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.

Since 1972, LeavenLaw has helped clients throughout Florida fight to move forward from difficult financial circumstances to a secure future. Our attorneys have decades of collective experience and can help you determine the best option for your situation. We are passionate about providing our clients with the information and tools they need to see success. We offer free case evaluations to get you started off on the right foot!

A St. Petersburg bankruptcy lawyer from LeavenLaw 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.

What Tax Debt Can Be Discharged?

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.

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

If you think these factors might apply in your situation, discuss your circumstances with an experienced attorney from LeavenLaw! We can help you evaluate your options and move forward in a direction that secures the best possible outcome on your behalf.

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!