Tax debt can one of the most intimidating debt to deal with. Our government sets its rules about taxes, which makes discharging tax debt through bankruptcy more difficult than say medical debt. To decide what to do about your tax debt, consult with an attorney with expertise in how tax debt can be addressed through bankruptcy like attorneys Margaret Henehan and Bill Kain. We are well prepared to help you review your options.
In bankruptcy, there are solutions that address what is allowed when it comes to tax debt. For example, chapter 7 can help discharge older income tax debt, as long as it meets a few qualifications. At Kain + Henehan, we know the rules and requirements of discharging tax debt and can analyze what can be discharged in a chapter 7 filing.
Chapter 13 is often 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. For instance, a chapter 13 bankruptcy allows you to make one payment a month to your trustee, and the trustee distributes the funds to the IRS, the Minnesota State Revenue, mortgage lenders or landlords and your general creditors. A simple payment plan is less stressful, easier to track, and designed around your ability to pay.
Your consultation can be completed virtually, via phone, or in person at one of our two offices in Mendota Heights 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.