If you’ve fallen behind on your bills, you’re well aware that this is a severe problem. Consider the following extreme case: Sinbad, the actor, once filed for Chapter 7 bankruptcy to get out of a $11 million debt, $8 million of which was due to taxes. It’s unlikely that you’ll be hit with a $8 million tax bill, but if you owe more than you can afford to pay, it might as well be.
The good news is that you might be able to get aid from Rancho Cucamonga bankruptcy lawyer. Keep reading to learn more and then contact Law Offices of Terrence Fantauzzi at (909) 552-1238 to request a free legal consultation.
You might be eligible to get your state and federal income tax bills forgiven
If you owe state and/or federal income taxes, you’ll be relieved to learn that these are the most straightforward tax debts to resolve. Start by looking through the standards to see if you qualify for Chapter 7 bankruptcy. If you do, you can discharge income taxes under Chapter 7 – but only if they’re at least three years old and you’ve filed the return two years ago.
Bring your tax paperwork to your consultation with a Rancho Cucamonga bankruptcy lawyer. We’ll give you a free consultation and assess your circumstances in order to advise you on the best course of action.
What to do about other tax debts with the help of your Rancho Cucamonga bankruptcy lawyer
Dealing with tax arrears that aren’t tied to your income might be significantly more difficult. In most situations, you won’t be able to entirely erase these sorts of tax debts, but if you declare Chapter 13 bankruptcy, the IRS’s collection attempts will be halted. A court will create a payment plan for you to pay off your debts over the course of three to five years in this sort of bankruptcy.
The IRS is unable to collect interest or further penalties based on those past taxes while this is taking place. They’ll also have to cease pursuing other avenues, such as asset seizure or salary garnishment.
What options do you have when it comes to property taxes?
Any delinquent property taxes incurred within a calendar year of the date you enter bankruptcy will not be discharged. You may, however, be able to get rid of outdated property taxes. If you do, you’ll almost certainly wind up with a lien on your property, which you’ll have to pay if you ever sell it.
If you owe past taxes and would want more specialized guidance on your options, please contact a Rancho Cucamonga bankruptcy lawyer by calling Law Offices of Terrence Fantauzzi right now at (909) 552-1238.