A recent Fifth Circuit Court Decision (McCoy v Mississippi State Tax Commissions) held that tax returns that are filed late do not qualify as “returns” under the definition of 11 U.S.C. 523(a) and the resulting tax debts cannot be discharged under bankruptcy.
Filing Income Taxes
It is a temptation to prolong filing your taxes if you know you have a liability to pay or a creditor in the wings ready to garnish a potential return. Maybe it is time to resolve your debt and relieve your financial stress? If you owe money to the IRS, it is likely that you have other debts that need to be addressed as well.
We offer solutions to resolve tax debts and other bills. You may have the option to eliminate your debts and make a fresh start through Chapter 7 Bankruptcy or consolidate your bills in one affordable monthly payment through a Chapter 13 Debt Consolidation Plan.
Preserve Your Rights for Debt Elimination or Consolidation
Regardless of whether you have the immediate means to pay the resulting liability, it is important to at least file your taxes on time.
This will allow you the option to discharge the full balance through Chapter 7 or likely pay a reduced amount after 3 years waiting period. Even before the 3 year time period you have the option of setting up repayment terms through a Chapter 13 Debt Consolidation plan that allows you to pay back what you can afford based on your budget.
Trust the Michigan Bankruptcy Experts
At Acclaim Legal Services, debt resolution is all that we do. Trust us to make a careful examination of your finances and provide expert legal advice on the best course of action to resolve your debt. Whether it is IRS tax debt or other bills, we have solutions.
We work diligently to prepare our clients who are considering their options to for debt consolidation with Chapter 13 or debt elimination through Chapter 7. This includes discussing:
- Which type of bankruptcy, if any, is right for your circumstances;
- Timing considerations for filing;
- Documents needed to file and expectations for the process.
Call one of our experienced Michigan bankruptcy attorneys today at 866-261-8282 to discuss your debt resolution options. We offer a free in-office or phone consultation at your convenience. We have six offices throughout Michigan, conveniently located in: Detroit, Dearborn, Southfield, Ann Arbor, Warren and Flint.