Back Taxes and Bankruptcy
In some cases, those facing severe debts may file for bankruptcy in hopes of having their back taxes forgiven or at least drastically reduced. However, there are limitations to what bankruptcy can do to address these debts to the IRS. Some types of bankruptcy, such as Chapter 13 bankruptcy, may offer better options for dealing with back taxes as compared to Chapter 7 bankruptcy, depending on your exact situation.
If you’ve been thinking about filing for bankruptcy due to overwhelming debts, we may be able to help you begin the process of moving towards a debt-free future. For more information regarding your Florida bankruptcy options, contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 today.
How Bankruptcy Affects Back Taxes
For some debtors, back taxes owed to the IRS can pose a serious financial issue. The government works hard to get this money, potentially requiring wage garnishments or other such methods to secure the taxes you owe.
Bankruptcy may seem like the right solution to this issue, but a person should know how this legal action works first. Bankruptcy may be able to alleviate the struggles of owing back taxes in the following ways:
- Working to repay back taxes through a Chapter 13 repayment plan
- Preventing garnishment or other legal restrictions
- Discharging personal taxes through Chapter 7 bankruptcy
It is important to discuss your situation with a knowledgeable attorney to determine how filing for Florida bankruptcy will affect you and your back taxes.
If you’re considering bankruptcy as a way to guard yourself from aggressive debt collectors, we may be able to assist you with choosing the best type of bankruptcy for your needs and handling the filing process. To learn more about Florida bankruptcy benefits, contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, today at (239) 237-0675.