It’s a total myth that a properly executed bankruptcy cannot provide relief from an individual’s income tax liabilities. In fact, a chapter 7 bankruptcy can greatly assist with income tax problems in certain limited situations.
Let’s explore below how a bankruptcy can discharge (wipe out) personal income tax liabilities in the following scenarios and situations:
As a good next step, you will want to assemble the proper tax information for your bankruptcy attorney to review. Visit the link below to the official IRS website where you can request a tax account transcript for the specific years for which you have income tax liabilities:
It is very important to understand that there are different kinds of tax transcripts and the particular type that will be most useful when consulting with a bankruptcy attorney is a tax account transcript and NOT a tax return transcript.
A tax account transcript can provide important information for your bankruptcy attorney to review and see whether or not you are a candidate for protection from the IRS.
The information that we have shared in this blog post is general in nature and is not intended to constitute legal advice or act as a substitute for professional legal advice. You must have your specific bankruptcy and tax situation carefully analyzed by an experienced bankruptcy attorney.Contact the bankruptcy experts at Gold, Lange & Majoros, P.C. or call (248) 350-8220 for a confidential review of your situation and how we can best help you.
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People often think that chapter 7 cases are easy, straight forward and uncomplicated. It’s easy, right? An attorney just buys a computer software bankruptcy program, inputs some information, files the case, goes to the 341 hearing and then waits for the discharge order. While I certainly don’t turn down simple cases, I do come across […]