bankruptcy taxes owed

bankruptcy taxes owed

"Perish the very thought of" you say, but it is often all you can do to get tax relief. Perhaps to facilitate the emotional shock, can think of bankruptcy, wipe, like other path from the clean sweep and a fresh start. Let's look at the details of filing for bankruptcy.

There are basically two types of bankruptcy: Chapter 7 or Chapter 13 Chapter 7 is a straight bankruptcy or liquidation. It allows a person to clear their obligations, so long as they are not non-dischargeable. The Most cases are not as "asset" cases because they owe those who are in a position to protect their assets. Chapter 13 includes the rehabilitation and restructuring of the debt from the taxpayer, which would enable them to protect their assets. To save them significant and important assets such as cars, houses and / or real estate from foreclosure and the process, debtors often Chapter 13 bankruptcy. Payment plans for a Chapter 13 are in the Typically 3 to 5 years and will prevent the accumulation of penalties and interest in these years.

Certain criteria must owe taxes for discharge be met to qualify under Chapter 7, otherwise there is no tax relief for the debtor. A few things need to exist are:

1. Tax returns have been more than two years ago was filed with the filing of bankruptcy

2. The liability was determined as 240 days before filing bankruptcy

3. The taxpayer did not attempt to defeat or avoid the tax and the tax due is not on a fraudulent tax return

4. The tax Unsecured

There are more criteria and to ensure that they are "fall" a check with a tax specialist is required.

Do you want to learn more about getting rid of your IRS and/or state tax problems? Visit us at our website for money-saving ideas and strategies.

Over the years N.F. Centeno and partners have helped thousands of people with their IRS and state tax problems.

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Tax Help : What Happens When You File Chapter 7 Bankruptcy?

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