Income Tax Debt

Napa and Santa Rosa Bankruptcy Attorney Ellyn M. Lazar Can Help

Photo of income taxes
If you owe delinquent income taxes, filing for bankruptcy may be the answer to your tax problems. Filing for bankruptcy will stop collection actions such as wage garnishments and bank levies. You may even be able to discharge (eliminate) certain tax obligations. Napa and Santa Rosa bankruptcy attorney Ellyn M. Lazar has been helping her clients find relief from income tax debt for nearly 30 years. She will review the facts of your unique financial situation and answer your specific bankruptcy questions regarding your income tax debt.

Discharging or Eliminating Your Income Tax Debt

Some income tax debt is dischargeable in a personal bankruptcy. This means that the bankruptcy will “wipe out” or eliminate your obligation to repay the income tax debt. Delinquent income taxes, penalties and interest may be discharged if:

  • The income tax return was due (including extensions) more than three years prior to filing  bankruptcy
  • The income tax return was filed more than two years prior to filing bankruptcy
  • The income tax liability was assessed more than 240 days prior to filing bankruptcy
  • An income tax lien has not been recorded
  • You have not committed tax fraud or willful tax evasion

Certain events, such as a prior bankruptcy or an offer and compromise, may extend the above time periods.

If your income tax debt meets the above criteria, you will be able to discharge or eliminate the income tax debt in either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.

Paying Delinquent Taxes in Chapter 13

Not all income tax debt will meet the requirements for a bankruptcy discharge. If your income taxes are nondischargeable, a Chapter 13 bankruptcy can provide a solution to your income tax problem. In a Chapter 13 bankruptcy, you may pay your delinquent income taxes, penalties and interest in a Chapter 13 payment plan over a three to five year period. Additionally, a Chapter 13 bankruptcy will stop all further income tax interest and penalties from accruing during the pendency of your case.

To find out how bankruptcy can help you with your income tax debt, contact Santa Rosa and Napa bankruptcy lawyer Ellyn M. Lazar today for a free confidential consultation.

Freedom From Debt with the Service You Deserve – Contact Santa Rosa and Napa Bankruptcy Lawyer Ellyn M. Lazar to Schedule a Free Confidential Consultation

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