Taxes, Penalties, and Interest Can Often Be Wiped Out in Bankruptcy

We regularly get calls from people who assume that their taxes cannot be wiped out in bankruptcy.  The good news?  Actually, old taxes can be wiped out in bankruptcy, as can penalties and interest on more recent taxes.  This can stop IRS or Franchise Tax Board paycheck garnishments and levies and help you get back on your feet.  

Bankruptcy code is especially helpful if you filed your returns on time, but simply could not afford to pay.  But the burden of new taxes can be greatly reduced and repayment of taxes that can't be wiped out can be spread over a long time period.  We can explain to you in more detail the multi-part test for whether tax debt is dis-chargeable (capable of being wiped out) in bankruptcy at a free office appointment.  

Are you considering an IRS payment plan?  You might be able to pay much less by wiping out taxes, penalties, and interest in a Chapter 7 or Chapter 13 bankruptcy.  You can put all your creditors on hold while you work out something manageable under court supervision.  Taxes and bankruptcy are complicated issues and each situation is unique.  

There is a common misconception that people can't afford an attorney.  It's not true.  We make our help affordable to you.  We offer very reasonable payment plans so that any Chapter 13 attorney fees can be paid over up to 60 months, depending on your situation; we allow you to pay your Chapter 7 fees in installments before your case is filed.

Call us at 650.259.9200 or schedule a free consultation online.