New Port Richey

5422 Trouble Creek Rd 

IRS Tax Debt & Bankruptcy

Tax Debt Relief Attorney 

You can discharge those debts in a personal bankruptcy filing if you have unpaid federal tax obligations. The rules, however, are particular. You want an experienced lawyer at your side throughout the process, someone who fully understands the laws and regulations. 

 

At Debt Relief Law Offices of Tampa Bay, LLC, we understand the stress and anxiety that come with personal financial problems. We aim to minimize your fears and help you put your financial challenges behind you, including applicable tax debt. 

Tax Computation — Tampa, FL — Debt Relief Law Offices of Tampa Bay
Mallet Above Tax Papers — Tampa, FL — Debt Relief Law Offices of Tampa Bay

Helping You Discharge Federal Income Tax Debts Through Bankruptcy

Under federal law, you can discharge tax debts over three years old, which have been assessed more than 240 days before a bankruptcy filing. You cannot discharge unfiled tax obligations, and you may not discharge tax debts that constitute tax fraud. In addition, federal tax liens attached to your assets may not be dischargeable. 

 

Suppose your tax debts are not dischargeable under Chapter 7. In that case, you can set up a plan to repay non-dischargeable taxes without interest or penalties under Chapter 13. 

We have a thorough understanding of the requirements under the law. We can assess whether you have a reasonable chance of discharging tax debts. Speak with us today to learn more about your specific circumstances. 

Can You Still Modify Your Mortgage During a Bankruptcy Case?

The simple answer is yes. We have helped many clients modify their mortgages while emerging from bankruptcy with less debt and an intact, updated mortgage on their homes. 

How Do I Know If I Am Qualified for a Mortgage Modification?
This depends on whether your mortgage is through a mortgage company, the bank, or some other third party like Fannie Mae or Freddie Mac. They are all going to have their own criteria and guidelines for qualification. Below are a few qualifications that if you meet, you are likely to be approved:
  • More than 31% of your income on housing costs like mortgage payments, home insurance, property taxes, HOA fees, etc. 
  • Without a mortgage modification you are otherwise not eligible for refinancing options. 
  • You are upside down or in danger of being delinquent in payments because of changes to your financial circumstances.
  • Your home’s value has declined, and you owe more than it is now worth. 
HAMP modifications can be used to adjust loans on primary residences as well as certain rental properties. 
Which Loan Terms Can Change?
The purpose of these HAMP modifications is to make the loan more affordable for the person making the payments as well as prevent the lending entity from losing any more money than is necessary. The lender can change any of the payment terms, including:
  • Lower interest rates
  • Converting from an adjustable rate to a fixed rate
  • Extending the loans length by any measure
  • Adding arrears to the back of the loan
  • Deferring some of the principal
  • Forgiving some of the principal
What About Modifications and Bankruptcy?
When someone files for bankruptcy, the court takes jurisdiction over most things that are associated with the person’s finances that filed. They are then allowed to continue to make everyday purchases necessary to life like buying groceries, paying bills, and other ordinary course of business purchases. 

A loan modification is not an ordinary course of business. Whether the bankruptcy court needs to take action or not to approve the modification depends on whether the filer filed for Chapter 7 or Chapter 13 bankruptcy. In a Chapter 7 case, these usually last around 4-6 months and some lenders ask the debtor to get court approval. In Chapter 13 cases, the debtor is required to always get court approval regardless if their lender requires it of them or not. To obtain that approval the debtors attorney has to file a motion with the court. 

In a chapter 13 case, the debtor must present a plan as to how they will pay their debts by making a payment to a trustee, who then distributes that payment out to creditors that filed claims against the debtor. The debtors plan must include certain types of debt like past-due income taxes or child support and other domestic support payments. The plan can include arrearages like cars and appliances that are owed to the mortgage company.  

Contact Our Office

For a free initial consultation, please reach out to us at Ziona@debtrelieftampabay.com or contact our offices in New Port Richey at 727-849-DEBT (3328) or in Tampa at 813-765-DEBT (3328) to arrange a confidential meeting. 

 

Our agency specializes in debt relief, foreclosure, probate, and IRS debt assistance. We support filing for bankruptcy under the Bankruptcy Code and offer expert advice in probate, estate planning, foreclosure situations, and navigating IRS debt challenges. 

Need help with IRS Debt? Simply call throughout Tampa Bay in New Port Richey, 727-849-DEBT (3328), and in Tampa, 813-765-DEBT (3328) for a confidential meeting.

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