CAN BANKRUPTCY HELP WITH BACK TAXES?

The filing deadline for 2020 tax returns is approaching and many filers fear a looming tax bill after a difficult year for many American households. Many people who may normally not find themselves owing taxes at the end of the year may have reason for concern when filing their tax returns in 2021. Some households reduced their tax withholdings in order to afford basic living expenses during the pandemic; while many were unemployed for the very first time and may not be aware that their benefits are taxable, while others had to rely on withdrawals from their retirement to get by.

If you receive a tax bill it may be a good idea to consider filing for Chapter 13 bankruptcy to restructure your tax liabilities and other debts you owe into a 60-month payment that may allow you to discharge at least some of your unsecured debts, such as credit cards, personal loans, medical debt and more. For taxes owed from previous years, it is possible that these debts can be completely discharged by filing for bankruptcy; however, they must meet several criteria in order to qualify for a discharge.

Did you file your taxes and receive a bill or do you expect one when you file this month? Do you have older tax debts you would like to discharge? To see how we can help you today, please feel free to reach out to your Stockton bankruptcy attorney at (209) 952-0355.