Tax Relief and Chapter 13 Bankruptcy

At the Law Offices of Neil Crane, LLC, we're one of the leading Chapter 13 bankruptcy relief firms in Connecticut. We have built a long-standing reputation for excellence in all three bankruptcy courts in our area, which are located in Bridgeport, New Haven and Hartford.

 

Chapter 13 provides the full scope of all types of tax relief for individuals experiencing tax problems to federal, state or local taxing authorities.

This chapter of bankruptcy prioritizes taxes over all other types of debt and allows for the "discharge" or extinguishment of many types of taxes. It also provides a mechanism for reduction or repayment of all types of income taxes, sales taxes, payroll taxes, real estate taxes and personal property taxes. Chapter 13 tax relief provides fully comprehensive tax relief for all individuals otherwise eligible for Chapter 13.

To take full advantage of all the tax protections afforded under Chapter 13, you need the knowledge and experience of a Chapter 13 bankruptcy office with over three decades of successful experience. Contact us to schedule a free consultation with an attorney at our firm.

Relief for All Types of Taxes Through Chapter 13

Chapter 13 provides an automatic stay on all tax collection actions and local, state and federal taxes as follows:

  • Personal property taxes: Taxes on personal property that are over one year old on the date of filing can be eliminated entirely, including all penalties and interest. Personal property taxes that are less than one year old can be repaid over three to five years without further penalties or late fees. This includes automobile taxes and all taxes on personal belongings.

  • Real estate taxes: Under Chapter 13, all real estate collections actions are automatic subject to an automatic stay. All taxes can be then repaid over a three- to five-year reorganization plan subject to statutory interest rates. Under-secured real estate tax liens can be reduced.

  • State income taxes: These can be eliminated if they meet the basic three-prong test for Chapter 7 and 13 dischargeability, including interest, penalties and late fees. More recent taxes are fully subject to repayment over three to five years at reduced interest rates under a favorable plan of principal reduction.

  • State sales taxes: These trust fund taxes are fully subject to the automatic stay and repayment at favorable rates over three to five years without further penalties. This allows trust fund tax assessments against business owners to be repaid without loss of assets or termination of the business.

  • State payroll taxes: These trust fund taxes are subject to favorable repayment plans over three to five years with an automatic stay against all collection actions by State Revenue Officers for unpaid state payroll taxes.
  • Federal income taxes: These taxes can be discharged or eliminated if they are over three years old with the return having been filed for more than two years with no assessment within 270 days of the Chapter 13 filing. This includes the elimination of all applicable interest, penalties and late fees. All other non-extinguished federal income taxes can be repaid at reduced statutory interest rates without further penalty over a three- to five-year Chapter 13 plan of reorganization.
  • Federal trust fund payroll taxes: All collection actions for trust fund payroll taxes are subject to the automatic stay of Chapter 13. Repayment of trust fund personally assessed payroll taxes can be repaid at favorable rates without further penalties or late fees over a three-to-five year repayment plan based upon personal income and expenses. This offer allows for the repayment of personally assessed business taxes while allowing the business to continue future operations.

By providing the protection of the automatic stay and elimination or repayment for all types of local, state and federal taxes, Chapter 13 is a panacea for delinquent taxpayers.

Properly Crafted Chapter 13 Plans and Tax Dischargeability

To provide maximum tax relief, a Chapter 13 Plan needs to be carefully prepared and properly documented in accordance with all the laws and nuances of the new Bankruptcy Code and its income requirements. At the Law Offices of Neil Crane, LLC, we have utilized Chapter 13 to craft thousands of Plans that properly prioritize all types of individual debts, including dischargeable and non-dischargeable tax obligations to local, state and federal authorities.

We have the knowledge and experience to assure that your Chapter 13 Plan will properly prioritize your debts in accordance with their importance and your household income and expenses. This requires a complete understanding of the latest legal precedence and the experience gathered over 30 years of crafting Chapter 13 bankruptcy relief for individuals throughout Connecticut.

Contact an Attorney About Your Tax Debt

To learn more about tax relief through Chapter 13, contact a lawyer at the Law Offices of Neil Crane, LLC. Contact us online or call us at 203-230-2233 or toll free at 888-249-3027. We offer free initial consultations. We have office locations in Hamden, Bridgeport, Ridgefield, Waterbury and Rocky Hill.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.