Tax debt can quickly become one of the most stressful financial challenges for individuals, families, and businesses. Between IRS collection efforts, penalties, and interest, what starts as an unpaid balance can spiral into a nearly insurmountable burden.

The good news: bankruptcy can be a powerful way to eliminate or restructure tax debt, stop IRS collection actions, and provide a path to financial relief. At the Law Office of Paul L. Urich, P.A., in Orlando, Florida, we’ve helped thousands of people since 1998 find solutions to overwhelming debt—including tax obligations.

Which Tax Debts Can Be Discharged Through Bankruptcy?

Not all tax debt is dischargeable, but under the right circumstances, both Chapter 7 and Chapter 13 bankruptcy can help. To qualify, certain conditions must be met:

• The tax debt must be at least three years old.
• You must have filed the relevant tax return at least two years before filing bankruptcy.
• The tax assessment must have occurred at least 240 days before filing.
• You must not have been involved in tax evasion or tax fraud.

If these requirements are satisfied, federal or state tax debt may be fully discharged, giving you a clean slate and relief from aggressive IRS collection tactics.

When Tax Debt Is Not Dischargeable

If your tax debts don’t meet the criteria for discharge, bankruptcy may still provide meaningful relief. Options may include:

• Creating a manageable repayment plan through Chapter 13, often with lower interest rates than the IRS would charge.
• Reducing IRS penalties as part of the repayment process.
• Stopping IRS collection actions such as wage garnishment, bank levies, or even foreclosure proceedings on your property.

Even when full discharge isn’t possible, bankruptcy can help you regain control of your finances and protect your future.

Chapter 7 vs. Chapter 13 for Tax Debt

• Chapter 7 Bankruptcy: Best suited for individuals with limited income and few assets. If your tax debt qualifies as dischargeable, it may be wiped out completely in a Chapter 7 case.
• Chapter 13 Bankruptcy: Provides a repayment plan spread over 3–5 years. This option allows you to restructure tax debt, repay a portion over time, and stop interest and penalties from accumulating further.

Understanding which chapter best fits your situation can make the difference between temporary relief and lasting financial recovery.

Why Work With an Orlando Bankruptcy Attorney?

Tax debt involves strict rules and timelines. Missing a deadline or misinterpreting IRS requirements could mean the difference between full discharge and years of continued payments. With professional legal guidance, you can:

• Determine if your tax debt qualifies for discharge.
• Protect your property and wages from IRS collection actions.
• Build a strategy for long-term financial stability.

Take the First Step Toward Tax Debt Relief

At the Law Office of Paul L. Urich, P.A., we make it easy to explore your options. We offer free, no-obligation consultations to discuss whether bankruptcy can eliminate or restructure your tax debt. Since 1998, we’ve helped thousands of Floridians find debt relief—and we’re ready to help you understand your options today.

📞 Call 407-584-1735 to schedule your consultation, or visit us online: www.urichlaw.com