State and Federal Tax Problems in Middletown

Middletown, CT Bankruptcy Tax Relief Attorneys

If you’ve fallen behind on your taxes, bankruptcy protection can provide numerous options not available under other tax law, despite years of efforts and struggle. With the assistance of experienced and knowledgeable bankruptcy tax relief attorneys, you can stop all collection efforts by any local, state or federal tax collectors and find the relief you need to get your life back on track again. At the Law Offices of Neil Crane, we’ve solved hundreds of difficult tax problems through the tax and bankruptcy knowledge gathered over 30 years of successful dealings with local, state and federal tax collectors.

To learn more about resolving your tax problems, call the dedicated tax relief attorneys at the Law Offices of Neil Crane at 203-230-2233, or toll free at 1-888-249-3027.

Bankruptcy Tax Treatment and Tax Discharge Rules

Pursuant to available bankruptcy law, all local, state and federal taxes are subject to elimination or repayment under Chapter 7, Chapter 13 or Chapter 11 bankruptcy proceedings. Some of the basics include:

Tax Treatment Under Chapter 7: Chapter 7 is most often generally utilized to eliminate state and federal income tax debt which is over 3 years old. Chapter 7 also eliminates personal property taxes that are over a year old. This means that properly qualified income taxes and older personal property taxes are eliminated under Chapter 7.

Tax Treatment Under Chapter 13: The dischargeability provisions of Chapter 7 listed above apply in Chapter 13 along with additional provisions for the repayment of more recent income taxes. Chapter 13 also provides for the repayment of all types of taxes including trust fund taxes.

Tax Treatment Under Chapter 11: This chapter is most appropriate for larger personal tax cases or more complicated business tax cases. Chapter 11 allows for dischargeability of older income taxes and personal property taxes in personal Chapter 11 cases and repayment of all types of non-dischargeable taxes in either personal or business Chapter 11 proceedings.

Chapter 7, 11 and 13 Lien Removal and Protection from Levies or 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 filed within 90 days of the bankruptcy filing can be removed and treated as unsecured claims. This is a powerful provision that allows the taxpayer to reverse already completed IRS, state and local tax collection efforts, liens, levies or garnishments.

To learn more about lien removal or other tax provisions of the Bankruptcy Code, contact an experienced Middletown bankruptcy tax attorney at the Law Offices of Neil Crane. You’ll always speak directly with an attorney – We never use voicemail. Call us at 203-230-2233 or toll free at 1-888-249-3027, or fill out our online Contact Form to receive a prompt response to your questions and concerns.