• Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.

Chapter 13 Bankruptcy Non-priority Tax Debts

Chapter 13 Non-priority tax debtsBoth non-priority tax debts and priority tax debts are not normally discharged in case of a bankruptcy.  Chapter 13 provisions can make your debt a bit more manageable. Taxes can be discharged under a few circumstances in a Chapter 7 bankruptcy. In most cases, be it a Chapter 7, 11 or 13 bankruptcy, your taxes will have to be paid forward. There are some important things to consider about Chapter 13 Non-priority tax debts.

Chapter 13 Non-priority tax debts

There is a provision under which you can get your tax debts strewn in with your debt restructuring plan if your debts increase a certain amount. You will have to come to terms with the fact that it is not really possible to forgo tax debts. The debts will become part of your repayment plan that will have to be approved by the court. The repayment plan normally lasts between 3 to 5 years and within that time, you will have to pay your debts to the government.

If the court deems it a non-priority debt, then it will be lopped off and placed along with unsecured debts like your credit card debts, for example. Non-priority loans are normally paid last after all the secured loans and priority debts are done. Unsecured debts might be discharged or you might be required to only pay only a part of it. If taxes are part of the non-priority list, then they will have to be paid, even if a good part of the other loans are written off. Your taxes will be considered non-priority only if they are:

  • Income tax debt
  • Over 3 years old
  • Returns have been filed at least 2 years prior
  • Last tax assessment happened 240 days before filing
  • No case of fraud or willful tax evasion

All of the above criteria have to be fulfilled for it to be moved to a non-priority case. Tax debt can be tricky. If you have any questions or are considering Chapter 13 bankruptcy, contact a bankruptcy lawyer in Fairfield today.

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