Taxes are not usually dischargeable in bankruptcy.
There are exceptions to the rule, however. If you were to file for Pontiac bankruptcy, you may get your fines, back taxes, and interest back. There are IRS standards to meet if you are going to qualify for tax forgiveness. The professionals at Kostopoulos Associates are your best resource for understanding these IRS standards.
Getting tax debt discharged due to IRS tax forgiveness Pontiac requires these three things:
- 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.
Do you meet these standards? If so, you can file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy in order to get IRS tax forgiveness. With bankruptcy filed, the automatic stay will keep creditors from trying to collect on your debts. Chances are your tax debt will be discharged within 90 days of filing your lawsuit. But, when your bankruptcy period ends the IRS tax forgiveness program can continue to pursue your debts.
With an automatic stay in effect, you’ll be able to structure a payment plan so you can pay off any non-discharged debts over time. Chapter 13 bankruptcy allows you to create a reasonable payment plan by consolidating your debts. Plus, Chapter 13 can even get your debts dismissed.
Contact Detroit Bankruptcy Law to schedule a free consultation
We serve all of Southeast Michigan at Detroit Bankruptcy Law. We have the depth of experience needed to help you regain financial control. We will help you figure out solutions to financial issues such as tax liens or wage garnishment. Call today to schedule a free consultation on resolving your tax debt.