Taxes are not generally dischargeable in Pontiac bankruptcy.
You can get around this issue. If you file for bankruptcy, then you can discharge fines and back taxes. This is only possible if you qualify for the IRS standards on tax forgiveness on unpaid back taxes. The tax professionals at Kostopoulos Associates are here to help you figure if you are eligible for IRS tax debt forgiveness.
Here are the qualifications for discharging your tax debt through IRS tax debt forgiveness:
- Tax debts have to be reviewed by the IRS at least 240 days before filing for bankruptcy.
- Your tax returns for the debt must be on file for more than two years.
- The debt forgiveness tax you owe the IRS has to be at least three years old.
If you do meet the IRS tax debt forgiveness standards, you can file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy. All of these chapters can stop creditor collections with an automatic stay. Choosing Chapter 7 bankruptcy makes it likely that you can get your debts forgiven within 90 days of filing. The IRS tax forgiveness program can continue pursuing your debts once you have your obligations dismissed.
Note that you can’t always get every debt dismissed, but you can set up a payment plan for the leftover debts during your automatic stay. You can restructure your remaining debts to be paid off in smaller installments with Chapter 13 bankruptcy.
Contact Detroit Bankruptcy Law to set up a free consultation with one of our expert attorneys!
We are proud to advise clients throughout Southeast Michigan at Detroit Bankruptcy Law. With our combined experience and board certifications, we will offer you the best counsel around. This will help you stop wage garnishment, tax liens, and help you get payroll tax deferral forgiveness. Contact us today to learn more about getting tax forgiveness.