IRS tax debts

Eliminate Older Tax Debt

Income tax debt incurred more than three years ago can generally be treated as unsecured debt through the filing of a Chapter 13 Reorganization or a Chapter 7 Fresh Start. In the event of a Chapter 7 filing, this unsecured debt would be eliminated through the program. Once the Chapter 7 is filed, you are protected from any further IRS collection efforts or levies on these aged tax debts. Within four to five months, you will receive a full discharge from all your unsecured debts and can start with a clean slate. There are certain stipulations to eliminating older tax debts, such as when you actually filed your taxes, which you will need to discuss with our attorneys at the time of your initial, free consultation. At that time, we will develop the best plan to resolve your IRS Tax debts.

Reorganize Current Tax Debt

In the case of Chapter 13, you are able to reorganize your tax debts.

If the tax debts are over three years old, a portion of the debt could be eliminated depending upon how your plan is structured. Under the Chapter 13, all unsecured debts, such as older tax debts, are paid back at 0% interest with no additional late fees or penalties. In addition, all payments to these unsecured creditors are deferred until your secured obligations (such as a mortgage or vehicle payment) are up-to-date.

If you have tax liabilities incurred within the past three years, our attorneys can set up repayment terms through the Chapter 13 reorganization. Within the Chapter 13 proposed repayment plan, these current tax liabilities are paid with "priority" status. This means that the tax debts are paid only after you are current on your secured debt obligations, such as a home or vehicle, but before payments are made to unsecured creditors. Under the terms of the Chapter 13 program, no further interest or penalties will accumulate for the duration of the plan.

The Chapter 13 program offers a comprehensive debt consolidation plan that is tailored to your circumstances and budget. You are only required to pay your "best efforts" towards unsecured debts over the course of the 36 - 60 month program. The remaining unsecured debt is eliminated or discharged at the completion of the program. You have full court protection from the IRS and your creditors while you are in the repayment program - no more phone calls or threatening letters. Because you are making efforts to pay your creditors back (no more late reports to the credit reporting agencies) and are only focusing on paying down principal debt (reducing debt-to-income ratio), your credit will improve throughout the course of the program

We offer free in-office and phone consultations to review your personal circumstances, analyze your situation and advise you on the best course of action. Please call us toll free at 888-868-6005 or click here to schedule a consultation right now.