Your Federal Debt and Bankruptcy

: Chris Lee Law Firm

  Filed under: Filing Bankruptcy, Taxes

bankruptcy, attorney, attorneys, lawyer, lawyers, dallas, texas, tx, fort worth, mckinney, hurst, law firm, tx, bankruptcy process, debt collector, chapter 13,Often one of the most common types of debt that individuals fall into is federal tax debt and it can be crippling for them financially. They are often misled into thinking that they can simply file for bankruptcy and this financial problem will go away. More often than not, this type of debt cannot be discharged with either a Chapter 7 or Chapter 13 bankruptcy. If you happen to be going through a bankruptcy at the time and you are being audited, the bankruptcy cannot put a stop to this, but what it can do is stop any collection actions while your bankruptcy is still in process.

There are some things that the Chapter 7 or Chapter 13 bankruptcy can help with when it comes to your federal debt responsibility. It depends on what this obligation is. If it is property taxes, or tax liens or fines and penalties you will still have to meet your obligations for paying them. A Chapter 7 bankruptcy may be able to help you with your federal income taxes. There are certain criteria that have to be met in order for this to be dealt with in your Chapter 7 bankruptcy however.

A Chapter 13 bankruptcy is a totally different approach for financial relief. This is more of a repayment plan that is workable for you. What may happen here is that you will still have to pay the non dischargeable, priority tax off in your repayment plan then the unsecured or non-priority tax may be discharged at the end up your plan. The federal tax debt that you have can be quite complex and therefore it is really important that you discuss your needs with a qualified bankruptcy attorney.

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