Chapter 13 bankruptcy provides an automatic stay on all efforts to collect taxes or enforce liens while providing for an organized court-sanctioned restructuring of tax obligations to the Internal Revenue Service (IRS) and the state of Connecticut Department of Revenue Services. Chapter 13 provides for the readjustment of tax obligations in a manner which reduces interest and penalties and allows for repayment in accordance with the taxpayer's ability to pay. Payment plans are created in our office in accordance with guidelines that take into account the petitioner's first paying monthly costs of living and then repayment of adjusted taxes from the remaining available amount.
At The Law Offices of Neil Crane, LLC, we help consumers throughout Connecticut in reducing, eliminating, and restructuring debt obligations so that they can get back on their feet and in control of their finances.
File a Chapter 13 Bankruptcy to Obtain Specific Relief From Tax Debt
Chapter 13 stops the running of any further tax penalties and statutory IRS or state interest rates in favor of rates that are in line with proper modern-day law interest rates.
Chapter 13 authorizes the removal of levies and attachments in favor of voluntary payment arrangements through a non-IRS third party charged with repaying your adjusted amount to the tax authorities on your behalf. In Chapter 13 bankruptcy, numerous debts to different parties are paid through one monthly payment to a Chapter 13 trustee who is in charge of repayment and then distributes to various creditors on your behalf. No further levies, fines, attachments, or penalties can be issued during the pendency of your bankruptcy case.
Chapter 13 allows for the removal of tax liens from real and personal property where the value of the property has dropped to a level where the lien has essentially become so under-secured as to be "unsecured," and these unsecured tax liens are then removed and subject to regular treatment as unsecured priority claims with the permanent removal of the lien. Given the reductions in the value of real estate, this has become an ideal time for the removal of tax liens to the Internal Revenue Service and the state of Connecticut Department of Revenue Services. This also applies to liens against personal property, business equipment, and other assets. Furthermore, the lien removal is permanent, such that any later increase in value belongs to the Chapter 13 bankruptcy client and not governmental taxing authorities. This means that liens are permanently removed at today's most depressed values and allowed to benefit the Chapter 13 client as the market recovers and values reach back to previous numbers or beyond.
Chapter 13 precludes further tax authority enforcement, freezes past amounts, and allows organized monthly payments to commence within 30 days, even if the taxpayer is in serious default and has broken prior repayment arrangements with the Internal Revenue Service office or the Connecticut Department of Revenue Services. It can also provide for repayment on years where the taxpayer has not even yet filed returns.
Chapter 13 provides for the orderly repayment of trust fund taxes, like sales tax and withholding taxes, that have been personally assessed against business owners by the Internal Revenue Service and the state Department of Revenue Services. It also prevents the further imposition of penalties on outstanding trust fund tax obligations as the taxes are repaid without further penalty.
Talk With Our Waterbury Bankruptcy Attorney About Your Tax Debt
Serving clients since 1983, our Connecticut Chapter 13 bankruptcy law firm is equipped to represent your interests in seeking protection under the Bankruptcy Code. We offer convenient office locations throughout Connecticut in Hamden, Bridgeport, Waterbury, Rocky Hill, and Ridgefield.
Discuss your tax debt concerns with an experienced and reputable bankruptcy lawyer at The Law Offices of Neil Crane, LLC. We offer informative advice regarding debt discharge and straightforward guidance to bankruptcy clients throughout Connecticut. We offer a free consultation. Please do not hesitate to call us today at 888-249-3027, toll-free 1-800-616-DEBT, or complete our online contact form to discuss your questions and concerns with an experienced attorney.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
