Being in tax arrears may be quite difficult. You likely find it difficult to keep up with the financial strain that your back taxes have put on you. You can get rid of or lessen some sorts of tax obligations with assistance from a best bankruptcy attorney in Ontario CA. How? Read on.
Paying off income tax debts
The simplest tax debts to pay off are state and federal income tax debts. If you qualify for a Chapter 7 bankruptcy, you may be able to utilize it to discharge your unpaid taxes as long as they relate to a return that was filed at least two years ago and that was due at least three years ago.
When you meet with the best bankruptcy attorney in Ontario CA, be careful to include copies of your tax records so that they can correctly determine if you qualify to discharge income tax bills under Chapter 7.
Managing additional tax debts
It might be more challenging to find relief from tax debts that are unrelated to income. Even if you cannot totally discharge these taxes, filing for Chapter 13 bankruptcy will stop the IRS from trying to collect them.
With Chapter 13, a judge can design a single payment schedule that you can use to pay off all of your obligations over the course of three to five years. The IRS won’t be able to impose any further interest fees or penalties based on your unpaid taxes during this time. Additionally, they won’t be allowed to carry out actions like salary garnishment or property seizures.
Real estate taxes
Older property taxes can be dischargeable, but those paid within a year of your bankruptcy petition are not eligible. The majority of counties will, however, place a lien on your home the next time your property taxes are due if you do this. If you ever sell your home, you will be obligated to pay off this debt. You may learn more about property taxes and get other tax-related bankruptcy questions answered by a best bankruptcy attorney in Ontario CA.
If you have questions about tax debts for the best bankruptcy attorney in Ontario CA, we invite you to contact Law Offices of Terrence Fantauzzi at (909) 552-1238 for help.