There is a saying that the only sure things in life are death and taxes. Unfortunately there are times when one’s taxes may go unpaid and debt to the IRS begins to pile on. This can leave the individual subject to wage garnishments and a debt that seemingly never goes down due to interest and penalties. Fortunately, the US bankruptcy code may provide relief for those who find themselves in such a situation. Our Las Vegas bankruptcy lawyer assists southern Nevada residents who are facing tax issues. If you are in need of assistance then contact our office today to speak with an attorney.
Lawyer helping Las Vegas residents determine whether income tax debt is dischargeable
Individuals can deal with federal income tax debt through either Chapter 7 or Chapter 13 bankruptcy. Some tax debt, such as property taxes, trust fund taxes, and payroll taxes, are non-dischargeable. Also, debt related to fraudulent tax practices will be non-dischargeable. In order to include income taxes in bankruptcy, one must have filed their taxes for the last four years, the return for the debt being discharged was filed at least two years before the bankruptcy filing, the tax return was due at least three years before the bankruptcy filing, and the IRS must have assessed the amount at least 240 days before the time the Petition is filed. If all of these conditions are met, then an individual may be able to have the tax debt reduced or completely eliminated.
The “bankruptcy means test” will determine whether one is filing for Chapter 7 or Chapter 13 bankruptcy. If an individual’s income is below a certain threshold then they may file for Chapter 7. If they are above the threshold limits then they must file for Chapter 13 (or Chapter 11 in some cases). The former is more likely to lead to the complete elimination of the income tax debt. The latter will result in the amount of income tax debt possibly being reduced or eliminated. If it is not eliminated completely then a Chapter 13 bankruptcy will likely result in a much more reasonable monthly payment. Neither of these approaches usually require an individual to completely liquidate all of their assets, as the use of bankruptcy exemptions allow individuals to retain a certain amount of property.
The process of filing for bankruptcy begins with the filing of a Petition. Once the Petition is filed then an automatic stay will immediately be put in place. This will stop all collection action being taken by the IRS as well as any other individual or entities. A Trustee will be charged with overseeing the liquidation of assets and payment of debts if the individual is filing Chapter 7. The tax debt may be completely eliminated after the process is completed, which typically takes roughly ninety days. If the matter is being brought under Chapter 13 a plan for the repayment of debts must be submitted and followed for a period of years. At the completion of the repayment plan, any remaining IRS debt may be eliminated. Errors in handling such matters can result in delays or even a dismissal of one’s Petition. Retaining an attorney to assist you can help prevent such problems.
Nikki Dupree-O’Brien is a bankruptcy lawyer helping Las Vegas residents understand if they are able to discharge tax debt and helping to take action in doing so. She will use your initial consultation to review your tax documents and notices received from the IRS. She will also assist you with determining whether you are eligible for Chapter 7 or whether you must file for Chapter 13 or other chapter. Our firm will quickly file your Petition so that the automatic stay goes into effect and we will represent throughout your matter. We understand that this is a serious time in your life and we will make your case a priority. Contact us today to get started.
Las Vegas attorney staying in regular communication with clients who are facing tax problems
Many lawyers fail to communicate with their clients. Our firm endeavors to be different in this regard. We will make sure that you know what to expect from the process as the matter progresses. Also, our lawyer will promptly respond to messages and will make sure that your questions are answered. Nikki is honored to serve the Las Vegas community and she, not an unknown associate, will be the attorney handling your matter. This high level of service is our promise in each and every case we handle.