Being inundated by unpaid taxes can be a daunting experience. This is especially true when combined with other unrelated debts. But did you know that it is possible to clear yourself of those debts and have your personal taxes discharged through bankruptcy? Depending on your specific fiscal situation, filing for Chapter 7 or Chapter 13 bankruptcy can leave you debt free, granting you financial stability.
Are My Tax Debts Dischargeable?
There are several simple stipulations that need to be met in order to be eligible for tax relief through bankruptcy.
Your Taxes Were Filed
You must have properly filed your tax return pertaining to your tax debt within the two years before you filed for bankruptcy.
The Taxes Were Due Three or More Years Ago
The tax debt to be discharged in bankruptcy must pertain to your tax return which was due three or more years prior to filing for bankruptcy.
IRS Assessment Deadline
Your taxes must have been assessed by the IRS a minimum of 240 days before you filed for bankruptcy.
No Tax Evasion or Fraud
This goes without saying, but if you have been found guilty of tax fraud or tax evasion, you are not going to be eligible to discharge your tax debts through bankruptcy.
Adversary Proceeding
In order to legally declare your tax debt as dischargeable, our team of bankruptcy lawyers may file an adversary proceeding. This is essentially a lawsuit against the treasury through which we are able to get rid of your tax debts.
An Adversary Proceeding is Different From the Main Bankruptcy Case – The main bankruptcy case involves a debtor and the creditors of that debtor, and the main bankruptcy case has its own separate electronic docket and case number. An “Adversary Proceeding” in bankruptcy court has the same meaning as a lawsuit in other courts. This means that one or more “plaintiff(s)” file a “complaint” against one or more “defendant(s).” In many situations an adversary proceeding is required if a plaintiff wants to obtain a particular type of relief.
The Right Team of Bankruptcy Litigation Experts
Without the right lawyers by your side, filing for bankruptcy is prone to causing anxiety due to the uncertainty of your financial future. At Todd Cushner & Associates P.C., our team of experienced bankruptcy litigation experts will work with you every step of the way, helping to ensure a stress-free experience with a successful outcome. With sincerity and candor, we pride ourselves in giving each of our clients the undivided attention deserved. Contact us today for a free consultation and take your first step toward financial freedom.
