Using bankruptcy for tax relief

On Behalf of | Mar 20, 2015 | Personal Bankruptcy |

Many Tennessee residents may have debt problems caused by excessive credit card usage. Others have debt issues caused by unpaid taxes. Perhaps they owe income taxes to the IRS and are unable to pay them. They may have abandoned a property and now owe taxes on it. Divorce and other family issues may have caused them to overlook their tax debts. Whatever the situation, we have options to help bring you the tax debt relief you need.

Credit card debts and medical bills can generally be wiped out through bankruptcy, but tax debt is a little different. It cannot be fully resolved through bankruptcy, but there are other options. We can negotiate with the IRS and other tax agencies to release liens and levies. We can also help with offers in compromise to reduce your debt significantly. We can work on a settlement as well as payment plans so you can pay down the debt little by little.

It’s important to understand that your tax debt must be at least three years old before it can be eliminated. Any newer debts must be taken care of now or you’ll have to wait until the three-year period is up. Chapter 7 bankruptcy can wipe out your other debts so you can focus on paying off the tax debt. If you choose Chapter 13, your tax debt can be rolled in with your other debts to create one manageable monthly payment.

If you are being harassed by the IRS or another tax agency, you may be able to use bankruptcy as part of the solution. We also have other solutions available to provide tax relief and can help you find the best one for your unique situation.

Source: For more information on debt relief for taxes, please visit our web page.


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