The Bankruptcy Law Center
Law Office of Don Provencio, PA
Albuquerque, NM
The Bankruptcy Law Center - 505-242-STOP (7867)
Tax Debts & Bankruptcy
When tax debts get out of control, I am an attorney who is here to help you and I will never judge you.
The Internal Revenue Service and State Taxing Authorities possess vast resources to collect the money they are owed. Please
know that you do not have to fear them or face the situation on your own.
If there are levies or garnishments against you then a Chapter 7 or Chapter 13 bankruptcy may be
the best option you have to find a resolution to your tax problems. Bankruptcy can often even the odds you face
against a powerful government entity. I treat Bankruptcy as an economic decision and encourage
all my clients to take the same approach. Discharging tax debt in Bankruptcy is fraught with numerous
rules and it is complicated but I will get you through the maze of regulations and laws required to
deal with your tax debt in Bankruptcy.
Tax Debts Are Dischargeable Under Certain Conditions
The IRS and New Mexico Taxation and Revenue Department are aggressive collection agencies. Bankruptcy is a way to stop those actions that often
take the form of levies and garnishments. Income tax debt must meet certain requirements to be discharged:
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Filing tax returns on time (taxes for unfiled and late filed returns are not dischargeable)
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Your tax return was not fraudulent or frivolous
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You are not guilty of tax evasion
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Tax return was filed at least three years before a bankruptcy filing, including extensions
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Tax assessment is 240 days old based on a self-reported balance due or a final audit or determination or assessment
The above rules are just a cursory review of the basic laws to discharge income taxes. If your tax
debt is from taxes other than income taxes then your tax debt may not be dischargeable depending
on its characterization.
If your tax debt is not dischargeable then you can pay taxes through a Chapter 13 payment
plan stretching out the payments over the plan period of 3 to 5 years. Taxes are usually paid in a
Chapter 13 Bankruptcy without penalties or interest. Therefore, Chapter 13 Bankruptcy provides certain
advantages:
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All pre-filing penalties are categorized as unsecured debts which are rarely paid in full through the plan.
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All penalties stop accruing during the plan payment period provided all plan payments are completed and you receive a discharge.
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You pay no interest on your income tax arrears while in the payment plan and the interest is never paid if you complete all plan payments and receive a discharge. The only exception to this is if the taxing authority filed a tax lien and you have assets to which the lien attaches.
Since 1987 the Bankruptcy Law Center has filed over 12,000 Chapter 7 and Chapter 13 bankruptcy cases . . . successfully helping New Mexicans get a fresh start.
Before You Make Any Decisions You Need To Talk To A Dedicated and Experienced Bankruptcy Attorney
Hire Me And I Will Provide You With The Personal Service You Deserve From A Bankruptcy Attorney
Contact me at The Bankruptcy Law Center for a Free Initial Consultation - 505-242-STOP (7867)
I provide a comfortable environment for you to discuss your specific needs and concerns. When you come to my
office for a free consultation you will find that I will personally take the time to get to know you and craft
a solution that works best for you. From the moment I take your case until your case is resolved, I will be
personally involved every step of the way.
Start the debt relief process with a free initial consultation by contacting me today.
The Bankruptcy Law Center and The Law Office of Don Provencio, PA is conveniently located at
1721 Carlisle Blvd. NE in Albuquerque which is near Interstate 40 and Carlisle.
Call 505-242-STOP (7867)
for a free consultation with an experienced and highly capable bankruptcy attorney.
I am a debt relief attorney. I help people file for bankruptcy relief under the Bankruptcy Code.