Global Accountant Network

can you include tax debt in bankruptcy?

Typically, you can’t eliminate income tax liability by filing for Chapter 7 bankruptcy, but an exception exists. Chapter 7 can wipe out an obligation to pay income tax debt if:

  • the tax is old enough
  • you didn’t commit tax fraud
  • you meet all other rules imposed by your court jurisdiction, and
  • the taxing authority hasn’t put a lien on your property.

can you claim chapter 13 on your taxes

The court will only excuse a tax refund if you need to use it for something necessary and unexpected. Because the bankruptcy income and expense schedules you filed with your case showed that you can afford the Chapter 13 plan on your regular income and still support yourself and your dependents, you can’t excuse your tax refund to buy food, make your car payment, pay your utilities or anything else your regular income normally covers.

will bankruptcy erase irs debt?

Bankruptcy won’t wipe out prior recorded tax liens. Chapter 7 bankruptcy will wipe out your personal obligation to pay the qualifying tax and prevent the IRS from going after your bank account or wages.

how to file bankruptcy chapter 7?

  1. Analyze your debt. …
  2. Determine your property exemptions. …
  3. Make sure you are eligible. …
  4. Redeem or reaffirm secured debts. …
  5. Fill out the bankruptcy forms. …
  6. Take a credit counseling course. …
  7. File the forms. …
  8. Pay the filing fee or request a fee waiver.

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We have variety of services to assist your  tax concerns. We are connected to lots of professionals such as Attorneys, CPAs, and Bookkeepers who are expert with taxation. We will be happy to assist you solve your tax problems.

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