Dayton Bankruptcy Attorneys Help Individuals Facing Bankruptcy

Tax debt is one of the most common reasons for filing bankruptcy, especially for anyone who owns a sole proprietorship. These small businesses operate without incorporation and are considered your primary source of income. But, pitfalls abound both for the small business owner and for the individuals that find themselves indebted to the IRS.

Tax debt is also one of the most prolific sources of debt in that penalties and interest can mount up at unbelievable speed until the balance due is overwhelming. Unfortunately, resolving debt by interacting directly with the IRS can be a terrifying and frustrating experience. Also unfortunate is that the reforms to the bankruptcy system enacted in 2005 made getting rid of IRS debt via bankruptcy more difficult than before the changes. Dayton bankruptcy lawyers have the expertise and experience to advise you on these complex reforms.

Most tax debt can't be discharged with a Chapter 7 or Chapter 13 bankruptcy. With a Chapter 13 plan initiated with bankruptcy lawyers in Dayton, you will still owe the tax debt at the conclusion of your plan and the owed amount will be part of your payments. In a Chapter 7, some of this debt may be wiped out, but only if you satisfy very specific criteria: