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Dealing With Tax Debts In Bankruptcy

When financial situations change significantly, it is not uncommon to see other financial aspects of your life become impacted as well. Your taxes are a prime example of this fact. Like many people, you may find it difficult to overcome an immense tax debt because its status often protects it from discharge in the bankruptcy process. Because of this, you may be forced to make difficult decisions about your debt, including paying your tax burden.

In most cases, auditors and other IRS professionals have very little incentive to work with tax payers to resolve difficult and confusing debt situations. Instead, they may leverage huge penalties against individuals, ranging from fines and property seizures to actual jail time, in an effort to get them to pay their tax burden.

The Difference Our Firm Makes

At Schwartz Bankruptcy Law Center, we understand how crucial it may be for someone to discharge their tax burden along with another debt in bankruptcy. Using our knowledge of the bankruptcy code, our firm helps individuals and families all over Kentucky and Indiana get the most out of their bankruptcy petitions. Our principal attorney, Richard A. Schwartz, has taught many seminars and continuing education courses for lawyers on the topic of discharging taxes in bankruptcy, and he is able to explain this process clearly to you as well.

How Can Bankruptcy Help With Personal Income Taxes?

Our firm uses the power of the bankruptcy code to help individuals facing difficult tax burdens find relief. We provide smart solutions such as:

  • Chapter 13 bankruptcy, which can incorporate tax debts into the repayment plan. This will give you three to five years to repay the debt. This repayment plan can, in some instances, stop the running of penalties and interest on the tax debt.
  • Chapter 7 bankruptcy, which can be used to discharge some taxes. Even though the analysis for determining which tax obligations are applicable in Chapter 7 petitions is complicated, we have over 38 years of experience doing so and will do so on an individual basis.

Contact Us

For help getting out of debt, call Schwartz Bankruptcy Law Center at our Louisville office (502-485-9200), our New Albany office (812-945-9200) or toll-free at 866-366-3328. You may also contact one of our bankruptcy attorneys using our online contact form. We are available evenings, weekends and for in-home appointments.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.