Boca Raton Bankruptcy & Taxes Lawyer
Keeping current on taxes is a major problem for many Florida families. Unlike other unsecured debts, such as credit card bills, most tax debt cannot simply be discharged via bankruptcy. But that does not mean the bankruptcy process cannot help you. For one thing, bankruptcy can allow you to discharge other debts, leaving more money for you to repay your tax bill. And in other cases you can actually use bankruptcy to negotiate a repayment plan that will help you get out of tax debt within a few years.
The experienced Boca Raton bankruptcy & taxes lawyers at Nowack & Olson can assist you in dealing with your financial problems. We will work to ensure the best possible outcome for your bankruptcy filing. Even if we cannot promise to eliminate your tax debts, we can help put you on a more sound financial footing going forward.
Dealing with Taxes Under Chapter 7 and Chapter 13
It actually is possible to discharge some income tax debts via Chapter 7 bankruptcy. But there are very strict requirements. For instance, the tax owed must be from a return that was due at least three years prior to your bankruptcy filing. In other words, if you filed a tax return that was due in 2015, you may be able to discharge that debt if you file for bankruptcy in 2018 or later. The return itself must have been filed at least two years earlier, and the IRS must have assessed the tax at least 240 days (8 months) before you seek Chapter 7 protection. Also note that you can only seek discharge of income taxes under Chapter 7, and filing for bankruptcy will not eliminate a pre-existing tax lien against your property.
If you are unable to discharge your tax debts–and this will be the case for most debtors–you can still get help under Chapter 13. Unlike Chapter 7, in a Chapter 13 bankruptcy you need to file a repayment plan for your outstanding debts. Tax debts are generally considered a “priority” debt, so you must still repay them in full. But a successful Chapter 13 repayment plan can give you up to five years to do so. This not only gives you greater flexibility, it also allows you to keep your home and other property.
Nowack & Olson Can Help You Move Past Your Tax Debts
Of course, income taxes are not the only potential source of debt. Depending on your financial situation, you may also owe uncollected trust fund taxes, sales taxes, property taxes, and other levies that are not dischargeable in bankruptcy. Whatever your situation, the attorneys at Nowack & Olson can help.
Our firm is dedicated to helping debtors get back on their feet. We understand that people fall behind on their taxes for a host of reasons. Our role is not to judge or criticize your past financial mistakes. It is to set you up for a better future. Call our Boca Raton bankruptcy and taxes lawyers today at 305-698-2265 or 888-813-4737 to schedule an initial consultation so we can learn more about your situation.