Minnesota Tax Discharge & Bankruptcy Lawyer

Eliminating Your Tax Debt When Filing for Bankruptcy

One of the biggest concerns surrounding any bankruptcy case is what will happen to the tax debt. Is it possible to eliminate the tax debt owed to the IRS and other taxing agencies when you file for bankruptcy? Although there are certain debts that cannot be discharged, such as child support payments, it is usually possible to eliminate your tax debt when filing for bankruptcy. You may be able to have your tax debt discharged if all of the following circumstances are met:

• It has been more than 3 years since the returns were last due to be filed
• The returns were filed timely or it has been at least 2 years since the returns were filed
• There was no tax fraud involved or attempts to evade the tax
• The taxes were not assessed within the last 240 days

These are the minimum requirements for discharging any Federal or state income taxes. Keep in mind that every single circumstance is different, and you may or may not qualify for a tax debt discharge.

Discharging tax debt will only work under Chapter 7 bankruptcy. Under Chapter 11 or Chapter 13 bankruptcy, the debt will be reorganized into a more favorable payment plan that you will be able to manage. However, all three options may work in your situation. You will need to determine whether you want your assets liquidated or if you would prefer to keep your assets and simply restructure your debts into a more manageable payment plan.

Knowing that you owe the IRS or other taxing agencies, such as the State Franchise Tax Board, the Employment Development Department and the Board of Equalization, can be a daunting prospect to face day in and day out. It can be difficult to focus on the simple pleasures in life while having this looming debt always on the back of your mind. If you are currently struggling with tax debt, it will be worth your while to look into bankruptcy as a solution. A Minnesota bankruptcy lawyer can help you weigh your options.

Bankruptcy Attorney in Minnesota

At Heimerl & Lammers, we understand that abiding by the United States tax system can be complicated for many individuals. It will be made even more difficult when you are in a difficult financial situation and are contemplating bankruptcy. Make sure you get the legal advice you deserve during this confusing time.

Contact a Minnesota tax discharge & bankruptcy lawyer to schedule a free consultation to discuss your bankruptcy options.