How to Discharge Your Tax Debts

There are many aspects involved in filing for bankruptcy. Many debtors are interested in their tax debts. Basically, eliminating them is not as easy as it seems. You should know that most of them can’t be wiped out when filing for bankruptcy. For example, if you choose Chapter 13, it is necessary to pay them off in full.

When thinking about filing your petition, you need to consult with a reliable attorney because he has a good point. You will be better equipped and prepared for all kinds of unexpected situations.

If you want to discharge your tax debts, filing for Chapter 7 is the most effective solution. Make sure that such debts qualify for this discharge and you are eligible to benefit from this financial tool. It is possible to achieve this goal only when certain requirements are met.

  • Non-income taxes. They may include anything from fraud penalties and payroll taxes, and you can’t eliminate them when filing for bankruptcy.a pile of money for debt discharge
  • No fraud and willful evasion. Filing fraud tax returns is a poor idea. You should never try to evade your tax payments if you don’t want to face serious legal issues. For example, it is not allowed to use a false social security number when filing tax returns.
  • Your debts should be older than 3 years. When trying to get rid of your tax debts, they should be at least 3 years old, or you won’t be able to do it.
  • Your tax returns should be filed properly. This step should be taken at least 2 years before filing your bankruptcy petition.
  • Passing the necessary 240-days rule. Your tax debts must be assessed by the IRS 240 days before filing your bankruptcy petition. Or they may not be assessed at all.

In conclusion, you need to understand that you are not able to discharge federal tax liens. There are other things that should be taken into account when filing for Chapter 7 bankruptcy. You should consider them if you want to get the most out of this credit solution. Don’t refuse from the services of qualified lawyers because you should not be left alone when dealing with complicated procedures. The best part is that their legal help is quite affordable. Compare the fees asked by local legal professionals to get a better idea of possible expenses. You risk losing much more when trying to handle your bankruptcy case on your own.