Florida Bankruptcy Exemptions Lawyer
The Law Office of Paul L. Urich practices exclusively in the area of Chapter 7 and Chapter 13 consumer bankruptcy law. Among the questions we receive every week, people often want to know whether their federal income tax or other types of tax debt can be included in their Chapter 7 or Chapter 13 bankruptcy filing.
Under certain conditions, old tax debt can be discharged in a Chapter 7 filing. These conditions include:
You must be at least three years past the due date for filing the federal tax return, including extensions. In short, the federal government wants to know that you have tried to work out every means possible to pay the debt. If you received a statement for taxes owed anytime in the recent past, you will probably not be able to discharge the debt through Chapter 7. Under Chapter 13, however, all tax debt can be included in the debt restructuring plan.
The tax assessment must be at least 240 days old. You will be required to show that the IRS assessed the tax debt at least eight months prior to your filing date.
Finally, you must also be able to show that the tax debt owed is not the result of a fraudulent tax return and that you have not been found guilty of purposeful evasion of the taxes owed.
Tax issues for bankruptcy filing can become complex. If your old tax debt has straddled you with unpayable debt, talk to an Orlando tax debt and bankruptcy attorney at the Law Office of Paul L. Urich to discuss your options. From our offices in Orlando, we represent clients seeking consumer bankruptcy protection and debt relief in communities throughout Central Florida. Contact us today.