IRS Taxes In a Fort Lauderdale Chapter 13 Bankruptcy
Most people don't know that IRS tax debt can be either eliminated in a Fort Lauderdale bankruptcy or paid through a Chapter 13 bankruptcy without additional penalties and interest. Dealing with delinquent IRS tax debt through bankruptcy in Broward County is something that can definitely be done. Your particular outcome will depend on your specific situation. I can say that filing a Hollywood Fl. Chapter 13 gives you some leverage against the IRS. By entering into a Chapter 13 bankruptcy to deal with your delinquent IRS taxes, the playing field changes as you now have the power of bankruptcy federal law on your side.
You are not at the mercy of the IRS after you file a Chapter 13 bankruptcy. The bankruptcy laws anticipated delinquent tax problems as something to overcome for a fresh start.What Can be Done With IRS Tax Debt in a Ft. Lauderdale Chapter 13?
If you owe delinquent taxes to the IRS: Within a Weston Chapter 13 bankruptcy, IRS debt is classified as a priority debt. All priority debt that you have on the day you file must be paid back in your Chapter 13 payment plan. The benefit of doing so is that Chapter 13 allows you to pay off the back taxes over a three to five year period and filing a bankruptcy will stop the accumulation of additional interest and penalties which is usually what sends delinquent taxes through the roof.
Depending on when the delinquent taxes were assessed and how long it’s been since they were assessed, you may even pay back less than what you currently owe. If the taxes are over three years old and other criteria is met, your delinquent IRS taxes may even be totally eliminated in a Pembroke Pines or Hollywood Chapter 13 bankruptcy.The Power of Bankruptcy Automatic Stay Protection Against the IRS
As you’ve learned elsewhere on this website, once you file a Fort Lauderdale bankruptcy case, an automatic stay goes into effect that prevents creditors from taking any action to collect on a debt. The automatic stay also applies to the Internal Revenue Service. From the moment your Chapter 13 case is filed, the IRS is prevented from taking any further adverse action against you and your assets. It’s important to note that if you file a Chapter 7 bankruptcy in Pembroke Pines, the automatic stay also goes into effect and stops the IRS while your Chapter 7 bankruptcy case is active. However, a Davie Chapter 7 doesn’t offer you a way to resolve the delinquent IRS tax problem It only gives you a 3 to 4 month reprieve. Once your Chapter 7 case is closed, the IRS can resume their collection efforts.
If you want to resolve your delinquent tax debt instead of just pausing the IRS collection efforts, a Chapter 13 will be the better bankruptcy chapter to file. In a Chapter 13, we have options on how to resolve the IRS debt and the automatic stay protection will apply throughout the three-to-five year time frame that your case is open.How to Deal With an IRS Tax Lien With Fort Lauderdale Bankruptcy Law
If you have an IRS Tax Lien filed in the Official Records, then the treatment of your delinquent taxes takes on an additional layer. Once a Federal Tax Lien is filed in your county’s official records, that tax lien attaches to everything you own. Everything. It attaches to your personal property, real estate, wages, - you name it…it attaches.
In a Ft. Lauderdale Chapter 13, it’s a little more complicated to deal with delinquent IRS taxes once a tax lien has been filed but it’s not impossible. There is also tax relief available through bankruptcy and the details of how to deal with it will depend on the specifics of your individual situation.