Many clients come to us under the mistaken belief that taxes may not be discharged in a Chapter 7 Bankruptcy. Though some taxes may never be discharged under Chapter 7 Bankruptcy (such as those withheld by an employer, or tax debt secured by property) income taxes may very well be discharged if three conditions are met.
A Chapter 7 Bankruptcy is a liquidation of non-exempt assets. It is also referred to as a “straight bankruptcy” a “total bankruptcy” or a “fresh start bankruptcy”. Chapter 7 Bankruptcy offers individuals and couples a fresh start.
Think back on the past year. Did you live paycheck to paycheck? Were you constantly worried about bills? Did unexpected expenses cause you to take out loans you simply cannot afford to repay? Has a loss of employment affected you or your family? If any of these situations apply to you, bankruptcy may be the best way to start your new year.
Filing for bankruptcy can be a difficult decision. We offer free consultations and guide you through every step of the process! Get in touch today.