Tax Debt and Bankruptcy Attorneys in Burlington County
Owing the IRS money
Being in debt is always an unpleasant experience, but it is especially intimidating when your debt is owed to the government. When you have tax debt, you may be up against the IRS and may owe the federal government money. These debts are never going to disappear, and the IRS is permitted to garnish your wages – taking money directly out of your paycheck – without court approval. The law even permits the IRS to place levies on your personal property, such as your home and car, to collect the tax debt you owe them.
In short, the IRS can and will use any means at its disposal to collect your tax debts. If you owe tax debt, it is undoubtedly in your best interest to have an experienced tax debt bankruptcy attorney by your side. The bankruptcy laws pertaining to tax debt are complicated, but the New Jersey bankruptcy lawyers at McDowell Posternock Apell & Detrick, PC can help you successfully file for and recover from bankruptcy caused by tax debts.
Do my tax debts qualify?
As if owing the government money wasn’t complicated enough, there are also restrictions on which tax debts can be discharged. Although some of your debts may be eliminated through Chapter 7 bankruptcy or restructured through Chapter 13 bankruptcy, other debts may remain after your bankruptcy process is complete.
To qualify for bankruptcy discharge, the following criteria must be met:
- The debt is from personal tax returns. – Income taxes can be discharged through bankruptcy, but any business-related tax debt cannot.
- The corresponding tax return was filed at least three years ago. – If your tax debt is less than three years old, it cannot be discharged, but a bankruptcy attorney can still advise you on the best course of action.
- The debt meets the so-called 240 day rule. – The tax debt must have been assessed at least 240 days prior to filing for bankruptcy.
- The debtor did not commit tax fraud or evasion. If the debtor has ever been notified or penalized by the IRS for incomplete tax returns, hiding taxable assets, or failing to file, these debts cannot be eliminated through bankruptcy.
The criteria to file for tax debt-related bankruptcy are complicated and enforced strictly, and only an experienced bankruptcy lawyer is capable of properly assessing your tax debt. Even if your tax debt doesn’t meet this criteria, a bankruptcy lawyer at McDowell Posternock Apell & Detrick, PC can help you stop collections for up to six months or negotiate an Offer in Compromise with the IRS, in which your debt may be settled for less than its full amount.
Why should I consider bankruptcy due to tax debt?
- The IRS has more legal power than typical creditors and can cause you the most harm.
- Filing for bankruptcy related to tax debt can help save your car, home, and overall livelihood.
- Learn the truth about bankruptcy and how it will impact your life.
- Get assistance rebuilding your financial credit.
Seek bankruptcy advice with a free phone consultation
Owing money to the IRS is quite possibly the scariest form of debt you can experience. If you owe the government tax debt, it is imperative you receive counsel from a knowledgeable bankruptcy attorney who can help you. Call the South Jersey bankruptcy attorneys at McDowell Posternock Apell & Detrick, PC today or fill out the contact form to schedule your free phone consultation and take the first step toward eradicating your tax debt.