Can Bankruptcy Solve My Tax Issues?

Yes, in some cases it can.

However, if you’re considering bankruptcy and have not filed a state or federal income tax return every year, the first thing to know is that a lot of other people and many businesses are in the same position you are. The second thing to know is that regardless of whether you owed taxes for those years or you expected a refund — these tax returns must be filed before you file for bankruptcy. If not, the court-appointed bankruptcy trustee may choose to dismiss your case right away.

At the Law Office of Ronald D. Cummings, we help people deal with tax issues, navigate the bankruptcy process and put themselves back on the path to financial peace of mind. As an attorney, Mr. Cummings has made bankruptcy the primary focus of his practice since 1987, and today provides bankruptcy-related legal services for people throughout Will County and the surrounding areas of northeast Illinois.

Contact us TODAY for a free consultation!

Can All of My Tax Debt Be Discharged?

Although it’s a great deal more complicated than this, you can generally discharge old tax debts in the bankruptcy process if those taxes are more than three years old and you filed a tax return for the year or years in question.

An additional benefit of using bankruptcy to deal with your tax issues comes from the automatic stay. While it won’t do anything to remove tax liens or prevent a tax authority from taking away a refund check — it puts an immediate stop to continued late penalties and interest charges. This alone can save you thousands of dollars — even if the tax debt itself is non-dischargeable.

Can I Settle My Tax Debt for Less Than What I Owe?

If the IRS agrees to it, absolutely, you can. Most people who do this choose to work with a professional debt negotiation or debt settlement service. Unfortunately, there are both reputable and disreputable organizations to choose from. If the nature of your financial situation makes this a legitimate option for obtaining meaningful debt relief, then we can help you make an informed choice about how to go about that and who to work with.

Free Bankruptcy Consultations ~ (815) 729-9212

To speak with an experienced lawyer about your financial situation and possible solutions to tax problems — call us for a free consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.