Stop Tax Garnishments

BANKRUPTCY CAN ELIMINATE CERTAIN TAX DEBTS

The IRS and state revenue departments take back taxes very seriously. If you owe back taxes, you can’t ignore it indefinitely. Eventually, you’re going to have to pay and if you don’t do it voluntarily, the IRS or state will just take the money! They will levy your bank account or garnish your wages. If you have any property that you own free and clear that’s worth anything, they’ll seize, auction it off, and apply the net proceeds to the taxes you owe.

Filing Bankruptcy Can Stop Tax Garnishments and Levies
When you’re facing a tax garnishment or levy, it’s like facing a firing squad, especially if you’re living paycheck to paycheck and struggling to make ends meet. The last thing you need is for the IRS or state to garnish your wages or dip into your back account.

Filing bankruptcy stops the IRS and the state from taking any adverse action against you. The automatic stay which goes into effect the moment you file bankruptcy protects your paycheck and you bank accounts. The automatic stay stops the IRS and the state from calling you and writing to you. When you file bankruptcy, the interest and penalties stop accruing on the back taxes you owe.

This relief clears the way for you to address your financial problems without the worry that you’ll check your bank balance and it will be $1 even though yesterday it was $700. This relief eliminates the worry that IRS will swoop in and take your entire paycheck the day before your rent or mortgage payment is due.

And Bankruptcy Can Be Used to Wipe Out Certain Tax Debts

Although sales taxes and withholding taxes are not dischargeable in bankruptcy, income taxes are. However, certain criteria must be met in order to discharge income taxes. The bankruptcy attorneys at Bankruptcy Professionals can explain in detail how to discharge taxes, but below are the criteria:

· The taxes became due at least three years before you file bankruptcy;
· You filed the tax return at least two years before you filed bankruptcy;
· The IRS or state assessed the taxes at least 240 days before you filed bankruptcy or have not yet assessed them; and
· You did not commit tax fraud or tax evasion.

What Happens to Non-dischargeable Taxes?
You will be responsible for paying any non-dischargeable taxes. However, if you file a Chapter 13 bankruptcy, you can pay the taxes through your Chapter 13 plan and may be able to spread them out over as much as five years. This means that your monthly installment payments to the IRS or state through your Chapter 13 plan will be much less than if you had entered into an installment agreement outside of bankruptcy. And once you file bankruptcy, no more interest will accrue on the outstanding tax debt.

Every Case Is Different
Every bankruptcy case is different; therefore, you need to speak with a qualified bankruptcy attorney to find out whether bankruptcy will help you with your back taxes. The bankruptcy attorneys at Bankruptcy Professionals are well-versed in how the bankruptcy laws can be used to stop tax levies and garnishments. Moreover, each year we help thousands of clients wipe out back income taxes using the power of the Bankruptcy Code.

So, if you have questions about whether your back taxes can be eliminated by filing bankruptcy, give us a call. Our bankruptcy attorneys will gladly review your situation and explain your options to you.
BANKRUPTCY CAN ELIMINATE CERTAIN TAX DEBTS

The IRS and state revenue departments take back taxes very seriously. If you owe back taxes, you can’t ignore it indefinitely. Eventually, you’re going to have to pay and if you don’t do it voluntarily, the IRS or state will just take the money! They will levy your bank account or garnish your wages. If you have any property that you own free and clear that’s worth anything, they’ll seize, auction it off, and apply the net proceeds to the taxes you owe.

Filing Bankruptcy Can Stop Tax Garnishments and Levies
When you’re facing a tax garnishment or levy, it’s like facing a firing squad, especially if you’re living paycheck to paycheck and struggling to make ends meet. The last thing you need is for the IRS or state to garnish your wages or dip into your back account.

Filing bankruptcy stops the IRS and the state from taking any adverse action against you. The automatic stay which goes into effect the moment you file bankruptcy protects your paycheck and you bank accounts. The automatic stay stops the IRS and the state from calling you and writing to you. When you file bankruptcy, the interest and penalties stop accruing on the back taxes you owe.

This relief clears the way for you to address your financial problems without the worry that you’ll check your bank balance and it will be $1 even though yesterday it was $700. This relief eliminates the worry that IRS will swoop in and take your entire paycheck the day before your rent or mortgage payment is due.

And Bankruptcy Can Be Used to Wipe Out Certain Tax Debts
Although sales taxes and withholding taxes are not dischargeable in bankruptcy, income taxes are. However, certain criteria must be met in order to discharge income taxes. The bankruptcy attorneys at Bankruptcy Professionals can explain in detail how to discharge taxes, but below are the criteria:

· The taxes became due at least three years before you file bankruptcy;
· You filed the tax return at least two years before you filed bankruptcy;
· The IRS or state assessed the taxes at least 240 days before you filed bankruptcy or have not yet assessed them; and
· You did not commit tax fraud or tax evasion.

What Happens to Non-dischargeable Taxes?
You will be responsible for paying any non-dischargeable taxes. However, if you file a Chapter 13 bankruptcy, you can pay the taxes through your Chapter 13 plan and may be able to spread them out over as much as five years. This means that your monthly installment payments to the IRS or state through your Chapter 13 plan will be much less than if you had entered into an installment agreement outside of bankruptcy. And once you file bankruptcy, no more interest will accrue on the outstanding tax debt.

Every Case Is Different
Every bankruptcy case is different; therefore, you need to speak with a qualified bankruptcy attorney to find out whether bankruptcy will help you with your back taxes. The bankruptcy attorneys at Bankruptcy Professionals are well-versed in how the bankruptcy laws can be used to stop tax levies and garnishments. Moreover, each year we help thousands of clients wipe out back income taxes using the power of the Bankruptcy Code.

So, if you have questions about whether your back taxes can be eliminated by filing bankruptcy, give us a call. Our bankruptcy attorneys will gladly review your situation and explain your options to you.

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