If you have found yourself in an inescapable and overwhelming financial situation – perhaps jobless, far behind on mortgage payments and harassed by creditors — you may wish to consider the debt relief provided by bankruptcy protection. Sometimes when there are outstanding taxes owed, bankruptcy can be the best option. We take this into consideration with every case.
If you are in serious financial trouble, this Northern Virginia tax attorney will help you find the most favorable solution available. There are a variety of bankruptcy options available to both individuals and businesses, including:
- Chapter 7 bankruptcy: Also known as liquidation bankruptcy, Chapter 7 bankruptcy requires that your debt and assets must meet the “means test.” There are a number of property exemptions available in Chapter 7, which can allow you to retain your valuable assets while still discharging medical and credit card debt.
- Chapter 13 bankruptcy: Also known as reorganization bankruptcy, Chapter 13 bankruptcy creates an affordable debt repayment plan that lasts from three to five years, after which any outstanding debt is discharged. This plan allows you to use court-determined disposable income to help pay down your debts.
- Chapter 11 bankruptcy: This plan is usually used by businesses, but certain individuals with large debts and assets that do not meet the strict limitations of Chapter 7 or Chapter 13 may qualify. If you are a business owner, Chapter 11 can help your company continue to operate while you seek debt relief. This can be particularly helpful in real estate cases when you need time to either catch up on past-due payments, sell property, or handle delinquent taxes.
As an experienced tax lawyer and certified public accountant, Glen Frost is particularly adept at explaining the connection between bankruptcy and tax liability. You may have heard that tax debt cannot be discharged through bankruptcy, but this is not always the case. Although payroll taxes are never eligible for discharge, income taxes can potentially be discharged in certain circumstances. Our attorneys will thoroughly review your case and shed light on all of your options.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. We are not admitted in the Virginia Federal Courts or Bankruptcy Court.