Going through prolonged periods of financial strain can be a daunting experience under any scenario. Individuals who struggle under the weight of debt may wish to explore the possible benefits of seeking relief via outlets such as bankruptcy, but they might have concerns about certain aspects of the process. Individuals in Georgia who have past-due tax debts might wonder if these debts will even be eligible for discharges through bankruptcy.
Discharge of debts
According to experts, only certain types of tax debts may be eligible for discharge via bankruptcy, such as income tax debts. However, even with income tax debts, one may need to meet certain requirements before this is possible. For instance, tax debts cannot be from the past three years, and a person must be eligible under the IRS 240-day rule. Experts state that those who commit acts such as tax evasion or fraud may also be ineligible to seek relief from tax debts in bankruptcy.
It may also be helpful to know some types of tax debt that are ineligible for discharge via bankruptcy. Examples of these debts may include penalties from certain types of tax debts, debts from unfiled returns and taxes from trust funds. Understanding how tax debts are handled in bankruptcy may be vital to making an informed decision about one’s options, but it can also be a complex process.
The options
Individuals who struggle with tax debts and wish to know more about all their available options for relief might find it helpful to speak with an attorney for assistance in evaluating their situations. An attorney can examine the circumstances a client in Georgia is facing and provide insight on all his or her available options. Such guidance could prove integral to helping a person better prepare to choose the best path for relief from the burdens of debt and take the necessary steps to safeguard his or her financial future.