Greenwood and Noblesville Tax Debt & Bankruptcy Lawyers
Whether you have tax debt, unpaid student loans, or medical bills, filing for bankruptcy will have an impact on your taxes. At both Greenwood and Noblesville Bankruptcy Law Office of Jonathan Brown locations, we help individuals and businesses throughout Central Indiana come up with a plan for their tax debt. If you decide to go through the bankruptcy process, we will make sure you are prepared for the tax consequences.
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If you are trying to pay everyone and everything back at once, you will never catch up with your debt. While you may be behind on a lot of payments, taxes should be your priority. A tax repayment plan from an offer in compromise can include interest and penalties that make it quite costly. By filing for Chapter 13 bankruptcy, you can come up with a plan that covers your entire debt:
- There are a variety of back taxes that can be discharged through bankruptcy, as long as certain rules are followed. The IRS will not tell you that you can deal with tax debt through Chapter 13 bankruptcy, but our attorneys can help you find solutions.
- Certain tax debts, such as withholding tax and unpaid sales tax, cannot be discharged. They can, however, by repaid through Chapter 13 bankruptcy. Some income tax is dischargeable, but not all. We will take a look at your debt and help you determine what you can discharge.
What Happens to Tax Debt in Chapter 13 Bankruptcy
If you have tax and other debts, Chapter 7 will help you find some solutions, but Chapter 13 will help you pay off your taxes without interest, late fees, or penalties. People can save thousands of dollars a year by paying off their overdue taxes through Chapter 13.
Without a Chapter 13 bankruptcy repayment plan, an offer in compromise to the IRS may be necessary, which could cost you money. If you owe $18,000 in taxes and you pay $400 a month, you could end up paying over $24,000 due to interest in your offer in compromise.
Filing for bankruptcy can save you money, especially if you have heavy tax debt. With offices in Noblesville and Greenwood, we help individuals and businesses throughout Central Indiana get the tax debt relief they deserve. Call 317-565-4829 or contact us today for a free initial consultation.