What Impact Does Filing For Bankruptcy Have on my Back Taxes?

 
First of all, if you are contemplating filing any form of bankruptcy it is imperative that you are up to date with filing all of your federal tax returns with the Internal Revenue Service and it is strongly recommended that you keep legible copies of all of your federal tax returns that have been filed.

Sometimes, the issue is that you have not been able to pay your federal, state or other tax debt. This is when a chapter 13 bankruptcy can really help you. In most cases, an individual can include to be paid in a chapter 13 plan all back tax debt that they have not been able to pay. There can be quite a few benefits to handling back tax debt in a chapter 13. The automatic stay that goes into effect immediately upon the filing of a Chapter 13 bankruptcy can stop the Internal Revenue Service from freezing future refunds that come due to you. (See my blog post from September 24, 2012 for more information on the automatic stay). An additional benefit of including and paying past due tax debt in a chapter 13 debt consolidation plan is that in most cases interest and penalty stops accruing on the pre-petition tax debt included in the Chapter 13 Plan.

Generally, back tax debt is non-dischargeable in any form of bankruptcy. However, in some instances back tax debt can be determined dischargeable (wiped out). There are quite a few factors involved and this can be a more tedious and complicated process. It is best to seek the assistance of legal counsel to determine how to best help you with your back tax debt.

If you are struggling with back tax debt or your financial situation in general please take the step to contact our office nearest you and schedule a confidential and free initial consultation with one of our licensed attorneys.

Share This Page

Bond & Botes Law Offices

At Bond & Botes, we now offer full service bankruptcy consultation and filing over the phone or by video from the comfort and safety of your home or office. Please call 1-877-581-3396 or click here to setup your free phone or video consultation.

The lawyers at the Bond & Botes affiliated offices serve clients at offices in Anniston, Birmingham, Mobile, Montgomery, Opelika, Decatur, Huntsville, Florence, Haleyville and Gadsden, Alabama; Vicksburg, Hattiesburg and Jackson, Mississippi. Read our disclaimer here. You can view our Privacy Policy here.

Alabama Offices

Birmingham

2107 5th Avenue North
Age-Herald Building
Birmingham, Alabama 35203
Phone: (205) 802-2200


Shelby County Location
15 Southlake Lane, Ste 140
Birmingham, AL 35244
Phone: (205) 802-2200


Florence Location
121 S. Court Street
Florence, AL 35630
Phone: (256) 760-1010


Huntsville Location
225 Pratt Avenue NE
Huntsville, AL 35801
Phone: (256) 539-9899


Montgomery Location
311 Catoma Street
Montgomery, AL 36104
Phone: (334) 264-3363


Decatur Location
605 Bank Street
Decatur, AL 35601
Phone: (256) 355-2447


Haleyville Location
914 19th St.
Haleyville, AL 35565
Phone: (205) 486-3580


Gadsden Location
430-B Chestnut Street
Gadsden, AL 35901
Phone: (256) 485-0195


Opelika Location
216 South 8th Street
Opelika 36801
Phone: (334) 887-7666


Anniston Location
1302 Noble St #2C
Anniston, AL 36201
Phone: (256) 344-3559


Cullman Location
200 Second Avenue SW
Cullman, AL 35055
Phone: (256) 739-9866


Mississippi Offices

Jackson Location
5760 I-55 North, Ste 100
Jackson, MS 39211
Phone: (601) 353-5000


Hattiesburg Location
607 Corinne St, Ste B8
Hattiesburg, MS 39401
Phone: (601) 264-7200


Vicksburg Location
1212 Farmer Street
Vicksburg, MS 39180
Phone: (601) 353-5000

© 2024 by Bond & Botes Law Offices. All rights reserved. Disclaimer | Privacy Policy