One of the many ways that individuals will look to avoid the overwhelming debt is to cheat a little on your taxes. After all, the last thing you need at the end of the tax year is another big debt owed to the IRS. If you do owe the IRS money or if you have been a little dishonest on your taxes in the past, then you could be looking at even more complications down the road. However, filing for bankruptcy may be able to help you get on top of these debts and back in control.
The IRS is definitely one creditor that you want to avoid having a debt to. If you do have a large debt to the IRS and are unsure of how you are going to come up with the money, then talk to our experienced Minnesota bankruptcy attorney. We can help determine the best solution for you and determine if you can discharge any of your tax debt through filing for bankruptcy. Contact us today at 612-377-5311 for a free initial consultation.
Can You Discharge Tax Debt?
In some instances, you will be able to discharge the debts you owe on taxes under a chapter 7 bankruptcy. However, the tax debts must be more than three years old. The tax reports also need to be correctly filed. However, any tax debt that is less than three years old will not be discharged through bankruptcy. This can include payroll taxes, sales taxes and businesses taxes.
Under a chapter 13 bankruptcy, your debts will not be completely discharged but you will instead be placed on a payment plan of three to five years. Your tax debt will be included in this payment plan.
In any case, when filing for bankruptcy you will be giving yourself a chance to get over this obstacle in your life and stop the stress that owing money to the IRS can cause. As soon as you file for bankruptcy your situation will be placed under an ‘automatic stay’ which means all creditors will be informed to stop contacting you to collect the debts. This includes the IRS. Furthermore, any interest or penalties that are accumulating on the debt will stop. This is even the case under a chapter 13 plan where it may take five years for the debt to be paid off.
A Minnesota Bankruptcy Lawyer Can Help
Paying your taxes each year is something that we all have to do. However, it is quite easy to make a mistake on your return or estimate incorrectly. If you do owe more money than you have budgeted for, then you could be looking at a debt management problem. If the debt is simply becoming too much, then there are options for you. For more information on filing for bankruptcy and tax discharge, contact experienced Minnesota bankruptcy lawyer Brea Buettner-Stanchfield. You can do so by filling out the form on the side of the page or contacting the Buettner Law Group, LLC at 612-377-5311.