Best Bankruptcy Lawyers in North Las Vegas, NV

Is Tax Debt Collection Forcing You Into Financial Crisis? Currently Uncollectible Status People who are able to show that all of the money they earn is used to pay their living expenses may have their tax debts designated as currently uncollectible. When the IRS does this, it freezes further collection activities for the tax debt until the taxpayers are able to pay. The IRS has established limits on how much money can be designated as living expenses for each category, and the limits depend on the area in which people live. Offer in Compromise People can make offers in compromise to settle their debts for less than they owe. When people make these offers, they base them on the amount they can afford to pay. In some cases, people may settle their tax debts for cents on the dollar. Chapter 13 Bankruptcy When people file for protection under Chapter 13 of the bankruptcy code, they agree to make payments to repay a portion of their debts over a period of time that lasts for three to five years. Tax debt can be included in the repayment plan, and people might secure plans that allow them to make payments they can afford. If they complete the repayment plans successfully, it is possible that the remaining tax balances will be discharged. Chapter 7 Bankruptcy Some types of tax debt may be discharged in Chapter 7 bankruptcy. Not all types of tax debts are dischargeable in Chapter 7, however. People might want to get tax debt help to learn about their options.