Chapter 13 Bankruptcy Lawyer: Managing Unpaid Tax Debts

Chapter 13 Bankruptcy and Unpaid Taxes not all tax obligations are instantly eliminated by filing for bankruptcy. Depending on when the debt started and the sort of tax involved, those who are engaged in a repayment plan can still be in debt. You may handle payments and steer clear of more financial problems by being aware of these distinctions A Chapter 13 bankruptcy Lawyer can assist you in understanding your repayment obligations and explain how qualifying tax debts are handled during bankruptcy. Taxes paid while your repayment plan is in effect may be treated differently than taxes paid prior to filing. Maintaining compliance with your plan requires keeping up with new tax payments.
Can I file for Chapter 13 bankruptcy and still owe taxes?
While your Chapter 13 case is pending, you may still owe taxes. Pre-petition tax debt (taxes owed prior to filing) and post-petition tax debt (taxes incurred following filing) are typically distinguished in bankruptcy. Depending on the relevant legal criteria, your repayment plan may contain some qualified older income tax debts. Newer tax liabilities, however, are usually still your duty and need to be paid on time. Your bankruptcy case may be impacted or you may face financial difficulties if you fail to pay ongoing taxes. A Massachusetts Bankruptcy Center foreclosure lawyer will assist you understand how tax liabilities relate to your repayment plan and go over your legal choices for handling your financial commitments.