Tax Debt and Bankruptcy
Florida Bankruptcy Exemptions
Many people contact our office to ask questions about tax debt and whether it can be included in a Chapter 7 or Chapter 13 bankruptcy. Our experienced bankruptcy lawyers at SunCoast Law work to maximize all legal opportunities to include as much debt under the bankruptcy petition as allowed.
In Florida, bankruptcy exemptions allow individuals filing for bankruptcy to protect certain assets from being seized by creditors to satisfy debts. However, bankruptcy exemptions can vary based on individual circumstances, including the type of bankruptcy filed and the specific assets owned.
Additionally, Florida’s exemption amounts are subject to change, so it’s crucial to consult with a bankruptcy attorney or refer to the latest state statutes for the most up-to-date information. It is possible to discharge certain old tax debt under Chapter 7 bankruptcy rules.
Tax Assessment Timing for Bankruptcy Filing
36 months past federal filing due date—To ensure you have exhausted all means to pay your federal tax debt, the government requires that three years, (including extensions) from the filing due date must pass before taxes can be considered for discharge. Your taxes must have been timely filed otherwise they may not qualify to be discharged.
If you have recently received a government notice that taxes are due, you will likely not be able to include this debt under Chapter 7 bankruptcy for discharge. You will however, be able to file for a Chapter 13 bankruptcy, restructuring plan and address all tax debt issues.
Tax assessment 240 days prior to filing bankruptcy—You must prove that the IRS assessed the tax debt, eight months or more prior to filing bankruptcy.
Not the Result of Fraud or Evasion—For discharge, tax debt may not be part of a fraudulent return. Also, you may not be guilty of tax evasion in any way. Bankruptcy, as it involves tax debt can be complicated.
If you’ve been burdened with taxes you just can’t pay, it’s time to talk to someone who can help. Contact SunCoast Law to schedule a consultation now, (844) 330-2727.
We offer debt relief solutions in compliance with U.S Bankruptcy Code.
Means Test
- Florida Bankruptcy Means Test: Eligibility and Requirements
- Steps To Determine Eligibility for Bankruptcy
Chapter 7 Bankruptcy
- Chapter 7 Bankruptcy
- Who Qualifies for Chapter 7 Bankruptcy?
- Debt to be Discharged
- My Assets and Chapter 7 Bankruptcy
- Additional Chapter 7 Benefits
Chapter 13 Bankruptcy
- Chapter 13 Bankruptcy Florida
- Is Filing for Chapter 13 Bankruptcy the Best Choice For You?
- Why File for Chapter 13 Bankruptcy?
- How Chapter 13 Works
- The Chapter 13 Process
- Meeting Chapter 13 Qualifications
- Discover the Benefits of the Chapter 13 Repayment Plan
- Benefits of Chapter 13
- Chapter 13 Bankruptcy Attorney
Chapter 7 vs Chapter 13
- Chapter 7 vs Chapter 13
- Chapter 7 Bankruptcy
- Will You Qualify for Chapter 7 Bankruptcy?
- Chapter 13 Bankruptcy
Chapter 13 Bankrutpcy Timeline
- Chapter 13 Bankrutpcy Timeline
- Chapter 13 Bankruptcy in Florida - What will happen?
- Chapter 13 Timeline
- Changes During the Three to Five-year Repayment Period
- What if I have filed for Chapter 13 bankruptcy before?
- Chapter 13 Bankruptcy Florida
- Is Filing for Chapter 13 Bankruptcy the Best Choice For You?
- Why File for Chapter 13 Bankruptcy?
- How Chapter 13 Works
- The Chapter 13 Process
- Meeting Chapter 13 Qualifications
- Discover the Benefits of the Chapter 13 Repayment Plan
- Benefits of Chapter 13
- Chapter 13 Bankruptcy Attorney
If you need to find a solution, contact a member of our team. SunCoast Law can help! We offer free initial consultations to all of our clients and would be happy to meet with you one-on-one.