Tax debt can be the most difficult debt to deal with. The government sets its own rules, which makes discharging tax debt more difficult than say medical debt.
But in bankruptcy, there are still treatment options. Chapter 7 can help discharge older income tax debt, as long as it meets a few qualifications. Kain + Henehan knows the rules and requirements of discharging tax debt and can analyze what can be discharged in a chapter 7.
Chapter 13 is probably the most effective method of dealing with tax debt, especially if your tax debt is newer or your tax returns might not have been filed on time.
Instead of having a chapter 13 plan and still needing to work out your tax debt, a chapter 13 allows you to make one payment a month to the trustee, and the trustee distributes the funds to the IRS, MN Revenue, mortgage lenders/landlords and your general creditors. All wrapped up into one simple payment plan.
Your consultation can be completed virtually, via phone, or in person at one of our two offices in Eagan and St. Cloud.
We’ll confirm and finalize your paperwork. Once you’re ready, you’ll sign off on your bankruptcy filing.
We submit your paperwork to the courts. At this point, all of the protections of a bankruptcy are in place. We only have one quick phone call or Zoom meeting to confirm your paperwork.
If you filed a Chapter 7, your debt will be discharged in about 3 months. If your case is a Chapter 13, your debt will be discharged in 3 to 5 years, according to the payment plan set in your case.
Call or use the contact form below to get started with a free consultation.