IRS Problems and Tax Debt

Bankruptcy can very often be the best way of addressing your IRS and tax debt problems.  Both Chapters of consumer bankruptcy (Chapter 13 and Chapter 7) offer benefits to dealing with your IRS tax debt concerns as well as any state tax debt issues wherein the same rules typically apply.

Getting rid of your tax debt through Chapter 7

Many people are unaware that tax debt can often be discharged in bankruptcy.  Discharge is the legal term used in bankruptcy to describe your debts being wiped out.  The filing of a Chapter 7 bankruptcy can often allow you to eliminate your tax debt along with other consumer or business-related debts all at the same time.  That being said, it’s important to contact an experienced attorney who has dealt with these types of issues as there are many rules about what debt can be discharged and what debt can’t. 

Filing a Chapter 13 to pay back your IRS tax debt

If your debt is not the type of tax debt that can be discharged in a Chapter 7 bankruptcy, Chapter 13 may be the next best thing.  The filing of a Chapter 13 lets you pay back your tax debt over a period of time up to 5 years. The penalty will cease to run on this debt while it is being paid through your Chapter 13 plan.  The Chapter 13 can allow you to make affordable monthly payments to the IRS, with the payments largely based on your ability to pay, that way the payments are affordable.

A firm that knows how to handle your IRS tax problems

Hoke Law Firm routinely handles both Chapter 7 and Chapter 13 filers who are looking to rid themselves of IRS tax debt.  We pride ourselves on providing customized solutions to our clients’ problems whether the solution involve he filing of a bankruptcy or some other type of tax workout, the team at Hoke Law Firm is ready to assist.