Tax Debts in Bankruptcy
The process of seeking tax debt relief in bankruptcy is a complicated matter that requires knowledgeable and experienced legal advocacy. If your tax debt is overwhelming and you are looking to explore your legal options, Wright Law Offices can help.
Contact Wright Law Offices to schedule a free consultation with a Phoenix tax debt lawyer.
Seeking Tax Debt Relief: Exploring Your Options
Eliminating tax debt is not an easy process, and it is not guaranteed in bankruptcy. The federal government has an incentive to make it difficult, as taxes are its main source of income. If you are looking to eliminate tax debt through bankruptcy, there are a few things you should know:
- The taxes you are looking to discharge through bankruptcy must be of "due and owning" status for more than three years prior to filing.
- Your taxes must be filed prior to filing bankruptcy.
- A tax assessment by the Internal Revenue Service (IRS) must be completed 240 days before filing bankruptcy. If you are unsure of whether your tax assessment has been completed, you can order a transcript through the IRS.
Our law firm assists clients with both Chapter 7 and Chapter 13 bankruptcy. Because tax debts are not always dischargeable in
Chapter 7 bankruptcy, a debtor may wish to explore options through
Chapter 13 bankruptcy. In Chapter 13, tax debt can be reorganized and a repayment plan lasting three to five years is established. Our Phoenix bankruptcy attorneys can help determine which — if any — of your tax debts can be eliminated through Chapter 7 and whether a repayment plan through Chapter 13 is a more suitable option.
Contact an Arizona Tax Debt Relief Lawyer
Contact a tax debt relief lawyer at our law offices in Phoenix, Scottsdale, Tempe, Kingman, Avondale or Prescott. Call 480-845-0145 to schedule a free initial consultation.