Discharging Tax Debt Through Bankruptcy
Some back taxes can be eliminated in bankruptcy. Even if your tax debt cannot be discharged outright, Chapter 13 bankruptcy can allow you to pay past due taxes over time without interest.
The experienced attorneys of Simon, Fitzgerald, Cooke, Reed and Welch can determine if your tax debts are dischargeable in bankruptcy, and help you defer those tax obligations to get the IRS or Louisiana Department of Revenue off your back. The Louisiana Department of Revenue and the IRS are subject to the automatic stay and must stop all collection efforts while the stay remains in effect.
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Taxes In Your Louisiana Bankruptcy
Federal and state income taxes are normally not discharged in bankruptcy. Neither are local property taxes and assessments. However, some income taxes more than three years old can be eliminated, if your tax returns were properly filed at the time or at least two years ago. Our lawyers will have to closely examine the facts of your case to identify which taxes, if any, you could discharge.
If it turns out the tax debt is not dischargeable it can nevertheless be paid over time in a Chapter 13 repayment plan, without the mounting penalties and interest that would otherwise apply.
When you file for bankruptcy, all creditor actions are halted, including tax levies against your property or wage garnishment by state or federal authorities. Filing for bankruptcy also eliminates other dischargeable debts, leaving you more money to pay outstanding tax debts.