Managing IRS Taxes with the Help of a Bankruptcy Lawyer in Glendora CA: Chapter 13 Bankruptcy Solutions in California

Dealing with overwhelming debt is challenging, and when IRS taxes are involved, the stress can be even greater. If you’re considering bankruptcy as a way to manage your financial obligations, you might wonder if Chapter 13 bankruptcy can help discharge IRS taxes. For residents of California, understanding this process and knowing the requirements is crucial.

For personalized guidance, consulting a bankruptcy lawyer in Glendora CA can make all the difference. Contact Law Offices of Terrence Fantauzzi at (909) 552-1238 for a free legal consultation.

Can Chapter 13 Bankruptcy Discharge IRS Taxes?

Many assume that only consumer debts like credit cards and medical bills are dischargeable in bankruptcy, but IRS taxes can also be addressed under certain conditions. Chapter 13 bankruptcy allows for the reorganization of your debts and includes a repayment plan over three to five years. However, not all IRS taxes are dischargeable, and specific criteria must be met.

Factors Affecting Tax Debt Discharge in Bankruptcy

Several factors determine whether your IRS tax debt can be discharged through bankruptcy:

  1. Age of the Debt: The debt must be at least three years old.
  2. Assessment Date: The tax must have been assessed at least 240 days before filing for bankruptcy.
  3. Tax Returns: You must have filed your tax returns for at least two years before filing for bankruptcy.
  4. Fraud and Evasion: You must not have committed any fraud or evasion related to the tax debt.

Meeting these conditions does not automatically guarantee discharge, but it significantly increases the likelihood.

Understanding Dischargeable Debt

When a debt is dischargeable, it means you are no longer responsible for paying it once the bankruptcy case is concluded. If your IRS tax debt is discharged, the IRS cannot take any further action to collect that debt. This protection is vital for individuals struggling with large tax burdens. Other common dischargeable debts include personal loans, medical bills, credit card debts, and utility bills.

Limits of Dischargeable Tax Debt

It’s important to note that not all tax debts are dischargeable. For instance, payroll taxes and other types of tax obligations typically cannot be discharged. Specifically, for federal income tax to be dischargeable, the following conditions must be met:

  • No fraud or tax evasion was committed.
  • Tax returns were filed at least two years before filing for bankruptcy.
  • The tax debt is at least three years old.
  • The tax was assessed at least 240 days before filing for bankruptcy.

Why Professional Guidance is Crucial

Navigating the complexities of bankruptcy and tax discharge requires expert knowledge. A single mistake can prevent you from discharging your IRS tax debt. Therefore, it’s essential to work with a knowledgeable bankruptcy lawyer in Glendora CA who can guide you through the process.

Seeking Help from a Bankruptcy Lawyer in Glendora CA

If you’re struggling with back taxes and considering bankruptcy, reaching out to Law Offices of Terrence Fantauzzi at (909) 552-1238 is a smart move. During your free bankruptcy consultation, a skilled attorney will assess your situation and provide personalized advice on the best course of action. They can help you understand your rights, the intricacies of bankruptcy law, and how to navigate your case to achieve the best possible outcome.

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