Some attorneys will tell you that IRS debt is not dischargeable because they do not want to take the time to explain that in some cases, IRS debt is dischargeable. Most people assume that they cannot get rid of their IRS debt in bankruptcy because the Bankruptcy Code provides that debtors cannot discharge tax debt except under certain circumstances. In fact, some less experienced bankruptcy attorneys may not even understand or be aware of the exceptions provided for within the Bankruptcy Code.
This is the reason you want an experienced South Jersey bankruptcy attorney to handle your case — experience counts. Bankruptcy is a very specialized field; therefore, you need an attorney who limits his practice to bankruptcy and has years of experience helping individuals just like you get rid of their debts.
How to Discharge IRS Debt Through Bankruptcy
Yes, most IRS debt is not dischargeable through bankruptcy because it does not fall within the exceptions set forth in the Bankruptcy Code. However, if your IRS debt does fall within the prescribed exceptions, you can get rid of your IRS debt along with your other unsecured debts by filing a bankruptcy case.
In order to discharge IRS debt, the following requirements must be met:
- The IRS debt (your income taxes) must have become due at least three years prior to the filing of your bankruptcy petition.
- You must have filed the tax returns at least two years prior to filing your bankruptcy petition.
- It must have been at least 240 days since the taxes were assessed by the IRS.
If you meet all of the above requirements, you may be able to discharge your IRS debt; however, you need to consult with a bankruptcy attorney experienced in handling IRS debts.
The one thing to remember is that an IRS tax lien will not be released even though the underlying IRS debt may be discharged. In other words, if the IRS filed a lien against your property and you meet all three requirements for discharging the IRS debt, the debt may be discharged but the lien will remain against your property. Before filing a bankruptcy to discharge IRS debt, you should discuss all of your options with a qualified bankruptcy attorney.
Schedule a Free Consultation with an Experienced South Jersey Bankruptcy Attorney
I focus my law practice on bankruptcy, debt consolidation and credit repair. It is my desire to help you find an affordable solution for your debt problems. I offer free bankruptcy consultations so that you can get answers to all of your bankruptcy questions.
Bankruptcy offers affordable solutions for solving your debt problems. I will help you find the bankruptcy or non-bankruptcy alternative that is right for your financial needs.
If you are having problems with debt collectors in Burlington County or anywhere in Southern New Jersey, call The Law Office of Travis J. Richards, LLC in Mount Holly at 609-267-5297 or use our convenient online contact form to schedule an appointment today.