The Wink Law Firm Can Help Denver Residents With Tax Resolution
Tax season has passed, but if you have outstanding tax debt, the pressure doesn’t disappear with the filing deadline. Unpaid taxes can lead to added penalties, interest, and collection actions that only grow over time. The good news is that there are reliable legal options available, and bankruptcy may be one of them.
At The Wink Law Firm, our bankruptcy lawyers near you help Denver residents navigate their tax debt issues and explore whether bankruptcy makes sense based on their unique financial circumstances.
How Can Bankruptcy Address Tax Debt?
Not every tax debt case can be eliminated through bankruptcy, but certain types can either be discharged or repaid through a structured plan. The key is determining which type of bankruptcy applies and whether your tax debts meet the requirements.
Our legal team of bankruptcy attorneys near you takes the time to review the details of each case so we can identify the right strategy. Let’s take a closer look at how bankruptcy could help you address tax debt and which options might be the best fit for your situation.
Chapter 7 Bankruptcy For Tax Debt
Chapter 7 bankruptcy can discharge older income tax debts if they meet specific legal criteria:
- The tax return was due at least three years before the bankruptcy filing.
- The return was filed at least two years ago.
- The IRS assessed the tax at least 240 days before you filed.
- No tax fraud or willful evasion was involved.
- The IRS did not file a substitute tax return on your behalf.
If these conditions are met, Chapter 7 can wipe out those qualifying tax debts along with other unsecured obligations. It is often a good option for individuals who qualify based on income and financial need. Find out if Chapter 7 bankruptcy is the right fit for you during a free consultation with The Wink Law Firm. Your first step is completing our online questionnaire.
Chapter 13 Bankruptcy For Tax Debt
If you don’t qualify for Chapter 7 or if you have debts you’d like to reorganize to pay over time, Chapter 13 bankruptcy may be the right option. This type of bankruptcy allows you to set up a repayment plan, typically lasting three to five years. Here’s how it works.
- Priority tax debts like income taxes from the past three years, recent tax assessments, and certain business taxes (such as sales or payroll taxes) must be repaid through the Chapter 13 Plan.
- Older income tax debts may be discharged at the end of your repayment plan if they meet certain criteria, similar to Chapter 7 rules.
- You’ll make regular payments based on your income and expenses, which can help manage your debts while protecting assets like your home or vehicle.
- Filing for Chapter 13 can also stop collections, wage garnishments, and tax liens while your plan is active.
It’s important to review tax records and financial details carefully to determine which debts must be repaid through the plan and which may be dischargeable.
Find out if Chapter 13 bankruptcy is the best choice for your situation during a free consultation with The Wink Law Firm. Complete our online questionnaire to get started.
Which Option Is Right For You?
Deciding between Chapter 7 and Chapter 13 bankruptcy depends on several factors.
- The age and type of tax debt
- IRS assessment dates
- Income levels and property ownership
- Whether other debts are also involved
Because the rules for tax discharge through bankruptcy can be technical and case-specific, it is important to work with a bankruptcy lawyer near you, who is well-versed in both tax debt and debt relief, like The Wink Law Firm in Denver, Colorado.
The Wink Law Firm Can Help You With Your Back Taxes
If you have been searching for a “bankruptcy attorney near me,” you might see several options available. What sets The Wink Law Firm apart is our focused experience handling tax debt cases through bankruptcy. We understand how federal tax rules, Colorado tax law, and bankruptcy protections work together, so we can create informed strategies for clients dealing with tax debt.
We take the time to assess whether bankruptcy is a reasonable solution and explain how the process would work in your situation. If it turns out that another debt relief option makes more sense, we are prepared to discuss those alternatives as well.
Start With a Free Consultation
If you have missed tax deadlines or are carrying tax debt from previous years, acting quickly can help you avoid additional penalties, wage garnishments, or other collection efforts. The Wink Law Firm’s lawyers for bankruptcies near you offer free consultations for Denver-area residents to review your tax debt and discuss potential solutions tailored to your specific situation.
Contact us today to find out whether bankruptcy could be the right answer for your tax debt or to learn about other legal strategies that may be available. Call (720) 523-0620, or fill out our online questionnaire, and a member of our team will get back to you.