Can Tax Debt Be Discharged?
There is a common misconception that if you owe income tax debt, it cannot be discharged after filing for Chapter 7 or Chapter 13 bankruptcy. This is not always true. Depending on your circumstances, you might be able to get it discharged.
I am San Mateo income tax debt attorney Kendall Coffman, and I have more than a decade of experience helping clients through the bankruptcy process. The subject of income tax debt is very convoluted. Factors that help determine whether the taxes are discharged include:
- Did you file your tax returns at least two years ago?
- Is the tax debt more than three years old?
- Were the taxes filed on time?
- Are the taxes accurate or was fraud involved?
If these and many other conditions are met, you might be able to use a Chapter 7 or Chapter 13 bankruptcy filing to discharge this debt in much the same way credit card debt is eliminated. Even if the debt is not discharged, you still have the opportunity to use Chapter 13 to pay the amount back over time in a payment plan.
There's Still Hope For Tax Debt Relief
Filing for bankruptcy can be frightening if you feel as if there is no one standing by your side. I am lawyer Kendall Coffman, and I have provided representation and guidance in bankruptcy filings for more than a decade. Contact my San Mateo, California, office either online or by calling 866-899-8561. I offer a free 45-minute consultation. Contact me to schedule an appointment.