lawyers in Evergreen Park who practice Bankruptcy have the experience and expertise to advise you on tax debt and bankruptcy. Most tax debt can’t be discharged with a bankruptcy, either Chapter 7 or Chapter 13, despite the tantalizing advertisements to such an end filling TV and radio today. In a Chapter 13 filing, you will continue to owe these debts at the end of the bankruptcy and the payments will be part of your repayment plan. Only Chapter 7 can wipe out tax debt and only then if the debts meet certain criteria:
A tax return was filed on the debt – The tax debt you wish to discharge must have had the appropriate returns filed at least two years before filing a bankruptcy petition.
The taxes owed are income taxes – trustee taxes (payroll taxes), penalties and other types of taxes are not eligible for discharge.
The tax debt is at least three years old – the debt you wish to discharge must have been owed for at least three years before the bankruptcy was filed.
No fraud or willful evasion – if you filed a fraudulent income tax return or other wise committed fraud, such as willfully evading paying income taxes, bankruptcy will not discharge any debt associated with this.
The 240 day rule – the IRS must have assessed this income tax debt at least 240 days before the bankruptcy package is filed or the debt must not have been yet assessed by the IRS. If the IRS stopped the collection of this debt because of an offer in compromise or a previous bankruptcy filing, this deadline may be extended. lawyers in Evergreen Park who practice Bankruptcy can help you validate all IRS debt before filing.
Unfortunately, any recorded federal tax liens will stay on your record even if the taxes themselves are discharged and your obligation to pay them absolved. The bankruptcy does prevent the IRS from collections action on the discharged taxes; however, if you intend to sell the property on which the lien is recorded, you will still have to pay off the lien. Evergreen Park bankruptcy lawyers are prepared to aid you with any IRS tax debt problems associated with bankruptcy.
March 31, 2009
Contact Bankruptcy Lawyers In Evergreen Park For Expert Tips
Author: Advisor
Right now of all the economic ruckus there is one problem that is being quite overshadowed. And this issue is that of unsecured credit card debt and the manner in which the credit card banks are treating their cardholders. These credit card companies have been employing a number of sketchy techniques in order to for lack of a more fitting word swindle debtors of their hard earned income.
Repair Bad Credit Report
Author: Advisor
Repair my credit report
My journey to repair my credit report began with a surprise – I discovered that credit scores are arrived at from two sources and are not equal The first source is obvious and that’s the Normal credit cards –visa, MasterCard, American Express etc. I thought this is where the main toughest assessment on my credit rating would be made.
Learn how to remove bad credit
Author: Advisor
Everywhere you look in the news today, its always more and more bad news about the credit markets. It is very hard for even people with a decent credit score to get a loan, much less anyone with a score below 650. It used to be easy, now its hard. Everyone can remove bad credit, it just takes a small amount of work.
If you live in or around the city of Baltimore Maryland and are considering filing for personal bankruptcy, it would be in your best interest to consult one of the many qualified Baltimore bankruptcy lawyers for personalized assistance. lawyers who practice bankruptcy in Baltimore can be extremely helpful and advise you of little things that can add up to a big difference in your bankruptcy expedition. Those individuals who choose to try to file their own bankruptcy petitions risk making costly and monumental mistakes. For example, in order for all of the debt that you have accumulated to be included with your bankruptcy, you have to be very diligent about including all of the debt on your original bankruptcy petition. If, by accident, you exclude any of your creditors, then you may end up responsible for that debt. This may be a very small sum of money that you may have to manage on your own. But it could end up being a large amount that is too much to arrange into your monthly budgetary expenses. If this is the case, then there are not many options left at that point. This is primarily because new federal bankruptcy regulations stipulate that a certain amount of time must pass before you can file for bankruptcy protection a second time.
To try and avoid this potentially very expensive mistake, many Baltimore bankruptcy lawyers will recommend that you request a free copy of your credit report so that they can verify and confirm all of your outstanding creditors prior to filing your personal bankruptcy petition. Although attorney fees have increased since the new bankruptcy laws now require more work on the part of the attorney, it is well worth it to make sure your bankruptcy petition is processed properly and you are not left responsible for any excess bills.