Chapter 13- Voluntary Reorganization Of Debts For Individual

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Chapter 13- Voluntary Reorganization Of Debts For Individual

Call: 888-297-6203

Chapter 13 bankruptcy is only available to those who have a regular income, have filed all required tax returns for tax periods ending within 4 years of a bankruptcy filing and other requirements set by the bankruptcy code should be met by the individual.

People like an employee with regular income, a sole proprietor (one-person businesses), and/or self-employed can file for chapter 13 bankruptcy.

Bankruptcy is filed to get a fresh start and get rid of debts. To take full advantage of the bankruptcy laws, it is necessary to see that you don’t keep adding to your debts. If you are filing for bankruptcy because of your overdue federal tax debts, you might need to increase your withholding and/or your estimated tax payments.

Bankruptcy is a help to people who have immense debts and bankruptcy lawyers provide justice as well as full advantage to the debtors that is why it is said hiring a bankruptcy lawyer while filing for bankruptcy could be very helpful and necessary.

If you want a good legal counsel and if you live near Los Angeles & Dallas, TX, reach the Recovery law group – (888-297-6203) or visit https://www.recoverylawgroup.com/bankruptcy/.

Federal tax refunds during bankruptcy

You can receive tax refunds during your case filing but refunds may be subject to getting delayed or used to pay off your tax debt. If you think that your refund is getting delayed or being used as a return for your tax debts then you can check on its status by going to the Where’s My Refund tool or by contacting the IRS’ Centralized Insolvency Operations Unit at 1-800-973-0424. The unit is available Monday through Friday from 7:00 a.m. to 10:00 p.m. eastern time.

Discharge

If and when you complete your bankruptcy plan, you will receive a discharge of debt. Here, you (the debtor) are released from all personal liability of all the dis-chargeable debts. Whether federal tax debts are dischargeable or not is specific to each case based on its facts and circumstances.

Estimated proofs of claim

It is important to have up-to-date proof of claim for any federal taxes you owe before confirmation of your chapter 13 repayment plan. This ensures that you don’t have to pay more than you need to and minimize your federal tax discharge issues at the end of your chapter 13 repayment plan.

To help the IRS amend the proof of claims, promptly provide the bankruptcy specialists with all the papers that they need including all the delayed taxes filed each year, etc. This helps to avoid unnecessary litigations on the release of debts.


    2022-08-08T06:44:54+00:00