Plano Income Tax Relief Attorneys
Is Chapter 13 Bankruptcy the Solution to IRS Tax Debt?
Yes! In a Chapter 13 bankruptcy, we can help you pay back any non-dischargeable IRS debt at 0% interest over a five (5) year period through a "Wage-Earner's Plan." That is a huge advantage to you if you have a large outstanding unsecured IRS obligation. It will stop all penalties and interest from further accrual!
For example, if you owe $20,000 to the IRS and they are charging you almost 20% APR interest, that is $4,000/year — or roughly $330/month that you are being charged in interest alone. However, if you file a Chapter 13 bankruptcy and pay the IRS through the Chapter 13 plan, you can pay that $20,000 back over the next five years at 0% interest. What that means is that you will pay back the IRS at approximately $333/month over a five year period, and all of that will go toward the principal balance, not interest.
Rather than being charged thousands of your hard earned dollars in interest, having your wages garnished, or having a lien filed against your property -- including your homestead — you can usually pay back IRS tax debt at 0% interest through a Chapter 13 Plan.
Sometimes Income Taxes are Dischargeable
It has been our experience that problems will arise unless you deal directly with the IRS from the outset. If your tax returns have been on file for more than three years, and your case happens to fall within the exception of the general rule that taxes are not dischargeable, then it is important to specifically notify the IRS that the taxes have been discharged. Otherwise, the IRS typically takes the position that they were never discharged.
If you owe the IRS for income taxes and all your prior years' tax returns have been on file and assessed for more than three years, and if the IRS has not filed a lien against your property that is secured by equity, then your case falls within the exception and the taxes are dischargeable!
Accordingly, our attorneys may be able to assist you in discharging the taxes through an adversarial proceeding if you are in a Chapter 7 bankruptcy and obtaining a federal court order advising the IRS that your taxes have been discharged. If your case falls within the general rule and you are in a Chapter 13 bankruptcy, then the taxes should be discharged through the bankruptcy. If the amount of your potential tax liability is substantial, then we can assist you in filing this action against the IRS to obtain such a specific order.
Contact Pelley Law Office, L.L.P. Today
We invite you to call Pelley Law Office, L.L.P. at 972-608-0335 or 903-813-4778 to schedule a free confidential consultation with an experienced bankruptcy lawyer. We represent people throughout North Texas. You can also contact us by e-mail now to request an appointment to discuss your options. You will be under no obligation to hire us. We look forward to speaking with you and explaining how we can help.
Please view our Bankruptcy FAQs to learn more about our practice.
