Bankruptcy & Tax Debt

Professional Legal Assistance In A Sophisticated Area Of Law

While eliminating tax debt can be challenging, it is not impossible. Depending upon the situation, a debtor may be able to discharge the debt through bankruptcy or repay the government only a percentage of the actual amount.

North & Sedgwick Law is proud to provide the services of Illinois attorney Paul Camarena. As a certified public accountant (CPA) as well as a bankruptcy lawyer, Mr. Camarena has the in-depth financial knowledge to guide clients through the complexities of Internal Revenue Service (IRS) tax debt and bankruptcy law.

Discharging Tax Debt Through Bankruptcy

In some cases, individuals can completely eliminate their tax debt through bankruptcy, but the criteria are strict. Among other requirements, the following must be met:

  • The tax debt must be more than three years old.
  • The tax return must have been filed in a timely manner, at least three years ago.
  • The tax must have been assessed more than 240 days before filing.
  • The tax return must have been completed correctly, without fraud or tax evasion on the part of the filer.

Even if the IRS debt is not dischargeable, there are other options. Filing for Chapter 13 bankruptcy allows individuals to create interest-free repayment plans on tax debt. At the same time, it provides protection from new IRS penalties and late fees.

Other possibilities for debt relief include using an IRS offer in compromise or negotiating an installment agreement for payments.

Contact An Experienced Chicago Bankruptcy And Debt Relief Attorney

Schedule a free initial consultation about bankruptcy and tax debt by calling North & Sedgwick Law at 312-878-8429. You can also contact the firm via email.

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†The firm is a debt relief agency and helps people file for bankruptcy relief under the Bankruptcy Code.