Serving Clients Throughout Atlanta, Georgia
One of the common questions we get at our firm is in regards to taxes and bankruptcy, and if our clients are able to discharge income taxes owed to the IRS in bankruptcy. In some situations this may be possible, however the subject is quite complicated and it depends on several different factors. The subjects of taxes and bankruptcy are complex and confusing dependent on each persons' individual situation.
Generally speaking, if the debt owed to the IRS is classified as general unsecured debt, then that debt can be discharged in bankruptcy. If you owe back taxes, you should consult with an Atlanta bankruptcy lawyer from Khoshnood Law Firm, P.C. to discuss your options.
If you are seeking advice for tax resolution purposes, there are a few factors to consider:
- Foreclosure: You may be able to discharge property taxes if you lose your home in foreclosure.
- Type of tax: Depending on the exact circumstance involved, some property and income taxes can be discharged.
- Age of tax: In some situations, taxes which are more than a few years old and meet specific criteria can be eliminated.
Chapter 13 Income Tax Repayment
In some circumstances, your taxes may not be dischargeable in the bankruptcy process. You may want to consider Chapter 13 as an option instead, as in a certain payment plan you may be able to repay income non-dischargeable taxes over a three to five years period. If you stick to the terms of your plan with the help of a skilled attorney from our firm, the taxes that are scheduled to be paid in your plan will be paid dollar for dollar.
Contact us to get more information directly from an Atlanta bankruptcy attorney.
Alleviating Fees & Fines on Your Taxes
During the time of your Chapter 13 payment plan, no fees or penalties can be added to the taxes you owe. Getting a break on these substantial fees can provide you with the time you need to pay back what you owe. Taxes and bankruptcy can be a complicated issue and you should speak with a professional from our team about your options.
Please call us now at (404) 978-4411 for more information or a free evaluation.