Wednesday, December 21, 2016
Will Bankruptcy Get The IRS Off My Back?
Any unpaid debt you have can be stressful, but some types of debt can cause more anxiety than others. For example, you might be more concerned about being to pay your house payment than you are about being able to pay your dentist, and you might have more worry about a past due tax bill than you do a late payment on your auto insurance. If you have too much debt, and are struggling to get it all paid, bankruptcy is a good answer. But, if part of your debt is past due taxes you need to know a few things before you file a bankruptcy case.
Most taxes are not eligible for a bankruptcy discharge, which means the IRS will still expect you to pay. There are limited circumstances in which you can eliminate certain taxes by filing bankruptcy, but since those are not commonplace it is important to understand what happens if you file bankruptcy while you owe taxes. A couple of ways bankruptcy can help you if you owe taxes include the following:
• Eliminate other debt so you have more funds available to pay your taxes. When you are not required to make all of your monthly payments, you can use that money to put towards a payment plan on taxes, or to save up so when your tax bill comes due the next year you will have the funds on hand to make the payment.
• Stop calls and lawsuits, so you have a chance to breathe and figure out your next step towards financial freedom.
If taxes are the main reason you are seeking to file bankruptcy, you should think about what alternatives you have to repay a tax bill. The IRS does have several programs available, and you can probably work out a doable repayment plan, or have your taxes placed into uncollectible status. Depending on your needs and financial circumstances, a work out with the IRS might provide more relief than filing bankruptcy, the only way to make this determination is to talk with a knowledgeable debt management and bankruptcy attorney. It could be that you need to take action with the IRS regarding your taxes, and file bankruptcy to handle your other debt. Whatever your needs, we can help. Call us today to find out more.
For more information about bankruptcy and taxes, contact us today at www.law-ri.com. We will help you come up with solutions that work for your family, and have multiple locations where we schedule appointments so you can make a choice that is convenient for you.