Chapter 7 can be a viable solution, you may find yourself facing a lien on your property by the IRS. If the lien was placed before filing for bankruptcy, you cannot get rid of the lien but you can satisfy it by using proceeds from the sale of the property. If the lien was placed after filing for bankruptcy, you may not be liable for any income tax debt associated and the IRS will be unable to garnish wages or or go after your bank account. Having filed for bankruptcy may provide you with a significant advantage in satisfying the lien in the eyes of the IRS.

If it sounds like Chapter 7 discharge of tax debt could be the solution to your current situation, reach out to us and we can answer your questions and guide you through the process as your experienced advocate.