For some people in Parker and Aurora, tax debt is a major factor in their financial issues. Usually, when listing debts that are not dischargeable through a Chapter 7 or Chapter 13 bankruptcy, tax debts are listed. However, there are some tax debts that can be included in a bankruptcy petition.
Income Tax Debt and Chapter 7 Bankruptcy Attorney: Is It Dischargeable in Centennial?
Recent income tax debt is not dischargeable through a Chapter 7 bankruptcy. But, some past due tax debts can be. Income tax debt can be discharged under the following circumstances:
The tax was due at least three years before the Chapter 7 bankruptcy petition was filed;
The petitioner filed the income tax return at least two years before filing the Chapter 7 bankruptcy petition;
The tax was calculated at least 240 days before the filing of the Chapter 7 bankruptcy.
Now, if you were granted any extensions or your taxes weren’t filed on time, this can really mess with the timelines provided above. Plus, even if all the deadlines are met, if there is any tax fraud or tax evasion, the court will deny the income tax discharge. If you are unsure about whether your income tax debt is eligible to be included on your Chapter 7 bankruptcy for possible discharge, call us today for your free consultation and expert opinion about your tax debt and bankruptcy options.
Tax Debt and Chapter 13 Bankruptcy in Arvada: Can I Include My Tax Debt in My Repayment Plan?
Some people with large amounts of tax debt include this debt on their Chapter 13 bankruptcy petition. Chapter 13 bankruptcy requires a repayment plan that lasts 3 to 5 years. The same criteria above applies – so any tax debts that do not meet this will need to be repaid in full. It can still be included in the plan, just with the understanding that those debts will need to be paid off 100% during the repayment period. The tax debt that is dischargeable will not need to be repaid in full and any remaining debt will be discharged at the end of the successfully completed repayment plan.
If you are dealing with tax debt and wondering if it can be discharged through bankruptcy, contact expert bankruptcy attorney Barry Arrington at 303-205-7870 to schedule a free consultation and begin your journey toward financial freedom.