Whether you have tax debt, unpaid student loans or medical bills, filing for bankruptcy will have an impact on your taxes. At The Law Offices of Brian Schellenberg, we help central Indiana individuals and businesses — from our two offices in Greenwood and Noblesville — come up with plans for their tax debt. If you decide to go through the bankruptcy process, our lawyers will make sure you are prepared for the tax consequences.
Can You Discharge Tax Debt in Bankruptcy?
If you are trying to pay everyone and everything back at once, you will never catch up with your debt. That is why filing for bankruptcy makes sense for many people.
While you may be behind on a lot of payments, taxes should be your priority. A tax repayment plan from an offer in compromise can include interest and penalties that make it quite costly. By filing for Chapter 13 bankruptcy, you can come up with a plan that covers your entire debt:
A variety of back taxes can be discharged through bankruptcy, as long as certain rules are followed. The IRS will not tell you that you can deal with tax debt through Chapter 13 bankruptcy, but our attorneys can help you find solutions.
- Certain tax debts, such as withholding tax and unpaid sales tax, cannot be discharged. They can, however, by repaid through Chapter 13 bankruptcy. Some income tax is dischargeable, but not all. We will take a look at your debt and help you determine what you can discharge.
Resolving Your Tax Debt
If you have tax and other debts, Chapter 7 will help you find some solutions, but Chapter 13 will help you pay off your taxes without interest, late fees or penalties. People can save thousands of dollars a year by paying off their overdue taxes through Chapter 13.
Without a Chapter 13 bankruptcy repayment plan, an offer in compromise to the IRS may be necessary, which could cost you money. If you owe $18,000 in taxes and you pay $400 a month, you could end up paying over $24,000 due to interest in your offer in compromise.
Free Consultation ~ Call Now
Filing for bankruptcy can save you money, especially if you have heavy tax debt. From our two offices, we help individuals and businesses throughout central Indiana get the tax debt relief they deserve. Call 317-773-4300 in Noblesville or 317-884-5080 in Greenwood, or contact us online today to schedule your free initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.