Back taxes are among the most complex issues involved in filing for Chapter 7 or Chapter 13 bankruptcy in Colorado.
The Denver bankruptcy attorneys at George T. Carlson & Associates encourage consumers burdened by unmanageable debt or tax problems to consult an experienced law firm as early as possible. In most cases, it is much easier to discharge a debt before a lien is filed against your property. Once a judgment is secured and a lien is in place, it can be more difficult.
In all cases, filing for bankruptcy protection in Colorado will prevent creditors – including the Internal Revenue Service – from taking collection action against you. Together with your attorney, you can then decide upon the best course of action to deal with your personal financial situation.
Bankruptcy and Taxes in Denver
- An experienced Denver bankruptcy lawyer can negotiate an installment agreement with the IRS.
- A Chapter 13 bankruptcy filing can allow you to make payments interest and penalty free.
- Filing for bankruptcy protection can stop the IRS from filing a tax lien.
- Once a tax lien is secured, it can survive bankruptcy and remain in place even if the underlying debts were discharged during bankruptcy.
In cases of back taxes, a lien can be attached to all property that you own, including real estate. The lien may also include interest and penalties and can quickly become insurmountable. Such liens can also show up on your credit report and can damage your credit rating.
Once the tax debt is discharged or repaid, the IRS will issue a Certificate of Release of Federal Tax Lien upon bankruptcy discharge – about six months for Chapter 7 bankruptcy and 3-5 years in Chapter 13. In either case, consulting an experienced Denver bankruptcy lawyer is critical when dealing with tax debts or tax liens as part of a Colorado bankruptcy.
Contact a Colorado Bankruptcy Attorney Today
If you need bankruptcy assistance in Denver or would like more information, call George T. Carlson & Associates today at 303-789-1313 for a free consultation or contact us online. We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code
Denver Bankruptcy Help – 303-789-1313 – Free Consultation
