Illinois Bankruptcy and Tax Debt Attorney- Rolling Meadows

Discharging Tax Debts in Bankruptcy

It’s a common misconception that all debt can be discharged in bankruptcy. While most debt can be discharged when you file for bankruptcy, tax debts are the hardest to get rid of and require the skill of an experienced tax debt and bankruptcy attorney.

Eliminating tax debt just because you filed for bankruptcy, is not as easy to do as many people think. In most situations, tax debt cannot be removed in bankruptcy. Even if you file for Chapter 7 bankruptcy, which wipes out the majority of all debt owed to creditors, taxes will still need to be paid at the end of a Chapter 7 Bankruptcy. The same is true when you file for Chapter 13, which is a scheduled repayment plan to pay off all your debt.

Still need to discharge tax debts? Then filing Chapter 7 bankruptcy may be your best option.

At Northwest Suburban Bankruptcy, we offer professional legal guidance in all matters relating to bankruptcy and tax debt concerns. For people who need tax debt relief through Chapter 7, we help you understand the process and all the qualifying conditions that need to be met in order for tax debt to be discarded. Some of the conditions for wiping out tax debt include the following:

  • Income Taxes Only: Payroll taxes and penalties for fraud cannot be wiped out.
  • Tax Debt is Three Years Old: Tax returns must show that they were due at least 3 years prior to filing for bankruptcy.
  • You Pass the “240-day rule”: Depending on when the IRS made an assessment on your income tax debt, it must be at least 240 days before you filed your bankruptcy petition.

Northwest Suburban Bankruptcy, located in Rolling Meadows, Illinois, can help you find other ways to eliminate tax debt if you qualify. See if you qualify today.

Contact Our Rolling Meadows Tax Debt Attorney

Contact a Northwest Suburban Bankruptcy attorney regarding any tax debt relief concerns you may have and how we can help you eliminate any debt through bankruptcy. Call our 24 hour answering service at 847-394-3200 to learn more.