There are many different areas of the bankruptcy that can be confusing for an individual. A lot of people thing that if they file for this type of debt relief that all of their debt is going to be wiped out and they will lose none of their assets.
Tax Debt Considerations
One common debt that a lot of people have is money owed on their taxes. There are two common types of bankruptcies that are available to individuals which is the Chapter 7 and Chapter 13. They both handle debt differently.
The automatic stay that is part of the bankruptcy laws can put a temporary stop to IRS action against your for your tax debt. There are different types of tax debts and these are viewed differently in bankruptcy.
One type of tax debt that might be relieved in a bankruptcy is an older income tax debt which was due to be paid three years ago, but there are some conditions that have to be met. IRS debt can be tricky and it should not just be assumed that this debt will be discharged. Nor should it be assumed that all tax debt is exempt from bankruptcy proceedings.
It is highly important that you discuss the type of IRS debt that you have and all of the details surrounding it with your New Albany bankruptcy lawyer. There are so many factor involved with this type of debt it really takes an experienced bankruptcy professional to determine what the outcome may be concerning it in a bankruptcy.