Many people who are struggling financially are unable to pay their taxes. Failing to pay your taxes can lead to financial penalties, which increases your debt even further. This endless cycle of tax debt can quickly get out of hand, but fortunately, help is available.
If you are unable to repay your tax debt, speak to the attorneys at Hammond Law Firm at once. With our help, you may be able to eliminate tax debt by filing for bankruptcy.
Most tax debts are not discharged in Chapter 7 bankruptcy, which means you are still obligated to pay them once your case has been closed. Income tax debt is the only type that can be eliminated by filing for Chapter 7 bankruptcy. However, income tax debt is only eliminated if it meets all of these conditions:
The rules regarding which tax debts can and cannot be discharged in Chapter 13 bankruptcy are complex.
Income taxes are classified as either priority or non-priority debts. You will have to repay priority debts in full, but there is no such requirement for non-priority debts. Income tax debt is considered a non-priority debt if it meets the following conditions:
If you are considering filing for Chapter 7 or 13 bankruptcy to eliminate tax debt, it's in your interest to contact the experienced attorneys at Hammond Law Firm at once. For decades, our attorneys have guided clients through the process of filing for bankruptcy and discharging their debts. Let us help you secure financial freedom. To schedule a free consultation, call Hammond Law Firm at 405-216-0007 or submit your information via the form on this website.