Help With Taxes in Raleigh, NC – Stop Tax Debt Fast!
Help With Taxes in Raleigh, NC –Are you worried about taxes piling up? The good news is, you can get help with taxes in Raleigh, NC! Did you know that filing for Chapter 7 bankruptcy could help you erase some of your tax debt? That’s right! Many people think tax debt can never go away, but with the right rules, some of it can disappear. Let’s break it down so you can see how bankruptcy might give you a fresh start with your taxes.
How Chapter 7 Bankruptcy Can Help Help With Taxes
To get rid of your tax debt through Chapter 7 bankruptcy, your debt needs to meet a few important rules:
- The tax return must be due at least three years ago: Your tax return’s original due date has to be at least three years before you file for bankruptcy. If you got an extension, the date changes too, but it still needs to be at least three years back.
- The tax return must be filed at least two years ago: You need to have filed your tax return at least two years before filing for bankruptcy. If the IRS filed a return for you, called a substitute return, it doesn’t count.
- The tax must be assessed at least 240 days ago: The IRS should have officially assessed (or charged) your tax debt more than 240 days before you file. If you tried an Offer in Compromise or went through another bankruptcy, this time might be longer.
- Only unsecured income taxes are eligible: Chapter 7 bankruptcy helps with income taxes but not payroll taxes or fraud penalties. Also, if the IRS put a lien on your property, bankruptcy won’t remove it.
- The tax return can’t be fraudulent: If you tried to cheat on your taxes or avoid paying them on purpose, Chapter 7 won’t help with that debt.
What Happens When You File Chapter 7 Bankruptcy?
When you file for Chapter 7, the court takes any non-exempt property to pay your debts. But don’t worry—North Carolina lets you keep certain things to help you bounce back. These include:
- Car equity: You can keep up to $3,500 in car value.
- Personal property: You get to keep up to $5,000 in personal items like furniture and electronics.
- Home equity: You can keep up to $35,000 in home value (or $70,000 if you’re married and both of you own the home).
- Wild Card: You can keep up to $5,000 in anything, like cash or other assets.
Most people don’t have to give up anything because their property is protected by these exemptions.
Help With Taxes
– What Happens to IRS Collections?
When you file for Chapter 7, something called an automatic stay kicks in. This stops the IRS from taking your wages, property, or placing liens on your stuff. The IRS can ask the court to keep collecting, but that’s rare.
The clock also stops on how long the IRS has to collect the taxes while your bankruptcy is going on. After your case finishes, the IRS gets more time to collect any leftover taxes.
What If Some Taxes Aren’t Discharged?
If not all your taxes get wiped out in Chapter 7, you might need to file for Chapter 13 bankruptcy next. This is sometimes called Chapter 20 (Chapter 7 plus Chapter 13). With Chapter 13, you can set up a repayment plan for any remaining debt, and pay it off in 3 to 5 years.
Need Help With Taxes in Raleigh, NC?
If you can’t pay your taxes, bankruptcy might be the solution you didn’t know about! While not all tax debt can be erased, Chapter 7 can give you big relief. And Chapter 13 can help you pay off any remaining taxes in smaller, easier payments.
If you’re struggling with tax debt, Cameron Bankruptcy Law in Raleigh, NC can help. We’ll show you how bankruptcy can stop tax debt, protect your property, and give you the fresh start you need. Contact us today for help with taxes in Raleigh, NC!
