Taxes are not usually dischargeable in Bay City bankruptcy.
There are exceptions to this rule, though. With bankruptcy, there is a chance that you get interest, back taxes, and fines back. You will need to meet the IRS requirements for tax remission on unpaid back taxes. Let one of the professionals at Kostopoulos and Associates help you understand your options for IRS tax debt forgiveness.
You have to meet these three standards to get IRS tax forgiveness:
- Tax debts need to be reviewed by the IRS at least 240 days before filing for bankruptcy.
- Your tax returns regarding the debt must be on file for at least two years.
- The debt forgiveness tax you owe the IRS must be at least three years old.
If you do meet these standards, then you might be able to file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy. Once you file for Chapter 7 or other bankruptcy, creditors have to stop trying to collect from you. Usually, your debt will be forgiven within 90 days of the beginning of your lawsuit. Once obligations have been dismissed, the IRS tax debt forgiveness program will continue to pursue collection.
With the automatic stay protecting you, you’ll be able to set up a repayment plan for any debts that won’t be dismissed. With Chapter 13 bankruptcy, you will be able to consolidate your debts and pay back creditors in smaller amounts. You may even have some of your debts discharged with Chapter 13 bankruptcy.
Contact Detroit Bankruptcy Law to schedule a free consultation with one of our expert attorneys!
We use our expertise and board certifications to provide representation for all of Southeat Michigan at Detroit Bankruptcy Law. We are here to help you through your financial issues. Things like wage garnishments, resolving tax liens, or payroll tax deferral forgiveness. Get in touch now to learn more about tax forgiveness and the options you have available.