Eliminating And Discharging State And Federal Taxes in Bankruptcy in New Britain

All tax problems can quickly benefit from the assistance of qualified and experienced tax attorneys with a full working knowledge of the alternatives that can halt collection actions and resolve all types of tax problems. While all individuals and small business tax problems are unique, there is a common and successful approach based upon knowledge, reputation and well-documented solutions. Tax problems are uniquely solvable in the hands of committed local attorneys specializing in tax relief.

 

At the New Britain Law Offices of Neil Crane, we understand the full range of tax problems and all the available avenues for legal protection, tax elimination and restructuring.

To learn more about options that best fit your tax problems, obtain a free comprehensive consultation that addresses your specific tax problem. Call us at 203-230-2233 or toll free at 1-888-249-3027 to speak with an experienced and knowledgeable New Britain tax relief attorney.

Bankruptcy Tax Treatment

All local, state and federal taxes are subject to elimination or repayment under Chapter 7, Chapter 13 or Chapter 11 bankruptcy proceedings, including the following taxes:

Personal Property Taxes on automobiles, personal possessions and business equipment can be eliminated and discharged if they are more than one year old from the date of the bankruptcy filing.

State and Federal Income Taxes can be eliminated or discharged if they are over three years from the due date, have been filed for at least two years with no assessment within 270 days of the bankruptcy petition under Chapter 7 or Chapter 13.

State and Federal Trust Fund Taxes can be paid under Chapter 13 with reduced interest and other favorable terms pursuant to a three-to-five year Chapter 13 plan.

Real Estate Taxes can be paid in Chapter 13 over the length of the plan as secured obligations.

Obtaining a full and legally binding discharge of tax debt or a customized plan of repayment requires a complete understanding of all the laws controlling tax dischargeability and a full working knowledge of bankruptcy practice and procedure.

Using the Automatic Stay on Tax Collections at the Law Offices of Neil Crane

The ability to immediately halt all collection actions by revenue officers and tax collectors through the automatic stay of bankruptcy is often critical to success in the face of aggressive tax collection laws. The filing of a bankruptcy proceeding halts collections by taking jurisdiction away from taxing authorities and replacing it with the bankruptcy courts taxpayer protection provisions.

Chapter 7, Chapter 11 and Chapter 13 lien removal, Seizures and Garnishments

The filing of a bankruptcy proceeding under any chapter of bankruptcy stops liens, garnishments and seizures. Under Chapter 13 and Chapter 11, liens that are undersecured or recently filed can be removed and treated as unsecured claims. This is a powerful provision in the Bankruptcy Code to reverse already completed IRS and state collection efforts.

To learn more about the automatic stay or lien removal provision of the Bankruptcy Code, contact an experienced New Britain bankruptcy tax attorney at the Law Offices of Neil Crane. Call us at 203-230-2233 or toll free at 1-888-249-3027, or fill out our Contact Form to receive a prompt response to your questions and concerns.