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Taxes are not generally dischargeable in Mt. Clemens bankruptcy.

There is usually a loophole in any rule, however. If you were to file for bankruptcy, you may get fines and back taxes discharged. You do have to meet the IRS qualifications for tax remission on unpaid back taxes. The professional attorneys at Kostopoulos Law can guide you through dealing with IRS tax debt forgiveness.

These are the standards you must meet to discharge your tax debt through IRS tax debt forgiveness:

  1. Tax debts have to be reviewed by the IRS at least 240 days before filing for bankruptcy.
  2. Your tax returns for the debt must be on file for more than two years.
  3. The debt forgiveness tax you owe the IRS has to be at least three years old.

If you do qualify for IRS tax debt forgiveness, you can file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy. Any of these chapters will put a stop to creditor collections. With Chapter 7 bankruptcy, your debt is likely to be forgiven within 90 days after your lawsuit starts. The IRS tax forgiveness program can begin pursuing your debts again when your obligations have been dismissed.

For the debts that are not dismissed, you can set up a repayment plan during the automatic stay. In Chapter 13 bankruptcy, you are allowed to restructure your debt to pay it off in smaller installments. Also, in Chapter 13 bankruptcy some of your debts may be dismissed.

Contact Detroit Bankruptcy Law to set up a free consultation with one of our expert attorneys!

We represent Southeast Michigan at Detroit Bankruptcy Law. We can use our board certifications and years of experience to help you regain control of your finances. We will help you stop wage garnishment, tax liens, and can help get payroll tax deferral forgiveness. Get in touch now to learn more about your options for tax forgiveness.