Using Bankruptcy to Deal With Unpaid Taxes
Are you in trouble with the IRS for back taxes? Are state revenue authorities pursuing you? Are you being threatened with liens, levies and wage garnishment to collect your tax debt?
Although bankruptcy cannot discharge tax debt, filing may give you more time to catch up with unpaid taxes and may even eliminate certain tax debts. To find out more, contact us to schedule a free 30-minute consultation with experienced bankruptcy lawyer James A. Pixton at our offices in Oakland, Alameda and Modesto, California.
Stopping Oppressive Tax Enforcement
The bankruptcy system was created by the federal government, so it is probably not surprising that the government gave the IRS more rights than it gave private creditors. Most taxes, including federal income taxes, cannot be simply wiped out in bankruptcy the way that medical bills and credit card debt can.
Filing for bankruptcy can help steer you away from drastic IRS collection measures like tax liens, bank levies, wage garnishment and other serious tax enforcement consequences.
If you owe enough back taxes, the IRS and other tax authorities can place liens on your home, levy cash from your bank accounts and garnish your wages at much higher rates than private lenders.
Filing for Chapter 13 bankruptcy prevents tax liens, levies and garnishment and allows you to place your tax arrears (back taxes) on a three to five year payment plan, giving you more time to catch up.
Seeking Discharge of Some Tax Debts
While most taxes cannot be discharged in bankruptcy, there are some exceptions to this general rule. If you meet the right conditions and enough time has passed since you initially owed the taxes, it may be possible to at least partially wipe out your tax debts by filing for bankruptcy.
If you owe back taxes that you cannot afford to pay, contact us to have attorney James A. Pixton skillfully assess whether filing for bankruptcy will help you reduce your payment burden and avoid serious consequences like tax liens, levies and garnishment. We offer a free 30-minute consultation to discuss your tax debt.
