Miami Bankruptcy & Taxes Lawyer
Florida Bankruptcy & Taxes Lawyer Serving Clients in Miami
When you have a significant amount of consumer debt, you may be thinking about filing for bankruptcy. For individuals, couples, and small businesses alike, there are various types of bankruptcy protection that can meet your needs. However, it is important to recognize that bankruptcy law is extremely complicated, and not all debts are dischargeable. One of the more complex types of debt when it comes to bankruptcy is tax debt. Generally speaking, most tax debt is nondischargeable in a bankruptcy case. As such, most parties that are dealing largely with tax debt may not benefit from bankruptcy protection. At the same time, it is possible to discharge tax debt in some cases.
For most parties who are attempting to eliminate tax debt, Chapter 7 bankruptcy is the most effective way to discharge the debt, but filing for Chapter 13 bankruptcy can also allow you to repay tax debt over a longer period of time. It is extremely important to work with an experienced Miami bankruptcy & taxes lawyer if you are trying to discharge tax debt in your bankruptcy case.
When Can I Discharge Tax Debt in a Miami Bankruptcy?
The U.S. Bankruptcy Code has specific exceptions to discharge, and tax debt is often one of those exceptions. While it can be extremely difficult to discharge tax debt in a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, it is not always impossible. If the following conditions are all true in your case, you may be eligible to have your tax debt discharged by filing for bankruptcy:
- Your tax debt is for your income taxes (and not for payroll taxes for a small business or for a penalty of any sort);
- You did not willfully evade paying your taxes;
- You did not commit fraud or file a fraudulent income tax return;
- You incurred the tax debt at least three years prior to your bankruptcy filing;
- You filed the tax return for which the tax debt is owed at least two years prior to your bankruptcy filing; and
- The IRS assessed your tax debt at least 240 days prior to the date on which you file your bankruptcy petition.
Should I Choose Chapter 7 or Chapter 13 Bankruptcy to Discharge My Tax Debt in Miami?
If you are eligible to have your tax debts discharged, you may be wondering whether you should file for Chapter 7 or Chapter 13 bankruptcy. There are benefits to both types of bankruptcy.
On the one hand, if you want to get a fresh start and wipe out your tax debt as soon as possible, Chapter 7 bankruptcy may be the best option for you. On the other hand, if you want to retain certain property for which you have a secured debt, such as your home or your motor vehicle, Chapter 13 bankruptcy can allow you to continue making mortgage or car payments while also developing a longer term repayment plan for your tax debt.
A Miami Bankruptcy & Taxes Lawyer Can Help With Your Case
Do you have questions about discharging tax debt by filing for bankruptcy? An experienced Miami bankruptcy & tax lawyer can assist you today. Contact Nowack & Olson, PLLC for more information about our services.