Relieve Your Stress About Bankruptcy

Close-up of a bankruptcy petition

Next to debt, filing for bankruptcy can cause equal anxiety and fear. Even so, the idea that you have a possible solution gives you an amount of hope.

First things first

Like a medical diagnosis, another opinion can help. Talking with an attorney can relieve some of your stress related to bankruptcy.

A legal professional will present you with options that help you make your decision. And speaking of options, you have two when considering bankruptcy.

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Income Taxes can be Discharged in Bankruptcy

Most people do not know they can discharge debts for federal income taxes in a Chapter 7 bankruptcy, however there are exceptions. If all of the following conditions are met, income taxes may be discharged: 1. The taxes are from unpaid income taxes from filed tax returns. You must have filed a tax return for the debt you wish to discharge at least two years before filing for bankruptcy. 2. You did not commit fraud or willful evasion. If you filed a fraudulent tax return or otherwise willfully attempted to evade paying taxes, bankruptcy can’t help. 3. The debt is at least three years old. To eliminate a tax debt, the tax return must have been originally due at least three years before you filed for bankruptcy. 4. You pass the “240-day rule.” The income tax debt must have been assessed by the IRS at least 240 days before you file your bankruptcy petition.

At the Law Offices of Michael H. Raichelson, we can analyze if you are a good candidate for bankruptcy and/or if your taxes are dischargeable in bankruptcy.