Tax Debt & Bankruptcy

Team up With a St. Petersburg Bankruptcy Lawyer

Although considered a "secured" debt and therefore most often unable to be discharged with bankruptcy, there are situations where you may be able to effectively eliminate your tax debt with Chapter 7 or Chapter 13 bankruptcy. However, this will vary depending on your particular situation, whether you file a Chapter 7 or Chapter 13 case, and the age and type of taxes involved. A St. Petersburg bankruptcy lawyer can explain how your tax debt may be affected by bankruptcy and can offer you a free initial consultation to discuss how we can help you with this important matter.

Facing past due taxes is a difficult situation to be in. Not only is it difficult from a financial standpoint, but it may lead to a great deal of stress and trouble for the debtor. Bankruptcy can offer a debtor relief from two different standpoints. First, it may allow a debtor to actually discharge certain tax debt, although there are strict regulations in this regard. Second, freeing up all other unsecured debt or working out a repayment plan may free up a debtor to make regular payments to his or her tax debt.

What Tax Debt Can Be Discharged?

There are several main factors that will come into play in regard to what income tax debt can be discharged with bankruptcy:

  • The due date for filing the return was at least three years ago
  • The tax return was filed at least two years ago
  • The tax assessment is at least 240 days old
  • The return was not fraudulent
  • You are not guilty of having attempted or carried out tax evasion

Get help in eliminating tax debt from a St. Petersburg bankruptcy lawyer at LeavenLaw We represent clients throughout Florida from our offices in St. Petersburg, Clearwater, Sarasota and Tampa. Call us today!