Julian Credit Management is a non-profit, nationwide
debt consolidation and credit counseling organization, located in Central Florida.
Our dedicated counselors can help you restructure your bills
and make a payment plan that can cut years and thousands
of dollars off your long-term debts like credit cards, mortgages, and other loans.
Our debt management program can help you repay your debts:
We help you establish a spending plan, determine your financial options,
save money on interest and late fees, get your creditors off your back,
and provide you with useful information.
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There are a lot of people who owe the IRS money for personal income or state tax liabilities and what most people do not realize is that in many cases some or all of their delinquent tax liabilities are dischargeable in a Chapter 7 Bankruptcy.
The criteria to follow to know if your personal state or income tax liabilities are dischargeable in a Chapter 7 Bankruptcy are as followed by the next five rules.
The first is that you must file your tax return at least two years prior to the date of the filing of your bankruptcy petition.
Secondly, your tax return must be non-fraudulent.
The third is that the due date for the filing of the return in question must be at least three years prior to the filing of the bankruptcy petition and keep in mind that the return must have already been filed. If the tax return was never filed then it does meet rule number two.
Fourthly, the IRS must have assessed your taxes 240 days or more prior to the filing of your bankruptcy petition.
The last rule that must be followed is that you must not have made any attempts to evade your taxes.
If you meet these five criteria then your personal state or income taxes are dischargeable through a Chapter 7 Bankruptcy.
This is useful to know because many people make the decision to not file their taxes when they know that they are going to end up owing the IRS money and if you do not file your taxes then you can not discharge the debts owed to the IRS in a bankruptcy.
If you file your taxes and can get away with the IRS not hunting you down for the three years then you will be able to walk away from the burden to the IRS free and clear.
Please know that there are certain exceptions to the 5 rules above that can prevent your debts owed to the IRS from being discharged.
If you file an extension to file your tax return then the three-year period is delayed. The three-year period begins the day that the tax is due.
Additionally, if you have filed a prior bankruptcy then the period of time that you have to wait to discharge your IRS debts through a Chapter 7 bankruptcy is also delayed. If you have an agreement with the IRS to pay them, which is called an offer-in-compromise, then the time for the debt to be discharged is also delayed.
Knowing that your debts owed to the IRS may be dischargeable is invaluable information when you are counting pennies and are not in a position to pay the IRS. The information outlined above is quite complex and may not be thoroughly understood.
If you question whether or not you owe debts to the IRS that may be dischargeable, please consult our office for a free consultation.
Julian Credit Management is a firm that practices exclusively in the area of Bankruptcy and Debt Consolidation and has offices in Clearwater (Pinellas County), Port Richey (Pasco County), Tampa (Hillsborough County), Lakeland (Polk County) and Orlando (Orange County). We represent persons throughout the State of Florida.
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