Bankruptcy and Taxes

Austin Bankruptcy and Taxes Attorney:

One of the most daunting experiences for a debtor is what to do when past and present taxes are due and there is no money available to pay them. It comes as a surprise to many people that some taxes can actually be discharged in a Chapter 7 or Chapter 13 bankruptcy proceeding. Certain conditions must be met first, however, before these tax debts may be considered for discharge. If you are bogged down with past tax debts you may be eligible to have them discharged. In order to properly assess your case, Fears Nachawati offers a free case review. The options that are available to you will be discussed. To schedule your complimentary case review, contact our Austin office by calling 866-259-3002,

Conditions That Must be Met to Discharge Non-Priority Tax Debts:

In order for non-priority taxes to be discharged in a Chapter 7 or Chapter 13 bankruptcy, there are several conditions that must first be met. You are advised to meet with your attorney to go over your specific case, as these are general answers intended to help the debtor get an idea of what is involved:

  • The filing due date for the tax return must be at least 36 months ago (including extensions).
  • The tax return must have been filed at least 24 months ago.
  • The tax assessment occurred at least 240 days prior to the filing.
  • The tax return is legitimate and not fraudulent.
  • The taxpayer also must be legitimate and not guilty of intentionally evading taxes.
  • Past tax returns have been filed.

If the above conditions are met, non-priority taxes may be discharged. If the criteria is not met, you will not be able to discharge these tax debts in a Chapter 7 bankruptcy proceeding but you can file for Chapter 13 bankruptcy. This will give you three to five years to pay these debts in full and there will be no interest charged. Speak to your attorney for specific details as this is a complicated area of law.

Contact an Austin Bankruptcy Attorney for a Complimentary Case Evaluation:

The Fears Nachawati Law Firm specializes in bankruptcy law and they are intimately familiar with this special area of the law that gives people the opportunity to get a fresh start in life. Fears Nachawati offers a free case evaluation to clients who are seeking legitimate answers to their financial and tax challenges. To schedule your complimentary, no-obligation case review with a licensed Texas bankruptcy attorney, call our Austin office at 866-259-3002. You may discuss your case over the phone or meet with an attorney in our office.