At Florida Law Advisers, P.A., we help borrowers in all types of bankruptcy cases, including tax-motivated bankruptcy filings. If you have a federal tax bill that is burdensome, we may be able to help discharge your tax liability through bankruptcy. Our bankruptcy attorneys have years of experience helping clients discharge their debt and obtain a fresh start through bankruptcy. To find out how bankruptcy and taxes may affect your situation in Florida, contact us to schedule a free consultation with a Tampa bankruptcy lawyer at our law firm. During the consultation we will answer your questions and develop a comprehensive strategy to help alleviate your tax liability.
Discharging Tax Debt Through Chapter 7:
Not all tax bills are dischargeable in bankruptcy. In order to discharge a tax bill you must satisfy all of the following requirements:
- The tax owed must be income tax; other taxes such as payroll tax or fraud penalties are not dischargeable in bankruptcy.
- There must be no fraud or willful evasion of the taxes owed.
- The tax debt must be at least 3 years old. In order to discharge a tax bill, the tax return that is responsible for the tax liability must have been originally due at least 3 years prior to the date you file for bankruptcy.
- The tax assessment must be levied at least 240 days prior to the date you file for bankruptcy.
Even if you satisfy all of the conditions above, bankruptcy will not discharge a prior recorded tax lien. Bankruptcy will only discharge your personal obligation to pay the debt. If the I.R.S. recorded a tax lien on your property prior to your filing bankruptcy then that lien will remain on the property.
In Chapter 13 bankruptcy, the payment plan must provide for full payment of the tax bill. Furthermore, simply getting a loan to pay off the tax debt will not solve the problem. Loans used to pay off a non-dischargeable tax bill will also not be eligible for a discharge in bankruptcy.
Speak With a Florida Bankruptcy Lawyer Today About Your Taxes:
If you are having a difficult time meeting your financial obligations Florida Law Advisers, P.A., may be able to help. Our Tampa bankruptcy attorneys have years of experience helping people just like you solve their financial problems and obtain a fresh start. We dedicate all of our experience and skills in the courtroom to help achieve the results our clients need and deserve. When you hire Florida Law Advisers, P.A., you don’t just get legal advice, you get experienced attorneys by your side every step of the way.
Florida Law Advisers, P.A., is dedicated to providing effective representation, individualized attention and affordable fees to each of our bankruptcy clients. All of our initial consultations are free and convenient payment plans are always available.
Frequently Asked Questions
Yes, if certain criteria are satisfied, your IRS tax bill may be discharged in a Chapter 7 bankruptcy. However, penalties for fraud imposed by the IRS are not eligible for discharge in Chapter 7, only income taxes are eligible.
Yes, IRS debt can be included in a Chapter 13 payment plan. However, the Chapter 13 payment plan must provide for full payment of the tax bill. Otherwise, it may not be eligible for confirmation.
To be eligible for discharge in bankruptcy, the tax assessment must be levied at least 240 days prior to the date you file bankruptcy. If you do not satisfy the 240 day rule the income taxes will not be eligible for discharge.
Yes, you can use credit cards or other loans to pay off a tax bill. However, loans used to pay off a non-dischargeable tax bill will also not be eligible for a discharge in bankruptcy.