A five million dollar judgment would most likely be a large enough debt to send someone into bankruptcy, but not necessarily someone like Curtis Jackson, AKA 50 Cent, the rapper reportedly worth $155 million dollars. However, the bigger issue for him was owing back taxes. Most tax issues that force someone into bankruptcy are a result of more than several years of taxes owed and even not having filed those same tax returns. Many clients that I have represented over the years have owed back taxes to the IRS and the State of Alabama and believed that there was not any other option for them other than dealing directly with the taxing authority. This even leads to them incurring other debt and getting behind on house and car payments.
If you are dealing with mounting tax debt, unfiled tax returns, and other debt issues, seek the advice of an experienced professional. Myself and several of my partners are admitted to practice law in the United States Tax Court and have represented many people in Bankruptcy Court who owe the IRS. Getting back to 50 Cent and his bankruptcy filing, he stated that his decision to file bankruptcy was a business decision. “I’m taking the precautions that any other good business person would take in this situation.” You may not be worth millions of dollar, but you should view your situation as the most important business decision you ever chose. When faced with similar situation or debt that you are struggling with, please reach out to a professional who can give you reliable advice. At Bond and Botes, we offer a free personal face to face consultation with an attorney to review your situation and explain all your options.
- Beware of Scammers Impersonating the IRS
- Changing a Tax Return After Filing Bankruptcy
- Impact of Filing Bankruptcy on Back Taxes
Robert Reese is a Managing Attorney at the Bond & Botes Law Offices in Birmingham, Alabama. He holds a Bachelor of Science from Jacksonville State University, and a Juris Doctorate from the Birmingham School of Law. Robert is also a member of the National Association of Consumer Bankruptcy Attorneys (NACBA). Read his full bio here.