Tax Debt And Bankruptcy

If tax debts play a role in your financial hardship, you may be able to have them discharged by filing Chapter 7 bankruptcy or reorganized through Chapter 13 bankruptcy. There is no one-size-fits-all answer to these issues; so before you make any decisions, discuss your financial obligations with me, attorney Jeffrey P. White.

My law firm, Jeffrey P. White and Associates, P.C., works with individuals and businesses throughout Maine, providing quality representation backed by more than 30 years of experience in law.

Qualifying For Tax Debt Discharge

The Internal Revenue Service (IRS) is often looked at as an agency that is always right, and will always gain the upper hand when dealing with consumer tax debt. The truth is, like any other creditor, the IRS must act in accordance with debt collection regulations and work with debtors to develop an IRS payment plan if they file bankruptcy.

Still, tax debt discharge through Chapter 7 bankruptcy is only an option if you are seeking discharge of income taxes. These are the only taxes that can be discharged through bankruptcy. Furthermore, your tax debts must not be the result of fraud or tax evasion.

Qualification for discharge involves strict deadlines. Your debt must be at least three years old, meaning it must be debt that was due at least three years prior to filing bankruptcy. Your tax return for this debt must have been filed at least two years prior to filing bankruptcy, and the IRS must have assessed your debt at least 240 days prior to filing.

A Bankruptcy Lawyer Can Determine If Bankruptcy Is Right In Your Case

I enjoy being able to help people overcome the struggles they face, and in many cases, bankruptcy is the means to do just that. Contact me online or by telephone at 207-536-6224 to schedule a free initial consultation. My office is located in Lewiston-Auburn and also handles cases in the Portland area as well as throughout the state.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.