Have you seen our most recent TV commercial? It talks about back taxes, since tax season is well underway.
As a Kansas City bankruptcy lawyer, I get a lot of calls from folks concerned about their taxes this time of year. They want to know, "does bankruptcy help with tax debts?"
Bankruptcy and Tax Debt
The good news is, in many cases it absolutely can. Bankruptcy can help you reduce the amount you owe on back taxes. Depending on your situation, it may even allow you to eliminate your tax debt entirely.
First, it can depend on which chapter of bankruptcy you file - Chapter 7 or Chapter 13. These two differ in how they handle your assets, so you may need one over the other if you have certain debts or are at a certain income level.
Next, it depends on how old your tax debt is and whether you've filed your returns. If you've filed your tax returns, and the debt is related to a tax return three years old or older, you can usually discharge that tax debt.
More recent tax debts can be handled with bankruptcy, too. We can often set up a repayment plan based on your individual situation so the unpaid taxes are easier to handle over a set period of time.
Finally, the tax debt can't be any part of a fraudulent act or tax evasion.
Every case is different, so while these are certainly important rules to consider, they're not always hard and fast.
If you're dealing with a lot of tax debt, it's important to speak with a bankruptcy attorney in person to help you decide how to move forward. We are ready to assist with your back taxes and other debts, like medical bills or house payments.
Call us today at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.