Bankruptcy & Taxes
Indianapolis Taxes and Bankruptcy Attorneys
Marion County Bankruptcy Lawyers
It is not uncommon for people and businesses struggling with debt to be behind on their taxes. It's called robbing Peter to pay Paul and it happens all the time. You're not the only one.
Dealing effectively with the IRS takes experience. We have been dealing with bankruptcy and related tax issues for 30 years. Contact us and we'll put that experience to work for you today.
At Redman Ludwig, P.C., in Indianapolis, we know just how quickly tax debts can spiral out of control and lead to an IRS tax lien, wage garnishment, or even property seizure. If you have been paying less on your taxes so that you have more money to cover other debts, we cannot emphasize more strongly the need to talk about this situation with an attorney sooner rather than later.
Keep in mind, the IRS is not just any creditor and has the power to do things other creditors can only dream of. However, if you hire a lawyer before the situation has gotten out of hand — there are options and possible solutions available.
Some tax debts ARE dischargeable through Chapter 7 bankruptcy. If income taxes are more than three years old and you filed tax returns related to them more than two years ago, the likely outcome is that you will not have to pay them. Tax obligations that are not dischargeable under Chapter 7 include taxes less than three years old, business taxes, sales taxes, and payroll taxes.
If you are ineligible for Chapter 7 or have decided that Chapter 13 is your better option, non-dischargeable tax debts can be included in your repayment plan. In addition, bankruptcy's automatic stay applies to the IRS as well, meaning that it have to cease any collection efforts pending against you. Filing for Chapter 13 will also accomplish two other very important things: Penalties that the IRS has tacked onto your tax debt are discharged, AND, no new penalties or interest will accumulate while you are in Chapter 13. In short, you may pay significantly less money to the IRS by going through bankruptcy than you would if had tried to work out a debt settlement agreement with them on your own.
Central Indiana Bankruptcy Solutions — Toll Free 866-660-6928
For answers to your questions about bankruptcy tax relief, IRS debt settlement agreements, and how our attorneys can help — call our Indianapolis law offices directly or reach us online by completing the brief form located on the contact us page of this Web site. We offer reasonable payment plans and will deduct initial consultation costs from your fee should you decide to retain us.