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Eliminating And Discharging State And Federal Taxes in Bankruptcy in Fairfield
All tax problems can create a level of fear and hesitation but all tax collectors are quick to address well-crafted and properly presented tax resolutions. Tax problems in even the most extreme phase of collection are highly solvable. All forms of tax collection are automatically stopped and thereafter controlled by the filing of any chapter of bankruptcy protection. Our experienced Fairfield, CT bankruptcy tax attorneys understand all the legal options for eliminating or repaying all forms of taxes in any stage of collection through properly prepared petitions for bankruptcy protection. At the Law Offices of Neil Crane, we’ve been utilizing all chapters of bankruptcy to provide prompt and permanent tax solutions to our Fairfield County clients for over 30 years.
To learn more about discharging or eliminating taxes in bankruptcy or other forms of debt relief, contact an experienced attorney at the Law Offices of Neil Crane by phone for a free consultation. We never use voicemail. Call us at 203-230-2233 or toll free at 1-888-249-3027 or contact us online by completing our simple Contact Form.
Bankruptcy Tax Relief Under Chapter 7, Chapter 11 and Chapter 13
All three chapters of personal and business bankruptcy contain a set of strong provisions for the elimination or restructuring of all forms of local, state and federal taxes:
Chapter 7 Bankruptcy Tax Protection: Under Chapter 7, state or federal income taxes are subject to complete elimination or “discharge” if they are:
- For a tax year due more than 3 years from the date of bankruptcy;
- For a tax year whose return has been properly filed for more than 2 years from the date of bankruptcy
- For a tax not assessed within 270 days of the bankruptcy filing
This means that older past due taxes can be eliminated in full with the proper filing of a Chapter 7 petition.
Chapter 13 Tax Treatment: Along with the dischargeability powers of Chapter 7, this chapter also allows for the repayment of more recent income taxes on favorable terms. All other forms of personal taxes can without exception also be repaid over the terms of a Chapter 13 Plan.
Chapter 11 Tax Protection: Personal Chapter 11 cases allow for discharge of older income taxes and the repayment of all other forms of tax debt, including real estate taxes, income taxes, sales taxes and others on favorable terms generally within a five year period.
Bankruptcy’s Automatic Stay on Tax Collection Efforts
The filing of a bankruptcy petition under any chapter will immediately stop all forms of collections, liens or levies or other attachments through the creation of an automatic stay. The automatic stay allows for protection against all forms of tax collection and the time to provide a suitable plan for tax resolution based upon the provisions of the Bankruptcy Code. The Bankruptcy Code also provides for the removal of attachments, liens, levies and garnishments already in effect before the bankruptcy filing.
Tax Lien Removal Under Chapter 13
To learn more about the removal of liens from real estate and other assets through the filing of lien removal motions in the Chapter 13 bankruptcy court, call one of our specialized attorneys at 203-230-2233 or toll free at 1-888-249-3027. Or contact us online by completing our Contact Form.