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Phoenix Bankruptcy Lawyer — Tax Debt Relief

One of the most common questions about bankruptcy is whether it can be used to eliminate tax debts. Like so many things, the answer is "it depends." Under certain circumstances tax debt can indeed be dealt with through a bankruptcy following. In all circumstances, tax relief is complex. A skilled bankruptcy lawyer can help you understand your situation.

At the Law Offices of Anca Iacob, we are dedicated to helping people regain their financial footing. We are deeply familiar with the bankruptcy code and are ready to analyze your finances, including your tax situation, to help you obtain maximum debt relief. Through a combination of strong representation and compassionate service, we will work hard to brighten your financial future.

Taxes and Debt Relief in Arizona Chapter 7 Bankruptcy Proceedings

Under certain conditions, old tax debts can be eliminated through the filing of Chapter 7 bankruptcy. Determining your eligibility for elimination of tax debt will require a very thorough analysis of your situation, but generally speaking, there are at least three conditions that must be met:

  • The taxes must be more than three years old: The government wants to know that you have tried to pay back your taxes through any means available before allowing the debt to be discharged. Any tax returns filed within the last three years cannot be discharged.
  • The tax assessment must be at least 240 days old: We will need to show the court that the IRS last assessed your taxes at least eight months prior to filing bankruptcy.
  • Show your innocence: We must be able to demonstrate that your tax debt is not the result of a fraudulent tax return and that you have not been found guilty of tax evasion.

Tax Debt in Chapter 13 Bankruptcy

If you do not qualify for Chapter 7, you will need to file for Chapter 13 instead. While that means you will have to pay back some of your debts, the good news is that all tax debt, regardless of age, can be rolled into the Chapter 13 repayment plan. And, your payment amount will be manageable because it is based on your income.

Other Considerations

The IRS assesses heavy penalties when taxes go unpaid. These fines, plus interest that accrues on the debt, can make up a large portion of your overall tax debt. Even if we cannot eliminate your tax debt through bankruptcy, our Phoenix debt relief attorney may be able to have the interest and penalties discharged, lowering the overall amount owed.

If you feel like the IRS will never stop chasing you, reach out to the Law Offices of Anca Iacob for help. We can help you confront the issue and deal with it productively. We are not here to judge. We are here for one reason: to get you back on your feet and moving forward in your financial life.

Contact a Glendale Bankruptcy and Tax Debt Attorney for an Initial Consultation

To discuss your tax debt and whether bankruptcy might help you regain control, please call 623-266-0060 to schedule an appointment, or you can contact our Glendale law office online. Consultations are available from 9 a.m. to 5 p.m. Monday through Friday. Evening and weekend meetings can be arranged by appointment.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Office Location

Law Offices of Anca D. Iacob
P.O. Box 11531, Glendale, AZ 85318-1531
Tel: 623-266-0060 | Fax: 623-334-6869

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