How Chapter 13 Can Help With your Tax Debt

by DeLadurantey Law Office, LLC on November 3, 2014

TaxesIf you are past due on your taxes, filing a Chapter 13 bankruptcy may be a good option to consider. No two cases are identical, so it is important to consider the type of debts you have and how Chapter 13 will help you manage your finances. There are different types of tax debts (non-priority and priority taxes) and we can help you understand if any of it can be discharged or eliminated in your filing.

If your taxes are classified as non-priority debt, they may be paid under your Chapter 13 plan with your other unsecured debts. It is possible the entire amount of the tax debt is not eligible for discharge and you may be required to pay a certain amount of what is owed.

What are the factors that must be considered? Below are a few examples:

  • The debt at issue is related to federal and/or state income taxes
  • You are at least three years (including extensions) delinquent on your tax debt
  • You have filed the tax returns related to the tax debt within the last two years
  • The Internal Revenue Service has evaluated or accessed the tax within 240 days of your bankruptcy filing
  • You are not guilty of fraud or evading taxes

If your tax debt is classified as a priority obligation, we can help you handle it through your Chapter 13 plan based upon your ability to repay it.

If you are considering filing a personal bankruptcy, let us help you determine how it can assist you with your past due taxes. Call us today to schedule an appointment.

The “defender of the little guy,” DeLadurantey Law Office, LLC. handles student loan debt and bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications.   Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.

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